5 thoughts on “It took 23 months for the S&P 500 to come back from the October 1987 crash”

  1. I say we make new highs on the S&P 500 over the next 6 weeks. This is not 1987. The Fed and Trump will pump this bubble right back up again.

  2. “New highs over the next 6 weeks.” Sorry, the virus makes this an entirely different thing. It will affect many industries and the entire economy. We have nothing to compare it to. And no way to predict the end results.

  3. Steve, what I am saying is I think the market hits new highs over the next 6-8 weeks. At minimum, the S&P retests the 50 day moving average, but my guess is new highs. Friday was an example of how quickly it can bounce back. What’s different than 1987 is the Fed has become masters and manipulating and pumping up the market. They create these bubbles to begin with which causes these massive sell offs. If Trump wants to be re-elected, he will do everything in his power to pump the market back up. Which I believe will work in the short term (6-8 weeks). I also think crude oil rebounds to the $42 – $52 area in the short term.

    However, once first and second quarter GDP numbers come out reflecting what you’re saying, I do believe the market will sell off again and maybe even take out the recent lows. I’m a swing trader so I’m trying to catch the ups and the downs in the market.

  4. I was a broker in 1987 and frankly a bit surprised it recovered so soon. This time it is not just hugely overvalued prices but an endemic and world-wide economic collapse. Back then, bonds actually worked to offset stock losses, but now with interest rates at zero, the Fed pumps are pushing on a string. Banksters can inflate all they want with helicopter money but when folks cannot pay any loans without a job, no loans will be made, no cars will be sold and no mortgages will be originated. If corporate bosses hadn’t paid all the earnings to themselves and to buyback now worthless shares, things wouldn’t be so bad. You are looking at a global depression worse than the 30’s so all Bull Market Geniuses should learn a thing or two and pray you have a house with a yard where you can raise some chickens and grow tomatoes. You’ll need them.

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