A Stock Market Crash

I have been doing my own personal investing for quite a number of years and would like to have meaningful discussions on my favourite subject online with others sharing the same interest. The managing director at Citi Thomas Fitzpatrick has also pointed at the market’s similarities to the 1987 crash. It believes that unemployment will rise by over 0.5% to 5.6% and that GDP growth will be sluggish in 2017. Following this turmoil, a brief recession ensued which sent dividends into a minor retreat with no significant erosion of stock prices.

The stock market crash inhibited the ability of the economy to recover from the underlying problems that affected the economy including unevenly distributed wealth, agricultural depression, and banking problems. The decline in stock prices caused bankruptcies and severe macroeconomic difficulties including contraction of credit, business closures, firing of workers, bank failures, decline of the money supply, and other economically depressing events. The Dow Jones Industrial Average fell 89% over the three years between its 1929 peak to its 1932 bottom. The amount of money you lose during a crash is directly proportional to your position size.Stock Market Crash

The combination effect of all the poor and middle income people make the entire market so huge and nobody will ever think of supply and demand. The New York Stock Exchange also make sure that this would never happen again by implementing the uptick rule. These were the same banks that were beaten black and blue in the stock market crash that ensued the sub prime crisis in October 2008. On Black Thursday, October 24, 1929, the stock market crashed and major corporations suffered huge losses. They get many talented people applying for jobs because of their reputation as a great company.

We’re not exactly sure why the Wikipedia article considers the Black Monday stock market crash of October 1987 to be some kind of mysterious black swan event. Unfortunately for many potential investors, these people did not have enough money to afford shares of stock. In 2007 and 2008, the American economy found itself once again teetering on the edge of another economic slide.Stock Market Crash

You can see from the 100-year chart that, on a year-end close basis, it took until 1954 for the stock market to reach its pre-crash peak year-end close of 300; from 1928 to 1954 is 26 years. Research at the Massachusetts Institute of Technology suggests that there is evidence the frequency of stock market crashes follows an inverse cubic power law 8 This and other studies such as Prof. And that could augur ill for our country and its economy during the near term future and, eventually, the stock market. As with many market reversals, the causes are numerous, intertwined, and controversial.Stock Market Crash