Lessons from the Black Monday Crash of 1987

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On October 19, 1987, the global stock markets experienced a significant crash, highlighted by a 22.6% drop in the Dow Jones Industrial Average. This event, known as Black Monday, not only reshaped trading regulations, introducing circuit breakers to halt trading during sell-offs but also underscored the critical role of the Federal Reserve in stabilizing the economy. Years later, key lessons emerged: stock markets tend to rise over time, market sectors are interconnected, and the importance of independent monetary policy remains crucial in the face of political pressures.

Source: YAHOO

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