The Stock Market Crash 1929 – Black Tuesday
October 29, 1929 is often marked as the start of the Great Depression in America, a dark day when the U.S. stock market crashed. Over a two-day period, the market lost 24% of its value.
The 1920s, known as “The Roaring Twenties” had been a time of unprecedented prosperity in America, and as the stock market soared, investors used their life savings and borrowed (buying stocks on margin) to take advantage of the boom. From 1920 to 1929, stocks more than quadrupled in value – not because of fundamentals such as corporate production and profits, but rather fueled by rampant speculation.
The economic house of cards came to a screeching halt on Black Tuesday, October 29, 1929 when the bubble burst.
Other well-known dates in that fateful October are “Black Thursday” (October 24, 1929) and “Black Monday” (October 28, 1929), which were horrible dates for investors.
It would take 27 years for the stock market to recover and surpass its pre-crash level.