Lessons from the 1929 stock market crash





In October 1929 shares on Wall Street fell sharply following a speculative boom during the "Roaring Twenties".

In two days the Dow Jones industrial average fell by 25% (ending on Black Tuesday, 29 October).

The volume of stocks traded set a record that was not broken for 40 years.

When it finally reached its record low in July 1932, the Dow Jones had fallen 89%, and it did not recover to 1929 levels until 1954.

WHAT WAS THE CAUSE?
Debates continue over the causes of the Wall Street crash.

With stocks rising four-fold over the previous decade, it had all the characteristics of a bubble, with stocks in new technologies like radio leading the way up.

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