A Summary of Stock Market Crashes
A Summary of Stock Market Crashes
Can one month really have that big an impact on your retirement? Until this year, October has been the only month that severe crashes have occured in the stock market. Since 2950, the S&P 500 index has performed reasonably well on average. In 36 years it rose while in only 24 did it fall. The average gain was slightly less than half a percent.
Crashes tend to be a very isolated event. Only 4 major ones have occurred in the last 90 years. A pretty good record for believing the market always goes up. A double digit drop in the stock market averages is how many people define a crash. 1929 is probably considered the most famous one.
The Great Depression came afterwards and left an indelible mark in people’s memory. The S&P wasn’t in existance then. Only the Dow Jones was present. It has reasonably matched the data from the S&P in more recent crashes.
Crashes have typically been preceded by significant increases in stock market valuations. The Dow Jones had increased by several hundred percent leading up to the 29 crash. The color black is often used to describe these catastrophic events.
The 1929 crash had both Black Thursday and Black Tuesday happen in less than a week. October 24th and 29th saw the market drop 20% and 13% respectively. In just those two days 33% of your wealth was evaporated.
The next three years would continue that downward spiral. The market was cut by more than 80% during that time frame. It was be more than 25 years before the market would reach that level again. Twenty five years waiting to break even.
Black Monday happened in 1987 on October 19th.
Optimism had taken the market to new highs again. 1987 proved to be the end of that phase in the stock market.
Over a fiver year period, the market had risen significantly. Black Monday wasn’t a one day event though. It was the culmination of a four day drop in the market. Monday saw a drop of over 20% in the market in a single day. The market had been slowly trending down over the entire month before this happened.
The next crash showed some similarities to 1987. It wasn’t just a one day event. In 2008, the market spent a week in dropping relentlessly. It dropped 18% in what is often referred to as Black Week. The length of the crash caused many people to be significantly affected by it.
In 2010 we had a Flash Crash. A huge sudden drop with nearly immediate recovery. Since it didn’t remain down, I doubt you can count this one as a true crash.
With changes in the way we trade stocks, the question is will we have more of them? Can we predict these events? Maybe not but we can listen to people who have a viewpoint that may be different than the majority.
Following the herd can be dangerous for your wealth. You can see a different viewpoint by clicking Stock Market Prediction to see a different viewpoint on it.
Find out more about Stock Market Predictions here.
Discussing the recent and upcoming cyclic events.
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Question by DanTana: Does the size of this drop show how close I was in this stock market prediction?
my answer Starts With “Take It Easy”=
http://answers.yahoo.com/question/index;_ylt=AqjLm4tfvQ4dr_KVISrXC3qvxQt.;_ylv=3?qid=20080925054522AAggbmi&show=1#yan-answers
Do you think I would have been right-on the money had they voted yea to the Bail-out Package? I got to get some credit
Categories: Uncategorized Tags: Black Monday, def, Dow Jones, Market Prediction, Start, Starts With Take It Easy, Stock Market, Stock Market Crashes, summary of stock market crash, two, VIDEO, Video Rating, Youtube
6 Basic Strategies For Successful Stock Market Investing
6 Basic Strategies For Successful Stock Market Investing
Stock trading is a volatile market with no precise way to continually experience ongoing profits. No investor can yield ongoing growth year after year, with every stock purchased because it is impossible statistically.
The stock market is unpredictable so there is no surefire way to ensure growth with all investments. Other conditions compound the difficulty faced by stock market investors including no consistent winning trend shown for stocks.
Major myths are circulated about the best way to do the stock market. The majority of people believe successful trading is merely the need for an investor to accurately predict the movements of the stock market. An incorrect assumption is made by many that stocks bounce around the range forever, thus they need to be able to predict trends in movement to purchase stocks during the lowest value and sell them at the highest peak possible.
The bottom line about this popular belief is it’s simply wrong. The best way to realize a profit in the stock market is to steer clear of approaches that rely on making accurate stock market predictions.
When considered, consciously attempting to predict the stock market is a technique no better than purchasing a stock and holding on to it for a long time. The reason predictions are a poor technique is because there is no absolute way to predict stock market performance with complete accuracy for every investment.
A professional analyst might have the ability to predict a stock’s performance in the near future but very rarely in the long term. An analyst may predict stock performance for the next quarter or even for the upcoming year. However, it is statistically impossible to predict stock movement accurately quarter after quarter.
The best way to do stock trading is to develop your own strategy by considering the following:
1. Remain abreast of the latest stock market reports and current news.
2. Make the effort to carefully evaluate the history of a stock’s performance prior to making investments.
3. The best stocks to invest in show good dividend and growth.
4. Learn the structure of successful mutual funds and study them to see how they developed their investment strategy. Choose those particular funds to build your own personal mutual fund portfolio.
5. Evaluate the sector the company deals with.
6. Choose to put your money into stocks with a history of progressive gain.
These basic strategies will help you get started on developing your own strategy for stock market investing. There are no proven strategies and specific methods that consistently yield benefits for any investor, no matter how experienced. Strategies that are reliable today may wind up worthless tomorrow, proving the volatile nature of stocks. No guarantee exists when you invest in the stock market.
The best way to do the stock market is to carefully study several stocks and consider them as long term investments, rather than looking for a fast profit. These types of investments may take long to realize profits, but it is definitely more lucrative in the long run than putting all your eggs in one basket.
For more information on how to invest in the stock market — including a growing collection of stock investing tips, strategy and advice — visit: http://stockinvesting101.net
Pretty much an update to the last two videos and what is still expected to likely occur in the Stock Market this upcoming week.
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Question by highspeedkid: What is prediction for stock market for last 3 months of 2009 ?
Best answer:
Answer by jlf
Take your pick. The predictions are all over the map.
What do you think? Answer below!
Categories: Uncategorized Tags: Basic Strategies For Successful Stock Market Investing, company, def, Market Prediction, shell iran usa, Start, Stock Market, test, two, VIDEO, Video Rating, Youtube
