It was almost exactly nine years ago that Lehman Brothers filed for bankruptcy, which set off the global financial crisis. It took extraordinary policy measures by the United States Treasury and the Federal Reserve to finally hinder the crisis.
On the 30th anniversary of the 1987 stock market crash, stocks are at a record high and investors are concerned that steep valuations may mean a correction is overdue, despite healthy corporate earnings and economic growth.
But could a repeat of “Black Monday” happen again today? Modern trading technology changes to the way stock exchanges operate and should make a repeat of the 1987 crash unlikely. However, cautious traders refuse to rule it out.
The safeguards in place would likely prevent another 1987- style crash from taking place, but with the Dow hitting 23,000 points for the first time ever and the advent of high-speed automated trading, some traders think a significant correction is inevitable.
We wish the market would go up forever, but we all know that just isn’t possible. At retirement age, we often don’t have time for the market to correct enough to get our gains back, especially when you factor in RMD’s and healthcare expenses. Lock in some of the gains you’ve already made with a safe product and just make sure you aren’t too aggressive if a sudden slide comes upon us. There is a lot of uncertainty in the world and we want to make sure we are ready for it.