It's the 35th anniversary of the 1987 stock-market crash: What investors can learn from 'Black Monday'

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It's the 35th anniversary of the single ugliest day in stock-market history --- and investors are feeling a little queasy right now. Could it happen again? There are some important differences between the 1987 and 2022 market environment.

Investors suffering motion sickness from the stock market’s wild October swings probably don’t want to hear about it, but Wednesday marks the 35th anniversary of the single ugliest day in stock-market history.

“Is it possible to be down 20% in a day? Sure, but not before we have to check our wits a couple of times first,” Liz Young, head of investment strategy at SoFi, told MarketWatch in a phone interview. But the S&P 500 had gained 32.9% from January through September 1987, while it’s been downhill for stocks this year since the large-cap benchmark scored a record finish on Jan. 3.

Current carnage The Dow and S&P 500 ended Friday at their lowest levels since 2020. They’ve bounced back over the first two trading sessions of this week, leaving the S&P 500 down 22% year to date through Tuesday’s close, the Dow down 16% and the tech-heavy Nasdaq Composite COMP, -8.76% off more than 30%. All three major indexes are mired in bear markets.

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Reaganomics dude

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It's the 35th anniversary of the 1987 stock-market crash: What investors need to knowIt's the 35th anniversary of the single ugliest day in stock-market history --- and investors are feeling a little queasy right now. neverforget blackmonday My boyfriend at that time was a trader on Wall Street. He proposed to me that day. We were married a year later and STILL HAPPILY MARRIED! Consider that the Fed saved us then, which did nothing more than provide cover for the biggest Ponzi scheme the world has ever seen. At some point a black “weekday” will be the last nail in the coffin
Source: MarketWatch - 🏆 3. / 97 Read more »

It's the 35th anniversary of the 1987 stock-market crash: What investors need to knowIt's the 35th anniversary of the single ugliest day in stock-market history --- and investors are feeling a little queasy right now. neverforget blackmonday My boyfriend at that time was a trader on Wall Street. He proposed to me that day. We were married a year later and STILL HAPPILY MARRIED! Consider that the Fed saved us then, which did nothing more than provide cover for the biggest Ponzi scheme the world has ever seen. At some point a black “weekday” will be the last nail in the coffin
Source: MarketWatch - 🏆 3. / 97 Read more »