One anonymous reader submitted the following PBS video, which revisits the 1929 market crash. To me, there are some eerie similarities to today’s environment especially when looking at the total disconnect between Wall Street and Main Street.
Can it happen again? Sure, only time will tell. However, it was not the crash that was devastating; it was the years that followed. To be clear, I am not making any predictions here, but I find it worthwhile to occasionally revisit history to see if there are any obvious parallels to current conditions.
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Comments 8
Ulli,
Right on Ulli, now you are back to what we all like and that is more investment related articles and videos. This video is very scary especially if one were to think another major crash is about to happen and soon to be followed by another great depression.
Ulli,
Thanks for giving us something other than all those political messages that only stirr up people. This is a great video, please keep this type of stuff coming.
Past performance is no guarantee of future returns.
Ulli,
Hi Anon, you are correct about past performance being no guarantee of future returns. Before 1929 the returns were great and then thru 1933 they were terrible so maybe that will happen again huh? Just because we went up a little and the cute cheerleaders on the financial shows along with their guests are bullish doesn't mean anything good is going to happen in the near future. Sorry anon.
This video was definitely right on when it said the people hurt most by the crash were the small investors!
Wall Street has turned into a system where Large institutional investors have an unfair advantage. These investors harvest the life savings of small investors trying to save for retirement.
Buying stocks isn't even investing anymore, its more like gambling, at a Casino where all the games are rigged. In the end one is lucky to get back your original investment.
David
"Hello" We have trend timing systems for the very reason that you mentioned. As I see it without these systems, which ever one works best for you, one will probably get less when he retires in 5-15 years. Look at the last 10 years as the not so smart buy & hope investors found out. This day and age one must have a system to protect accounts from the bear. It isn't difficult to make money in a bull market, but one has to do something to prevent huge losses during bear markets. Ulli's plan is one of many examples of a trend timing system.
A great quote by Warren Buffet "when others are greedy be fearful and when others are fearful be greedy".
You have to look for value in any market…it's usually there. Most people were scared of financials but they were a great bargain starting in March and still are in many ways. The automobile portion of the misc sector is up almost 100% for year. What's looks like the next big jumper could be Real Estate. Both domestic and abroad real estate funds had a huge gain over the last month. It's a good time to take some chances but, as Uli always states, have an exit strategy.
CC Cincy, OH
Another thing that's scary is that large institutional investors now are using huge computers, which monitor the volume which investors are buying and selling stocks and ETFs. Then, these instiutional investors use the information from these huge computers, instantaneously, to make decisions about what to buy and sell, so they are way ahead of individual investors and even investors who have very good real-time trading platforms.