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Home / Business / This is the last chart that investors need to check before the anniversary of the “Black Monday” market crash

This is the last chart that investors need to check before the anniversary of the “Black Monday” market crash



The front page of “The Philadelphia Inquirer” after the stock market crash in 1987.

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The late 1980s was an excellent time for headband and parachute pants. It has also been great for the global stock market for most of the past decade.

According to government data, from August 1982 to August 1987, the average return rate of the 19 largest markets in the world was 296%.Dow Jones Industrial Average Dow Jones Industrial Average
+ 0.39%
In those years, there was a surge from 776 to 2,722 species, a 44% increase in the first 8 months of 1987 alone.

However, on October 19, 1987, it became very ugly.

Disturbing financial developments, including the widening of the U.S. trade deficit, “securities insurance,” high stock valuations, and most importantly, the rise of computer trading, have hit the stock market with a toxic combination, leading to the worst trading day One in history. Dow and S&P SPX,
+ 0.01%
Lost more than 20% on both occasions.

This Monday is the 33rd anniversary of “Black Monday”, and at least one Reddit investor commemorated this occasion by publishing a similarity chart of this price movement from then to now.

Reddit members behind the post, bigbear0083It is clear that he did not make a prediction, but did say that there are many factors that may trigger a recession, such as another round of coronavirus wave, valuation inflation, elections, riots, large-scale weather events, etc.

Top response: “Can you mention it at 2:55 PM this Friday?”

Facts have proven that investors are ready to trigger a sell-off this year. The Dow Jones Industrial Average fell by more than 11% in March, the worst trading day since the decisive day in 1987.

Kent Engelke, chief market strategist at Capitol Securities Management, explained to MarketWatch at the time: “The biggest problem is not the coronavirus, but the emerging liquidity crisis.” Frankly speaking, this is terrible. This really shatters your confidence in the market. “

As for Friday’s trading actions, despite the pandemic and elections continuing to stir up uncertainty, the stock market plummeted for three consecutive trading days to end the week of volatility. Six and a half states, including Ohio and Michigan, reported a record number of new coronavirus cases, bringing the total number of single-days in the United States to exceed 60,000 for the first time in two months.


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