Panic selling ensued from "summary" of The Great Crash 1929 by John Kenneth Galbraith
The great break came very suddenly and with dramatic force. The market had been declining for a week or more, and then came a moment when it could no longer be denied that the decline had assumed the shape of a panic. Panic selling ensued. The stocks that had been most inflated in the previous upward movement, and hence most vulnerable, suffered most. These had been the glamour stocks, the issues with exciting possibilities — the radio shares, the lighter-than-air stocks, the famous Shenandoah and the equally famous Akron, the investment trusts with their extraordinary leverage. The selling was savage, but the buying was almost as savage. The popular bargains were no longer bargains. They were simply to be had almost for the taking. And no one could tell when the bottom would be reached. It might be that they would go still lower the next day, and they did. It might be that the speculator who bought today at 50 would find the same stock selling at 40 or even 30 the next day. Indeed he would. The margin trader was caught. He had to put up more money or sell. He sold. And wh...Similar Posts
Wall Street traders driven by selfishness
The Wall Street traders care only for themselves. It's not that they don't care about other people, it's that they care about o...
Invest for the long term
Investing for the long term is a fundamental principle that many people overlook in their pursuit of quick profits. The allure ...
Understand the psychology behind market crashes
Understanding the psychology behind market crashes is crucial for investors looking to survive and prosper in a deflationary de...
Real assets like real estate can also be a safe haven during bear markets
It's important to remember that when the stock market is heading south, real assets like real estate can provide a safe haven f...
Behavioral finance complements traditional models
In the quest to understand the complexities of financial markets, traditional models have long been the go-to framework. These ...
Hedge funds relying on algorithms
Hedge funds have long been known for their secretive ways and lucrative returns. These investment funds pool money from wealthy...
Adapting to change is necessary for survival
In the world of investing, as in nature, the ability to adapt to change is paramount for survival. Just as animals must evolve ...
Speculative bubbles are inherent in the financial markets
Speculative bubbles are inherent in the financial markets. Periodic surges in asset prices are a common occurrence throughout h...
Adaptive strategies are essential for risk management
In the world of financial markets, where uncertainty and unpredictability reign supreme, the ability to adapt is not just a val...