Money Guy Show The 5 Worst Market Crashes of All Time (And What We Learned)
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Jul 18, 2025 Explore the tumultuous history of market crashes, from the Great Wall Street Crash of 1929 to the COVID-19 downturn. Discover the psychology of fear and greed that influences market behavior. Learn vital lessons on the dangers of speculation, the importance of a long-term investment mindset, and how to navigate volatility with a resilient financial plan. The discussion highlights the need for preparation and diversified strategies to thrive during economic chaos.
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1929 Crash: Greed and Speculation
- The 1929 Wall Street Crash was driven by excessive speculation and margin trading up to 90%.
- This crash led to an 89% drop in the Dow and triggered the Great Depression lasting until 1954.
Avoid Speculation and Leverage
- Avoid chasing hot stocks and using excessive leverage in investing.
- Make the same sound financial decisions during downturns as in bull markets to protect your portfolio.
1987 Crash: Programmatic Trading Impact
- Black Monday in 1987 saw a 22.6% single-day drop caused by programmatic trading and portfolio insurance.
- Despite the crash, no recession followed and markets recovered by May 1989.