Stock Market Crashes

Stock Market Crashes

Stock market crashes have historically led to the destruction of billions of dollars of investment income. Moving like a thief in the night, these crashes have come to the surprise of the general investing public. During these financial disasters, accelerated declines in the value of U.S. businesses promoted fear and the wholesale sell of corporate securities. Rising like the phoenix out of the ashes, the markets were rebuilt just to spiral down once again when investors' bright outlook on the future mismatched with the realities of the bleak economic issues and business failure that precede severe market declines.

Although each of the major stock market declines happen at significantly different times in American history and are explained by their own specific fundamental problems, they all have similar characteristics and outcomes. A review of the events leading up to each of these market downturns is required research for anyone willing to risk capital in the stock market. Stock market crashes are events that happen quickly and drastically and take the entire investing public by surprise. Investors can never be assured that market insiders or experts have information that will protect one's assets from the destructive impact of a total financial meltdown. It is up to every individual to develop their own warning signs and signals for when it is time break out of the pack and get out of the market.

The following pages focus on the issues and factors leading to the largest market declines in American History. With the knowledge that history repeats itself, a survey these historical events is warranted in search of insights to foretell the next great market degeneration.

Stock Market Crashes - Articles By Better Trades