Why Did The Stock Market Crash In 1987
Olivia Luz
It is thought that the cause of the crash was precipitated by computer program driven.
As the market sold off further individual investors who were watching the market very closely that day called their mutual funds and redeemed even more shares. It raised fears about this being a repeat of the stock. The black monday stock market crash of october 19 1987 saw u s. Black monday is the name commonly attached to the global sudden severe and largely unexpected stock market crash on october 19 1987.
All of the twenty three major world markets experienced a sharp decline in october 1987. The stock market fell by 22 over two days in october 1987. The australian market fared even worse the following day with the all. In australia and new zealand the day is also referred to as black tuesday because of the time zone difference from the united states.
So that s why the stock market. A soaring overheated economy that was destined to one day fall likely played a large role. The 1987 stock market crash was due to a poor monetary policy. It s speculated that the roots of the stock market crash of 1987 lay in a series of monetary and foreign trade agreements specifically the plaza accord and the louvre accord that were implemented.
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This sharp correction was outside the experience of most city professionals. Markets fall more than 20 in a single day.
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