The Black Monday crashes were reductions of ~30% in a couple of days; ordinary punters couldn't react quickly enough to limit their losses. And the stock market position in 1986 is pretty meaningless when considering something which happened in 1987. The markets took ~3 years to recover (not really short term). Anyone who had invested in stocks and shares for their pension (which the Tory government at the time were encouraging people to do) just lost large sums from their pension funds, and if you were retiring in the next 3 years you didn't get to recover.Millennie Al wrote: ↑Sun Jan 31, 2021 2:32 amYes, it is visible, but it's just a variation which is a bit bigger than usual. It's also fairly short term. In February 1986 the FTSE 100 rose above 1500. Black Monday, in October of the following year, brought it back down to a level which was still above that and from which it resumed climbing. If someone showed the graph with that period blanked out, I doubt many people would fill in the gap with a rise to 2,300+ in it. Despite all the fuss over it, it should have had minimal effect on ordinary people who use the stock market for their pension - which is a long term investment. For people who make their living exploiting the stock market, it was much more significant. If you are dealing in large amount of money and you expect to get millions of dollars in commission for 1987, then you might have ended up bankrupt as you can't afford the payments on the loans for your $20,000,00 house, other house, private plane, and large yacht.Martin_B wrote: ↑Sat Jan 30, 2021 6:38 amWell, you can see Black Monday fairly clearly on both graphs, where the FTSE dropped from ~2300 to ~1600 sharply.Millennie Al wrote: ↑Sat Jan 30, 2021 4:57 am
Please point to the "gigantic crash" of Black Monday on these graphs:
https://en.wikipedia.org/wiki/File:DJIA ... _(log).svg
https://en.wikipedia.org/wiki/File:FTSE ... e_1984.png
Then you can have a look for the dotcom bubble as well.
It's a little more difficult to see on the Dow Jones graph, but there is a drop from ~2600 to ~1900.
Black Monday was a fairly significant event worldwide (in Australia, New Zealand, Hong Kong, and I think Japan) it's called Black Tuesday because those stock markets had closed before stocktrading-caused panic set in.
That the fall was to levels some ~18 months before shows that the stock markets were probably over-inflated - the gradient of that rise is something the Dow Jones graph only matches back in the 1920s (just before the Great Depression); another occasion when the unregulated markets grew too quickly and inevitably shrunk. The FTSE graph shows similar gradients in the late 90s - another time when low regulation of markets encouraged risky investments.