A useful review of historical financial crises by the BBC. Here are some extracts worth pondering;
1929 though, was only the beginning of a bear market that went on for some three years before the Dow bottomed out, 90% below its peak. During that time there were no less than seven rallies: the longest went on for over three months and saw a 48% recovery – enough to lull the most bullish investor into a smug sense of security, only to have it dashed by the succeeding falls.
Before you rush to buy every drug, chocolate and drinks manufacturer between Seattle and Sydney, there is some thought that these stocks are already overvalued, and that they may be ripe for a fall, particularly if their earnings disappoint.
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