The global share market has seen numerous ups and downs throughout history. These fluctuations are often a reflection of various economic, political, and social events. Let’s delve into some of the major falls in the global share market.
Tulip Mania Bubble (1637)
Tulip mania was a period in the Dutch Republic during which contracts for bulbs of tulips reached extraordinarily high prices, and suddenly collapsed.
The Mississippi Bubble (1720)
The Mississippi Bubble was caused by the Banque Royale by John Law stopping payments of its note in exchange for specie, resulting in economic collapse in France.
South Sea Bubble of 1720
The South Sea Bubble affected early European stock markets, during the early days of chartered joint-stock companies
Bengal Bubble of 1769
The Bengal Bubble was primarily caused by the British East India Company, whose shares fell from £276 in December 1768 to £122 in 1784.
Wall Street Crash of 1929
Also known as the Great Crash or the Wall Street Crash, this event led to the Great Depression. The bursting of the speculative bubble in shares led to further selling as people who had borrowed money to buy shares had to cash them in when their loans were called in.
Kennedy Slide of 1962
Also known as the ‘Flash Crash of 1962’, this event saw a significant drop in the stock market.
COVID-19 (2020)
The COVID-19 pandemic had a significant impact on global stock markets, causing rapid and severe drops. On March 23rd, 2020, the markets fell by a record of 13.15%, marking the largest fall in Indian market history.
Conclusion
The global share market is influenced by a myriad of factors and can be subject to dramatic fluctuations. While these falls can be alarming, they also present opportunities for resilience and growth. It’s important for investors to understand these historical events and their causes to make informed investment decisions. Always remember to do your own research and consider your financial goals and risk tolerance before making any investment decisions.