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Tag Archives: 1987
A Day of Carnage in the Trading Rooms
A Day of Carnage in the Trading Rooms Thirty one years ago today, on Oct. 19,1987, the Dow Jones Industrial Average plunged 22.6%, its largest one-day percentage-point drop ever. You may have noticed that the financial media has started to highlight the point drops as opposed to the percentages. To say the Dow lost 500 […]
Stock Market Crash of 1987
Stock Market Crash of 1987 The first contemporary global financial crisis unfolded on October 19, 1987, a day known as “Black Monday” when the Dow Jones Industrial Average dropped 22.6 percent. Composite of newspaper headlines reporting the Stock Market Crash of 1987 (Associated Press) The first contemporary global financial crisis unfolded in the autumn of […]
US Stock Market: Conspicuous Similarities with 1929, 1987 and Japan in 1990
US Stock Market: Conspicuous Similarities with 1929, 1987 and Japan in 1990 Stretched to the Limit There are good reasons to suspect that the bull market in US equities has been stretched to the limit. These include inter alia: high fundamental valuation levels, as e.g. illustrated by the Shiller P/E ratio (a.k.a. “CAPE”/ cyclically adjusted […]
Why the most-recent selloff was just the beginning
Why the most-recent selloff was just the beginning On October 19, 1987, the Dow experienced its biggest one-day percentage loss in history – plunging 22.6%. The day will forever be known as “Black Monday.” The selloff was so fast and so severe, nothing else even comes close. The second worst percentage loss for the Dow […]
Peter Schiff: We’re Ripe for a 1987-Style Crash (Video)
Peter Schiff: We’re Ripe for a 1987-Style Crash (Video) Stock markets have settled down after an awful couple of weeks earlier this month. On Feb. 5, the Dow Jones suffered its largest-ever drop in terms of points. It was down 1,600 at one point and ultimately lost 1,175.21 points, a 4.6% drop that day. At […]
Volatility and the Alchemy of Risk
Volatility and the Alchemy of Risk Reflexivity in the Shadows of Black Monday 1987 The Ouroboros, a Greek word meaning ‘tail devourer’, is the ancient symbol of a snake consuming its own body in perfect symmetry. The imagery of the Ouroboros evokes the infinite nature of creation from destruction. The sign appears across cultures and […]
Kyle Bass: “Today’s Market Resembles The 1987 Debacle On Steroids”
Kyle Bass: “Today’s Market Resembles The 1987 Debacle On Steroids” The US stock market celebrated the 30th anniversary of Black Monday with the 2017 version of a rocky trading day: Stocks sold off early, with S&P 500 futures recording their steepest post-midnight drop of the year. But the dip was reflexively and aggressively bought, and […]
Weekly Commentary: Arms Race in Bubbles
Weekly Commentary: Arms Race in Bubbles The week left me with an uneasy feeling. There were a number of articles noting the 30-year anniversary of the 1987 stock market crash. I spent “Black Monday” staring at a Telerate monitor as a treasury analyst at Toyota’s US headquarters in Southern California. If I wasn’t completely in […]
A Stock Market Panic Like 1987 Could Happen Again
Frenzied traders on the floor of the New York Stock Exchange on Oct. 19, 1987. CreditJim Wilson/The New York Times A Stock Market Panic Like 1987 Could Happen Again Oct. 19, 1987, was one of the worst days in stock market history. Thirty years later, it would be comforting to believe it couldn’t happen again. Yet […]
The Crash Of ’87 Remembered: “It Was Clear The Acapulco Cliff-Dive Was On For Monday”
The Crash Of ’87 Remembered: “It Was Clear The Acapulco Cliff-Dive Was On For Monday” “The markets in a panic are like a country during a coup, and seen in retrospect that is how they were that day,” wrote a young Salomon bond salesmena named Michael Lewis, of the chaos he witnessed. “One small group […]
Personal Recollections of the Crash of 1987
Personal Recollections of the Crash of 1987 The following guest post is a first-hand account of the events surrounding the Crash of 1987 by JLFMI President, John S. Lyons. Personal Recollections of the Crash of 1987 on its 30th Anniversary “There was no ‘smart money’ that day.” What do the assassination of President John F Kennedy, […]
One Chart Says It All
One Chart Says It All People sense the ‘recovery” is bogus, and their rational response is to save more money rather than squander it. Sometimes one chart captures the fundamental reality of the economy: for example, this chart of money velocity and the civilian-population ratio. (thank you, Joseph Y. for posting it on my Facebook feed.) […]
All is Not Well
All is Not Well The 1987 stock market crash raised concerns for the dangers associated with mounting U.S. “twin deficits.” Fiscal and trade deficits were reflective of poor economic management. Credit excesses – certainly including excessive government borrowings – were stimulating demand that was reflected in expanding U.S. trade and Current Account Deficits. Concerns dissipated […]
