The most recent market correction was nothing compared to events from the past.
Here are the 5 biggest asset bubbles of all time:
Tulip Mania
Nothing of such low utility has blown up in price like Tulips in 1637.
At the bubble's peak, tulips were sold at the equivalent price of luxury homes.
Their rarity, combined with wealthy people’s desire to have them, caused this bubble.
DotCom
The hype surrounding the internet was huge at its peak.
From 1995 to 2000, the NASDAQ rose 800%.
Only to fall 78% from its market peak in 2000.
Japan 1989
Thanks to economic expansion and low rates, Japan’s assets & stock prices soared.
The Japanese imperial palace was worth more than all the real estate in California.
Many consider this the greatest bubble ever.
To this day, asset prices haven’t recovered.
Great Recession
0% down payments and subprime mortgages inflated American home prices.
Home prices doubled on average from the late 90s to the 2006 peak.
When it all crashed, 2.9 million homes were in foreclosure.
The highest number ever recorded.
The Great Crash
The roaring 20s created an asset bubble that peaked in September 1929.
Adjusted for inflation, stock prices rose almost 7x throughout the decade.
One of the biggest bubbles of all time – leading to the Great Depression.
Market dips are inevitable.
However, educating yourself on prior booms n’ busts can help prepare you.
History gives you perspective and emotional resilience you otherwise wouldn’t have.
There’s no better investment than the space between your ears.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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