Wednesday, October 8, 2008

The Grand Daddy Stock Market Crash

The 1932 Stock Market Crash was the grand daddy of them all. Investors lost 86% of their money over this 813 day beast. This market crash combined with the 4th worst crash the 1929 crash, makes up the great depression. By the end of November 1929, investors had lost $100 billion in assets in what was later called "The Great Stock Market Crash." In just two months, September and October 1929, the stock market had lost 40 percent of its value. Black Tuesday usually marks the point where the Roaring 20’s ended and the Great Depression started. The stock market would continue to fall until bottoming out in July of 1932 with the Dow at 41.22, down 89.2% (from 381.17 on 9/2/1929 to 41.22 on 7/8/1932.) The stock market wouldn’t recover for another 22 years!
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. To recover from a loss like that, you would have to watch your portfolio go up 825%! The full recovery didn't take place until 1954, 22 years later!!!!
This is the Worst Stock Market Crash Ever:
Date Started: 4/17/1930
Date Ended: 7/8/1932
Total Days: 813
Starting DJIA: 294.07
Ending DJIA: 41.22
Total Loss: -86.0%

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