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Comparison of 1929 to 2008 – Dow Jones Industrial Average

Posted on | February 5, 2009 | 4 Comments

The comparisons of 1929 to 2008 are quite astonishing.  In 1929, the first part of the crash began at the beginning of September and saw the Dow Jones Industrial Average fall from 380 to 200, a 47% drop.  In 2008, the Dow Jones Industrial Average started its decline in June, but the steep decline started in at the beginning of September.  The average fell from 13000 to 7500, a 42% drop.  The 2008 drop took a few more months, but was very similar in total decline.

It took almost 20 years to recover the lost value from 1929; lets see what happens with the current market.

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Comments

4 Responses to “Comparison of 1929 to 2008 – Dow Jones Industrial Average”

  1. Miranda
    February 5th, 2009 @ 8:01 pm

    If we follow the same pattern, it should recover just in time for me to retire. Awesome.

  2. Beezle Bub
    February 5th, 2009 @ 8:14 pm

    You have to look at dividends and P/E. I suspect that post-crash 1929, they were not reasonable, but in today’s market the P/E is looking fairly nice by historical standards.

    The main question is always “Is my stock paying a reasonable income, in terms of dividends and earnings growth?” The charts are less important.

  3. Right Winger
    February 6th, 2009 @ 11:22 am

    Interesting comparison. I am about to start my next book. I will compare FDR and BHO’s New Deals and will describe what caused the economic crisis. It is interesting that numerous papers have proven FDR made the depression worse. Now BHO wants to do the same? This is very scary for the US. We need new ideas not 1930’s style failed ideas reused.

  4. paul long
    September 7th, 2009 @ 11:42 am

    great comparison and only time will tell!

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