For students of history, the China stock market crash looks eerily familiar.
It's playing out much like the Wall Street stock market crash of 1929.
Although it rebounded 5.8% today (Thursday) thanks to more government intervention, the Shanghai Composite Index has shed 29% over the past month.
For students of history, the China stock market crash looks eerily familiar.
It's playing out much like the Wall Street stock market crash of 1929.
Although it rebounded 5.8% today (Thursday) thanks to more government intervention, the Shanghai Composite Index has shed 29% over the past month.
Stock market crash history series No. 2: The dot-com crash of 2000 eviscerated more than $5 trillion in market value between March 2000 and October 2002.
The tech-heavy Nasdaq Composite tumbled 76.81% between its March 10, 2000 high and Oct. 4, 2002 for a whopping 76.81% drop. (The Dow Jones and S&P 500 also suffered, albeit less intensely - down 27.38% and 43.19%, respectively.) The March 10 high wouldn't be seen again for 15 years.
Stock market crash history series #1: The Stock Market Crash of 1929 is without a doubt the most devastating in U.S. history, in terms of duration and extent.
On Black Tuesday, Oct. 29, 1929, the Dow dropped 12% (30 points) and 16 million stock shares exchanged hands - although for some, there were absolutely no buyers. When the dust settled, more than $30 billion (roughly $350 billion in today's dollars) in wealth had been obliterated. The Dow sank a total 48% from September to November 1929 and kicked off the 10-year-long Great Depression. It lost another 86% from April 1930 to July 1932 in the crash's aftermath.
Behind this crash was a phenomenon that may be more familiar than you'd like...
There are lots of reasons to be fully invested in the stock market. And that’s why it’s so important right now to keep an eye on all the bubbles.
They’re everywhere. And we have plenty of reasons to fear any number of them bursting.
So let’s look at these bubbles now, while you still have time to prepare. And I’m not just talking “capital preservation” here…
You can make a killing when a bubble bursts, especially the one we’ll start with today.
It’s the biggest of the big bubbles. And it could start hissing at any moment.
