Stock Market crashes of the last 100 years
Black Monday of 1987 The crash occurred on October 19, 1987 becoming later known as Black Monday. It was the worst single-day drop the Dow ever experienced and to this day still stands, losing 508 points which translates into a tub thumping 22.61% drop. Prior to this single-day loss, there was a warning shot across the bows to investors as the Dow had lost 10% over the prior three sessions. It took almost two years for the index to fully recover. But, if we contrast this with the twenty five years it took to recover from the 1929 crash, it was nothing. In fact, although being the worst single-day loss, the 1987 crash was relatively mild in terms of its aftermath problems. This time there was no J.P. Morgan to save the banks, but the Federal Reserve System was already in place and doing its job to avoid the spread of problems to the whole economy through slashing interest rates. Its actions were very effective and a painful and prolonged bear market and economic contraction was averted
“It was the worst single-day drop the Dow ever experienced and to this day still stands, losing 508 points which translates into a tub thumping 22.61% drop.�
CHART - BLACK MONDAY 1987
December 2012
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