Black Monday: The 1987 Stock Market Crash

Unfolding of the Financial Crisis

The first contemporary global financial crisis unfolded on October 19, 1987, a day known as Black Monday. The market was overvalued, with the average price-to-earnings ratio for stocks in the S&P 500 reaching an unsustainable level.

Impact of the Crash

Black Monday refers to the stock market crash that occurred on Oct 19, 1987, when the Dow Jones Industrial Average (DJIA) lost almost 23% of its value, the largest one-day percentage decline in its history.

Cautionary Tale

The events of Black Monday serve as a cautionary tale about the dangers of speculation and overvaluation in the financial markets. As the definitive account of the crash of 1987 reveals, a lack of regulation and oversight, combined with rampant speculation, can lead to catastrophic consequences.

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