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Worst Stock Market Crash: 1930-1932

Discussion in 'Shares' started by Tropo, 3rd Mar, 2009.

  1. Tropo

    Tropo Well-Known Member

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    Worst Stock Market Crash: 1930-1932

    This is the grand daddy of them all.
    Investors lost 86% of their money over this 813 day beast.
    This market crash combined with the 1929 crash, makes up the Great Depression.

    If you had $1000 on 9/3/1929 (beginning of the 4th worst crash, it would have gone down to a whopping $108.14 by July 8th, 1932 (end of the worst crash) or an 89.2% loss.
    To recover from a loss like that, you would have to watch your portfolio go up 825%!!!!
    The full recovery didn't take place until 1954, 22 years later!

    Date Started: 4/17/1930
    Date Ended: 7/8/1932

    Total Days: 813
    Starting DJIA: 294.07
    Ending DJIA: 41.22
    Total Loss: -86.0%

    Bulls and Bears: Tales of the Zoo: The 10 worst stock market crashes in U.S. History
     
  2. Chris C

    Chris C Well-Known Member

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    You can't forget the crashes in the late 1930's either. They capped off a truly terrible decade that was blissfully ended with WWII... ahhh the good old days!

    :D
     
  3. JustB

    JustB Well-Known Member

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    I wonder what the time to recovery would have been if instead of investing $1000 on 9/3/1929, you dollar cost averaged into the market by investing $80pcm for a year starting on the same day? Or $40pcm for 2 years? Or $20pcm for 4 years? etc. :)

    After all, how many people had a lazy grand back in 1929? :eek:
     
  4. nitro-nige

    nitro-nige Well-Known Member

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    I LOVE 'facts' like this.
    What if you had invested $1000 1 year before. What about 2 years, 3 years etc. Then what would the outcome be.

    It Kinda reminds me of watching the nightly news... The stock exchange lost $X million today, really, from who's pocket?
     
  5. Chris C

    Chris C Well-Known Member

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    It's also worth noting that this is only nominal recovery as well as it doesn't factor the erosion of value via inflation during 22 years.
     
  6. Shady

    Shady Well-Known Member

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    So start with $108.14 and 22 years later you have $1000 that's a micky hair over 10.6% CAGR