Although the Spanish flu caused around 50 million deaths in 1918, the Dow Jones index decreased by only 14.3%. Since February 17th 2020, the US index has fallen by 34.5% due to the Corona outbreak. Losses of the German DAX are even higher. The data is presented in the new infographic by Kryptoszene.de. The current development is compared with financial crises from the past.
During the economic crisis of 1929, the Dow Jones index fell by as much as 89%. During the 1987 and 2008 stock crashes – by 36% and 54%, respectively (see the infographic).
In the meanwhile, the duration of the financial crises varies considerably. After the stock exchange crash in 1929, the crisis lasted 34 months before the index returned to its previous high value. In 1987, however, it took the index just two months to recover.
“One look at the historical data shows that there are no blueprints for a situation like this”, says Kryptoszene analyst Raphael Lulay. “Least of all the Spanish flu – the death toll was around 50 million people, and yet the listed US companies recorded only minor losses. However, there is reason to believe that we might expect a sudden rise in insider buying these days, even if it does not guarantee that the crisis will end soon”.