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Wednesday, August 22, 2012

You Want To See A Stock Market Crash? Here's A Stock Market Crash


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Wednesday, August 22, 2012
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You Want To See A Stock Market Crash? Here's A Stock Market Crash

As major indices return to their all-time peaks, Business Insider decided to take a look at one index that is nowhere near its old high: The tech-heavy NASDAQ.

Shares remain 40 percent below the 2000 peak.

But if you want to see a REAL stock market crash, check out what happened to rail stocks during and after the Great Depression.

We're able to chart the activity of rail stocks easily thanks to the new historical data available at FRED.

The fall-off in tech stocks after 2000 is similar to the fall off in rail stocks in 1929, but as you can see, rail stocks never bounced back to anywhere near the old levels, even decades later.

Below, a look at Nasdaq and Railroad equity performance (aligned by peak).



SEE ALSO: Beware of the dreaded triple top >
Read »


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