In this post, you’ll learn what happened during the “Death of Equities” period from 1966 to 1982, why people lost faith in stocks, and how the market eventually made a historic comeback. Through a cozy library chat with Bookle the Fairy, Steady and Zippy discover why patience, perspective, and faith in progress are the true powers of long-term investing.
🌙 A Quiet Evening in the Forest Library
The forest was calm. Only the soft sound of pages turning echoed through the old library.
Steady the turtle and Zippy the rabbit were exploring the shelves when Zippy suddenly gasped.
“Hey, Steady, look at this headline!” Zippy pointed at a yellowed magazine cover.
In bold letters, it read: “THE DEATH OF EQUITIES.”
“The death of what?” Steady blinked. “How can stocks die?”
Just then, a gentle sparkle appeared above the desk. Bookle the fairy floated down, her wings shimmering in the lamplight.
“Oh, that headline,” she said softly. “That came from a famous article written in 1979, during one of the toughest times for investors. Let me tell you the story.”
❄️ A Long Winter for Stocks (1966–1982)
Bookle waved her wand, and an old timeline appeared in the air.
From 1966 to 1982—sixteen long years—the stock market barely moved.
Prices of everyday goods kept rising, but stock values didn’t.
Inflation was high, interest rates soared to nearly 15%, and people began to lose hope.
“Wow,” said Zippy. “So even if you invested, you didn’t really make money?”
“Exactly,” said Bookle. “After adjusting for inflation, investors lost purchasing power. It felt like the market was broken.”
Many people turned away from stocks. They bought bonds, real estate, or gold instead.
Newspapers declared that the younger generation would never trust the stock market again.
“They called it the death of equities,” said Bookle.
“But history had other plans.”
🌦️ Clouds of Fear, Seeds of Recovery
Bookle closed her eyes for a moment. “The late 1970s were filled with frustration. Prices were rising faster than wages, and people lost faith not only in the market, but in the future itself.”
Zippy frowned. “That sounds awful. How did things ever get better?”
Bookle smiled. “Even during the darkest winters, small signs of spring begin to grow.
Innovation didn’t stop. Companies kept working. People kept creating. And eventually, change came.”
🌅 The Dawn of a New Era
Bookle turned another page, and the room brightened as the glowing images shifted to the early 1980s.
By 1982, things began to change. A man named Paul Volcker, who led the U.S. central bank, fought inflation by raising interest rates—and then carefully lowering them once prices stabilized.
As inflation cooled, faith slowly returned.
People started investing again.
Companies began innovating with new technologies.
And the stock market entered one of the greatest bull runs in history.
Zippy’s eyes widened. “So after sixteen years of struggle, the market finally came back?”
Bookle nodded. “Yes, and it came back stronger than ever. Those who stayed patient through the storm were rewarded beyond imagination.”
📖 Steady’s Notes
Steady took out his notebook and started writing carefully under the warm library light.
🐢 What I learned from Bookle today:
- The “Death of Equities” period (1966–1982) was long and painful—but temporary.
- Inflation and high interest rates scared people away, yet innovation never stopped.
- Patience and perspective are the strongest allies of long-term investors.
- Markets can sleep for years, but they always awaken with new life.
- History shows that faith in progress always pays off in time.
🎓 Quiz Time！– Can You Answer These?
1. What years are known as the “Death of Equities” period?
A. 1950–1960
B. 1966–1982
C. 1990–2000
Answer: B
2. Why did investors lose faith in stocks during that time?
A. Because inflation and high interest rates hurt stock returns
B. Because there were too many new companies
C. Because trading was banned
Answer: A
3. Who helped restore faith in the market by fighting inflation?
A. Alan Greenspan
B. Paul Volcker
C. Benjamin Franklin
Answer: B
🐢 🐇 What Steady and Zippy Learned
“Even when everyone loses hope,” said Steady, closing his notebook,
“the world keeps inventing, building, and growing.”
Zippy nodded. “So if we stay patient during the hard times, we’ll be ready when the sun rises again.”
Bookle smiled, her wings glowing softly.
“Exactly, my dear friends. The market may sleep—but it never truly dies.”
🌿 Key Takeaways for Readers
- The “Death of Equities” (1966–1982) reminds us that even long downturns are temporary.
- Patience beats panic—long-term investing rewards those who stay calm and consistent.
- Human progress, innovation, and trust always bring the market back to life.
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