Where will the markets go now, 21 years after Black Monday?
Sunday, 19, Oct 2008 12:00Today marks the 21st anniversary of Black Monday, when Wall Street saw 22 per cent wiped off its value. This week has seen the FTSE 100 fall to its lowest level in four years – as out of the ashes of the banking crisis rise more fears over global recession, and markets have been recording their biggest daily falls since 1987. So where will markets be heading from here? The investment world is full of people who have lost money trying to second guess the bottom of the market – with numerous predictions over the last six months alone that banks could fall no more, only for further drops to come. Economic historians still debate why Black Monday occurred on October 19th 1987 – with arguments of blind panic meeting those blaming programme trading – but over the year the Dow Jones was up 2.2 per cent. However, it took two years for the index to reach its August 1987 peak again. The FTSE 100 this year opened at 6,348.50 and closed this week at just over the 4,000 ma
