Brief History Of US Stock Market

Most of us are not able to predict when the next Wall Street Crash will happen. Bear markets are periods of declining stock market prices that are measured in months or years. When examining ongoing price action in the stock market chart, we see many things, but certainly NOT a stock market collapse in 2017. Although Federal Reserve maintains the interest rate recently, there is no guarantee it will be the same in 2008. Since this data is reported quarterly, for investors to bid stock prices up in the months ahead of actual earnings announcements, they had to be anticipating higher earnings.

The peak in market indices took place in early September, and this was followed by a gradual but persistent drop. Also, one of the major new streams of oil flooding the market comes from the American shale oil revolution. This means that the average stockholder more than tripled the value of the stock portfolio he or she was lucky enough to possess. VXX, one of the most popular ways to bet on bigger market swings, has absorbed $715 million in seven consecutive weeks of inflows, its longest streak of inflows since one ending in July 2012. Whilst hedging can be an expensive exercise, it will save your skin when things go horribly wrong such as during a Wall Street Crash.

If you had $1000 on 9/3/1929 (beginning of the 4th worst crash, it would have gone down to a whopping $108.14 by July 8th, 1932 (end of the worst crash) or an 89.2% loss. This was short lived and it crashed again entering a bear market and reaching its lowest point in July of 1932. This did little more than temporarily stem the tide, however, because from Black Thursday to October 29, 1929 ( Black Tuesday ), stocks still lost more than $26 billion of value andĀ more thanĀ 30 million shares traded. On October 29, 1929, also known as Black Tuesday, the stock markets plummeted and continued to decline unrelentingly for a month. I guess, in my own opinion no one really does have a crystal ball, to tell what happens on the market today, tomorrow next week or next year. The result of this dangerous mix is a dire outcome for the global economy that will send us plunging into a stock market crash.Stock Market Crash

Investors have never earned permanent gains from stock purchases made when stock were selling at the sort of prices at which they are selling today. They will lose some market share but pick up more market share as their low prices are appealing. Among the problems: Determining a fair price for a private company’s stock is tough without much public information. SharesPost is one of a few private stock exchanges that are emerging to fight what venture capitalists call a liquidity crisis.Stock Market Crash

And I don’t say that lightly, realising many people, especially retirees, fear nothing more than a stock market crash. After October 29, 1929, stock prices had nowhere to go but up, so there was considerable recovery during succeeding weeks. The market continued to decline in value, leaving investors who had purchased stock on credit financially destroyed. Savvy investors began to worry when stocks at the Wall Street Exchange began tumbling on Black Thursday, October 24 1929. McDonalds (MCD) will be the inexpensive restaurant that will gain market share as people forego expensive restaurants and head to McDonalds.Stock Market Crash