Reflections: 30 Years After Black Monday

30 years ago today, the stock market experienced Black Monday. Investors watched in horror as equities lost over 22% in a single day. In this article, Kevin McNab provides some words of wisdom while reflecting on what happened during this scary time. Are you prepared for the next market downturn?


Though it was 30 years ago today, to many Black Monday remains ironed in their memories as though it was only yesterday. On October 19, 1987 the Dow Jones Industrial Average dropped 508 points, roughly 22.6 percent of its value at the time.


Financial experts said portfolio insurance was responsible for the event. At the time, this was a quantitative tool that used futures contr

acts to guard against market losses. Unfortunately, this was not the case.

In the three decades since, global markets have recovered only to fall again in unpredictable cycles.

Despite the devastation of the event, today’s market is reliant on computers for quantitative algorithms that select stocks, mitigate risk, trade, bet on volatility and more.

In the years since 1987 we have come a long way toward understanding what drives stock performance and how to apply it to our portfolios.

We got a handful of perspectives from Colorado-based financial advisors and experts on what they remember of Black Monday, what they learned and what might seem eerily similar today…READ MORE!

Kevin McNab

This article is written by Kevin J. McNab. Kevin is President of ACE Wealth Partners, LLC and is a CFP®, ChFC®, and CRPC®. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. The views expressed in this blog post are as of the date of the posting, and are subject to change based on market and other conditions. This blog contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Please note that nothing in this blog post should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax or legal advice. If you would like investment, accounting, tax or legal advice, you should consult with your own financial advisors, accountants, or attorneys regarding your individual circumstances and needs. No advice may be rendered by ACE Wealth Partners, LLC unless a client service agreement is in place. If you have any questions regarding this Blog Post, please Contact Us. Please read our website DISCLOSURE carefully for additional information.