Only one nice trading session is needed for S&P 500 and DJI to hit this level and if it is broken it could mean that we may see further move up. However, I consider that the odds of the bounce down again are still good. The investor class, banks and government then conspired to rally the markets by pumping lots and lots of money into it, and eventually by mid 1930, it hit a ‘dead cat bounce’ peak of 294, quickly pushing up another 90{606b15cb8282e5ec3580d0e72c193589ece6551be175750a8e347f0d91362e12} to get it to early 1929 levels.
This was the worst stock market crash that affected global economics because this crash lasted longer than the short plummeting that had occurred in 1987. What made Black Thursday such a bad day in the history of the New York Stock Exchange was the loss of people’s faith in Wall Street For more, see Timeline of the Great Depression. Regardless, investors no longer regarded high corporate profits and dividends, high wages, readily available bank debt , a booming auto industry and a relative lack of stock market regulation solely as signs of better days ahead. The 1920s saw the stock market prices soar in blooming health with the industrial and technological growth of the decade. By the summer of 1929, it was clear that the economy was contracting and the stock market went through a series of unsettling price declines.
The stock market crash restored share prices to a level which reflected their value more accurately. The mathematical characterisation of stock market movements has been a subject of intense interest. The market is not always forgiving, so please don’t attempt to punt the market if you are ignorant. Many insiders in the investment world recognize that the performance of the economy has a significant impact on the stock market.
By 1932, the index of stock prices had fallen from a 1929 high of 210 to a low of 30. Stocks were valued at just 12 percent of what they had been worth in September 1929. Stock marketing crashes occur because of a complex network of reasons including external economic factors as well as psychological crowd behavior, either of which can trigger the other into inducing a crash.
This meant that brokers were now allowing investors to borrow on top of their original investment to buy even more stock. The market continued its downward trend for a few weeks before stabilizing on November 23rd, 1929. The stock market opened at 305.85. It immediately fell 11{606b15cb8282e5ec3580d0e72c193589ece6551be175750a8e347f0d91362e12}, signaling a stock market correction Trading was triple the normal volume Wall Street bankers feverishly bought stocks to prop it up. The strategy worked.
