Dow Jones Industrial Average
1973 and 1979 Oil Crisis and Stagflation
The 70's was known as a time of stagflation for the US. The Dow, stocks & shares, and the economy stayed flat for the duration, whilst inflation was taking off. Money devalued, and it was a bad time to be in stocks. The two oil crisis events of 1973 and 1979 created crippling inflationary pressures which were ill desired after the Vietnam War.
One notable exception to the overall trend was the stock market crash of 1973-1974. The Dow Jones Industrial Average fell from a high price of 1067.20 on 11th January 1973, to a low of 570.01 on 9th Decemeber 1974, a 46.6% drop--54.3% when adjusted for inflation. Nominally, the index recovered quickly, however due to continuing inflation troubles for the remainder of the period, the true inflation-adjusted value of the Dow bounced around this bottom level until the early 80's. It reached a final low of 769.98 on 9th August 1982, which was an inflation-adjusted 65.6% fall. For the whole period between the initial high in 1973 and this final inflation-adjusted low in 1980; nine years, investors lost an average 11.6%--adjusted for inflation and compounding--per year, minus dividends, by investing in stocks & shares in the Dow.