Twentieth Anniversary of "Black Monday."

It was twenty years ago today...No, not Sergeant Pepper's Lonely Hearts Club Band, but Black Monday. I well remember that day in 1987 when the Dow Jones Industrial Average (DJIA), also known as "the stock market" lost over 22% of its value.

I wasn't watching the carnage on CNBC or the internet that day; I was listening to updates on the radio in my old El Camino Avenue office. Some investors panicked and pulled their money out of the market. Most stayed in and a few savvy or lucky folks started buying the next day.

Since the DJIA dropped below 2000 on Black Monday, it has never been lower, and during the last 20 years, it has averaged a return of over 10% annually. However, just last week the "market" 5% and fell below 14,000 again.

Some of today's economic conditions are similar to what they were in 1987. The dollar is depressed relative to other currencies and commodities, including oil, are near record highs.

So is it time to panic? If the Black Monday and what came after taught two lesson. Dramatic drops can happen at any time, and panic is not the way to reaction. The only certainty with the stock market is uncertainty.