Stock market crash statistics that shaped the 20th and the 21st century

We are, no doubt, in an ongoing global stock market crash, a result of the COVID-19 pandemic that turned out to be not only a threat to our lives but to our economy as well. Rising fears and global economic shutdown has propelled many to remember the devastating market crashes of the past.

Still, you might be surprised that market crashes are more frequent than expected. In fact, a stock market officially has a crash when stocks fall by 10% or more. Usually, the crash doesn’t last long, fixing itself during the same day. 

The 1929 stock market crash began as an 11% drop from the previous trading day. However, the descending trend continued for 3 more years, hitting an all-time low when the Composite Price Index fell by 86%.

In the wake of today’s global downturn, it is good to look at what history tells us and arm ourselves with key facts that have shaped these important moments of the 20th and the 21st century.

Below, you will find a short list of these major statistics. For the full report and all the questions arising with it visit CapitalCouncelor’s 15+ stock market crash statistics. 

• Black Thursday or October 24th, 1929, is marked as the begging of the market crash of 1929 and the beginning of what will later be known as the Great Depression.

• The worst years were 1932 and 1933, one in four people were without a job, or in other words, the unemployment rate was 25%.

• Between 1930 and 1935 some 750,000 farms were lost as a result of bankruptcy or sheriff sales.

• Stocks were falling for 3 years and it took them 5 years to recover. Still, it took nearly 25 years for the Dow to regain its 1929 value. 

• The first major market crash after the one from 1929 happened in 1987, but luckily it lasted a lot shorter as the Dow regained 288 points in three days following the “Black Monday.”

• The dot.com crash of 1999-2000 was a result of overpriced internet companies and it cost investors $5 trillion.

• The 2007 - 2009 market crash destroyed a $16.4 trillion net household wealth in America, and moreover, around $2 trillion was lost in retirement savings.

This article was originally published by capitalcounselor.com. Read the original article here.

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