The Market Crashes

With the way things have been going lately, it’s not a surprise that many are recalling the details of the stock market crash of 1929. Recovery time and future stock market performance: This analysis also calculates how long it might take for end-of-year 2008 401(k) balances to recover to their beginning-of-year 2008 levels, before the sharp stock market declines. The decline actually began in September, with the market losing 17% of its value. Between 1921 and 1929 the stock market had grown by 600% with the Dow Jones Industrial Average rising from 63 points to 381 points. Each quarter, the Securities and Exchange Commission calculates the thresholds past which a market freeze would occur. A jobless man was a lazy good-for-nothing…. These men were suffered from depression. The market recovered quickly after this crash, however, unlike the 1929 crash, which was followed by the Great Depression of the 1930s. But…… as a stock trader one must live in the world of price action, not in the world of self righteousness-at least not immediately.Stock Market Crash

Recently former Federal Reserve Chairman Greenspan stated that he believed the Chinese stock market was completely overbought and it was looking for a sharp fall. Companies release stocks onto the market during the bull market phase, and it is common for IPOs or Initial Public Offerings to be available in this period before a stock market crash. Comparing Housing vs. Stock Market Growth : shows long-term stock market growth including reinvested dividends (the chart above excludes dividends). At the same time, their holdings in government securities were reduced and open market rates rose, with the call loan rate reaching 8.6% by December.

Just when investors thought the market was finally good again, following a recovery of almost half of the great depression losses, the market plunged again due to war scare and Wall street scandals. The great stock market crash of October 1929 brought the economic prosperity of the 1920s to a symbolic end. In the 1920s, the overall attitude was that the stock market could keep its bull market indefinitely. We could call it the Shemitah 7 year cycle or economic judgment; a sabbath rest, or a crash from economic activity in the form of a forced rest (sabbath). However, a stock market crash is often sudden and dramatic occurring over several days.Stock Market Crash

Another reason that the stock market crash so suddenly in 1929 is that short sellers were allowed to do short any stock no matter how hard it was going down. Consumer confidence is at an all time LOW, rivaling that of the Great Depression, regardless of what the media is attempting to convince the public with. The 1929 stock market crash,a lot of fears abound as people worry about the future economic stability of the stock market and the rest of the stocks they have invested. On October 24, 1929, hailed as Black Thursday, the stock market crashed, triggering the Great Depression. The stock market crash signaled the beginning of the Great Depression that would last for ten years until 1939. They have happened in every part of the world where there was an industrialized market economy. For example, following this strategy and exiting once the VIX crosses 25, you would have moved to cash on September 12, 2008 – just ahead of a 45% stock market plunge.

Black Monday was followed by Black Tuesday (October 29), in which stock prices collapsed completely and 16,410,030 shares were traded on the New York Stock Exchange in a single day. With the unpredictable economy, all people need is to hope for the best in the stock market trading and the nation in general. Once the VIX breaks above 20, the index is signaling that investors are concerned about the market.Stock Market Crash