Black Monday
Categories: Econ, Trading, Education, Metrics, Ethics/Morals, Regulations
Not to be confused with Cyber Monday, Black Monday was a day in 10/19/87 when the Dow Jones Industrial Average tanked 22% in one fell swoop. As you might have guessed, this was the first falling domino leading to a global stock market decline.
So what caused the financially frightful Black Monday? Nobody knows for sure, but many agree that mass panic had something to do with it.
While there have been some measures put in place to stop (or, at least slow) panic-driven selling, it doesn’t help that so much of today’s trading is based off of computer algorithms that do billions of trades faster than you can read “it can happen again.” Don’t say you haven’t been warned, and don’t keep all of your money tied up in the stock market, since you (along with the rest of the world) might get burned.