Few people understand that the October 1929 crash was just the beginning of the decline

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The October 1929 crash looks huge

 

until you see it in the context of the rest of the decline. Still want to guess the bottom?

4 thoughts on “Few people understand that the October 1929 crash was just the beginning of the decline”

  1. What makes this decline different than the 1929 thru 1933 one is the cause. This virus pandemic will eventually subside, just like other pandemics have subsided. There have been many throughout history. Symptom relieving medicines and a vaccine to prevent its occurrence will take place. Until then, patience will be beneficial. A once in a lifetime buying opportunity will happen.

  2. While that is absolutely true, it is unsure whether or not coronavirus was just the catalyst of a larger economic downturn. Before the outbreak, the market was very extended and talks of the Fed raising rates were causing some reason for concern. I hope you are right and it’s different than the crash in 1929, but we’ll just have to wait and see.

  3. The market was overbought going into the coronavirus pandemic, it was just waiting for something to cause an economic downturn. It just so happens it turns out to be the coronavirus and a powerful downturn at that. Markets usually get overstretched to the extreme, first on the upside, and then on the downside, the question is have we reach that downside extreme already?

  4. Never really realized that the decline ended with only 1/10 of the total market value left (-89.2%). Very sobering perspective. If push comes to shove I fully expect the fed to print enough inflated money to keep this market afloat much before that level, but it does make one stop and think.

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