Market volatility is reminiscent of the 1987 crash: Veteran trader Art Cashin
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Market volatility is reminiscent of the 1987 crash: Veteran trader Art Cashin
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Source: CNBC via MSN
"It's a good deal more volatile than almost anything else you've seen," said Cashin, who began his career at Thomson McKinnon in 1959. "It is unfortunately reminiscent of some of the volatility we saw in '87," he said Thursday on CNBC's "."
Cashin, now one of six executive floor governors at the , was referring to the market that began on Oct. 19, 1987, in Asia before spreading to Europe and then the United States later in the day. The fell more than 500 points or 22 percent in a single day. The volatility moved across time zones the following morning, crashing markets in Australia and New Zealand.
Veteran traders were reminded of the events, dubbed "Black Monday" and "Black Tuesday," this week.
Read more: https://www.msn.com/en-us/money/markets/market-volatility-is-reminiscent-of-the-1987-crash-veteran-trader-art-cashin/ar-AAvwGGD?li=BBnbfcN
I hope this is not going to happen. It does appear that we are on a carnival ride going to fast, without brakes and headed for a jump off the tracks.
wishstar
(5,268 posts)I had a Fidelity IRA mutual fund that had increased about 35% where I could make a quick phone call to freely move my money in and out of different funds. An older co-worker warned me that sudden volatility was a bad sign so being risk-aversive by nature and getting ready to travel out of town on vacation, I moved all my funds out of market shortly before the crash. That Black Monday event in Oct 87 spooked me so bad that I wasn't tempted to get back into market until Obama recovery only because after the Bush crash we no longer had the options of getting decent interest from US Savings Bonds or long term CD's.
I have been out of market since the volatility began in January as I expected sell-offs with many investors just waiting until they could take profits at lower tax rates that took effect in January. But now we also have an increasingly erratic unpredictable WH with global repercussions destabilizing markets. I am retired and can't afford to lose half my savings so I am satisfied right now with just a measly 3% in credit union CD and US govt thrift fund, plus some old 5% savings bonds that haven't matured yet.
saidsimplesimon
(7,888 posts)I am also out of market on a fixed income.
Yonnie3
(17,427 posts)I was changing employers and cashing out a plan to roll over to a new plan. My retirement was in the form of a check in August 1987. The new company had been delayed in fully setting up their 401k plan, so my rollover landed in a money market account until early 1988. I recall being angry in September 1987 that they couldn't provide me with stock funds.
I was very lucky to miss the worst of it.
Zorro
(15,737 posts)against the cabal of crooked scum that make up this administration.