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What We've Learned From 150 Years of Stock Market Crashes


Published on 2025-03-18 06:21:11 - Morningstar
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  • Though the initial downturn on March 9, 2020, was dramatic
  • the US stock market lost nearly 8% in one day
  • the US stock market ultimately recovered from that crash in just four months, making it the fastest recovery of any market crash over the past 150 years.

The article from Morningstar discusses the historical patterns and lessons learned from stock market crashes over the past 150 years. It highlights that while crashes are often unexpected and can lead to significant financial losses, they also offer valuable insights into market behavior. Key points include the inevitability of crashes due to human emotions like greed and fear, the role of economic cycles, and the impact of policy mistakes or external shocks. The piece notes that crashes often follow periods of excessive speculation and high valuations, leading to a painful but necessary correction. It also emphasizes the importance of diversification, the long-term perspective in investing, and how markets tend to recover over time, suggesting that while crashes are painful, they are part of the market's natural cycle, providing opportunities for those who can endure the downturns.

Read the Full Morningstar Article at:
[ https://www.morningstar.com/economy/what-weve-learned-150-years-stock-market-crashes ]