The biggest financial gains in the history of the stock market, have not come when many people would expect. There are factors that effect the group thinking of stock market movements and how people moving through the stock trade act psychologically. In some sense, stock market buyers, sellers, and traders act more like gamblers than anything else that would be comparable. Here is the reasoning why this analogy is often made.
Examples of this are evident, if you observe stock exchange behavior just before the famous Black Monday crashes of 1929 and 1987. Both were preceded by some of the biggest financial gains in the history of the stock market, at each of those individuals periods. These crashes have raised any number of questions and speculations about how market fluctuation should be interpreted. Also these crashes were followed by mass liquidation of stock holdings by many fearful investors. So this did end up contributing to the crashes and their devastating results.
Another example of this is what are called the bubble years of the 1990s stock market. Many companies were setting records for stock pricing on the indexes, some almost monthly or more often. Quite a number of eventually money losing companies were worth billions of dollars, at least on paper. Because of this their holdings sold wildly and high priced on the day of their public auctions. Yet this was far from the truth once these huge one day markets would pass. One day spikes were a cause of much stock market confusion and losses during the middle to late 1990s. These are not considered safe.
So when examining the biggest financial gains in the history of the stock market, it must be looked at with perspective and clarity to gain any real insight. High stock values, races to purchase stocks, and sudden fluctuations in trades are not always an indicator of a good solid stock market. Investments are not generated in such short term profits for the most part. Wise investments are made with consistent profits in the long term, such are safer and more realistic. Profits should be steady and not fluctuating. Any wise investment adviser will tell their clients this and it is good advice to take to heart. The biggest financial gains cannot be assumed to guarantee a steady growth in the market, this is true today and it has been true in decades past.