Predicted 1987 stock market crash

Predicted 1987 stock market crash

Posted: Seoshina Date: 17.07.2017

But some investors are starting to worry the market could be due for another huge sell-off -- just like the infamous Black Monday crash that happened exactly 29 years ago. In anticipation of this not particularly significant milestone, some traders have started to circulate a stock chart that appears to show eerie parallels to If you look at it quickly, it's more frightening than any creepy clowns that may be wandering around your neighborhood this Halloween.

It doesn't take into account percentage moves.

That's why Ryan Detrick, a senior market strategist with LPL Financial, is warning investors to not succumb to fear and assume that another mega-crash is coming. Gigantic drops in the market usually happen either for a specific reason -- think the collapse of Lehman in -- or because investors were too complacent. Investors are definitely NOT complacent now.

Dr Marc Faber claims another crash is months away | Daily Mail Online

If anything, many average investors now seem conditioned to think that another big drop is around the corner. There's a sense of distrust. But Detrick points out that in the beginning of , stocks were on fire.

Dr Marc Faber claims another crash is months away | Daily Mail Online

Big banks thrive despite Wells Fargo, Deutsche Bank and Brexit. That hasn't happened this year. Stocks tumbled in January and February before rebounding.

predicted 1987 stock market crash

The market briefly dipped after the Brexit vote in late June, but has since bounced back. Stocks are up this year, but only modestly.

Bulls aren't running wild. Brad McMillan, chief investment officer for Commonwealth Financial Network, agrees that the time to be nervous is when people aren't actually afraid. Complacency tends to lead to big drops. First, markets are still worrying, which is actually a good sign.

Second, because of that worry, a long-term pullback is much less likely," McMillan wrote in a recent report. CNNMoney's Fear and Greed Index , which measures seven indicators of market sentiment, isn't showing signs of a bubble about to burst either. The index is currently flashing signs of Fear.

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Download the CNN MoneyStream app. They end on euphoria. It's healthy to have skepticism," said Scott Colyer, CEO of Advisors Asset Management.

It's also worth noting that a similarly spooky chart made the rounds back in That appeared to show how stocks were starting to look suspiciously like the market did in That chart also ignored percentage moves in favor of a quick and dirty trace job.

predicted 1987 stock market crash

Last I checked, the market hasn't completely collapsed in the past two years and we aren't in the middle of a second Great Depression. So don't get too concerned by those scary charts you might see on Twitter. Start your day right with the latest news driving global markets, from major stock movers and key economic headlines to important events on the calendar.

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predicted 1987 stock market crash

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Stock Market Crash - Robert Prechter on Bloomberg - Oct. 19, 2007

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