The Great Depression has many similarities to the market now. Some will say we cannot have another crash as then because of safety methods put in by government regulators. Ha, have you ever heard of having an insurance policy on a business failure, without the regulations of a State Insurance Commissioner? How about a credit default swap?
History; the stock market peaked in August 1929 and hit bottom three years later, June 17, 1932.
The market lost 83%.
The market did not decline in a straight line after the 1929 crash. Instead, it fell slowly in a almost rhythmical sequence. After dropping by 31% at the end of 1929 the market went up 18% by March 1930, this continued till the end in 1934.
The market continued to fluctuate for almost ten years, continuing to move up.
Investors who bought at the 1929 peak had to wait until January 1945 to regain their losses.
Look at today's Market and see the similarities.
No comments:
Post a Comment