Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
INTEL (INTC) Stock Investing in AI Machine Intelligence Mega-trend 2020 and Beyond - 18th Jan 20
Gold Stocks Wavering - 18th Jan 20
Best Amazon iPhone Case Fits 6s, 7, 8 by Toovren Review - 18th Jan 20
1. GOOGLE (Alphabet) - Primary AI Tech Stock For Investing 2020 - 17th Jan 20
ERY Energy Bear Continues Basing Setup – Breakout Expected Near January 24th - 17th Jan 20
What Expiring Stock and Commodity Market Bubbles Look Like - 17th Jan 20
Platinum Breaks $1000 On Big Rally - What's Next Forecast - 17th Jan 20
Precious Metals Set to Keep Powering Ahead - 17th Jan 20
Stock Market and the US Presidential Election Cycle  - 16th Jan 20
Shifting Undercurrents In The US Stock Market - 16th Jan 20
America 2020 – YEAR OF LIVING DANGEROUSLY (PART TWO) - 16th Jan 20
Yes, China Is a Currency Manipulator – And the U.S. Banking System Is a Metals Manipulator - 16th Jan 20
MICROSOFT Stock Investing in AI Machine Intelligence Mega-trend 2020 and Beyond - 15th Jan 20
Silver Traders Big Trend Analysis – Part II - 15th Jan 20
Silver Short-Term Pullback Before Acceleration Higher - 15th Jan 20
Gold Overall Outlook Is 'Strongly Bullish' - 15th Jan 20
AMD is Killing Intel - Best CPU's For 2020! Ryzen 3900x, 3950x, 3960x Budget, to High End Systems - 15th Jan 20
The Importance Of Keeping Invoices Up To Date - 15th Jan 20
Stock Market Elliott Wave Analysis 2020 - 14th Jan 20
Walmart Has Made a Genius Move to Beat Amazon - 14th Jan 20
Deep State 2020 – A Year Of Living Dangerously! - 14th Jan 20
The End of College Is Near - 14th Jan 20
AI Stocks Investing 2020 to Profit from the Machine Intelligence Mega-trend - Video - 14th Jan 20
Stock Market Final Thrust - 14th Jan 20
British Pound GBP Trend Forecast Review - 13th Jan 20
Trumpism Stock Market and the crisis in American social equality - 13th Jan 20
Silver Investors Big Trend Analysis for – Part I - 13th Jan 20
Craig Hemke Gold & Silver 2020 Prediction, Slams Biased Gold Naysayers - 13th Jan 20
AMAZON Stock Investing in AI Machine Intelligence Mega-trend 2020 and Beyond - 11th Jan 20
Gold Price Reacting to Global Flash Points - 11th Jan 20
Land Rover Discovery Sport 2020 - What You Need to Know Before Buying - 11th Jan 20
Gold Buying Precarious - 11th Jan 20
The Crazy Stock Market Train to Bull Eternity - 11th Jan 20
Gold Gann Angle Update - 10th Jan 20
Gold In Rally Mode Suggests Commitment of Traders (COT) Data - 10th Jan 20
Disney Could Mount Its Biggest Rally in 2020 - 10th Jan 20
How on Earth Can Gold Decline During the U.S. – Iran Crisis? - 10th Jan 20
Getting Your HR Budget in Line - 10th Jan 20
The Fed Protects Gamblers at the Expense of the Economy - 9th Jan 20
Last Chance to Get Microsoft Windows 10 for FREE! - 9th Jan 20
The Stock Market is the Opiate of the Masses - 9th Jan 20
Is The Energy Sector Setting Up Another Great Entry? - 9th Jan 20
The Fed Is Creating a Monster Bubble - 9th Jan 20
If History Repeats, Video Game Stocks Could Soar 600%+ - 9th Jan 20
What to Know Before Buying a Land Rover Discovery Sport in 2020 - 8th Jan 20
Stock Market Forecast 2020 Trend Analysis - 8th Jan 20
Gold Price at Resistance - 8th Jan 20
The Fed Has Quietly Started QE4 - 8th Jan 20
NASDAQ Set to Fall 1000pts Early 2020, and What it Means for Gold Price - 8th Jan 20
Gold 2020 - Financial Analysts and Major Financial Institutions Outlook - 8th Jan 20
Stock Market Trend Review - 8th Jan 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

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

© 2005-2019 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