The Great Depression The Black swan event and its effect on the share market.

'The Great Depression or the upcoming Black Swan event.' I am pretty much sure that many of
you must have heard about these terms from somewhere.
And since RBI (Reserve Bank of India) has said that in the coming time, there is a possibility of
foreign investors withdrawing 100 million dollars i.e. about 8 lakh crore rupees from India, Since
then it has become even more certain that this time its effect will be seen a lot in the whole
world as well as in our country India because it accounts for about 3% of our total GDP.
Now the children of the new generation must be thinking that 'what does this have to do with
them or with the stock market? 'Also, there will be many questions in the minds of many
people regarding the coming Great Depression, such as, 'what is the great depression or the
black swan event?' 'How can it impact the world's share market?' How to survive the
Great Depression?'
'How it is related to the stock market?' 'What are the professionals' views on this?'
'How to know if the Great Depression is over?'
So let's start with the question...
What is The Great depression or black swan event?
In simple words, 'The Great Depression is a situation in which the economy of a country
or the whole world falls very rapidly. This is such a terrible period in which people have
to face many difficulties, inflation is at its peak and all kinds of business collapses.
Millions of people lost their jobs and thousands of poor households died of hunger. The
unfortunate thing is that no one can predict how long this Great Depression will last.
Countries with very good economies also become helpless during this period.
Why is it called a black swan event?
Now many of you must have doubts in your mind that why this economic great
depression is called the black swan event?
'The Black swan event' is a metaphorical name the story behind this is that many years
ago people believed that swans are the only white on this earth But when a black swan
was discovered in a country by merchants going through a humble sea route, they were
shocked because it was a completely unpredictable incident, and for this reason, this
type of Great Depression is called Black Swan event because no one can predict this
Great Depression, this event can come suddenly at any time, as happened in the year
1929 when America's stock market crashed very badly and a terrible Great Depression
had come.

How can this affect the world's stock market and investors?'
The Great Depression is a matter of great trouble for the stock markets around the world, it
directly affects the economy of the country and during this time the stock markets around the
world start falling very fast. Share prices of big companies fall a lot in a short time, this is
the period in which panic arises among investors and people want to sell their shares as soon
as possible and try to exit with minimum loss.
Conditions like poverty and hunger arise in the country, the economy of the country declines
very fast, the items of everyday routine become very expensive and taxes are also increased by
the government.
And it is obvious that when there is such a situation in a country then why the stock market of
that place will go up, meanwhile people want to save their money as much as possible and want
to avoid investing in anything and should also do so because no one would like to see their
shares in the price of the shell.

'Should investors panic about this, what are the opinions of professionals?
Now the question arises that when such dire situations will arise in the country,
should investors panic, what is the opinion of experts on this subject?
Well, according to the professionals, the investors in the stock market do get in a rush of
emotions, no matter how much experience they have, and it is very difficult to manage
themselves during the time of crisis, and those who have seen the economic crisis of 2008 or
the stock market fall in Corona, will be well aware of how to follow the strategies during the
Great Depression.
And it also depends on the luck of the investors that when they withdraw or invest their money, it
is a matter of fact that during the Great Depression, the prices of shares fall very fast, now
anyone who has invested just before this will have to see the very falling price of his shares, but
if he has thoughtfully invested in a good company for a long time, then there is no need to panic
because even if the Great Depression lasts for a long time, it will end at some point and then the
stock bounces very fast and if the investor has invested in a good company, then he will
definitely get a good value for his shares back.
But for this, the investor should have to be confident about his investment and must have
patience, at the same time it is necessary that a person should invest only such an amount of
money which he is ready to keep trapped for a long time because no one knows when the Great
Depression will end and when stocks will come to the right value.

How Can Investors Take Advantage of the Upcoming Great Depression?

Now while reading about the great depression/black swan event, everyone must have
become aware that during this time the economy of any country falls very fast and the
stock market also starts falling very low and this is one such time with the help of which
traders or investors can take advantage of this fallen market in their interest, let's
If we look at the Great Depression of 2008, then you will get to see all such news in
which people lost everything and got ruined, but there were many people who earned
crores of rupees by taking advantage of this Great Depression because during this
period the stocks of the big companies are at a very low price and it is certain that
whenever the Great Depression ends, the stock market bounces very fast, and those
who have invested money in such undervalued stocks of that companies get a lot of
returns on their investment,
If you also want to earn profit from the Great Depression, then save your money as
much as possible and invest it at the appropriate time so that you can earn maximum
How to know if the Great Depression is over?
If seen, there is no such person who can tell exactly when the Great Depression will
end, but we can tell you about some such situations by looking at which you can guess
that now the Great Depression will end.
-When the government in the country starts making cuts instead of increasing interest
rates, that is, you start getting loans from banks at low-interest rates, then you can
assume that the Great Depression is over.
-when you get the news that Now inflation has come around 4%, then you can guess
that the Great Depression is over,
-as well as after the end of the Great Depression, you will start seeing an upward trend
in the stock market.
By looking at all these things, you can find out whether the Great Depression is on the
verge of ending or not.

For your information, let us tell you one more thing, the Great Depression has never
lasted for a very long time, but still, the condition of people has worsened for as long as
it has been, many experts recommend that avoid any kind of investment during this
period because the government may increase the tax on your investment or else your

money may get stuck for a long time and try to save money and reduce unnecessary

The Great Depression is a very troubling time for any country and common
people, during which inflation is at its peak and the economy of the country starts
falling very fast, unemployment and hunger spread rapidly all over the country.
The Great Depression does not last forever, but as long as it lasts, people suffer
from it. Its direct effect is seen on the stock market. The stock market falls very
fast, due to which many people's money is drowned. Stocks of good companies
also become worth very less, but by taking advantage of these conditions, many
people earn good money by investing in the time at the end of the Great
Whenever the governments of the country start cutting interest rates instead of
increasing them, that is, you start getting loans at low-interest rates, then you can
assume that the Great Depression is over, as well as you will get inflation of
around 4%.
In the end, the advice of us and many experts is that you should save your
money as much as you can and avoid wasteful expenditure because, in the
coming times, the possibilities of the Great Depression are visible, and when the
Great Depression is on the verge of ending, you could start your investment
Hope you got to know a lot from this post of ours.

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