What is Black Monday?
A severe sudden crash in the stock market that happened on October 22, 1987, this led to striking in the global financial market system, so it is considered as black Monday. Also, that time in America Dow Jones industrial average fell by 508 points, and then more crashes in the stocks in future occurred.
In the United States, more than 20 % fall rate is seen on a single day alone. Thus the stock market gets declined overall. It happens thirty years before, at first, the crash begins in Asia, then later it goes to London, finally, it finishes with the Dow Jones industrial average.
Thus a 22.6 % fall of American Dow Jones Industrial average happened on one day becoming registered in history. Between October 14th and October 19th, the market valuation in the United States dropped by 30 %.
High-Interest Rates
The fear of high-interest rates, the bull market which existed for 5 years without any improvement or development, then computerized trading was introduced slowly. All these factors lead to the main cause of the stock market crash.
To recover from the crash it hardly took two years for the Dow to jump back. Thus in 1989 September, the stock market gained all its value back. More people feared the situation, but the stock market fell by 90%, in the 2008 crash, again it took just 18 months to completely come back.
Black Monday crash
The black Monday crash thus has huge global and long term effects, thus all exchanges a fallen in a majority level when seen. This black Monday was also termed as the Crash of 1987. It is the most famous trading day in the history of Wall Street.
Financial crash
There is fear that the financial crash in the stock market could happen again since high-frequency trading algorithms which is driven by supercomputers can be moved in many volumes at a millisecond, this made an increase in Volatility.
Stock market crash of 1929
The stock market crash of 1929 made it the deepest economic crisis in the world; this made the great depression globally.
Those investors who have a long term perspective can get stocks right now; you can stagger the investments in several weeks or months.
