Question

Why did people feel so confident before the stock market crash of 1929? What were some factors that led to irrational investing?

Answer 1

Hello There!

The economy was good and people were making money. There had been not a major issue before this point except in the 1880s.

#1 Easy money by the bank. The bank provided money for basically anyone.

#2 The roaring 20s in 1920 was a peaceful time that they had hope and that nothing could go wrong.

Answer 2

Many people felt so confident before the stock market crash, because in the 1920's, many people felt that the stock market could make the a lot of money. In the 1920's, the stock market was not represented as something for 'irrational investing'. Most forgot the stock market had the ability to change incredibly fast and they went ahead and invested their life savings. 

Hope this helps!!