US markets correct in a regular rhythm.

It used to be every 13-21 years over 200 years ago.  Recently this correction time frame has shortened to about every 9-13 years. Not all corrections are the same intensity.

Since stock market corrections are market-moving events

Wouldn’t it be brilliant to learn how to read the signs and how to trade these events?  Most everyday people fear corrections because they are not in the know nor do they have control over their financial savings.

 

Fortunes are either gained or lost during these events Let’s get prepared to be on the fortune side of this next correction.

Included, you will see a list of stock market corrections over the last 200-250 years.

  • *Credit crisis of 1772  1772 the United Kingdom United States
  • *Financial Crisis of 1791–92 1791   United States

Shares of the First Bank of the US boom and bust in Aug and Sept 1791. Groundwork of Alexander Hamilton’s cooperation with the Bank of New York to end this event would be crucial in ending the Panic of 1792 next year.

  • *Panic of 1796–97   1796 the United Kingdom United States

A series of downturns in Atlantic credit markets led to broader commercial downturns in Great Britain and the United States.

  • Panic of 1819          1819   United States
  • Panic of 1837          10 May 1837 United States
  • Panic of 1857          1857   United States
  • Black Friday            24 Sep 1869 United States
  • Panic of 1873          9 May 1873

Initiated the Long Depression in the United States and much of Europe

  •  1884   Panic
  • 1893  Panic         1893   United States
  • 1896  Panic         1896   United States
  • 1901    Panic    17 May 1901 United States

Only lasts for 3 years, the market was spooked by the assassination of President William McKinley in 1901, coupled with a severe drought later the same year.

  • Panic of 1907          Oct 1907        United States

markets took fright after U.S. President Theodore Roosevelt had threatened to rein in the monopolies that flourished in various industrial sectors, notably railways. Lasting over a year.

Last, over 4 years, 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. Also called the Great Crash or the Wall Street Crash, leading to the Great Depression.

*Recession of 1937–38      1937   United States

This share price fall was triggered by an economic recession within the Great Depression and doubts about the effectiveness of Franklin D. Roosevelt’s New Deal policy that last around a year.

  • Kennedy Slide of 1962     28 May 1962 United States
    Also known as the ‘Flash Crash of 1962’
  • Black Monday         19 Oct 1987   United States
  • Friday the 13th mini-crash            13 Oct 1989   United States

The failed leveraged buyout of United Airlines causes crash

  • Early 1990s recession       July 1990       United States

Iraq invaded Kuwait in July 1990, causing oil prices to increase. The Dow dropped 18% in three months, from 2,911.63 on July 3 to 2,381.99 on October 16, 1990. This recession lasted approximately 8 months.

  • October 27, 1997, mini-crash

The global stock market crash was caused by an economic crisis in Asia.

  • Dot-com bubble      10 March 2000         United States

The collapse of a technology bubble.

  • Economic effects arising from the September 11 attacks       11 Sep 2001

The September 11 attacks caused global stock markets to drop sharply. The attacks themselves caused approximately $40 billion in insurance losses, making it one of the largest insured events ever. See world economic effects arising from the September 11 attacks.

  • Stock market downturn of 2002   9 Oct 2002

The downturn in stock prices during 2002 in stock exchanges across the United States, Canada, Asia, and Europe. After recovering from lows reached following the September 11 attacks, indices slid steadily starting in March 2002, with dramatic declines in July and September leading to lows last reached in 1997 and 1998. See stock market downturn of 2002.

  • *United States bear market of 2007–09   11 Oct 2007   United States

Till June 2009, the Dow Jones Industrial Average, Nasdaq Composite, and S&P 500 all experienced declines of greater than 20% from their peaks in late 2007.

  • *Financial crisis of 2007–08          16 Sep 2008 United States

On September 16, 2008, failures of large financial institutions in the United States, due primarily to exposure of securities of packaged subprime loans and credit default swaps issued to insure these loans and their issuers, rapidly devolved into a global crisis resulting in a number of bank failures in Europe and sharp reductions in the value of equities (stock) and commodities worldwide.

The failure of banks in Iceland resulted in a devaluation of the Icelandic króna and threatened the government with bankruptcy. Iceland was able to secure an emergency loan from the IMF in November. Later on, U.S. President George W. Bush signs the Emergency Economic Stabilization Act into law, creating a Troubled Asset Relief Program (TARP) to purchase failing bank assets.

 

Had disastrous effects on the world economy along with world trade.

  • *2010 Flash Crash  6 May 2010   United States
    The Dow Jones Industrial Average suffers its worst intra-day point loss, dropping nearly 1,000 points before partially recovering.
  • *August 2011 stock markets fall    1 Aug 2011   United States
    S&P 500 entered a short-lived bear market between 2 May 2011 (intraday high: 1,370.58) and 04 October 2011 (intraday low: 1,074.77), a decline of 21.58%. The stock market rebounded thereafter and ended the year flat.
  • *2015–16 stock market selloff        18 August 2015        United States

The Dow Jones fell 588 points during a two-day period, 1,300 points from August 18–21.

On Monday, August 24, world stock markets were down substantially, wiping out all gains made in 2015, with interlinked drops in commodities such as oil, which hit a six-year price low, copper, and most of the Asian currencies, but the Japanese yen, losing value against the United States dollar. With this plunge, an estimated ten trillion dollars had been wiped off the books on global markets since June 3.

  • *2018 US bear market         28 Sep 2018 United States
    The S&P 500 index peaks at 2491 intraday on Sep 28 and drops 20.2% to 2347 by Christmas Eve. Other indices fall by similar amounts.
  • *More Global market corrections from Wikipedia.com

Learn how to trade the markets from Robert Roy, founder of  WealthBuildersHQ.com

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