October 1987 Crash, 25 Years Later
A 25th anniversary to Black Monday!
Yes, the crash of October 19, 1987 was humming a distant quarter century ago.
The market waterfall began in Hong Kong.
Then it spread to Europe and North America.
The Dow index plummeted an eye popping 508 points in 1 day to close at 1,739.
Yesterday it closed at 13,549.
It was a monumental day in market history.
Investors could not believe the 22.6% one day drop.
Most investors that lived through Black Monday don’t remember it well.
Reading the Dow tape at the back of the brokerage was the way to stay plugged in.
The luxury of computers was in its infancy.
The sudden crash came as a surprise to most.
Concerns resembled many of those from today.
Prospects for a recession and electronic trading were two of them.
An avalanche of buy/sell orders slowed the system to a crawl.
Many investors were mesmerized and shell shocked.
The Dow has had bigger point drops since then.
However, none greater in percentage terms.
Your questions and comments are welcomed.