Surviving and benefiting from the Stock Market "Crashing"



A market crash gives a lot of opportunities to invest in stocks. This time can be a great time to invest in 401 (K) plans or pension funds because you can buy more shares for the same money and this will give you more profit on the long term. You can better limit your investments in these plans in times when the shares are always rising and are reaching a value which can be considered as "overvalued". Losing money never feels good but after a period of dropping or a market crash the value of the shares will rise again.

Almost everyone has heard of the greatest crash in history in 1929. The Wall Street stock market crash took place on the 29th of October 1929. Economists considered investing in stocks as a safe investment and many people were buying shares. The value of the shares increased terribly fast and could not be conform to the growth of the world economy. During the period of 1921 until 1929 the Dow Jones; which you can consider as the indicator of the world economy, increased from 60 to 400. You will certainly understand the stock market was overheated and many people became rich during this period.

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