Investing in the stock market is not yet the main place in the world. That’s because public understanding and education are still minimal in terms of stock investment. Especially considering the fluctuating stock price movements on the capital market. Fluctuating stock prices are making capital market players excited. The stock price movement of an issuer can arouse market participants but it can also make market participants cry if the share price falls significantly. Some factors that influence stock price movements start from fundamental, technical and psychological. Here are some worst stock market crash ever.
1. The United States, 1987
There is a day that is the worst in Wall Street history and remembered as one of the worst stock market crash ever. known as Black Monday. The story is like this. The Dow Jones Industrial Average dropped sharply to 22.6%. This is the biggest decline in US history. The decline was even deeper than the stock market crash of 1929, before the Great Depression.
There has never been a similar or near event since Black Monday. On that day, in 1987, as the cameras highlighted the flurry of activity on the New York Stock Exchange, stock prices fell one by one, panic spread, and stock market crashes worsened. At the close, the Dow Jones index was at 1,738.74 or lost 508 points.
2. Greece, 2015
Greece’s main stock exchange, Athex, plummeted by 22.87% when trading reopened after closing for five weeks. The four main banks there, Piraeus Bank, National Bank, Alpha Bank, and Eurobank, experience the biggest decline, 30%, which is the maximum limit allowed. Banking stocks constitute one-fifth of the overall composite stock price index in Greece. The stock market was closed shortly before Greece implemented capital controls when the crisis peak there.
Traders had expected a fall in stock prices as a result of the close of trading. Shortly after opening at 07.30 GMT, Athex dropped to 615.16 points, down 182.36 from the close of June 26.
3. Egypt, 2016
Egypt’s stock market performance reportedly showed weakness at the end of last week. This weakening is considered as a response to the release of the British decision to leave the European Union. The weakening of the performance of the stock exchanges in the State of the Pyramids has led investors to worry about further global instability that could cut capital inflows into Egypt. Meanwhile, the Naeem stock market participants in Dubai noted, the economic impact of the Brexit decision on Egypt would not be so serious.
The reason, the weakening of the pound sterling and the euro would benefit the Egyptian economic balance from import activities.
4. China, 2020
The increasingly massive spread of the coronavirus is making the Chinese stock exchange today. Hundreds of company shares plummeted by 10%. Investors worry that the coronavirus will destroy the economy.
The fall of shares on the Chinese stock exchange indicates the magnitude of investor concerns about the economic impact of the spread of the coronavirus. Now, the death toll from the coronavirus passed the SARS victims in 2003.
5. Venezuela, 2018
The Venezuelan stock market has fallen sharply in 2018. The crisis-ravaged country has made the IBVC stock index down more than 94 percent. It was also triggered when Venezuelan President Nicolas Maduro sought to end a long period of economic turmoil in an oil-rich but money-poor country.
As investors, of course, we hope that in general. The shares will go up in the long run, but because stock movements are very dynamic and interrelate with the global market. Many unforeseen events can occur. Investors must prepare for the worst stock market crash ever by implementing risk management. One of which is to have cut loss points, for example, 8% -10% and apply it with the discipline to avoid funds being stuck for a long time in stock.