Wednesday, November 19, 2008

Stock Market Crashes: Five Stock Market Downturns Since 1929

Your Ad Here

Famous Stock Market Crashes:
Black Thursday
Black Monday
Dot Com Bubble
Friday the 13th Mini-Crash
The Financial Crisis of 2008

For many, the Financial Crisis of 2008 is the first stock market crash to which they've paid attention.

However, there have been much worse financial market setbacks over the last 80 years.

It might be pointed out that downturns in the stock market are often corrections in overpriced stocks.

DBKP takes a look at five of the stock market crashes during that time and their impact.

From Wikipedia:

A stock market crash is often defined as a sharp dip in share prices of equities listed on the stock exchanges. In parallel with various economic factors, a reason for stock market crashes is also due to panic. Often, stock market crashes end speculative economic bubbles.

Famous stock market crashes

Black Thursday - October 24, 1929

The Dow Jones Industrials lost 50% of their value on Black Thursday.

Black Thursday kicked off the Great Depression, from which the USA didn't emerge for 10 years--until World World II put the country back to work.

The Crash of 1973-74

From January 11 1973 to December 6 1974,
  • the Dow lost over 45% of its value.
  • The London Exchange lost 73%
  • The stock markets of the G7 lost an average of 43% over the period

It took the US stock market--as well as other markets around the world--as long as 10 years before the market recovered its pre-crash value.

The Dom Com Bubble of 2000

"The Dot-com bubble crash wiped out $5 trillion in market value of technology companies from March 2000 to October 2002."

Although many Internet companies went bankrupt in the Dot Com Crash of 2000, many others survived, including, Ebay and Yahoo.

Black Monday - October 19, 1987

The Dow fell by almost 23% on Black Monday. Within a few weeks, other exchanges around the world also fell by the following amounts.

  • The Dow Jones fell by 22.6%
  • Australia lost 41.8%
  • Canada lost 22.5%
  • Hong Kong lost 45.8%
  • Great Britain lost 26.4%

Automatic sell orders and selling short automatic orders were blamed, in part, for the crisis on Black Monday.

Friday the 13th Mini-Crash - October 13 1989

"...the Dow Jones Industrial Average was down 190.58 points, or 6.91 percent, to 2,569.26. The NASDAQ Composite shed 14.90 points, or 3.09 percent, to 467.30, and the S&P 500 Index fell 21.74 points, or 6.12 percent, to 333.65."

The US stock market recovered the blip of the Friday the 13th Mini-Crash relatively quickly.

The Financial Crisis of 2008

"Beginning October 6, 2008, the Dow Jones industrial average fell over 1,874 points, or 18%, in its worst weekly decline ever on both a point and percentage basis."

The market rallied before the election on November 4 2008, then resumed its steady movement downward following the election of Barack H. Obama.

The final verdict on the Financial Crisis of 2008 is yet to be rendered.

by Mondo Frazier
image: dbkp file
* 1973–1974 stock market crash
* Dot-com bubble
* Stock Market Crash

No comments:

Post a Comment

Leave your name/nic.
We've changed the comments section to allow non-registered users to comment.
We'll continue like that until it's being abused.
We reserve the right to delete all abusive or otherwise inappropriate comments.