Survived stock market crash 1929 causes

Even poor students of history know it never exactly repeats itself, but we all have been scratching the past for clues to guide us though the current harrowing times.

So here's a historic analysis I think you'll find particularly interesting. Think back to , and you immediately think stock market crash.

Ok, that's similar to now. Next, think ahead two years into the future that would be By analyzing stock performance, you'll see an interesting picture of investor behavior. Michael Painchaud, Director of Research and Principal at Market Profile Theorems did just that and he thinks some of these lessons are still relevant. Painchaud looked at stocks as they made new highs after the crash. All three of those NYSE-listed stocks mentioned above were on a list of stocks that made new highs within two years of the crash.

The '31 list, attached below, contains some other names you will know -- Federated Department Stores and U. There are others you maybe never heard of Raybestos-Manhattan?

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There's a heavy representation of food companies, industrials and manufacturing. Three movie companies made it too, and some old reliable utilities. You will notice that financial companies did not make the list.

Firms which tended to provide products and services which were at the very basic level of the economy did well, and there wasn't too much room for anything else," he said. But I note they bought entertainment names, too. Also, Coke wasn't the defensive name it is now. You have to assume it was more about growth.

The Great Depression of Causes and How It Ended

You'll also note that there are quite a few preferred stocks. It makes sense, Painchaud said.

There are three miners, but Painchaud points out they are not defensive gold plays as you might think. It very well could have been the world was stockpiling silver for munitions for the coming war," he said. So what about now? There was no technology-laden Nasdaq index in , and Painchaud notes the biggest tech company of the time, RCA, didn't make his list.

But I wondered if — as the s clearly still showed the strains of America's move to an industrialized nation from a more agrarian one — could we compare that era to our transition to the high-tech era using the s lexicon?

Could tech names be the equivalent of some of the industrial names on Painchaud's list? He agreed with my theory, but added that the tech names that are most basic may be the ones that recover first.

If you use the lesson of , he says you would conclude semiconductors might be on the list. That also correlates with something else he's seeing in his research: History doesn't always repeat itself. Your ETF wasn't there in the s, and your broker wasn't putting his orders through on a computer Asia Europe Stocks Commodities Currencies Bonds Funds ETFs Investing Trading Nation Trader Talk Financial Advisors Personal Finance Etf Street Portfolio Watchlist Stock Screener Fund Screener Tech Mobile Social Media Enterprise Gaming Cybersecurity Tech Guide Make It Entrepreneurs Leadership Careers Money Specials Shows Video Top Video Latest Video U.

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Stock Market Crash of

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Register Log In Profile Email Preferences PRO Sign Out. The Stocks That Survived Patti Domm pattidomm. Coca-Cola , Archer-Daniels and Deere should like this history lesson. Patti Domm CNBC Markets Editor.