We all knew what was going to happen…We just didn’t know how severe it would be.
To give you some perspective on the big crash of ’87 you need to know what preceded it.
The stock markets’ action on Friday October 16, 1987 marked the beginning of the fall which led to Black Monday.
That Friday the DJIA fell 108.35 points (4.6%) to close at 2,246.74 on record volume.
After the markets closed, the regular Friday cocktail parties were particularly edgy. Conversations among the financial crowd consisted of mostly false bravado of how “everything will turn around on Monday…just wait and see.”
But deep down we all knew something was terribly wrong…and all we could do was wait.
Prior to the opening on Monday, everyone knew how the Asian and European markets got destroyed. The question in everyone’s mind was “how bad are we going to get hit.”
Needless to say, the 508-point drop (22.4%) was a spectacle to behold…and it wasn’t pretty. (In today’s dollars that would be equal to over a 6,025-point drop).
At the time everyone was told that the crash was due to “computer failure” and, for the most part, everyone believed the cover-up.
Once again, the boyz in the “Club” pulled the wool over everyone’s eyes.
We told the real inside story about why the market crashed in our October 2017 newsletter (HERE).
I bring this up to point out that today, we’re not in the same position as we were in 1987. Therefore, we don’t expect the market to be crashing anytime soon.
Will it be volatile?
So, if you want to learn how to navigate the oncoming storm season of investing, let our 108+ years of experience guide you.
You’ll sleep better and thank us later.
Subscribe to our newsletter (HERE).