The Bankwatch

Tracking the consumer evolution of financial services

How bad is the stock market compared to 1930’s depression?

It is not really relevant, but there is so much talk, I took a  look at the 1930 depression which actually took almost 3 years.  In that time the stock market dropped 89% from the peak.  For that to be replicated today would require the Dow Jones to be at 1,409 by 2010. based on the peak of 14,093 in Oct 2007.

The Dow today is at 6,764 representing a drop of 52% after 16 months.

Written by Colin Henderson

March 2, 2009 at 20:46

Posted in Uncategorized

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2 Responses

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  1. When you compare the numbers like that it doesn’t seem too bad. But if we fell into a depression similar to the 1930’s the US would be in chaos. I’d argue that in our current economy you have to look at other economic factors of comparison than just the DOW.

  2. @Internet Marketing Specialist – agree its not the only marker of future value to follow. However it is one indicator of what I would term the ‘old economy’. New value will come from other sources than those that comprise the DOW.

    Colin

    March 4, 2009 at 02:51


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