Every time the economy goes on a downward spiral, many people refer to the 1929 stock market crash, which is considered to be the worst economic event in modern history.
It’s often used as an example of how bad things could get. After the stock market crash, the US and European economies went into depression. Up to 25% of the US population was out of a job.
The stock market was also obliterated. At a peak of 381 points on September 3, 1929, the Dow Jones Industrial Average crashed to 198 in less than 2 months. It would take another 20 years before the Dow would surpass the 200-point level.1Source: Britannica
But will we experience something so draconian again?
That’s something experts like to predict. Headlines like, “Why The 1929 Stock Market Crash Could Happen Again” are always popular during a stock market crash.
As an investor and student of financial history, my answer is this: No, we will not see another 1930s-style crash and depression.
Here are 8 reasons why. At the end of this article, I’m confident you will agree with me.
