Black Monday, 19 Years Later

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Nineteen years ago we saw the second largest ever single day percentage drop in the Dow Jones Industrial Average. Remembering the period leading up to that day is not exactly comforting. Need a reminder? Years of rapid growth had led to fears of a recession, which were then tempered by talks of a soft-landing. Inflation fears were fading. And then it happened. We were young then, very young. Our most vivid memory of October 19 is of the father of one of our friends who had lost a lot of money that day, seen his savings wiped out. He didn’t exactly defenstrate himself but his eyes looked as if he might have already died.
Of course, after a few days, weeks or years, it became clear that Black Monday, 1987 was no Black Thursday, 1929. We didn’t plummet into a depression. The market roared back, and lots of folks made their reputations buying into Black Monday. Oddly, we haven’t seen much by way of reminiscing about Black Monday today. Is Wall Street’s institutional memory just not quite that long? Does no one want to think about it? Or is it just not relevant anymore? Feel free to leave your thoughts, comments or memories in comments below.

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