The worst day in market history was October 19, 1987 – 35 years ago tomorrow. Some analysts will mention this on market news, perhaps referring to “old timers” who remember Black Monday. To me, it seems like only yesterday. It was the most fearful day I have experienced in my 53 years of investing.
“Now, being a little wiser, I realize that making the most money at the lowest risk is not the primary objective of fiduciaries or their agents (advisors). The primary objective is to cover your backside and keep your job or investment account. It is a matter of short-term thinking rather than long term investing.” Brilliant!
I wish more people could grasp that markets can do anything. They can repeat that, and answer that correctly on a test, but they don’t really grasp it. In 87, everyone started selling all at once, for basically no reason. There was no smoking gun.
People always want to know why did so and so happen in the market. Truth is, sometimes there’s an answer, sometimes there’s not.
I was two years old when this was happening, fascinating read. Thank you for posting your experience, it really puts things in perspective. As the market crashed in 2020, I was buying. Not a lot, but it feels good in retrospect. And I hope to do it again someday.
I remember 1987 crash too. I was at University studying Finance. I remember the lecturer didn’t even both to change the topic to the day’s events or even broker a discussion. For me it indicated that academia was so out of touch with reality.
“Now, being a little wiser, I realize that making the most money at the lowest risk is not the primary objective of fiduciaries or their agents (advisors). The primary objective is to cover your backside and keep your job or investment account. It is a matter of short-term thinking rather than long term investing.” Brilliant!
"My remedy for crises has always been – eat something. And John remembers that I ate a one-pound can of Planters’ peanuts while we visited.[i] "
Got a good chuckle out of this. I definitely embrace this method, amongst others, to deal with stress.
Great post, Gene. I remember waking up that morning in Singapore and getting the down and dirty. Pretty frightening but basically slept through it.
I wish more people could grasp that markets can do anything. They can repeat that, and answer that correctly on a test, but they don’t really grasp it. In 87, everyone started selling all at once, for basically no reason. There was no smoking gun.
People always want to know why did so and so happen in the market. Truth is, sometimes there’s an answer, sometimes there’s not.
Great post Gene. I owe you a call.
I was two years old when this was happening, fascinating read. Thank you for posting your experience, it really puts things in perspective. As the market crashed in 2020, I was buying. Not a lot, but it feels good in retrospect. And I hope to do it again someday.
I remember 1987 crash too. I was at University studying Finance. I remember the lecturer didn’t even both to change the topic to the day’s events or even broker a discussion. For me it indicated that academia was so out of touch with reality.