Great Crash of 1929 Revisited
Next Monday is the 83rd anniversary of the Great Crash.
A look back at October 29, 1929, known as “Black Tuesday”, provides perspective (figures rounded):
- The Dow plunges near 31 points to 230, an 11.7% collapse.
- At one point during the day the Dow is down 48, or 18.5%.
- Trading volume of 16.4 million shares shatters the old record set just 5 days earlier by nearly 4 million.
- 3 million shares are traded in the first half hour, more than an entire day’s typical volume just a few months earlier.
- This volume overwhelmed the Stock Exchange.
- Huge blocks of stock were flung upon the market for what they would bring.
- The carnage does not just strike stocks like Transamerica, which implodes from $62 to $20.
- It also mows down such market leaders as AT&T which loses (12.1%); General Motors (15.8%); IT&T (19.3%); Standard Oil of New Jersey (20.1%) and duPont (22.7%).
- The market has now lost 34% in just 13 trading days; 40% since September 3, 1929.
- The Great Depression is settling in.
A tumultuous time to say the least.
It took until late 1954 for the Dow to regain and surpass the top reached in 1929.