Image Credit: Crowd of people gather outside the New York Stock Exchange following the Crash of 1929, photo: Library of Congress
By Jason ZweigÂ |Â Â Oct. 25, 2019 11:00 am ET
One of the best ways to make sure the easy gains of the past 10 years havenât made you complacent is to look back at the Crash of 1929.
Ninety years ago this week, the worst stock-market crash in U.S. history began. Almost everything todayâs investors think about that pivotal event is wrongâand anyone who believes itâs irrelevant is wrong about that, too.
Everybody âknowsâ the market collapsed in 1929 becauseÂ euphoric speculators bingeing on borrowed moneyÂ drove stocks to absurd heights. That isnât true.
Didnât leading forecasters warn that a crash was coming? Not exactly.
Did anyone predict how long it would last and how bad it would get? Not even close.
Doesnât the 1929 crash prove that if you hold stocks long enough, youâre bound to come out ahead? Only if you have the patience of a tortoise and the emotions of a stone….
To read the rest of the column:
NPR’s “Morning Edition” with David Greene:
For further reading:
Benjamin Graham, The Intelligent Investor
Jason Zweig,Â The Devilâs Financial Dictionary
Jason Zweig, Your Money and Your Brain
Jason Zweig, The Little Book of Safe Money
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