Welcome to
1929 Crash of Stock Market
and the Great Depression Information
website!
This website is dedicated to providing
information on The Great Depression of 1929, the 1929 crash of
stock market and other stock market crashes. Our website
provides much information and resources on the stock
market crash of 1929 including the causes of the Great
Depression.
Why study The Great Depression of 1929 or
the 1929 stock market crash?
The 1929 crash of stock market and the Great
Depression marked a very important lesson about the stock
market. By historical standards, the U.S. stock market has
soared to extremely high levels in recent years. Yet, if the
history of high market valuations and the Great Depression is
any guide, the public may be very disappointed with the
performance of the stock market in the next few coming years.
Studying the Great depression and causes of the Great
Depression helps investors be prepared of market downturns,
should something like the stock market crash of 1929
re-occur.
Look at all economic indicators to
recognize the Great Depression environment
The performance of the stock market alone
can be deceiving. For example, the Dow Jones Industrial Average
stood at around 3,600 in early 1994. By 1999, it had passed
11,000, more than tripling in five years, a total increase in
stock market prices of over 200%. Over the same period, basic
economic indicators did not come close to tripling. U.S.
personal income and gross domestic product rose less than 30%,
and almost half of this increase was due to inflation.
Corporate profits rose less than 60%. Between 1994 and 1999,
the total average real price increase of homes in ten major
U.S. cities was only 9%. All economic indicators need to be
examined when investing in the stock market to avoid being in
the market when the market behave as it did during the Great
Depression of 1929.
The Great Depression of 1929 was one of the
worst 1-day drop in history
The Great Depression of 1929 was among the
worst one day drop of the stock market in history.
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The worse one day drop, when the DJIA dropped
22.61%, happened on October 19, 1987.
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The stock market crash of 1929 came second with a
DJIA's one day drop of 12.8% on October 28, 1929.
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The third worst one day drop when the DJIA dropped
11.7% was also during the Great Depression of 1929,
on October 19, 1929.
With the three worst one day drop of the
stock market, there is no doubt that investors can learn a lot
from studying the Great Depression of 1929 and the causes of
the Great Depression. Stock market crashes such as the stock
market crash of 1929 do not happen often, but when a stock
market crash does occur, investors should be prepared for
it.
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