The Great Depression

Posted on 12/03/201713/12/2016Posted in stock market crash

The stock market crash of 1929 was one of the most devastating events in American history. It is true that market valuation are stretched, sitting as they are against a backdrop of declining corporate profits; soft economic growth, both here and abroad; interest rate policy reaching the limits of its efficacy abroad; and the threat of interest rate increases here at home.

Keep in mind that 1) a sudden increase in inflation/interest rates can cause significant losses to your long-term bond portfolio, 2) bonds have had substantially lower returns (about half) than equities over the long-run, 3) bond interest income is taxed as a substantially higher tax rate than stock dividend income and capital gains and 4) bonds have the substantial risk of value erosion from inflation over time.stock market crash

Until four trading days ago, the market traded in a narrow range with an upward bias: (1) The daily volumes (second …

Stock Market Speculation During Great Depression

Posted on 05/09/201613/12/2016Posted in stock market crash

October 29, 1929 is often marked as the start of the Great Depression in Americ a, a dark day when the U.S. stock market crashed. Historians often cite the stock market crash of 1929 as the beginning of the Great Depression because it marked not only the end of one of the nation’s greatest bull markets but also the end of widespread optimism and confidence in the U.S. economy. Nevertheless, the comparison can shed light on the effect of a large and perhaps qualitatively different event compared to the more normal” declining market. But before we show you why we are concerned about a stock market crash happening soon, we first want to explain what causes a stock market crash. You’ll note that the price of copper is headed lower and is back to the price level where it was in the middle of 2008, right before the great financial …

The Stock Market Crash Of 1929 And The Great Depression

Posted on 20/07/201613/12/2016Posted in stock market crash

The editor and publisher of the Gloom, Boom & Doom Report said Monday on CNBC’s Trading Nation ” that stocks are likely to endure a gut-wrenching drop that would rival the greatest crashes in stock market history. On the other hand, the financial crisis of 2008 may have affected people’s expectations in qualitatively different ways than the more gradual changes witnessed in 2002, especially if people had different views about the condition of the economy in 2002 and in 2008.stock market crash

The answer to this could end up being worth at least $2.2 trillion, which is how much money would essentially be wiped out of the stock market if we finally get the much-discussed 10{bf6128eaee7daf804a40e739f155a69f2d5a72ca2bacccc9954495bcd60bdcac} correction in the overall market (the total U.S. stock market capitalization was $22.5 trillion as of June 30, according to the Center for Research in Security Prices).

In addition, stock market expectations are of methodological interest …

The Stock Market Fell To Its Lowest Point During The Depression

Posted on 21/06/201613/12/2016Posted in stock market crash

Impact varies by account balance: This Issue Brief estimates changes in average 401(k) balances from Jan. The fact of the matter is that U.S. stock markets are trending higher, and will trade much higher in 2016 and 2017. A few major investors began to withdraw from the market, and some leading executives even volunteered that their own company stock was overvalued. Consumer confidence is at an all time LOW, rivaling that of the Great Depression, regardless of what the media is attempting to convince the public with. Even if the risk of a stock market crash isn’t very high, the stock market has been booming for seven years. And we have had several corrections since this bull market began on March 9, 2009. The government decided to take preventive measures for the future to avoid a recurrence of a similar crash.

Speculative excesses were, indeed, absent from the market for …