This week we take a look at the stock market crash of 1929. This was the worst stock market crash in United States history and led to the onset of the Great Depression. You thought the 2008 financial crisis was bad? Take a look at these (not so) fun facts for a reality check:
ALSO READ: Five Golden Investment Books
1) The crash took place in October of 1929, with major shocks on:
Thursday October 24, 1929 – Black Thursday: This was the beginning of the stock market slide. The market fell 11% at the opening bell, with a slight recovery taking place later that day.
Monday October 28, 1929 – Black Monday: This is when things really got bad. More investors decided to get out of the market, and it fell 13%.
INVESTING TIP #27-- HOW TO GET FREE STOCK!
Get Up To $1,000 in Free Stock with Robinhood--the
Open a new account and receive one free stock valued at up to $500! Then, once your account is open, get more free stocks (value from $5 to $500) for each friend, family, person you refer!
USE THIS LINK
to get started with Robinhood!
Tuesday October 29, 1929 – Black Tuesday: More selling caused the market to fall another 12%, or $14 billion!
2) The stock market crash led to a huge Bank Run, where everyone lost confidence in the financial system and rushed to take their money out of the bank. When this happens, banks could run out of cash from all the withdrawals and collapse.
3) The 1929 crash led to the Great Depression, which was felt all around the world. Here’s what happened in the United States:
Unemployment went up 25%
Wages went down 42%
Economic growth went down 50%
World trade went down 65%
4) The beginning of World War II marked the beginning of America’s recovery out of the Great Depression. But it wasn’t until 25 years after the crash, in November 1954, that the stock market finally recovered back to its pre-crash prices.
“Anyone who bought stocks in mid-1929 and held onto them saw most of his or her adult life pass by before getting back to even.” – Richard M. Salsman
5) Coincidentally, Mark Twain put it perfectly, decades before the 1929 stock market crash:
“October. This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.”
How do you think the 2008 financial crisis compares to the 1929 market crash? Let us know in the comments section below!
WALL STREET SURVIVOR'S BEST OF THE BEST LIST
MARCH 23, 2020: URGENT UPDATES TO HELP YOU MAKE MONEY WHEN THE MARKET IS DOWN!
The markets have dropped over 30% since their highs just a few weeks ago because of the Coronavirus, but we are starting to see more signs that this might be a PERFECT BUYING OPPORTUNITY:
#1. HOT Fool Picks in Spite of Crash. Here is why we love the Motley Fool--On Thursday, March 19, 2020 they recommended Zoom Video (Ticker ZM) when it was at $124.
Today, March 23 it closed at $160, that's up 29% in 3 days! But that's not all, they also recommended it October 3, 2019 when it was at $77 so that is up 108% since they picked it back in October, in spite of the market crashing 30%. Other recent picks are TSLA, NFLX and TTD which are all UP since they were picked!
#2. Stock Prices Are Down 30%. This is a good thing! If you are thinking of buying stocks, now's your chance to get quality companies at much more affordable prices. This offers a very attractive entry point, because stocks are ON SALE and you can now buy quality stocks for 30% less than you would have paid for them in February.
#3. More Articles Are Starting To Recommend Buying. As we are nearing the bottom of this drop, we are starting to see more articles like this: BlackRock is suggesting we may be at a "once in a lifetime opportunity", Morgan Stanley says to start buying, and Warren Buffet has a stock pile of cash and rumors are he is starting to buy.
#4. Dollar Cost Averaging Works! Since nobody knows where the bottom will be exactly, smart investors continue to invest a fixed dollar amount in the market each month. This is called Dollar Cost Averaging. That way, when the markets are down you are buying more shares of your favorite stocks at cheaper prices. This helps drive down your average cost and increase your profits when the stock market moves back up.
If you need recommendations for stocks to buy now, keep in mind that the Motley Fool Stock Advisor beat the market by over 30% the last 4 years, and they are currently recommending that NOW IS THE TIME to start buying some of those quality stocks that should make up the foundation of your portfolio. The Motley Fool Stock Advisor service is recommending at least 15 stocks that you should plan on holding for the next 3 to 5 years. So, if you need investing ideas, it is a PERFECT time to consider the best stock newsletter over the last 4 years--The Motley Fool Stock Advisor
Normally it is priced at $199 per year but they are currently offering it for just $99/year if you click this link.
P.S. this offer is still backed by their 30-day money back guarantee.
P.S.S. Still skeptical? Read this complete Motley Fool Review.