Dow Jones Average During The Great Depression

Lately, I have been hearing a lot people curious about stock returns, in particular the Dow Jones Index, during the Great Depression.  I don't know if we are going to have those type of times again, let's hope not, but it is still worth taking a look at our own history.  Obviously, we are a long ways from the severity of the Great Depression, but for what it's worth, here is a little historical information on how the Dow Jones Index performed during one of the most difficult times the United States has ever experienced.

On September 3, 1929 the Dow Jones Index closed at its high point of 381.17.

On July 8, 1932 the Dow Jones Index closed at its low point of 41.22.

On November 23, 1954 the Dow Jones Index closed at 382.74.

From the Dow Jones high point in 1929 to its low point in 1932, a devastating loss of 89.19% occurred in just under 3 years.  Also, it took over 25 years for the Dow Jones to regain the highest level it was at before the Great Depression began.  Here is a chart that illustrates how the Dow Jones Index performed during the 1920s and 1930s  www.stockcharts.com/charts/historical/djia19201940.html

Here is a table of the yearly returns of the Dow Jones Index from 1929 through 1949:


YearPrior Year Closing Price
Year End Closing Price
Change
% Gain/(Loss)
1929
                248.48                164.58  -83.90       -33.77%
1930
                164.58                  77.90
  -86.68       -52.67%
1931
                  77.90
                  60.26
  -17.64       -22.64%
1932
                  60.26
                  98.67
   38.41
        63.74%
1933
                  98.67
                104.04      5.37
          5.44%
1934
                104.04                144.13   40.09           38.53%
1935
                144.13                179.90   35.77
        24.82%
1936
                179.90                120.85  -59.05       -32.82%          
1937
                120.85                154.36   33.51
        27.73%
1938
                154.36                149.99    -4.37         -2.83%
1939
                149.99                131.13  -18.86
       -12.57%          
1940
                131.13                110.96  -20.17
       -15.38%
1941
                110.96                 119.40                  8.44
          7.61%
1942
                119.40                135.89   16.49
        13.81%
1943
                135.89                151.93   16.04           11.80%   
1944
                151.93                192.91   40.98
        26.97%
1945
                192.91                 177.20
  -15.71
         -8.14%
1946
                177.20                181.16     3.96
          2.23%
1947
                181.16                177.30    -3.86
         -2.13%
1948                177.30                200.52   23.22
        13.10%
1949                200.52                235.42   34.90
        17.40%

The Own Every Stock blog is brought to you by 1Stock1, home of the Yearly Stock Returns Index and the Stock Performance Guide.

 

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