Students will explain how the role of the Great Depression affected the American people and changed the role of the government. This meant that brokers were now allowing investors to borrow on top of their original investment to buy even more stock. Update 2: One of the interesting things about stock trading for a living is identifying the twists and turns in the road to stay alive and prosper.

C. 1933 The great majority reacted by thinking money is the most important thing in the world….. And there was a small number of people who felt the whole system was lousy. While a stop will not guarantee your exit price during a Stock Market Crash, in many cases it will help you exit at a more favourable price than if you did not have one in place. In fact, GE, the only surviving Dow component, was selling around $400 in 1929; today it fluctuates below $20. We may not be able to time the next crash with any great accuracy, but we can at least be aware of when the conditions are becoming ripe for a crash, using quantitative measurements of market conditions. What was slowly happening was an artificial stock market bubble growing and growing. Keep in mind that 200 points at that time is more than 50% drop from the top in September 1929.

You are right that Singapore market seems lag behind US and has been so long ,, while US market eg SP 500 is above 1 SD but our STI still below regression line ,,, is also very true that while US stock tank ,, whole world’s stock market will follow ,,,regardless of what your valuation level ,,, by that time…cheap will become cheaper !Stock Market CrashStock Market Crash

But despite the government’s efforts to prevent another stock market crash, in theory, a free market society isn’t supposed to have any intervention in its economy. In 1995, Rosario Mantegna and Gene Stanley analyzed a million records of the S&P 500 market index, calculating the returns over a five-year period. When risk is high (ie prior to market crashes), the curve will be flat or inverted. The speculative boom of the 1920’s was one of the factors that contributed towards the great depression.Stock Market Crash

DuPont fell from a summer high of 217 to 80, United States Steel from 261 to 166, Delaware and Hudson from 224 to 141, and Radio Corporation of America (RCA) common stock from 505 to 26. Political and financial leaders at first affected to treat the matter as a mere spasm in the market, vying with one another in reassuring statements.