business

What Caused The 1929 Stock Market Crash?

October 24, 1929, marked the biggest stock market crash in the history of the United States. It has since been referred to as the Wall Street Crash of 1929 or Black Tuesday. It caused devastating effects which prompted the 12-year Great Depression.

A month before the event, the London Stock Exchange had experienced a crash as well. There was a boom in the market during the later half of the 1920s. Many already speculated the boom, explaining that a collision was only a matter of time. At this time, retail turnover, building construction, and steel production were breaking records consistently. Iron and steel saw their value increase twofold. This compelled many investors to put their money into the stock market, with a good number of them borrowing money just to have something to get started with.

New investors were hoping that prices would increase further. Ultimately, this led to an economic bubble. Historically, however, the stock market had been sensitive to the state of the commodity market. 1929 opened with an oversupply of wheat, thanks to the right harvests the previous year. This caused wheat prices to increase dramatically, which consequently led to a slight dip in the stock market. Thanks to other countries’ need for grain, the excess supply by the US was exported, driving prices down.

By August 1929, the countries that benefited from the oversupply of wheat started to experience better harvests. This caused stock prices to plummet in a snap. Amateur investors and speculators tried to take advantage of the opportunity, thinking that prices would increase again. This time, however, stock prices remained flat.

The 1929 stock market crash and the Great Depression were the biggest financial crisis of the 20th century. The effects were felt far and wide and lasted for more than a decade.

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Long Island Property Investing Tips

If you’re new to investing in property, you can get some Long Island property investing tips here. There happen to be a lot of them, so we’re going to give you the top ones. That way, you don’t waste your money and can enjoy making more on deals.

A lot of the time, when you invest in properties, you’ll see that they are not always what they seem on the surface. You may buy a home that someone said was a move in ready, but once you buy it and look around you realize there are a lot of problems with it. That’s why you need to do some research on the home and hire an inspection service to come check it out for you. If anyone is hiding anything from you, then you know not to buy from them, or you can ask for them to take money off of the price.

When you are dealing with selling a home, make sure you work with listings online and try to reach out to as many people as possible. You may think it’s best to stick with local publications and websites HomePage, but that’s not a good idea. There are way more people outside of the area that will be moving there so than those that already live there and need a home loan. So, work with both markets and make sure any ads and listings you put out there are easy to find people all around the world.

You can work on implementing these Long Island investing tips if you want to do well. It’s something that takes a while to learn about but once you do it pays off. So, if this is where you want to make your money, do it right.