NYSE Holiday Schedule: Why the Markets Shut Down on Good Friday and What to Do When They Close
by Dr. Mark Skousen, Advisory Panelist, Investment U
Friday, April 6, 2007: Issue #659
(Note: This article was written in 2007, follow the link for the current NYSE Holiday Schedule.)
Today is Good Friday, when Christians honor the day that Jesus Christ was crucified on the cross.
It’s called “good” because, according to Christian doctrine, on this day Jesus was crucified for the redemption of our sins. The term “good” (used in English and Dutch) is probably a corruption of the term “God’s Friday.” It’s called “Holy Friday” in Latin America. Slavs and Hungarians call it “Great Friday.” In Germany, it is “Friday of Mourning.” And in Norway, it’s “Long Friday.”
But why is the stock market closed on Good Friday?
The New York Stock Exchange (NYSE), the Nasdaq and all regional stock exchanges are closed on Good Friday because of a long-standing tradition of respect for Christian holidays.This tradition is even stronger outside the United States.
When I lived in Latin America in the 1960s, I remember cities that virtually closed down on Good Friday and prohibited driving an automobile! While it’s business as usual in retailing here in the U.S., the stock exchanges maintain a strong historical tradition of staying closed.
Here is the NYSE holiday schedule for 2007:
- January 1: New Year’s Day
- January 2: National Day of Mourning
- January 15: Martin Luther King, Jr. Day
- February 19: Washington’s Birthday (observed)
- April 6: Good Friday
- May 28: Memorial Day
- July 4: Independence Day
- September 3: Labor Day
- November 22: Thanksgiving Day
- December 25: Christmas
Items of Note on the NYSE Holiday Schedule:
First, whenever a president dies, the exchanges select a day of mourning. January 2nd was chosen as the day to mourn the passing of President Gerald Ford.
Second, the stock exchanges, particularly the NYSE on Wall Street and the London Stock Exchange in England, close on Christian holidays – Good Friday and Christmas.
Third, Wall Streeters are very traditional. They have refused to change Washington’s Birthday observance to President’s Day. Until 1953, they observed Lincoln’s birthday (February 12), Columbus Day (October 12), Veterans Day (November 11), and often Election Day (the first Tuesday of November).
Although the NYSE closed on the funeral day of Martin Luther King Jr. in 1968 – the first time they did so in honor of a private citizen – the Exchange resisted adding Martin Luther King Day until 1998, years after it was declared a national holiday. (The Exchange did close to honor the death of J. P. Morgan in 1913, but only for two hours.)
What Could Close the Stock Markets Unexpectedly?
Since 1953, the exchanges have attempted to reduce the number of official closing days, knowing that investors want the markets open as long as possible.
There is growing pressure, with the Internet and computerized trading, that markets can be open 24/7. Personally, I like a break from the gyrations of the stock market, and no one wants to hear that the stock market has crashed on a Sunday morning.
I recently reviewed all the reasons the New York Stock Exchange (NYSE) closed since 1885. I was surprised by the number of unexpected closings, such as:
- Computer failures: Circuit breakers (the NYSE is required to stop trading when the market declines by a certain percentage)
- Power failures, especially in the 1970s
- Hurricanes
- War (the exchange was closed for 5 months in 1914 at the beginning of World War I, but was never closed for World War II).
- Terrorist attacks (September 11-14, 2001)
The biggest concern is that when the markets are closed, you can’t get at your money. Your account is frozen, and there’s nothing you can do about it. And when the markets reopen, the value of your accounts may drop sharply.
What to do? Always keep a month’s worth of spending cash (banknotes) stored safely at home and/or a safe deposit box. Buy some gold and silver coins (pre-1965 silver dimes, quarters, halves and dollars, known as “junk” silver). They will maintain their value, and may even increase in value, during a financial crisis.
Good investing,
Mark
Related Investment U Articles:
- The Silver Market’s Stroll Down Memory Lane
- A Better Tax Rate on Silver
- A Green and Silver Holiday
- ETF’s are Great, but Don’t Overlook Closed-End Funds
- Closed-End Funds vs. ETFs: Are You Missing Out On “Secret” Profits From Emerging Markets?
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