Can you believe that 2022 had the seventh-worst performance over the previous 90 years?

1) The Great Depression - 1931 Down -43.8

The Great Depression was a severe economic downturn that lasted from 1929 to 1939 and affected countries around the world, including the United States, Canada, Europe, and many others. The depression began with the stock market crash of 1929 and was characterized by high unemployment, widespread poverty, and significant declines in industrial production, trade, and investment.

There are several factors that contributed to the Great Depression. One of the primary causes was the stock market speculation and overproduction that occurred in the 1920s. Many people invested heavily in the stock market, driving up stock prices to unsustainable levels. At the same time, businesses were producing more goods than people could afford to buy, leading to a surplus of goods and a decline in demand.

Another contributing factor was the decline in international trade. Many countries, including the United States, had high levels of debt and were heavily dependent on foreign markets for their goods. When these markets collapsed, it had a ripple effect on the global economy.

The Great Depression also had significant social and political consequences. The high levels of unemployment and poverty led to widespread social unrest, with many people protesting and calling for change. Governments around the world implemented various policies in an attempt to address the economic crisis, including increased government spending, protectionist trade policies, and the implementation of social welfare programs.

While the Great Depression was a devastating event, it also had some positive consequences. The economic downturn and the resulting government policies helped to pave the way for the post-World War II economic boom, and the lessons learned during the depression helped to prevent similar economic crises in the future.

2) The 2008 Great Financial Crisis Down -36.6%

The 2008 Great Financial Crisis, also known as the Global Financial Crisis, was a major economic downturn that began in 2008 and had significant global consequences. The crisis was caused by a variety of factors, including:

The housing market bubble: In the mid-2000s, there was a rapid increase in the price of housing in many countries, fueled in part by easy access to mortgage loans. This housing bubble eventually burst, leading to a significant decline in housing prices and a wave of foreclosures.

The subprime mortgage crisis: Many of the mortgage loans that were issued during the housing boom were subprime loans, which were given to borrowers with poor credit histories. These loans were often risky and had high default rates, which contributed to the housing market collapse.

The failure of financial institutions: The housing market collapse and subprime mortgage crisis led to the failure of many financial institutions, including large banks and investment firms. This caused a credit crunch, with banks becoming hesitant to lend money and businesses and individuals finding it difficult to obtain loans.

The global nature of the crisis: The crisis had global consequences, as many countries were interconnected through trade and finance. This meant that the economic downturn in one country could have ripple effects in other countries.

The Great Financial Crisis had significant economic and social consequences. It led to high levels of unemployment and a decline in economic growth in many countries. It also had political consequences, with many people blaming the crisis on government policies and calling for changes in regulation and oversight of the financial sector. The crisis also led to increased scrutiny of the financial industry and reforms to address some of the underlying issues that contributed to the crisis.

3) The 1937 Stock Market Crash Down -35.3%

The 1937 stock market crash refers to a significant decline in stock prices that occurred in 1937, following the end of the Great Depression. The crash was not as severe as the stock market crash of 1929 that marked the beginning of the Great Depression, but it was still a significant event that had economic and political consequences.

There are several factors that contributed to the 1937 stock market crash. One of the primary causes was the overheated economy and stock market speculation that occurred in the early to mid-1930s. The economy had begun to recover from the Great Depression, and there was a sense of optimism about the future. This led to an increase in stock prices, with many people investing heavily in the stock market.

Another contributing factor was the Federal Reserve's decision to tighten monetary policy in 1937. The Federal Reserve raised interest rates and reduced the money supply in an attempt to curb inflation, which led to a decline in stock prices.

The 1937 stock market crash had significant economic consequences. It led to a recession and a decline in economic growth, and it also contributed to a decline in consumer confidence. The crash also had political consequences, as it undermined the credibility of the Roosevelt administration and led to a shift in public opinion about the role of government in the economy.

Overall, the 1937 stock market crash was a significant event that had economic and political consequences. It serves as a reminder of the importance of stability and caution in the financial markets.

4) The 1974 Bear Market Down -25.9%

The 1974 bear market refers to a period of declining stock prices that occurred in the mid-1970s. A bear market is a market trend in which stock prices are generally falling, and it is typically characterized by investor pessimism and negative economic indicators.

There are several factors that contributed to the 1974 bear market. One of the primary causes was the oil crisis of 1973-1974, which resulted from an embargo on oil exports to the United States and other Western countries by Arab oil-producing countries. The oil crisis led to higher energy prices, which had a negative impact on the economy and contributed to a decline in stock prices.

Other factors that contributed to the bear market included high inflation, rising interest rates, and political uncertainty. The Vietnam War and the Watergate scandal also contributed to a sense of uncertainty and pessimism among investors.

The 1974 bear market had significant economic consequences. It led to a recession and a decline in economic growth, and it also had a negative impact on consumer confidence. The bear market also had political consequences, as it undermined the credibility of the Nixon administration and contributed to a shift in public opinion about the direction of the country.

Overall, the 1974 bear market was a significant economic event that had consequences for both the economy and politics. It serves as a reminder of the importance of stability and strong economic policies in times of uncertainty.

5) 1930 Great Depression Down -25.1%

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6) 2002 Dot.Com Crash Down -22.0%

The 2002 dot-com crash refers to the decline in the value of internet-based companies that occurred in the early 2000s. The crash was caused by a variety of factors, including:

Overvaluation of internet-based companies: During the late 1990s, there was a rapid increase in the value of internet-based companies, or "dot-coms." Many of these companies had little or no revenue and were not yet profitable, but they were still highly valued by investors.

A decline in investor confidence: As the dot-com bubble began to burst and the value of internet-based companies declined, investor confidence also declined. Many investors began to sell their stocks, leading to a further decline in stock prices.

A downturn in the overall economy: The dot-com crash occurred during a period of economic downturn, which also contributed to the decline in stock prices.

The 2002 dot-com crash had significant economic consequences. It led to a decline in the value of internet-based companies and a decrease in overall stock market values. Many dot-com companies went bankrupt or were acquired by other companies, and there was a significant loss of wealth for investors. The crash also had broader economic consequences, as it led to a decrease in consumer spending and a decline in economic growth.

Overall, the 2002 dot-com crash was a significant event that had economic consequences for both internet-based companies and the overall economy. It serves as a reminder of the importance of caution and careful analysis when investing in new and emerging industries.

7) 2022 The Great Inflation Down -18.1%

Midway through 2021, there was a global rise in inflation, with many nations experiencing their highest rates in many years. It has been linked to a number of factors, including the pandemic's impact on the global economy and the fiscal and monetary stimulus measures taken in reaction to the pandemic by governments and central banks worldwide in 2020 and 2021. Through 2021, an unexpected demand rebound resulted in historic and widespread supply constraints (including chip and energy shortages), which were accompanied by rising consumer demand. The global building industry also took a knock.

The situation was made worse in early 2022 by the impact of the Russian invasion of Ukraine on world oil, natural gas, fertiliser, and food prices.

Inflation was greatly aided by higher gas prices as oil companies experienced record profits. Debate erupted.