Dow Jones from 1936 to 1945 (covering World War II). comments welcome.
I have provided the link of previous thread on Dow where I discussed “The Great Crash” and “The Great Depression” at the end of this thread.
30 (Blue) ,50(Green) 200(Black) SMAs plotted on chart.
I have provided the link of previous thread on Dow where I discussed “The Great Crash” and “The Great Depression” at the end of this thread.
30 (Blue) ,50(Green) 200(Black) SMAs plotted on chart.
President Roosevelt second term’s beginning was not as rosy as the first. He had to back track. He had to cut back many of his spending to reduce national debt.
The economy again began to fare badly and depression resumed.
The economy again began to fare badly and depression resumed.
For the year, the economy grew 5.1 percent, unemployment fell to 14.3 percent, and prices rose 2.9 percent. The debt rose to $37 billion. 
1938
Mark to market accounting procedure followed by banks was abolished and banks were allowed to keep the accounts of assets at historical prices.
Mark to market accounting procedure followed by banks was abolished and banks were allowed to keep the accounts of assets at historical prices.
In June 1938 “The Bankruptcy act” went into effect.
This caused the economy to turn around and “The Great Depression” was officially over.
This caused the economy to turn around and “The Great Depression” was officially over.
1939
Though depression was over in terms of earnings, consumption and parameters of such type, yet Dow was about to face one of the biggest challenges.
Historians say World War II had begun from 1st September 1939. Tensions leading to it were brewing for more than a year.
Though depression was over in terms of earnings, consumption and parameters of such type, yet Dow was about to face one of the biggest challenges.
Historians say World War II had begun from 1st September 1939. Tensions leading to it were brewing for more than a year.
Germany, Italy and Japan had undertaken an expansionist attitude. Germany annexed Austria in 1938.
DJIA had put economy in back burner and was reacting to any news at the European front.
DJIA had put economy in back burner and was reacting to any news at the European front.
Czechoslovakia was ordered to leave the League of Nations by Germany on 21st January 1939. The market reacted.
Diplomatic events and war preparation developments, which favored Germany, was coming in thick and fast in early April 1939.
1.Czechoslovakia was invaded by Germany and later annexed.
2.Hitler gave fiery speeches on “New Germany” saying the times have changed.
1.Czechoslovakia was invaded by Germany and later annexed.
2.Hitler gave fiery speeches on “New Germany” saying the times have changed.
3.Britain and France agreed on a mutual assistance pact with Poland, pledging to come to Poland's aid in the event of a German attack.
4.The Italian army completed the occupation of Albania
4.The Italian army completed the occupation of Albania
5.Italian forces entered Albania. Albania’s King Zog fled to Greece.
6.Hungary announced its withdrawal from the League of Nations.
Such news was unending.
6.Hungary announced its withdrawal from the League of Nations.
Such news was unending.
August 20, 1939 (Sunday)
Germany and the Soviet Union shocked the world when a trade pact between the two countries was announced.
21st August Dow reacted. It fell 4%
Germany and the Soviet Union shocked the world when a trade pact between the two countries was announced.
21st August Dow reacted. It fell 4%
August 31 1939
At 9:00 p.m. German radio interrupted regular programming to present the government's 16-point proposal for Poland.
At 9:00 p.m. German radio interrupted regular programming to present the government's 16-point proposal for Poland.
The demand for the restoration of Danzig to the Reich was maintained, but the question of the Polish Corridor was now to be settled by a plebiscite. Warsaw never heard the proposal because communications between the two countries were cut off.
September 1, 1939.
The German invasion of Poland began at 4:44 in the morning, sparking off World War II.
The German invasion of Poland began at 4:44 in the morning, sparking off World War II.
My friends on twitter,
If you were expecting a crash of some sort in Dow, you are badly mistaken. For, the markets after a strong knee jerk on 1st September 1939 making a low of 127, bounced to 157, a jump of more than 23%.
If you were expecting a crash of some sort in Dow, you are badly mistaken. For, the markets after a strong knee jerk on 1st September 1939 making a low of 127, bounced to 157, a jump of more than 23%.
USA had declared that it will follow neutrality act and stay out of direct conflict in the war.
September 1939 to April 1940
Every other day a new battle front was opening. Italy and Germany was devastating Europe and Northern Africa. Soviet Union made its own plans for it long term expansion.
