"It happened in 87 crash
Rising rates rising inflation and deteriorating of balance of payments led to the crash"
Since I was living there and working next door to NYSE on the day (Oct 87), I can tell you, and say you are wrong.
First , rates were progressively falling thru the 80's and 90's after the extreme hikes of 81/82 engineered to purge inflation from the system since the Vietnam War, finally and once and for all time (and they did, at the poce of a minor recession that year). The time of falling rates led to the longest bull in US mkt history, culminating in the market crash of 1999 /12000.
Second the Black October fall of 22.6% in one day was attributed to:
1. Program Trading
2. Portfolio Insurance (something few will recall, or even grasp)
3. The DOW finished positive for the year (1987). Despite the ugly day, there was really no crash of 1987, as a year, as aof a day, certainly.
Go ahead make your day - sure, buy more gold...why not? It's cheap. Well, it's cheaper than it was.
