5.3.2 Share prices do go up and down
You’ve probably heard many times the adage that shares can go up and down in value. Sometimes these movements are very sharp and sudden – particularly when shares fall in price. Over the years there have been times when share prices have plummeted. You may have heard of the Wall Street Crash in 1929 when the US stock market plummeted. The pop group 10cc had a hit song, ‘The Wall Street Shuffle’, about the vagaries of share prices in the 1970s.
Shares also collapsed in value worldwide in October 1987, and the video includes footage on what quickly became known as Black Monday. Share prices also fell around the world during and after the 2007 financial crisis.
More recently, shares have staged a recovery as the world economy has started to recover from the financial crisis. The second part of the video provides covers this rise in share prices in 2013.
This recovery gathered further pace in 2017 with many stock market indices around the world – including the UK’s FTSE-100 – hitting all-time highs. Are we, though, close to the point where another of those sharp drops in share prices occurs?