Here's what we can learn from the aftermath of the initial 2008 bank run:
The bank run that began on September 15, 2008, marked the start of a significant downturn in the US financial markets.
Two weeks after the bank run, the S&P 500 had fallen by 5.5%, with the financial sector experiencing the largest losses.
Major banking stocks, such as JPMorgan Chase (JPM) and Bank of America (BAC), saw declines of over 20% in the two weeks following the bank run.
Here's what we can learn from the bank run that happened in the early 2000s:
• In early 2002, rumors began to circulate about the financial stability of NetBank, a popular online bank. Customers began to withdraw their funds en masse, causing a bank run.
• Taking advantage of market rebounds: After the initial decline, many stocks rebounded over the course of the next several months. Investors who purchased stocks at their lows and sold when they had recovered could have made significant profits.
• The stock price of the Standard Oil Company fell by over 40% from its peak in early 1907 to its low in November 1907.
There's often much we can learn from the past NFADYOR
Here's what we can learn from the bank run on the Knickerbocker Trust Company in October 1907 that ultimately led to a panic in the US financial system.
3. The impact of the bank run extended beyond banking stocks, with adjacently related industries also experiencing declines.
• The stock price of the United States Steel Corporation fell by over 60% from its peak in early 1907 to its low in November 1907.