The 1929 stock market crash wiped out approximately $25 billion in wealth (equivalent to over $320 billion in 2026 dollars) by mid-November. The initial crash, specifically from October 24–29, saw stock values plummet by $14 billion in a single day, with the market losing half its value by the end of 1929.
Around $14 billion of stock value was lost, wiping out thousands of investors.
Eighty percent of American families had virtually no savings, and only one-half to 1 percent of Americans controlled over a third of the wealth.
In 1929, the New York Stock Market crashed. Everyone had been buying stocks on credit and not using real money. When people and banks started asking for the money they had loaned to be paid, no one had enough money. There were whole countries that went bankrupt when their loans were called in!
The Great Depression was partly caused by the great inequality between the rich who accounted for a third of all wealth and the poor who had no savings at all. As the economy worsened many lost their fortunes, and some members of high society were forced to curb their extravagant lifestyles.
A 2019 study by Harvard Business Review found either Vanguard, BlackRock or State Street is the largest listed owner of 88% of S&P 500 companies. There is a perception that a few select companies own a vast majority of the stock market.
The "27.39 rule" (often rounded to $27.40) is a simple financial strategy to save $10,000 in one year by consistently setting aside $27.40 every single day, making it an achievable micro-saving habit to build wealth or an emergency fund. It turns the daunting goal of saving $10,000 into a manageable daily action, emphasizing consistency over large lump sums.
What Could a Dollar Buy You in the 1920s?
$2,000 in 1929 is equivalent in purchasing power to about $37,909.01 today, an increase of $35,909.01 over 97 years. The dollar had an average inflation rate of 3.08% per year between 1929 and today, producing a cumulative price increase of 1,795.45%.
The best performing investments during the Depression were government bonds (many corporations stopped paying interest on their bonds) and annuities.
His comments came in response to a prediction on September 5 at the Annual National Business Conference by rival financial prognosticator, Roger Babson, that "sooner or later a crash is coming, and it may be terrific." Babson's comment was followed by a sharp decline in stock-market prices known as the Babson break.
In 1929, the average house price in the US was about $6,000. At that time, 10 kilograms of gold were worth around $7,000, enough to buy an average house.
While industry insiders are generally cautious, few expect a crash. Morgan Stanley notes “continued equity gains in 2026” with modest growth, as a lot of good news is already priced in. Fidelity's 2026 outlook is that it “could be another positive year” for the market — but investors shouldn't ignore risks.
If the FDIC can't sell the failing bank, then it reimburses depositors for money that they lost. Each individual can receive up to $250,000 from the FDIC per ownership category and per institution they banked at. Readers should note that this is per individual-per institution, not per account.
In 1920, the average cost of a new house was around $3,000 to $6,000, translating to roughly $45,000 to $90,000 in today's money, though prices varied significantly by location and amenities, with some basic homes potentially costing much less and luxurious ones far more, and homeownership was less common, with many people renting.
I tell young people all the time, by the time you hit 33 years old you should have at least $100,000 saved somewhere. Make that your goal. That's the age when it's really time to start getting FOCUSED on saving.