Trading Events / Perspectives
1929: The Great Stock Market Crash
"The stock market crash started in Oct 1929, and continue to fall until bottoming out in July 1932 with the Dow down almost 90% and took a total of 22 years to recover."
November, 1929:
"Any lack of confidence in the economic future or the basic strength of business in the United States is foolish."
Speech by Herbert Hoover,
31st President of the United States
(1929-1933)
December, 1929:
"Never before has American business been as firmly entrenched for prosperity as it is today... Stocks may go up and stocks may go down, but the nation will prosper." Thus the elder business statesman Charles Schwab, on December 10, 1929. He was enunciating the received view of the time, the view held by all those whose emotional commitment to the nation and its business, not to mention their own investments, as such that they were quite unable to countenance the notion of general national economic collapse - in short, to credit what was happening before their eyes.
Book: Once in Golconda,
True Drama of Wall Street, 1920 - 1938
by John Brooks
Dorothea Lange's Migrant Mother depicts destitute pea pickers in California, centering on Florence Owens Thompson, a mother of seven children, age thirty-two, in Nipomo, California, March 1936.
Source: Wikipedia
"In the 1920s, the supreme confidence that the good times could go on forever was also based on a momentous technological breakthrough, the introduction of electricity into everyday living... . The huge boost in productivity brought about by factories being run by electricity, and new modern production methods, including Henry Ford's introduction of the assembly line... . The bull market of the 1920s, which at that time had also been the longest and most consistently profitable bull market ever, have lasted eight years, quickly plunged into the worst bear market ever.
The stock market lost 86% of its value over the following three years. The strongest economic cycle ever, which was supposedly destined to continue for decades, reversed to the worst recession ever seen, the Great Depression."
Book: Riding the Bear,
How to Prosper in the Coming Bear Market
by Sy Harding
Situational Trades: Trading Of Sugar During War
"In 1939, raw sugar sold for less than one cent a pound. Then came war. Carret knew that in the wartime the price of sugar always rises. He sought out a Cuban sugar company with 20,000 shares outstanding, of which 13,000 were controlled by the Royal Bank of Canada. In the course of being reorganized the company had acquired a whole spectrum of different securities: mortgages, income debentures, preferred and the rest, with the common stock the tail end of the dog. So when the sugar prices rose, the common stock skyrocketed. He bought a little at $1.75, and a lot more at $7-8. He sold most of it at $60, and the last little bit at $200. "
Book: The New Money Master,
Winning Investment Strategies Of: Soros, Lynch, Steinhardt, Rogers, Neff, Wanger, Michaelis and Carret
by John Train
Trading Perspectives - Main Page
Trading Perspectives © Copyright www.Option-Income.com
Please Read Disclaimer
