2008 Stock Market Crash Analysis - Page 2

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Now let's look at the U.S. stock market crash of the 1930's and see what happened after the chart I showed on the previous page.

Notice what happened after the initial drop shown on the previous chart, and the resulting total percentage decline of over 90%.

Let's move on to the Japanese stock market crash. The chart below show's the continuing decline as of today and the possible resulting percentage decline in the future using the 1930's US Depression model for comparison.

Notice the initial 40-50% declines from the US stock market of the 1930's as well as the beginning of the Japanese Stock Market downturn? You can see on the previous page that the chart of the current US stock market crash is producing similar current declines.

japanese stock market crash

After the initial declines in the US Stock Market of the 1930's, the markets continued down and produced around a 90% decline, which was in fact a stock market crash.

After the initial declines in the Japanese Stock Market around 1989, the market's continued down and are still continuing down, which has been a stock market crash.

Both of these examples occurred during deflationary times resulting in depressions and approx. 90% declines in stock market values.

The current US economic conditions appear to be in a deflationary cycle. If this is the case, why would people keep saying that stocks are cheap, are bargains, and that things can't get any worse?

Clearly history shows that things can get worse.

I keep hearing about reasons to buy stock for the long haul and you will be fine. Take a look at the chart of the Japanese stock market over the last 20 years. If you bought stocks in the Japanese Stock Market in late 1990 when stocks were so called "cheap", you would be down over 50% today, 18 years later.

In addition to the page you are currently reading, I have the following pages that show some more details using 1930's stock charts as well as another page comparing the 2008 market downturn to three other bear markets including the 1930's U.S. Depression Era.

Now for some positive thoughts. I know we could use some of them right about now.

During every Bear Market and/or Depression, there are rallies which can last from several days to months and sometimes years. These can produce gains for investors or traders who make careful and educated choices, while monitoring their positions closely.

For more information from someone who has been warning about the stock market crash of 2008 for years and to get a better understanding of the current position of the stock market and it's possible future forecast, I recommend you take the initiative and learn about the Elliott Wave theory and it's uses.

The Elliott Wave resources on the right column of this page and throughout this website will give you access to some of the most valuable information you could have and help you through the current economic cycle.

You can subscribe to receive market updates and useful material for FREE by joining Club EWI, (Club Elliot Wave International) here.

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