Future Financial Images

October 16, 1929

Yale University Professor Irving Fisher declared the “Dow Jones Industrial Average had reached what looks like a permanently high plateau.”

8 days later Dow drops 2%

Black Monday; October 28, 1929 Dow drops 13%

October 29, 1929 Dow drops 12%

Over the next 3 years the Dow drops 89%. 

 July 1932 Dow Jones Industrial Average is at its lowest point.

The Dow did not regain its October 16, 1929 peak until November 1954.

Took 25 years to recover 3 years of losses.

Source: The Ascent of Money by Nial Ferguson