18 replies to this topic

[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 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

[HoseB]

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.

[Bob-C]

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

Thanks for the article DonBart.

Cheers,

Bob-C

[fib_1618]

The current market dynamics are not even close to being the same as they were 20 years ago, no less, in 1929. Lessons? The same thing bothering everyone back then bothers us now. Doesn't mean a thing. Fib

[JAP]

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.

[Mtrader]

Old news?? That is good news. It won't happen in October but may be November.

[beardown]

times are different,it could never happen again,no way=thats all I hear! I talk to guys at the club all they talk about is buying dips and how much money they are making in and out of some of these mo mo stocks.All they say is the fed will save them if it goes down-easily trained.All i say is we ll see,thats all i can say when we keep making highs

[Rich]

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

[qqqqtrdr]

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

[Mtrader]

we already have 10-15 % correction. Where have you been?