What this bear market comparison with 1929 reveals is that down trends can take a long time to be broken.
The strategy here is to remain cautious going long and stay focused on the fundamentals.
Small history excerpt:
The Dow lost over 89% of its value before the market finally made a reversal. After the Wall Street Crash of 1929, the Dow began slowly to regain the ground it lost during the 1929 crash and the three years following it, beginning on March 15, 1933 (marked on the chart).
The largest percentage increases of the Dow Jones occurred during the early and mid-1930s. In late 1937 (marked on chart), there was a sharp dip in the stock market, but prices held well above the 1932 lows. The market would not return to the peak closing of September 3, 1929, until November 23, 1954.
The strategy here is to remain cautious going long and stay focused on the fundamentals.
Small history excerpt:
The Dow lost over 89% of its value before the market finally made a reversal. After the Wall Street Crash of 1929, the Dow began slowly to regain the ground it lost during the 1929 crash and the three years following it, beginning on March 15, 1933 (marked on the chart).
The largest percentage increases of the Dow Jones occurred during the early and mid-1930s. In late 1937 (marked on chart), there was a sharp dip in the stock market, but prices held well above the 1932 lows. The market would not return to the peak closing of September 3, 1929, until November 23, 1954.
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Side note: this is a comparison for educational purpose, not an assumption or prediction
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