You are an investor in 1929. Use to complete sentences to provide two ways the stock market crash affected your investments and why this happened. Write two more sentences on how you would have reacted once your investments were all gone. (8 points)
The stock market crash of 1929 severely impacted my investments in two ways. Firstly, the value of my stocks plummeted rapidly, leading to significant losses in their market value. Secondly, as panic spread amongst investors, there was a domino effect of selling stocks, which further drove down their prices.
This crash happened mainly due to the rampant speculation and overvaluation of stocks during the 1920s, leading to an unsustainable market bubble. Additionally, a lack of government regulations and a flawed banking system exacerbated the crash, causing many investors to lose everything.
Once my investments were all gone, I would have been devastated and faced with the reality of financial ruin. I might have experienced a mix of emotions such as shock, anger, and disappointment. It would be crucial to assess and learn from the mistakes made during the investment period, while also exploring potential opportunities to rebuild my financial portfolio.