What can we learn from the 1987 stock market crash?
Today’s financial markets have many resemblances to those around October 1987. We devote this newsletter to a mini study on this event and see what we can learn from it.
The 1987 stock market crash
First, let’s review how the markets have behaved at that time. Interested readers can refer to this wiki for more detailed background information.
As many public existing mutual funds didn’t exist at that time, we chose whatever that we have in our database as the representatives for the following 4 major asset classes:
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