Event Types

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Crash

A crash is a sudden and significant decline in the value of a market. A market crash can happen in any market, including bond markets and commodities markets, but they are most often associated with stock markets. Crashes usually happen when market participants start selling assets in a panic or to cover over-leveraged investments that need to be unwound to cover debts and margin calls.

  • Many stock market crashes are attributed to the FED raising interest rates
  • Crashes often have striking similarities (which we can learn from)
  • The definition of a crash is somewhat subjective (there are no defined metrics)
  • There have been several famous market crashes in the 20th century. The most recent stock market crash happened on March 12, 2020.

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