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Monday, December 8, 2008
How long did it take for the market to recover after 1929?
Someone left me a comment on the So You Think The Market Is Bad Now? It Went Down 89% Between 1929 And 1932 post asking for some additional data for the chart. Here is some of that data, as you can see it took 25 years to close above 400 again. Just imagine if this happens now, a lot of people will not be able to retire, the only problem is that there is not an abundance of jobs either, as a matter of fact there is a shortage.
Click on the chart for a larger version
Click on the chart for a larger version
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4 comments:
Tan Cube Airy Motch.
While you would be correct that it took the dow 25 years to hit the same "mark", those individual investors who kept their money in the market recovered in about 3 years.
For a comparison of the Dow to 3 other bear markets (including 1929) see:
http://dshort.com/charts/bears/four-bears-large.gif
The peak that you are using as your target for recovery was a massive bubble and the fact that it took so long to reach that level again just shows how unrealistic it was.
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