Home » Stock Market Crashes
Posted on 3 April 2011 | 6,178 views

Best Performing Sectors After October 29 1929 Crash

Towards the end of 1929 when the stock market crashed until the middle of 1932 when stock finally hit a bottom, only certain sectors in the economy were performing well.

Although some sectors of the economy had cumulative positive returns from 1930 thru 1932, logging was the only industry that had positive returns every year during this time frame.

Even the legendary value investor Benjamin Graham lost over 60% from 1930 thru 1932.

Two stocks which stood out in the logging industry were Diamond Match which made matchsticks (October 27, 1929 — $129.875) — (August 11, 1932 — $17.25) (1932 Low — $12.00) and Mengel Co. which made trees into packing materials (October 27, 1929 — $20.75) — (August 11, 1932 — $2.625) (1932 Low — $1.00) did end up having cumulative gains during the 1930-1932 period.

Among the sectors with positive cumulative returns from 1930 thru 1932 were:

Logging — 120.1%
Flat Glass — 87.6%
Miscellaneous Manufacturing — 74.2%
Personal Credit Institutions — 35.1%
Crude Petroleum and Natural Gas — 34.6%
Cigars and Tobacco — 33.4%
Leather Tanning Finishing — 25.7%
Metal Cans and Shipping Containers — 21.3%
Non-Metallic Minerals — 13.0%
Sugar and Confectionery Products — 12.5%
Cigarettes — 8.7%
Fats and Oils — 6.7%
Grain Mill Products — 5.6%

With so many people fearful of another Great Depression repeat (Depression 2) which the media defines as a Great Recession, we can see that looking at the above sectors don’t provide guidance this time around. The housing bubble we are currently trying to unwind makes the Logging sector a bad investment along with Miscellaneous Manufacturing with so much of our manufacturing having been shipped and still being shipped overseas. Gold on the other hand has performed quite well as investors are buying it as an inflationary hedge.

Resources:

The Pittsburgh Press October 1929
The Pittsburgh Press August 1932

  • Facebook
  • Twitter
  • Delicious
  • LinkedIn
  • StumbleUpon
  • Technorati
  • Mixx
  • Pinterest
  • Google Plus
  • Reddit
  • BlinkList
  • Blogger
  • Tumblr
  • Digg


Tags: , , , , , , , , , , , ,

Rate This Article!
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...Loading...

One Comment »

Leave your response!

Add your comment below, or trackback from your own site. You can also subscribe to comments via RSS.

Be nice. Keep it clean. Stay on topic. No spam.

You can use these tags:
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

This is a Gravatar-enabled weblog. To get your own globally-recognized-avatar, please register at Gravatar.

IMPORTANT! You need to solve the following simple math (so we know that you are a human) :-)

What is 14 + 7 ?
Please leave these two fields as-is:
CommentLuv badge

Incoming Search Terms!

best perfomaning stock sectors and history