The mid-1980s were a time of strong economic optimism. From August 1982 to its peak in August 1987, the Dow Jones Industrial Average (DJIA) grew from 776 to 2722. The rise in market indices for the 19 largest markets in the world averaged 296 percent during this period. The average number of shares traded on the NYSE(New York Stock Exchange) had risen from 65 million shares to 181 million shares.
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What Ended the Recession in 2009?
Even they know that the markets go through cycles. And right now, the markets are volatile. 2018 was a roller coaster ride that ended with a minor crash. The S&P 500 ended the year 6.5% in the red and the Nasdaq ended the year down 4.3%. Moreover, it was the worst December to hit Wall Street since the Great Depression, with tech stocks ending a nine-year winning streak.
What Is the Biggest One Day Drop in Dow Jones?
The economy had been growing for most of the Roaring Twenties. It was a technological golden age, as innovations such as the radio, automobile, aviation, telephone, and the power grid were deployed and adopted. Companies that had pioneered these advances, like Radio Corporation of America (RCA) and General Motors, saw their stocks soar. Financial corporations also did well, as Wall Street bankers floated mutual fund companies (then known as investment trusts) like the Goldman Sachs Trading Corporation. Investors were infatuated with the returns available in the stock market, especially by the use of leverage through margin debt.