When is the next market crash? Or when is the next one in a decade chance to buy equities!!!

Yes the crash of 2008 seemed impossible. The pundits and experts and general traders and investors refused to believe that a crash could come!!

The SENSEX has scaled a high of 21,000 points by January that year and everyone was basking in their individual glories.

And as if like a curse of absolute destruction the market tumbled. USA was leading the rout and the rest of the world followed like a pack of cards.

USA... CHINA...JAPAN...RUSSIA...UNITED 

KINGDOM....INDIA...THEY FELL.. DOWN AND 

DOWN,,,AND DOWN .........STILL DOWN!!!

THERE SEEMED NO END.

It was a terrible year. The fear of recession was now real. Inflation took a back seat and the 

potently more dangerous and destructive stagflation stepped in. Industries with moderate 

capex cut back , production seemed to come to a grinding halt. The people who took a 

leverage of  10x  over their actual assets now reeled under heavy debt. The banks suffered 

like hell. NPAs seemed to increase on a break neck speed. Almost all the favourite 

companies of investors looked like third grade companies ready to declare bankruptcy.It 

was not one day of selling. It was a pathetic exercise of morbid pleasure derives by the 

markets  as if killing the investors with a very slow but sure death. 

January 21, 2008: The Bombay Stock Exchange benchmark Sensex saw its highest ever loss of 1,408 points.

January 22, 2008: The Sensex  closed at a loss of 875 points at 16,730. 

The Nifty closed at 4,899 ,a loss of 310 points. Sensex crashed to 15,576.30 crossing the circuit limit of 10 per cent.

February 11, 2008: The Sensex ended with a loss of 834 points (4.8% ) at 16,631. 

The NSE Nifty slipped over 5% (263 points) to 4,857.

March 3, 2008: The  Sensex  lost 900.84 points to close at 16,677.88. 

March 17, 2008:  Sensex crashed by 951 points to close at 14,809. 

 October 24, 2008: The Sensex crashed by 1070.63 points (10.96 per cent) to close at 8,701.07. 
The  Nifty ended at 2,557.25, down 13.11 per cent or 386 points. 

However when all seemed lost and gone the recovery seemed like a miracle...

I looked upon the rotting sea, 

And drew my eyes away; 

I looked upon the rotting deck, 

And there the dead men lay. - The Rime of the Ancient Mariner, Coleridge.

The markets started recovering by 2009.

O happy living things! no tongue 

Their beauty might declare: 

A spring of love gushed from my heart, 

And I blessed them unaware: 

Sure my kind saint took pity on me, 

And I blessed them unaware. 

The self-same moment I could pray; 

And from my neck so free 

The Albatross fell off, and sank 

Like lead into the sea.  - The Rime of the Ancient Mariner, Coleridge.

And it reminded us once again that one that falls shall rise again!!! And what a rise it has 

been since the great fall. Hence it is equally important that we wait for the next bubble and 

be ready with cash in hand for the next great slide in the market. 

Here are some of the greatest falls in the share markets across the world!!!

Market Crashes: 

 The Tulip and Bulb Craze

The South Sea Bubble

The Florida Real Estate Craze

The Great Depression (1929)

  

The Crash of 1987

The Asian Crisis

The DOTCOM Crash (1997-2000)

 Housing Bubble and Credit Crisis (2007-2009)

And the above chart shall satisfy you that if there is a crash there is also a simultaneous recovery!!

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herein should not be mistaken for professional financial advice. Ultimately, you and you 

alone are responsible for the decisions you make in life, so please contact an independent 

financial professional for advice regarding your particular situation.