Historical Falls in which the Stock Market Hit the Bottom

Stock market crash; a financial market, rapid and significant depreciation means. When there is a loss of value of around 10 percent daily,stock market crash‘ we can say.

Such collapses Investors started selling in panic, It occurs when prices fall rapidly, often as a result of periods of economic recession or uncertainty. Companies naturally face trust problems.

The Great Depression was the explosion of Wall Street in 1929, at the end of a period of great panic and uncertainty.

This great collapse, which was caused by interest rates, sudden sales due to panic and many other reasons, directly or indirectly affected the whole world. Hunger, poverty and unemployment have increased all over the world; so that this periodGreat DepressionIt has also become known as .

As a result of the loans that the USA distributed without thinking after the First World War, the banking policies that were not enacted in the USA, and the excessive debt of the countries to each other,Black Tuesday‘, investors panicked and started selling their stocks. As a result, stocks became increasingly cheaper and the recovery lasted until the mid-1930s in the world, although it occurred earlier in America.

The economic effects of World War II were, as you can imagine, just as bad as the previous one.

The crisis that started in Europe in 1945; It lasted until the mid-1950s and at the end of the war Increasing unemployment with the population of disbanded armies, abandoned weapons factories and destruction, caused economic collapse.

Bearing the surname of America’s Secretary of State at the time, ‘Marshall AidStabilized by ‘, Europe was able to recover almost ten years later. This help The Cold War He played a major role in keeping America’s relations with the West warm during his reign.

The “stagflation” of the early 1970s was a complex period in which economic stagnation and inflation occurred simultaneously.

Oil crises, rising energy prices and productivity decline Factors such as were the main reasons for this problem. During this period, traditional economic plans were ineffective in controlling both inflation and unemployment simultaneously. The 1970 Stagflation was also very challenging for the economists and politicians of the time.

In 1987, when the whole world experienced a crash that shook the financial markets, an ordinary Monday suddenly became ‘Black Monday’.

This incident took place on October 19, 1987. biggest in history It was one of the single-day stock market crashes. The main reasons were excessive speculation and increased interest rates. Sudden losses in value in stock markets seriously affected investors.

The Technology Crisis of 2000, also known as the Dot-com Bubble, was the burst of a technology bubble that occurred in the late 1990s and early 2000s.

This bubble was recorded as the collapse of investments as a result of excessive speculation in internet and technology companies. While the stocks of internet companies, a new ocean, were extremely valued, many investors invested large amounts in these companies. However, many internet companies actually sell the amounts they say they do. It was not at a profit, but even at a loss.

As a result of speculations, stocks and therefore investors suffered great losses. Many internet companies went bankrupt and thousands of people became unemployed.

The 2008 crisis, the collapse in the mortgage market, was a financial disaster that deeply affected the global economy.

The crisis that emerged as a result of dysfunctional credit practices and financial institutions being in a difficult situation; millions of people lost their homes, It led to increased unemployment rates and the bankruptcy of many financial institutions.

The crisis forced a closer examination of the complexity and risks of financial markets and taught important lessons about economic management. about this crisis ‘The Big Short’ The movie can be recommended for those interested.

The 2020 COVID economic crisis was a prolonged economic recession due to the quarantine in the COVID-19 pandemic.

In many countries, major sources of income have been restricted by measures such as travel restrictions and cancellation of mass events. While unemployment rates increased in business lines that were converted to automation during the quarantine period, many sectors, especially in the service sector There were great losses.

Although governments try to support their economies with various fiscal incentive programs, this economic crisis in 2020 causes economic instability. When and how the unpredictability of the future revealed.

Of course, we were also affected by the crises the world experienced.

2020 COVID-19 Crisis, 2008 Mortage Crisis, 1987 ‘Black Monday’… But the one who can always preserve his individuality Borsa Istanbul They also had their own downfalls. Let’s take a look at them:

The Financial Crisis of November 2000 – February 2001 caused a 60 percent decline in BIST.

In the last week of November 2000, panic caused by poorly managed and failing banks pushed investors out of the stock market. On the one hand, banks collecting foreign currency in a hurry, and on the other hand, investors fleeing; The first two days of the crisis, on 27-28 November, from the Central Bank of the Republic of Turkey 3 billion dollars has been withdrawn.

In the future, government policies It caused the Turkish lira to lose value rapidly and many banks were on the verge of bankruptcy. Requests for international financial assistance, an agreement with the IMF and economic reforms helped bring the crisis under control. However, this process greatly shook Turkey’s economic stability.

The 2013 Gezi events and the protests that started on May 28 occupied the agenda of not only the Republic of Turkey but also the world for a long time.

10 years have passed since the Gezi events, escalating violence day by day and increasing police intervention. It turned into a mass protest. In addition to deeply affecting Turkey’s politics, as a result of the actions that lasted almost three months and the political policies of the period government, BIST lost 30 percent of its value. The total market value of companies traded on BIST is 164 billion liras in 3 months fell.

The 2023 presidential election process shook BIST, just as it shook us all.

BIST, which started trading on May 15, the morning after the first round of elections, started its opening with a 6.4 percent loss in value. Since the depreciation exceeded 5 percent, the Index-Linked Circuit Breaker System was triggered and transactions were stopped from 09.55 to 10.30. During the entire election lost 20 percent of its value BIST gained 85 percent in value after the decline.

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