Stock Market Crash
1929, 1990, 2012
This chart shows the 1929 Dow Jones index (lagged by 81 years), 1990 Nikkei index (lagged by 21 years) and 2000 - 2012 Dutch AEX index stock market crash.
Stock market crash comparison:
- Bubble: stocks rise 350% in 6 years.
- Crash: stock market falls more than 50% in 3 years after the peak.
- Aftermath: markets are volatile for 10 years and end where they started.
Turns out human nature doens't change over time: greed and fear drives the market.