A Stock Market Panic Like 1987 Could Happen Again - Robert Shiller
On Oct 19, 1987, the stock market fell more than 20 percent. It would be comforting to believe a crash couldn't recur. But we are still at risk.
... ...
Like the 2016 airport stampede, the 1987 stock market fall was a panic caused by fear and based on rumors, not on real danger. In 1987, a powerful feedback loop from human to human -- not computer to computer -- set the market spinning.
... ...

Cramer: How I lucked out in the crash of 1987
- "Mad Money" host Jim Cramer recalls his experience during the historic market crash of 1987 and shares his biggest takeaways.
- Black Monday wasn't the worst of the downfall; Tuesday was when chaos really hit, Cramer says.

Read more
12 likes 29 comments

Trade with caution, no body know when this day is going to be happen, it can be any time from tmr, but it may be not.


Reply to @Dividend_Lover : Aha..., marry Christmas to you in advance, hoping get the dividend and gain the share price.

  View More Replies Small loading

The day will definitely surface . No one would be spare. If you are lucky to trim down your holdings and then wait for the whole saga to be over then slowly buy at cheap price to benefit the strategy of Buying Low and Selling High. This kind of investment method only happen during market crash or crisis. Be prepared for the major correction /market crash to be triggered anytime. How can Dow and S&P continue to trend higher!! Is just a matter of time when Mr.Market will show it to us ..


Reply to @Sporeshare : Hope it is after CNY!!!

Happy Happy first before the crash!!!


Those small cab.oil company.shape price left only few cents.or less that one cents.what the defferene.market crash.or no crash....


Reply to @bennylim22 : Penny counters are speculative stocks and most of them are with negative value and not undervalue.

They are just a game instrument allowing players to have a go at the High Risk High Reward set-up. Everyone playing the penny game is aware of it.

A penny counter can be inflated a few times over when in play which is why it is very attractive. Low capital with high leverage is something worth the risk. As I have mentioned before, good players will be rewarded and bad players will be severely punished.

No players would want to hold penny counters for long but if caught in a Market Crash while still holding the penny counters then the player can go bankrupt!!!

Similarly, if holding on to blue chip stocks, the percentage of slide is roughly similar to the fall of the STI in percentage term. To say that it is OK for a Market Crash if holding Blue Chips is also incorrect because if after a Market Crash then followed by recession then the loss can be very painful as share price wiped off can be as much as 50% as in 2008 - 2009.

“2008 -2009 Recession
The Dow’s drop was more painful than in any other downturn. It fell more than 50 percent in just 17 months”.

Do be cautious and GOOD LUCK!!!

  View More Replies Small loading

While markets bullish,
1. If bull, stay invested, get out when stopped out.
2. If bear, take a wad of fear, spread evenly.
3. If not vested or investments not doing well, after doing step 2, throw on some more fear, hope it soaks through.

If markets crashed,
1. If bull, already stopped, rejoice and slap each other backs for the nice run.
2. If bear, proceed to nervously short and hope no whipsaw.
3. If not vested, rejoice in glee and proceed to dance around fire while staying in cash.

When markets reversed into bullish,
1. If bull, proceed to add longs back, if ranging, add value instead of momentum.
2. If bear, proceed to rejoice over the returns, a chunk of which was already returned during bear market rallies. But still should be nice short term gains and wait for another 7 years for a significant bear. Unless sharp to select bear markets.
3. If not vested, proceed to stay out, turn bearish or lament for a few years while claiming markets expensive.


I like this quote!

"Of course, you could say that it's better to be lucky than good,"

Turtle always think I am better off lucky! Lucky turtle can Liao.


Reply to @lohmingsheng : TQ

  View More Replies Small loading

Market crash.so what so many.time.endup all come.back.even higher..aslong u dont buy rubbish.company..u were be fine.
Market.no crash.u buy rubbish u crash yourself.also same..


1987 Market Crash is the most memorable Crash as the whole world was stunned.

No one was sparred be it Gurus, Big Time Investors, Funds etc all were badly beaten!!!

It is not something that happens very often but if it happen again the situation cannot be better. It will impact the country's economy and businesses will go bankrupt etc.

Traders no matter how well you prepare yourselves for the crash, your life will still be affected.

It won't be a pretty sight!!!


Interesting articles.


1987 2007 2027
20 years apart each.


Reply to @gilbertyeo : you left out 1997 asian financial crisis?


boss, mai la, ytd scare already make dog go A&E...


Reply to @KallangWoofverine : HAHAHAHH

  View More Replies Small loading

There are more for you ...

View more and participate in our discussion now. It's FREE.

Creating an account means you’re okay with InvestingNote's Terms and Conditions