Stock Market Crashes

Stock Market Crash



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

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