Day: June 9, 2018

Comparing The 1987 And 2007 Stockmarket Crashes

The early sell off was due partly to fears about China’s economic slowdown and uncertainty around the Federal Reserve’s policy on raising interest rates. These studies mainly focus on the factors leading to a crash and on the volatility and co-movements of stock market indexes during and after the crash. When investors believe a stock is a good value they are willing to pay more for a share and its value rises. Over the four days of the stock market crash , the Dow dropped 25{70720668fcf7ea87ee17ca7f9b9e8475dec1ce9f19f870dc2df6b57579d64c1e}, losing $30 billion in market value. The stock market from 1929 to 1932 is memorable for the size of the losses incurred by investors. For Carla Due (right below), the stock market crash had a very personal impact She had just emigrated to Nebraska from Denmark a few months before the crash. The estimates are in line with the reduced-form OLS results of Table 3 Average optimism about stock market returns increased temporarily in October-November: on average, people seemed to expect a recovery during this period.

All of this is just another reason for concern about an impending bear market on the not-too-distant horizon,” Stack writes. The market is quite stable at this stage, and there are good profits to be had from investment …

stock market crash