Today is the 30th anniversary of the stock market crash of 1987, which is now known as Black Monday.
Here are a few things to remember about Black Monday.
- The stock market crash started in Hong Kong, before spreading to Europe and then the United States.
- New Zealand and Australia call the event Black Tuesday due to time differences.
- Several factors, including the slowing expansion of the U.S. economy during its recovery from the recession, may have played a part in the crash.
- The Organization of the Petroleum Exporting Countries also fell apart in early 1986, which caused oil prices to fall by 50% by the middle of the year.
- Conflicts between the U.S. and Iran were part of the crash with the latter sinking two U.S. supertankers in the days before the crash.
- London also had to close markets early on Oct. 16 due to the Great Storm of 1987.
- Prices were quickly falling before the London markets closed, which cased some concern from then Treasury Secretary James Baker.
- The stock market crash on Black Monday is still the largest percentage drop in the DJIA in history.
- Despite the stock market crash, the economy wasn’t majorly affected.
- The DJIA completely recovered to its pre-crash levels in early 1989.
- As a result of the stock market crash on Black Monday, more regulations were placed on trading.
- One new rule put into place allows many markets to close trading if there is a significant decline in prices during the day.
You can follow this link to learn more about Black Monday.
As of this writing, William White did not hold a position in any of the aforementioned securities.