Stock market crash 1987 ronald reagan

Regarding the discussion of technical analysis predictions, for what it is worth, I very well do remember two analysts, independent of each other, in August , publicly and specifically calling a market top and advising a soon-to-be bear market.

I also remember very well during that August, September, and October the classic bubble behavior of investors and the media trumpeting the raging Dow, not unlike and very smilar to late and early Also, the term "crash" is perhaps unfortunately defined as a percentage dropbut without market context.

In the big picture, ignoring percentage drop, Black Monday and the market drop of October was really only a cyclical bear market in the context of the secular bull market that started in March and ended in March Black Monday was really an excellent buying opportunity for mid-term and long-term investors and those investors who understood the principle of long valuation waves.

This article looks like it could be a copyvio. Can someone verify this is not a copyvio? If it looks similiar to the Stock Market Crash website its only because that's a site I've created myself. Don't think an isolated storm in Great Britain couldn't have caused a worldwide crash that hit countries as far away as Australia and Japan. Large storms don't have huge effects on stock markets. The typhoon that hit South East Asia last year is an example - world stock markets hardly budged.

Commodities did, but not stocks. The City of London should not be underestimated, it is still very much a major player in the world economy, it is the ancestral home of the "invisible" world economy. It IS the British economy, the City of London is ecomomically bigger by far than the rest of the country; by a long long way. For historical reasons London and New York are particulary close, and there have been many occasions when panic in one market has had a knock on affect on the other market.

If the markets in London and New York sneaze then the markets of Australia and Japan will catch a cold, every time. There most definitely were traders at the time who privately blamed the mess they got into on the storm, as anyone old enough to remember should be able to testify. I'd be pretty surprised if many Japanese or New York brokers were even aware of London markets being closed.

In general natural disasters don't move stock markets - the floods in the US the summer of were much more disasterous than the London storm but didn't cause stock markets much grief. The link at the end, which leads to a story about a VAX machine getting into trouble, might be erroneous. I suggest this because I've seen the story before without the line at the very end linking it to Black Monday in fact, I always thought the event took place significantly prior to While it's possible that somebody might add this last line to add dramatic emphasis to the story, it's unlikely that it would be cut out by somebody - it's forms a punchline to the story.

Therefore I think the link between this VAX story and Black Monday is probably incorrect. I'd like to see a graph of the New Zealand sharemarket during this period.

It crashed badly, and stayed crashed for years afterwards. The crash caused the collapse of a number of high profile investment companies and affected other parts of the economy, including house prices I think. That occured on December 12, , when the DJIA fell Due to this lapse in time is considered to largest single day decline.

I'd like to move this to Stock market crash but I am unsure of the ideal capitalisation not a pun which is a bit more meaningful and more likely to be what a user would search for.

As I recall, some supply siders attributed the crash to the Senate repealing some of Reagan's tax cuts, such a bill passed committe day prior??? I had just entered the brokerage business in October , and one area I would like to see explored is the fallout from the crash.

I remember hearing about individuals and firms who suffered staggering losses. Some of the fallout may be esoteric to such areas as restrictions on selling short put options, but there are probably other more significant reactions that can be reported on. Technical analysis is hardly universally accepted as accurate. It would be frankly astounding if it predicted a stock market crash like this.

I agree with this.

I don't remember, at the time, a chorus of analysts, technical or otherwise, saying in late August that the market was in a cyclical bear mode. As of August 31 there was a pullback lasting just a week, and there were no major broken uptrend lines, etc. It probably makes sense to eliminate this line, or, unlikely, provide documentation of the assertion.

The linked Motley Fool article states, "In the early morning, two U. Combined with a myriad of economic factors, this helps to set off an unprecedented point downpour in the Dow Jones Industrial Average. Whilst reading an article posted to Slashdot entitled 'Big Red Button Disasters', which asked readers to post their own example of Big Red Button Disasters, I stumbled upon a link to a Big Red Button Disaster that occurred on the same day and apparently coincided with trillions of dollars being moved between two countries and a computer being reset during the transaction.