Every other day a new battle front was opening. Italy and Germany was devastating Europe and Northern Africa. Soviet Union made its own plans for it long term expansion.
Japan was plundering East Asian countries, with china and Southeast Asia bearing the major brunt.
After initial exuberance in Dow, gradually it was becoming immensely clear that USA will plunge into the war in near future.
After initial exuberance in Dow, gradually it was becoming immensely clear that USA will plunge into the war in near future.
Strong hints came when President Roosevelt modified Neutrality past and began sale of arms and other necessities to Britain and France.
May 10, 1940
Germany invaded France and the Low Countries at dawn. The Battles of France, the Netherlands, and Belgium began.
The Dow had a free fall. It wiped 25 % in less than as many days.
Germany invaded France and the Low Countries at dawn. The Battles of France, the Netherlands, and Belgium began.
The Dow had a free fall. It wiped 25 % in less than as many days.
May 1940…. November 1941
Battles raged on across the world. It was almost two years a end was nowhere in sight. Germans were taking jews as prisoners and killed in thousands. Rape, looting plundering by Japanese was heard from almost every place they conquered.
Battles raged on across the world. It was almost two years a end was nowhere in sight. Germans were taking jews as prisoners and killed in thousands. Rape, looting plundering by Japanese was heard from almost every place they conquered.
A major development came in June 1941. The pact between Germany and Soviet Union broke. Germans attacked Soviet Union.
7th December 1941 (Sunday)
Pearl Harbor in USA was attacked
21 American ships and over 300 aircraft were sunk or damaged and 2,418 Americans were killed. Japan lost 29 planes in return.
USA vowed to retaliate and plunged into the World War.
Pearl Harbor in USA was attacked
21 American ships and over 300 aircraft were sunk or damaged and 2,418 Americans were killed. Japan lost 29 planes in return.
USA vowed to retaliate and plunged into the World War.
Winston Churchill (Prime Minister of Britain), realized that the United States would now enter the war and that Britain would no longer have to fight alone.
He later wrote of that night, "Being saturated and satiated with emotion and sensation, I went to bed and slept the sleep of the saved and thankful”.
1942---1944
Dow moved below 100 and registered a low of 92.7 on 27th April 1942.
The war was far from over. From Australia in South to Finland in North battles were being fought. Germans made rapid gains against the Soviets too.
Dow moved below 100 and registered a low of 92.7 on 27th April 1942.
The war was far from over. From Australia in South to Finland in North battles were being fought. Germans made rapid gains against the Soviets too.
However the soviets retaliated later and eventually became one of the major cause of German defeat.
1943 onwards the Axis powers started tasting defeat initially in bits of pieces, but by 1945 April they collapsed.
1943 onwards the Axis powers started tasting defeat initially in bits of pieces, but by 1945 April they collapsed.
April 12 1945
President Roosevelt suddenly collapsed, suffered a stroke and died.
April 28 1945
Benito Mussolini Prime Minister of Italy was caught and killed. His body was hung upside down in public.
30 April 1945
Adolf Hitler committed suicide.
President Roosevelt suddenly collapsed, suffered a stroke and died.
April 28 1945
Benito Mussolini Prime Minister of Italy was caught and killed. His body was hung upside down in public.
30 April 1945
Adolf Hitler committed suicide.
6th August , 9th August 1945.
The darkest day in humanity. Hiroshima and Nagasaki was hit by Atom Bomb and wide scale devastation took place.
Japan surrendered unconditionally. (15th August 1945)
The darkest day in humanity. Hiroshima and Nagasaki was hit by Atom Bomb and wide scale devastation took place.
Japan surrendered unconditionally. (15th August 1945)
Americans were informed by President Truman of dropping of Atom bomb by radio and television. However Americans were confused about the effects and fallout for two to three days.
When the news of surrender of Japanese reached the people, the Americans celebrated, market had a sigh of relief. The war was officially over on September 02, 1945.
A strong pressure grew to decolonize third world countries. (It was a foresight of Netaji Subhas Chandra Bose who said the same, one day prior to his controversial plane crash and disappearance) India attained independence on 15th August 1945.
Millions killed; there cannot be an assessment to the suffering of people and damage caused. Humanity was at its lowest ebb. Can we not utter a small prayer for them, “Rest in Peace. The mistake shall not be repeated”.
Source: From various websites
