Another 1929? No, and Here's Why

A lot of comparisons are being made about the current environment and the 1930s, resulting in even more fear and panic as an unthinkable repeat of that era seems possible. The action of the stock market bears some resemblance to the 1930s, but the policy response is vastly different.

The stock market fell 89% from peak to trough during the Great Depression. Oddly, there were ferocious rallies along the way. Of the 36 days in the last 80 years that saw the market rise 6% or more in a single day, 32 occurred between 1929 and 1933.

In terms of drops, from 1937 to 1941, the market fell 60%. Since then, the two worst bear markets were 1974-1975 and 2000 to 2002. Both were off about 48%.

In 1974, there were more stocks below $10 on the NYSE than above $10. At the intraday low last Friday, the S&P was off 50% from its peak last October. The snapback rally from Friday to Tuesday's intraday high was 1950 Dow points! Such market action has happened in all bear markets. ...