Stock market crash

We speak of a stock market crash when a stock market collapses dramatically. Panic selling by investors is typical of such crashes. The causes of a stock market crash are usually negative economic news – from tulip mania to Internet euphoria to a bat virus. But it can also be a forerunner or expression of an economic crisis, most often in connection with a rise in interest rates on the bond market.

Probably the most famous stock market crash was the price drop on the New York Stock Exchange on October 24, 1929, which heralded the Great Depression at that time.

However, all crashes have one thing in common: not only have we survived them, but the market has reached new highs after each of them. The stock market is cyclical, and the next crash is coming. So is the next high.

The best way to deal with a crash is to consciously and calmly do nothing and by no means panic.