A Buying Opportunity in the Making
Yes, we're getting a pretty good shakeout from the recent multi-year highs, and it's happening right around the silver anniversary of the 1987 crash. Just like that shakeout 25 years ago, this one likely represents another buying opportunity, though probably not to the same degree.
Of course, the selloff won't be anything like the meltdown of 1987, and correspondingly the rebound shouldn't be close to the rebound that followed the '87 crash. Back in 1987, the Dow fell 22.6% on Black Monday following Friday's October expiration. The Dow settled at 1739 that day. It took 15 months for the Dow to recover that loss and another 15 months for it to go another 27% higher. That's a pretty good recovery by any standard. But, bigger picture, keep in mind that the Dow would gain 800% from the close of Oct. 19, 1987, into the October 2007 highs. Granted, that was a 20-year span. But it's still quite a move....638 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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