On October 19, 1987, the Dow Jones experienced a dramatic 22.6% drop, marking one of the largest market sell-offs in history. Similar early signs were evident just before the crash with significant daily declines. The lack of trading mechanisms to control the sell-offs was highlighted, along with Jim Cramer’s recent warnings of potential market downturns due to newly imposed tariffs. These tariffs are believed to create significant economic challenges, with concerns that they may impact consumer spending and subsequently the overall economy more adversely than in 1987.
A large block of tariffs completely differs from the factors that caused the 1987 crash. They are a tax on consumer and business spending, which immediately affects consumer sentiment.
Jim Cramer observed that another Black Monday could be tomorrow because of the economic destruction that new tariffs will trigger. He added, 'If the president doesn't try to reach out... then the 1987 scenario... has the most cogency.'
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