Lessons from Black Monday
Tomorrow will be the 25th anniversary of Black Monday. The Dow Jones industrial average lost more than 22% of its value on Monday, October, 19, 1987. The losses were not just restricted to stocks either, as the futures market was roiled by traders who incorrectly bet on arbitrage strategies.
The events of that day are well documented, and there are many texts about previous panics and market crashes. Developing an understanding of what happened and what factors compounded investors’ losses can help you better manage your portfolio in the future.