Best of the Week
Most Popular
1. Next Financial Crisis Is Already Here! John Lewis 99% Profits CRASH - Retail Sector Collapse - Nadeem_Walayat
2.Why Is Apple Giving This Tiny Stock A $900 Million Opportunity? - James Burgess
3.Gold Price Trend Analysis - - Nadeem_Walayatt
4.The Beginning of the End of the Dollar - Richard_Mills
5.Stock Market Trend Forecast Update - - Nadeem_Walayat
6.Hindenburg Omen & Consumer Confidence: More Signs of Stock Market Trouble in 2019 - Troy_Bombardia
7.Precious Metals Sector: It’s 2013 All Over Again - P_Radomski_CFA
8.Central Banks Have Gone Rogue, Putting Us All at Risk - Ellen_Brown
9.Gold Stocks Forced Capitulation - Zeal_LLC
10.The Post Bubble Market Contraction Thesis Receives Validation - Plunger
Last 7 days
The Fed's Misleading Money Supply Measures - 17th Nov 18 -
Stock Market Outlook: Why the Economy is Bullish for Stocks Going into 2019 - 17th Nov 18
NO DEAL HARD BrExit Tory Chaos, Theresa May Leadership Challenge - 17th Nov 18
Gold vs Several Key Investments - 17th Nov 18
GDX Gold Mining Stocks Q3 18 Fundamentals - 17th Nov 18
Is Gold Under or Overpriced? - 17th Nov 18
Active Managers are Bearish on Stocks. A Bullish Contrarian Sign - 16th Nov 18
Will The Fed Sacrifice Retirement Portfolio Values For The "Common Good"? - 16th Nov 18
BrExit War - Tory Party About to Replace Theresa May for NO DEAL BrExit - 16th Nov 18
Aspire Global Makes Significant Financial Strides - 16th Nov 18
Gold Oil and Commodities …Back to the Future ? - 16th Nov 18
Will Oil Price Crash Lead to “Contagion” for the U.S. Stock Market? - 15th Nov 18
How NOT to Be Among the MANY Stock Investors Fooled by This Market Myth - 15th Nov 18
Tory BrExit Chaos Cripples UK Economy, Wrecks Housing Market Confidence - 15th Nov 18
Stocks Could End 2018 With A Dramatic Rally - 15th Nov 18
What Could Be the Last Nail in This Stock Bull Markets Coffin - 15th Nov 18
Defensive Stock Sectors Outperforming, Just Like During the Dot-com Bubble - 15th Nov 18
Buying Your First Home? Here’s How to Save Money - 15th Nov 18
US Economy Ten Points or Ten Miles to ‘Bridge Out’? - 14th Nov 18
US Stocks: Whither from Here? - 14th Nov 18
Know exactly when to Enter&Exit trades using this... - 14th Nov 18
Understanding the Benefits of Keeping a Trading Journal - 14th Nov 18
S&P 500 Below 2,800 Again, New Downtrend or Just Correction? - 13th Nov 18
Warning: Precious Metals’ Gold and Silver Prices are about to Collapse! - 13th Nov 18
Why the End of the Longest Crude Oil Bull Market Since 2008? - 13th Nov 18
Stock Market Counter-trend Rally Reaches .618 Retracement - 13th Nov 18
How to Create the Best Website Content and Generate Organic Traffic - 13th Nov 18
Why the Stock Market Will Pullback, Rally, and Roll Into a Bear Market - 13th Nov 18
Stock Markets Around the World are Crashing. What Not to Worry About? - 12th Nov 18
Cyclical Commodities Continue to Weaken, Gold Moves in Relation - 12th Nov 18
Olympus Tough TG-5 Camera Stuck or Dead Pixels, Rubbish Video Auto Focus - 12th Nov 18
5 Things That Precede Gold Price Major Bottoms - 12th Nov 18
Big US Stocks Q3 Fundamentals - 12th Nov 18
How "Free Money" Helped Create Sizzling Housing Market & REIT Gains - 12th Nov 18
One Direction More Likely for Bitcoin Price - 12th Nov 18
The Place of HSE Software in Today's Business - 12th Nov 18
Gold Asks: Are US Bonds Overvalued? - 11th Nov 18
Why the Stock Market Will Pullback Before Heading Higher - 11th Nov 18
GDX - Will you Buy This Hated Stock with Me? - 11th Nov 18
Christmas and Halloween LED Dynamic Projector Light Review - 11th Nov 18
Wall Street Veteran: Why I Don’t Lend to Family and Friends - 10th Nov 18
Stocks Breaking Higher, but Resistance Ahead - 10th Nov 18
Stock Market Was Supposed to “Crash Like 1987” - 10th Nov 18
SPX : The Incredibull Stock Market Plays On - 9th Nov 18
USD/CAD – The Moment of Truth Is Coming - 9th Nov 18
Is the Stock Market’s Rally “All Good To Go”? - 8th Nov 18
End in Sight for 'Unloved' Silver - 8th Nov 18
Outlook for Gold & Silver Precious Metals Sector is 'Positive' - 8th Nov 18
A Great Day for Metals as Platinum Price Breaks Out - 8th Nov 18
Future US Interest Rates, Financial Markets, and the FED - 8th Nov 18
Buying an Approved Used Land Rover From a Dealer - What You Need to Know! - 8th Nov 18

Market Oracle FREE Newsletter

Free Online Trading Session

History's Worst Stock Market Crash and the Greatest Investing Lesson!

