Stock market crashes of 2000 - 2009, 1990 and 1929 have very interesting similarities. The chart shows the 1929 (Dow Jones index / US), 1990 (Nikkei index / Japan) and 2000 - 2009 (AEX index / Europe) stock market crashes. The pattern is almost the same:
- Bubble / Boom: stocks rise more than 350% in 6 years.
- Stock market crash: market falls more than 50% in 3 years.
- Aftermath: markets are volatile for at least 10 years.
Turns out human nature does not change over time: greed and fear drives the market. home
Disclaimer: The content on this site is provided as general information only and should not be taken as investment advice. All site content, including advertisements, shall not be construed as a recommendation to buy or sell any security or financial instrument, or to participate in any particular trading or investment strategy. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of sponsors or firms affiliated with the author(s). The author may or may not have a position in any company or advertiser referenced above. Any action that you take as a result of information, analysis, or advertisement on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.