This Day in History: Banks in the U.S. begin to re-open after the three-day national "bank holiday" on this day in 1933 when all the banks were closed. This is to prevent a run on the banks and cool down emotions. This is similar to the 2 market halts this past week. The Stock Market circuit breakers works in three stages. The New York Stock Exchange will be halted for 15 minutes if there is a 7% drop in trading because of panic selling (of the S&P 500). To be shut down a second time for 15 minutes on the same day, there has to be a 13% decline in trading once trading has resumed. After this, when trading takes place again and there is a 20% decline, the stock market is shut down for the remainder of the day.
The stock market was closed for a entire week when Lincoln was shot and killed in 1865. The stock market was also closed for about a week after 9/11. The market halted for a whopping four months at the outbreak of World War I.
These stock market panics come with great opportunities. Tesla stock (TSLA) was trading over $900 a month ago...now it is $560. Apple stock (APPL) is below $250, Ford stock is in the $5 range. Norwegian Cruise Lines (NCLH) is now trading at $9.61, but in December that stock was almost $60. Royal Caribbean (RCL) is now trading for $30, back in December it was $133. These industries will all bounce back.
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