October Crash
#1
Posted 12 October 2007 - 05:19 PM
"Lessons from the '87 Crash
Enjoying the Dow's record run? Don't get too comfy. The market's Black Monday breakdown is a reminder of how quickly investor sentiment can turn
by Ben Steverman
As major stock indexes hit all-time highs, it's worth looking back 20 years to a far gloomier time, when investors were cruelly and suddenly reminded that the value of their investments can depend on something as unpredictable as a mood swing.
Every once in a while, fear, snowballing into panic, sweeps financial markets—the stock market crash of October, 1987, now celebrating its 20th birthday, is a prime example.
In the five trading sessions from Oct. 13 to Oct. 19, 1987, the Dow Jones industrial average lost a third of its value and about $1 trillion of U.S. stock market value was wiped out. The losses culminated in a panic-stricken 22.6% decline in the Dow on Black Monday, Oct. 19..."
Are you prepared?
http://www.businessw...1011_494930.htm
#2
Posted 12 October 2007 - 06:09 PM
from BusinessWeek:
"Lessons from the '87 Crash
Enjoying the Dow's record run? Don't get too comfy. The market's Black Monday breakdown is a reminder of how quickly investor sentiment can turn
by Ben Steverman
As major stock indexes hit all-time highs, it's worth looking back 20 years to a far gloomier time, when investors were cruelly and suddenly reminded that the value of their investments can depend on something as unpredictable as a mood swing.
Every once in a while, fear, snowballing into panic, sweeps financial marketsâ€"the stock market crash of October, 1987, now celebrating its 20th birthday, is a prime example.
In the five trading sessions from Oct. 13 to Oct. 19, 1987, the Dow Jones industrial average lost a third of its value and about $1 trillion of U.S. stock market value was wiped out. The losses culminated in a panic-stricken 22.6% decline in the Dow on Black Monday, Oct. 19..."
Are you prepared?
http://www.businessw...1011_494930.htm
Highly doubt it. The PPT came AFTER the '87, crashette.
Some day, all the jawboning and money-pumpin' of the PPT won't be effective...when the world has given up on the $USD. Until then, the PPT will backstop every decline before really negative sentiment sets in.
#3
Posted 12 October 2007 - 06:23 PM
Thanks for the article DonBart.from BusinessWeek:
"Lessons from the '87 Crash
Enjoying the Dow's record run? Don't get too comfy. The market's Black Monday breakdown is a reminder of how quickly investor sentiment can turn
by Ben Steverman
As major stock indexes hit all-time highs, it's worth looking back 20 years to a far gloomier time, when investors were cruelly and suddenly reminded that the value of their investments can depend on something as unpredictable as a mood swing.
Every once in a while, fear, snowballing into panic, sweeps financial marketsâ€"the stock market crash of October, 1987, now celebrating its 20th birthday, is a prime example.
In the five trading sessions from Oct. 13 to Oct. 19, 1987, the Dow Jones industrial average lost a third of its value and about $1 trillion of U.S. stock market value was wiped out. The losses culminated in a panic-stricken 22.6% decline in the Dow on Black Monday, Oct. 19..."
Are you prepared?
http://www.businessw...1011_494930.htm
Cheers,
Bob-C
#4
Posted 12 October 2007 - 07:04 PM
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#5
Posted 12 October 2007 - 07:14 PM
from BusinessWeek:
"Lessons from the '87 Crash
Enjoying the Dow's record run? Don't get too comfy. The market's Black Monday breakdown is a reminder of how quickly investor sentiment can turn
by Ben Steverman
As major stock indexes hit all-time highs, it's worth looking back 20 years to a far gloomier time, when investors were cruelly and suddenly reminded that the value of their investments can depend on something as unpredictable as a mood swing.
Every once in a while, fear, snowballing into panic, sweeps financial marketsâ€"the stock market crash of October, 1987, now celebrating its 20th birthday, is a prime example.
In the five trading sessions from Oct. 13 to Oct. 19, 1987, the Dow Jones industrial average lost a third of its value and about $1 trillion of U.S. stock market value was wiped out. The losses culminated in a panic-stricken 22.6% decline in the Dow on Black Monday, Oct. 19..."
Are you prepared?
http://www.businessw...1011_494930.htm
Highly doubt it. The PPT came AFTER the '87, crashette.
Some day, all the jawboning and money-pumpin' of the PPT won't be effective...when the world has given up on the $USD. Until then, the PPT will backstop every decline before really negative sentiment sets in.
Exactly, especially with Paulson in there. Bush didn't make the former CEO of GS the FED secretary for nothing. All his boys on Wall Street are protected from a 1929/1987 type crash. If a big drop ever did happen, they would simply suspend trading for a few days until it blew over.
#6
Posted 12 October 2007 - 07:22 PM
JV
#7
Posted 12 October 2007 - 07:33 PM
#8
Posted 12 October 2007 - 09:27 PM
The current market dynamics are not even close to being the same as they were 20 years ago, no less, in 1929.
Fib
I agree. The conditions are greatly different from 87. Interest rates are low and the market P/E is in a good area. This was not the case in 87.
Rich
#9
Posted 12 October 2007 - 09:35 PM
The current market dynamics are not even close to being the same as they were 20 years ago, no less, in 1929.
Fib
I agree. The conditions are greatly different from 87. Interest rates are low and the market P/E is in a good area. This was not the case in 87.
Rich
Rich: I would say valuations would prevent a large decline or crash. However, I do consider it likely for at 10% - 15% correction in the market at this juncture. I do not speculate on targets, but due to the high OEX Put/Call Ratios and low CBOE and Equity Put/Call ratios we are seeing elude to more than a small dip somewhere on the horizon.
Barry
#10
Posted 12 October 2007 - 10:23 PM
JV