THE US STOCK MARKET CRASH
No business line in this world does not experience challenges, most notable is the US stock market crash. The stock market is a very lucrative venture, and that’s why people in the business are cashing out real big.
People run away from this type of business because it is a long-term venture, it takes time to mature into something tangible. Individuals with little or no steady income find it very difficult to play along, and their reasons are obvious.
Big investors who have made it in the stock market understood/understand that wealth takes time to grow. Businesses are nurtured into whatever you want them to be.
Stock markets e.g., the US stock market may hit the rock due to any of the economic events which lead investors to go over the top because of fear.
This unforeseen news that leads to this sudden crash occurs from time to time. According to individuals who have been monitoring the stock market in the US, these crashes are expected and this makes investors panic.
The history of the stock crash in the US can be traced back to the 18th century; however, crashes can mean different things to different investors or market managers.
Read More on: UNDERSTANDING US STOCK EXCHANGE
Facts about US Stock Market Crash
- The earliest stock market crash didn’t happen in the US, it happened in 1637 during the Dutch Tulip Bulb Market Bubble.
- Stock market crashes are seen to trigger the main economic effect.
- It takes a lot out of the market, as the market takes a longer period to return to the former state.
- The black Monday stock market crash of October 1987 is regarded as the biggest one-day market loss in the history of the stock market.
- The 2020 pandemic gave the universal market crash of all times, and it is the most recent stock market crash.
List of US Stock Market Crash
The first stock market crash that happened in the US was triggered by a tentative rise in over-expanded credit creation by the Bank of the United States. With this, there was serious panic in the securities market, and the crash was inevitable. The US stock market has recorded these crashes;
- 1819 panic: this crash occurred due to collapse in some market areas such as; a fall in cotton prices, land over-speculation, stocks, and commodities. This is still regarded as America’s biggest economic depression.
- 1837 panic: this panic took place because the then-American president Andrew Jackson rejected the extension of the second Bank of the United States charter. This led to so many including the unreliable American banking policy and the real estate bubble.
- 1857 panic: the panic started with the New York bankers adding transaction restrictions due to the Trust Company and Ohio Life Insurance’s failure. This triggered bank closure and a series of panics.
- 1893 panic: this particular stock market panic led to one of the cruel economic depressions witnessed in the history of America. It triggers unemployment, panic selling, slowed economy, etc.
- 1901 panic: the struggles that happened between Harriman E.H and Jacob Schiff., Morgan J.P., & James J. Hill over who gets the Northern Pacific Railway, led to this panic cum stock market crash. The investors that tried to buy were trapped as the Railway price went up, leading to a drop in stock price.
To this end, notwithstanding the challenges attached to buying and/or selling stock, we encourage intending investors to not hesitate when it comes to stock market investment. Challenges are everywhere, whether you decide to save up in the bank, it may look secure, but the money doesn’t multiple there. Every billionaire you see today is most likely an investor, and every investor is a risk-taker.