One of the worst economic disasters was the 1929 stock market crash. This started a great depression which lasted for 12 years. Those who entered the market when it was at it’s highest would have experienced a large loss and would have had to wait several decades to break even.

So, what were the causes of the great depression? It is the same typical stock market crash story. People simply bought too much stock too fast. As a result businesses could not grow at the same speed as their stock.

Eventually a pullback would have to occur in order to knock the markets down off of their super inflated ego.

When it did, all those investors who kept buying those overinflated stocks panicked and sold all of their shares. The government wanted the economy to work itself out so they did nothing to help ease the fall. Of course this only lead to a longer and harder depression then there ever should have been.

What can we take away from this? There are a few lessons here. One of the 1929 great depression facts was that the government’s failure to step in and save the economy only made it worse. To prevent something like this from happening again the government has to help prevent otherwise strong businesses to fail during economically hard times.

Another big lesson here is that buy and hold may not be the undisputed answer. People who invested for the long term went belly up, while at the same time there were traders making a killing by playing the downside. Sometimes you have to be more open minded to the bearish side of the market.

The great depression was a horrible time in the world. But we can take lessons away from it to make tomarrow a better day.

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Yet an 82% decline in the market over two decades is devastating even to investors with the longest time horizons. Bear in mind, this example excludes dividends. But still, this is an astonishingly poor performance. What can we learn here?…”

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Dent is the author of the eminent The Next Great Bubble Boom (2004) The Roaring 2000s Investor (1999) The Roaring 2000s (1998) The Great Jobs

Ahead (1995) The Great Boom Ahead (1993) Our Power to Predict (1989). Dent writes an economic newssheet that revues the economy in the US and around the world, as well as fiscal markets, and has written six books, of which the two most recent have been best sellers: The HS Dent Forecast newsletter, offers current analytic thinking of economical, and financial market trends. Dent offers a refreshingly favorable and graspable view of the future. Harry S Dent Jr. is a long-familiar author and is known as the developer of The Dent Method, a prediction approach based on changes in demographic trends. Dent received his MBA from Harvard Business School, where he was a Baker Scholar and was elected to the Century Club for leadership excellence. As the lone authenticated record of success at forecasting long term economic trends, The Dent Method works by showing how foreseeable consumer spending models blended with demographic trends allow us to foretell the economy years or even decades in advancement. The Dent Method can be understood by studying:Predictable spending patterns at different ages and stages of life, who spends what in the economy and its impact birth index and immigration, The Spending Wave Inflation Indicator and Learn more about The Dent Method. In the late 1980s, Harry S Dent Jr. forecast that the Japanese economy, then the favorite of the world, would soon enter a recession that would last more than a decade. Recently, Harry S Dent Jr. discussed baby boomer spending, the future of the economy and the art of forecasting.

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Harry S Dent Jr. is set to release a brand new book set to forecast the coming economic depression and subsequent years thereafter. We will be writing a comprehensive review of his new book, Harry S Dent Jr. The Great Depression Ahead we are awaiting a pre-release copy from his publisher.