Comparison of the stock market crashes

We no longer check to see whether Telegraph. To see our content at its best we recommend upgrading if you wish to continue using IE or using another browser such as Firefox, Safari or Google Chrome. Will it be more than 1, trading days, as it was in the aftermath of the bear market brought on by the September 11 terrorist attacks?

Or will it more like the 44 days needed to recover from the crash of September ? Here we look at seven of the stock market setbacks of the past 30 years to see what lessons they hold for investors today. The data was compiled by Liontrust, the fund manager. Click here for a bigger version of the image.

The crash came after stock markets on both sides of the Atlantic had enjoyed a five-year bull run. People who had never invested in shares before were caught up in the euphoria, partly brought on by the big privatisations of the Thatcher era, which were priced to make an immediate profit likely. As a result valuations became more and more stretched. Something had to give and eventually Black Monday arrived. Some blamed weakening global economic data, but losses were exacerbated by the fact that computerised trading had become more widely available.

Wall Street fell by almost 23pc in a day, while the FTSE posted two successive daily falls of 10pc. A couple of years later Thailand, Korea and the Philippines found themselves in the same boat. In the end their currencies tumbled and investors fled, sparking fears of worldwide economic meltdown. Western stock markets fell, but rebounded quickly after the Asian countries agreed to fierce austerity programmes. In the end it devalued its currency and defaulted on its debt.

Again, this triggered financial panic around the world. By the turn of the millennium investors had caught the technology bug, falling over themselves to buy fast-growing firms with ambitious plans.

Stock market crash - Wikipedia

At the height of the mania it was not uncommon for a share to double on its first day of trading, even those that did not seem to have a sustainable business model. But in the end the bubble popped. Further shocks came in , which marked the first stages of the long-running debt crisis in Greece. A massive default on its debt sparked panic, but markets recovered when the European institutions and the International Monetary Fund granted Greece a bail-out. Liontrust said it saw the downturn as beginning on August 18, when the FTSE stood at Our data on recovery times shows that only three of the seven crises can be considered as genuine turning points: Black Monday in , the bursting of the technology bubble burst in and the great financial crisis of The rest, ranging from the Asian crisis in to the European debt crisis in , were more in the nature of corrections, given that the FTSE clawed back its losses relatively quickly.

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John Husselbee, who runs "multi-manager" funds for Liontrust, and has been a fund manager for 30 years, said four key indicators were worth keeping an eye on. Stock markets are driven by fear and greed, and each of these early warning indicators was a reflection of the fear at the time.

Other investors point to the importance of the valuation of shares relative to the profits generated. Russ Mould of AJ Bell, the fund shop, said: The message here is that those who hold their nerve, investing steadily and regularly, should be able to ride out the storms, particularly when you consider the added power of reinvesting dividends.

Since the FTSE has roughly tripled. Get a weekly round-up of our investment ideas. Howard Marks, an Oxford University graduate turned drug smuggler, made millions.

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Following George Osborne's announcement of the Budget, The Telegraph looks at the numbers on the UK's economy and financial health. George Osborne should simply abandon changes that will reduce incentives to save and create yet more uncertainty.

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A light-hearted quiz about the gaping maw of financial misery that perpetually threatens to devour us all. Accessibility links Skip to article Skip to navigation. Sunday 18 June James Bartholomew The real reason stock markets plunged in January.

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Andrew Oxlade Time to panic? No, follow the investment rulebook. James Anderson This is why I'm worried for investors in the FTSE Thirty years of stock market crashes — and the signs they were coming Is another stock market crash around the corner? Asian crisis — Time to regain pre-crash level: Russian crisis — Time to regain pre-crash level: Tech bubble — Time to regain pre-crash level: Global financial crisis — Time to regain pre-crash level: It took nearly two years for the index to recover.

Greek debt crisis — Time to regain pre-crash level: At the time of writing it had recovered only to What were the warning signs that these great crashes were approaching? The kitchen coup — how cash shifted the balance of power over household chores.

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