The 3 Biggest Disasters in Stock Market History

1. The 3 Biggest Disasters in Stock Market History The stock market is made of highs and downs. While investors tend to keep great memories from bull markets, stock market crashes tend to lead many investors to bankruptcy. The 3 Biggest Disasters In Stock Market History #1: The Wall Street Crash of 1929 The Wall Street Crash of 1929 is probably one of the biggest disasters in the stock market history. Also known as Black Tuesday, share prices on the NYSE collapsed. This crash didn't only lead to the Great Depression in the 1930s as it also accelerated the global economy collapse. This Crash was preceded by a rapid expansion in the decade before. In August 1929, unemployment has risen and the production had declined. The result in stocks was simple: they were quoted at much higher prices than their real values. In addition, agriculture was struggling and banks were with an excess of loans that couldn't be liquidated. While the market started seeing the first drops between September and October, the panic was installed in later October. #2: The Dotcom Bubble Burst A more recent crash occurred in the second half of the 1990s and it is known as the Dotcom Bubble burst. With the Internet reaching the mainstream, many

2. business ideas inspired and excited everyone at the time. The appearance and rise of new dotcoms every day were seen as something normal since they would one day become very profitable. However, this didn't happen. The truth is that while some of these companies were actually successful, they were extremely overvalued. After all, as long as they included the ".com" after its name, it was a good option. #3: The Flash Crash 2010 The Flash Crash of 2010 was a crash that while it only lasted for about 36 minutes it still managed to wipe billions of dollars off big US companies. This was the first time something like this occurred. One of the few positive things is that it only had a minimal impact on the American economy. According to the latest financial news at the time, the world was concerned with the UK general election as well as with the Greek debt crisis. At 2h30pm of that day, the Dow Jones declined over 300 points. Within the following 5 minutes, the Dow Jones dropped another 600 points. At 3h07pm, it almost seemed that nothing had happened unless you looked at the charts. The truth is that at this time, the Dow had already regained much of what it previously lost. While no one still knows for sure what happened, many different hypotheses were taken into consideration. From a cyber attack to a keyboard error in technical trading. Then, to culminate, many automated sell orders were triggered. While this Flash Crash of 2010 is not seen as a big crash especially when you compare it with the Wall Street Crash of 1929 since it didn't affect the economy, it was definitely a combination of many different aspects and we believe no one can really explain in detail what led to it in the first place. Since some securities list more than 90% of their value in just a few minutes, this makes it as one of the biggest crashes in the modern stock market. All in all, you have to do a proper Stock Market Analysis to stand the competition.