Stock-Markets / Stock Market Crash Oct 19, 2018 - 03:04 PM GMT

By: Nadeem_Walayat

Stock-Markets

It's that time of the year again when the stock market doom merchants are at their most vocal as they focus on the historic apex of the darkest day of the darkest month for stocks of the year, October 19th, the 31st anniversary of the 1987 Black Monday that saw the stock market crash by an unprecedented 22% in just one day that few saw coming but ever since many prophesise the repeat of each October, regardless of what the stock market has actually been doling each year as the perma bear crowd can always be seen literally jumping up and down like demented rabbits proclaiming that a crash is once more imminent, pointing to a myriad of harbingers of the imminent stock market apocalypse such as the Hindenburg Omen. Against which the historic record paints a picture of a coin toss having proved infinitely more accurate than the perma crash is coming calls awaiting their broken clock moment to proclaim success.


So it is no wonder that October tends to be an unusually irrational month for stock market expectations, and even more so for this year given that the Trump inspired delusional rally has relentlessly risen in the wake of Fed interest rate tightening whilst the trade war with China and the rest of the world rages as I have covered at length in my Trump Reset War With China series.

Why China Lost the Trade War Even Before It Began - SSEC Stocks Index (1)

In respect of which the Chinese Emperor Xi Jinping's has repeatedly stated in front of his 5000 communist party goons by effectively laying out the blue prints for what to expect from the emerging Chinese economic and military global empire. So the trend that I warned of near 2 years ago is most definitely still in motion as the worlds existing empire, the United States and the emerging Chinese Empire are heading towards inevitable conflict that will probably turn nuclear where the North Korea saga is just one side show of.

For more on the "Trump Reset - War with China" mega-trend see my following 3 articles -

How to Successfully Trade a Stock Market Crash

I am sure that the 31st anniversary of the stock market crash will keep many readers busy reading reams and reams of garbage produced by those who were never there in the first place. And for the few who were there, never traded the stock index futures on that day, and for those who were active market participants were like 99% of the traders on that day paralysed by fear into a state of inaction. That leaves perhaps a mere handful who both saw the crashing coming, then traded it, and most importantly profited from it, as Trump would say beating it badly.

In which case watch my video for what happened in the run up to and on the day of the great crash of 1987, of how I managed to for see, trade, and and beat the 87 crash that provided very valuable real world trading and investing lessons that are just as valid today as they were 31 years ago!

https://youtu.be/epi2TtnfkCA

The Greatest Investing Lesson Learned In the Aftermath of the 1987 Crash

So once more the doom merchants are peddling their perma wares despite the fact that even if this time stocks do by chance crash, that EVERY crash in the general stock market indices such as the Dow, S&P and FTSE have always resolved in the mother of all buying opportunities. That is the KEY LESSON learned in the aftermath of the 1987 crash. For following the crash there was widespread prevailing perma doom! And it did not just persist for a few weeks, or a few months but for a good 9 years! That's NINE YEARS OF PERMA-DOOM in the face of a relentless bull market that climbed a wall of worry which long since passed it's 1987 PEAK. All the way to Dow 6000 and beyond as the following chart illustrates -

This is why for THIS 10 year old bull market I have consistently iterated that where the general stock market indices are concerned "the greater the deviation from the stock market high, then the greater the buying opportunity presented". Which is the primary lesson learned in the years that FOLLOWED the 1987 Crash.

Which is why I love Black Mondays! When others are panic selling, my minds on what to buy.

However, there is a downside to this mind set which this year illustrates. For I had concluded that a lunatic in the White House would present fellow stock investors with such an ideal buying opportunity, a significant deviation from the bull market high. Unfortunately, such a buying opportunity has failed to materialise, which is the nature of the beast for the market isn't going to give away easy money, you have to work for it!

Nevertheless I did forewarn of a probable correction for October back on the 21st of July 2018 that was first made available to Patrons who support my work. So to get immediate First Access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for as little as just $3 per month. https://www.patreon.com/Nadeem_Walayat.

And as I stated in my preceding 2 updates of 9th Sept and 26th August that I expected the then relatively stronger Dow to resolve towards convergence with my forecast rather than to trend to a higher Dow target than my forecast of 27,000 by late December 2018.

11 Sep 2018 - Stock Market Trend Forecast Update

Which recent price action was a confirmation of convergence towards trend forecast.

So yes, 2018 has been a disappointing year as so far as a mega-trend buying opportunity has failed to materialised. However, so that there is no confusion, we remain in an exponential mega-trend stocks bull market courtesy of the key mega-trend drivers that look set to drive the general stock indices into the stratosphere as I have covered over many years such as the inflation mega-trend and my series on Machine Intelligence investing articles and videos as my first video in this series illustrates:

In respect of which I still aim to create a series of videos to cover the real secrets for successful trading and investing, so ensure you are subscribed to my youtube channel and free newsletter for notification of these.

And remember to get immediate First Access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $3 per month. https://www.patreon.com/Nadeem_Walayat.

Your analyst,

Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-2018 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 30 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Housing Markets Forecast 2014-2018The Stocks Stealth Bull Market 2013 and Beyond EbookThe Stocks Stealth Bull Market Update 2011 EbookThe Interest Rate Mega-Trend EbookThe Inflation Mega-trend Ebook

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules