History of Share Market Crashes

When people think of share market crashes, they usually think of 1929 and 1987. It is hoped that crashes of the magnitude that destroyed life savings will not occur anytime soon. Although nothing in this world, with the exception of death and taxes, is guaranteed, it is not guaranteed that it will not occur.
There have been additional financial crises in addition to the two primary ones. During the Asian Financial Crisis of the 1990s and the Global Financial Crisis of 2008, share prices fell by billions of dollars.
It’s possible that the Baby Boomers, who will be most affected by the subsequent major financial market collapse, are to blame.
Why?
because as more of them retire, they will withdraw their savings from the stock market, which will cause a significant selloff.
This has been predicted in the past with the markets at record highs, but there is no evidence that it has occurred yet. However, who has the bravery to foresee the stock exchange’s future course?
You can rest assured that the market will crash once more in the future; Investors simply need to be ready for it.
The following is a list of the share prices’ most significant declines over the past century.
1929: The Wall Street Crash The Wall Street Crash lasted for over four years. When shares were sold to pay back creditors, investors lost money that they had borrowed to purchase. The crash of 1929 was followed by the 1930s Great Depression.
1962: The Kennedy Slide Since the 1929 crash, the stock market had been rising steadily, and the ten years prior to 1962 were favorable. All of this changed in January when share prices fell. President Kennedy credited the decline as a correction for the previous ten years’ rises.
Crash of the stock market from 1973 to 1974: During the two-year crash of the stock market from January 1973 to December 1974, the Dow Jones fell by 45%. Even worse, the value of the UK stock market decreased by 73% during this time period. The collapse of the Bretton Woods System was to blame. Several decades ago, a method based on an agreed-upon fixed currency rate was developed. The name Bretton Woods comes from the fact that 44 nations met in 1944 to discuss the issue of currency.
1987-Black Monday The day of October 19, 1987, which saw the largest one-day drop in the history of the stock market, will always be known as “Black Monday.” Before the crash, many investors borrowed money to purchase shares, and as share prices increased, they borrowed even more money by securing the value of their shares. However, when the stock market plunged by 20% in a single day, many investors were left with debts that exceeded the value of their shares, which put them in financial trouble.
The Asian Financial Crisis of 1997: Between July and October, the market was too hot, and a lot of stock markets in Asia fell a lot. A lot of people who bought shares on credit or with money they borrowed had significant effects from the crash.
during the 2007-2008 global financial crisis, the failure of several US financial institutions.
2020: The Crash of the Covid Market On March 23, 2020, stock markets plunged 34% in a single day as Covid-19 began to take hold. As a result, the Covid-19 pandemic brought about a global recession.
Who knows when the next stock market crash will occur? It is certain that investors will not have any control over it. Planning our finances to minimize the effects of a market crash is up to each of us. One way to do this is to diversify; namely, by investing in a variety of businesses. This way, you won’t put too many ducks in a row.