What were the factors associated with the 87 crash? 1. Stock prices were simply to high to the underlying earnings and dividends in comparison to higher yields available on fixed income securities. 2. Deterioration in economic outlook with no progress to reduce the federal deficit, no improvements in the trade imbalance, and inflation in the air. 3. Program trading in the futures market sparked massive computer driven sales. The impact being 35% of the equity traded out of the market. In 87, if you're a Contrarian, it is a good time to buy or hold. [Learn More ...]

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