Could this have been a contributing factor or even possibly a cause of black Monday? A very humorous story, actually On a separate note, wouldn't a more apt name for Black Monday have been Red Monday, denoting a negative number or loss as opposed to profit?

Was the crash a consequence of the economic policy of Ronald Reagan? I've read from some articles alleging it is. I don't know personally but I wonder why the article doesn't even mention the name of Reaganomics. The DJIA being the least representative of the big indices, please add the corresponding levels of the SPX, which gives a picture far more accurate than the DJIA!

I am removing the reference to the events of September because it does not make sense in its current context. The list of other stock market drops is to provide other examples of stock market crashes that follow abnormal market closures. In finance, being in the black means a financial gain, while being in the red means a financial loss.

Could someone explain in the article why it is called Black Monday instead of the more appropriate Red Monday? See [1] Apteva talk Since this is in contrast to all the other days of the week, that style probably is unneeded and reflects either ignorance of the acceptability of Dab-page entries like. I have not investigated them individually; instead, i suggest review, of each article, by one or more editors with prior interest in its corresponding topic, with an eye to finding a title that either avoids the "Black Years are good tools for helping users who happen to have seen a brief reference to "Black Friday" and have at least rough idea of the year involved, but giving priority to that case in titling the article, rather than letting the Dab page handle that job, is almost always an impediment to most users seeking the article.

Almost certainly, most of the 10 should be renamed. I have removed the unnecessary reference to a narrow theory completely invented and created by Taleb: This encyclopedia entry should not reference a single individual's hypothesis unless that idea has been largely adopted, either by the public at large, an academic community, or some other valent group which has discussed it. His notion of "black swan," including the term itself, is completely of his own personal fabrication, and is entirely circumscribed by his own work.

Some individuals in the pseudo-pretentious 'netizen community' have even taken to using the term adjectively as if to imply some universality of the concept. If it is believed that a reference such as this should be made, then a section on "Theories or Hypotheses" should be created, and Taleb's opinion could therein be placed. His personal opinion of the event though does not belong in the opening entry, nor should one be required to pursue an entry on his book to understand a historical event; it essentially serves as a platform of kind to advertise or promote his book or personally created ideas within it, which Wikipedia is not.

I've replaced this with "the largest one-day percentage decline in the Dow Jones" because the linked to page is specific to the Dow. If you believe that in one of the markets affected it was the largest decline any stock market in the world has ever seen please say more about why you believe that and which market you're referring to.

The truncated graphs are misleading. They should be replaced by graphs that start at the Y origin. Below material was tagged for needing sources long-term. Feel free to reinsert the below material with appropriate references. Another common theory states that the crash was a result of a dispute in monetary policy between the G7 industrialized nations, in which the United States, wanting to prop up the dollar and restrict inflation, tightened policy faster than the Europeans.

The crash, in this view, was caused when the dollar-backed Hong Kong stock exchange collapsed, and this caused a crisis in confidence. I've just read through the article. There's a peculiar thing; it talks about the run-up to the crash, and the fallout from the crash, but the events of 19 October seem to happen off the page.

The article skips from " the crash began in Far Eastern markets the morning of October 19 " directly to " by the end of October, stock markets in Hong Kong had fallen etc ".

What happened on the day?

Reagan's Leadership, Too, Was Questioned After Market Drop : It's All Politics : NPR

What did the newspapers say the day after? Did anybody commit suicide? Did world leaders react, and if so, how? I have just modified 2 external links on Black Monday Please take a moment to review my edit. If you have any questions, or need the bot to ignore the links, or the page altogether, please visit this simple FaQ for additional information.

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Become a Member Project Talk Unreferenced BLPs Alerts. Business and economics portal. Economist Richard Roll believes the international nature of the stock market decline contradicts the argument that program trading was to blame. Program trading strategies were used primarily in the United States, Roll writes. Markets where program trading was not prevalent, such as Australia and Hong Kong, would not have declined as well, if program trading was the cause. These markets might have been reacting to excessive program trading in the United States, but Roll indicates otherwise.

The crash began on October 19 in Hong Kong, spread west to Europe, and hit the United States only after Hong Kong and other markets had already declined by a significant margin.

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