1920s Stock Markets

1920s Stock Markets

See the outcomes of your investment choices.

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You have $10,000 to invest. What do you do?

Case

You are a flashy and risky person and think you are really good at predicting the market. You spend lots of money and have been successful in the stock market. You are willing to go into debt in order to potentially make more money.

The year is 1927. America is enjoying a period of prosperity, and the stock market is on the rise. Fueled by speculation and easy credit, stock prices are climbing rapidly.

You invest in a mix of well-established companies and keep a significant portion of your funds in reserve

You're concerned about the market's rapid rise and decide to keep your money in a savings account, earning modest interest.

Ride the Wave

The stock market prices are fluctuating wildly! What do you do?

You are a flashy and risky person and think you are really good at predicting the market. You live a fancy life, spending lots of money, from your successful investments in the stock market. You are willing to go into debt in order to potentially make more money. You're excited by the prospect of quick profits. You invest heavily in high-growth stocks and even buy some on margin, hoping to amplify your gains. You put $3,000 into RCA (Radio Corporation of America), $2,500 into General Motors, $2,000 into Westinghouse, and $2,500 into a mix of other speculative stocks.

As the market becomes volatile you wait it out and you are certain that the market will bounce back. You even borrow more money to buy more stocks. You will make millions!

When the stock market started to go down, you don’t sell your stocks. You are convinced they will go back up. Hold tight! No need to worry, this is just a temporary drop.

You notice that the stock market is going up too fast and isn’t going to last. So, you start selling some of your stocks and put your money into gold and really safe bonds (a type of loan).

Invest Carefully

The stock market prices are fluctuating wildly! What do you do?

You're convinced the market will continue its upward trajectory. You increase your margin purchases, betting even more on high-growth stocks.

While optimistic, you're also mindful of the risks, and you're a little worried about the stock market. You invest in a mix of well-established companies, such as AT&T (American Telephone & Telegraph), General Electric, and DuPont, and keep a significant portion of your funds in reserve.

You decide to reduce your risk. You sell some of your more volatile holdings and shift the proceeds into more stable investments like bonds and dividend-paying stocks.

Alarmed by the market's instability, you sell all your stock holdings and move your money into cash and gold.

Stay Safe

What do you do?

You're convinced the market will continue increasing, so you decide to borrow money so you can make more money on high-growth stocks.

You're concerned about the market's rapid rise and decide to keep your money in a savings account, earning modest interest. Now that the stock market prices are fluctuating, many people are making decisions to buy, trade, or sell.

You decide to invest some money in US Steel , a major industrial company. You invested with your own money rather than borrowing money.

Alarmed by the market's inconsistencies, you sell ALL your stock holdings and move your money into cash and gold,

The Crash

What do you do?

You’ve come this far and refuse to sell your stock at a loss. You are sure the market will recover. Waiting it out is the best plan. You’ve come this far, why quit now!

On Thursday, October 24, the opening bell sounded at the New York Stock Exchange in New York City. Almost at once, stockbrokers were trying to sell tens of thousands of shares. No one was buying. Prices began falling faster and faster.

You sell your stocks for less than you paid for them.

The Crash

What do you do?

You’ve come this far and refuse to sell your stock at a loss. You are sure the market will recover. Waiting it out is the best plan. You’ve come this far, why quit now!

On Thursday, October 24, the opening bell sounded at the New York Stock Exchange in New York City. Almost at once, stockbrokers were trying to sell tens of thousands of shares. No one was buying. Prices began falling faster and faster.

You sell your stocks for less than you paid for them. Your profits and lavish lifestyle are gone but you have enough left ot start over.

The Depression

You held on but the market takes a long time to recover. Because you invested most of your money, this impacts you significantly. During the stock market crash of 1929, average investors who stayed in the market saw their investments plummet by an estimated 89% by 1932,

What happend to me?

The Depression

Your profits and lavish lifestyle are gone but you have enough left ot start over. During the stock market crash of 1929, average investors who stayed in the market saw their investments plummet by an estimated 89% by 1932,

What happend to me?

The Crash

What do you do?

You remain convinced that the market will bounce back. You hold onto your investments, hoping to ride out the storm.

On Thursday, October 24, the opening bell sounded at the New York Stock Exchange in New York City. Almost at once, stockbrokers were trying to sell tens of thousands of shares. No one was buying. Prices began falling faster and faster.

You try to sell your stocks, even though they're worth less.

The Crash

What do you do?

You remain convinced that the market will bounce back. You hold onto your investments, hoping to ride out the storm.

On Thursday, October 24, the opening bell sounded at the New York Stock Exchange in New York City. Almost at once, stockbrokers were trying to sell tens of thousands of shares. No one was buying. Prices began falling faster and faster.

You try to sell your stocks, even though they're worth less.

The Crash

On Thursday, October 24, the opening bell sounded at the New York Stock Exchange in New York City. Almost at once, stockbrokers were trying to sell tens of thousands of shares. No one was buying. Prices began falling faster and faster. Because you sold all of your stock, this does not directly impact you.

What happened to me?

The Depression

Your panic selling led to significant losses, but at least you retained some of your cash. During the early years of the Great Depression (1929-1932), investors lost about 89% of their investments in the stock market.

What happend to me?

The Depression

You held on but the market takes a long time to recover. During the early years of the Great Depression (1929-1932), investors lost about 89% of their investments in the stock market.

What happend to me?

The Crash

What do you do?

On Thursday, October 24, the opening bell sounded at the New York Stock Exchange in New York City. Almost at once, stockbrokers were trying to sell tens of thousands of shares. No one was buying. Prices began falling faster and faster.Knock their socks off!

You remain convinced that the market will bounce back. You hold onto your investments, hoping to ride out the storm.

You try to sell your stocks, even though they're worth less.

The Crash

What do you do?

On Thursday, October 24, the opening bell sounded at the New York Stock Exchange in New York City. Almost at once, stockbrokers were trying to sell tens of thousands of shares. No one was buying. Prices began falling faster and faster.Knock their socks off!

You remain convinced that the market will bounce back. You hold onto your investments, hoping to ride out the storm.

You try to sell your stocks, even though they're worth less.

The Depression

You held on but the market takes a long time to recover. During the early years of the Great Depression (1929-1932), investors lost about 89% of their investments in the stock market.

What happend to me?

The Depression

Visual content is a transversal, universal language, like music. We can understand images from millions of years ago, even from other cultures.

What happend to me?

Aggressive

You took huge risks, borrowed way too much money, and were overly confident in your ability to predict the market. You lost everything and ended up in financial ruin. Because of the economic depression, many businneses fail and unemployment increases dramatically. You lose your job, use up your savings, and eventually sell everything you own. You become part of a growing number of people (1,000 families per day) who lost their home. You become homeless and struggle to even have enough food to feed your family.

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BALANCED

All the money you borrowed was lost. You believed the market would always go up, but it took several years to get back on track. Like many Americans, you lost about 90% of the money you had invested into the stock market. All of your assets remained, but you were significantly less wealthy overall. When you started earning less in your job, you were forced to sell things that you owned. You and your family had to move to a smaller house. Although you weren't homeless (like the 1,000s of families were becoming each day), you struggled to afford basic needs.

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CONSERVATIVE

Because you saw the signs of the crash coming (fluctuation in the market) and were careful with your money, investing in gold to be safe, you were able to buy things when they were cheap and make a lot of money later on. You were careful, did your research on companies, and didn't borrow money to invest. You kept your money safe during the crash and bought things when they were cheap, which made you even richer. You eventually recover your initial investment and became much wealthier.

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