Cautious Investing. by Haney Sweda

The economy had been growing robustly.. It was a technological boom as innovations of the new industries dominated the economy. Companies that had pioneered these advances, saw their value soar. Financial corporation’s also did well as Wall Street bankers floated companies. Investors were infatuated with the returns available in the stock market.

The Dow Jones Industrial Average stood at a level that all analysts’ said was low as compared to corporate profits. Then it became clear that the economy was contracting and the stock market went through a series of volatile declines. These declines fed investor anxiety and events soon came to a head. Then in a matter of 2 days the Dow Jones Industrial Average fell approximately 25% and would lose 40% in a matter of two weeks. The Dow Jones Industrial Average would not regain the high levels for 25 years.

This is a general description of financial affairs, but it is not of the occurrences of the past two weeks, it is of the affairs leading into October 24th, 1929 BLACK THURSDAY.
Will history repeat?