Market Crash 1929, Mystery Unraveled?

By Wim Grommen

In the twenties of the last century the world, and especially the United States, experienced an economical high. As a result of this, share and stock prices rose to unprecedented heights, beyond reasonable values. The underlying economy had decreased in strength without this being reflected on the stock exchange. Investors were euphoric and stock prices were forced up against all economic logic. ⁽¹⁾

In my view the causes for the rise of the Dow Jones Industrial Average (INDEXDJX:.DJI) to unprecedented highs were the introduction of a new calculation method for the Dow on 1 October 1928, the introduction of the Dow-divisor, the extension of the Dow from 20 to 30 funds on 1 October 1928 and splitting the stock between October...