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Black Monday 1987
Old 10-15-2017, 09:01 AM   #1
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Black Monday 1987

I'm sure several forum members remember October 19, 1987, aka Black Monday.

I was 22 years old and had just invested my life's savings into two different mutual funds on Thursday, October 15th. $10,000 hard earned dollars were worth about $6,000 the next week. I didn't sell and actually kept buying as I could and stuck to it. It hurt, but calm heads won. The only saving grace for me was that the MN Twins won the World Series, something I thought I'd never get to see.

Just a friendly pointer to young investors on the forum, there are going to be corrections in your investment lifetime, take them in stride and stay the course. It really does work.
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Old 10-15-2017, 09:05 AM   #2
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I remember that time. On the friday before it I bought short term CD with Merrill Lynch.
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Old 10-15-2017, 09:19 AM   #3
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I was working brokerage in a S&L. I sold a lot of government bonds to your typical S&L clients who really thought they were diversifying from CD' s. They were all in a panic that day. When I called them back to tell them they made money, they were surprised. For some it was the first time that they really understood what they owned.
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Old 10-15-2017, 09:34 AM   #4
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I vividly remember. I was in the IT industry supporting systems that tracked fund ownership. We had a SR VP come by and tell us volumes would likely go through the roof.

He was right.They did. We knew those systems like family, they had unique behaviors. That day they behaved like mad Chucky dolls, acting out in new and unusual ways.

How do you run out of resources you had to pretend exist? Actually this was a very good day for me professionally. I was the lucky guy who found a bit turned on that shouldn't have been. Made everything start working again. Raises were excellent that year.

I had retirement money in the market thanks to Megacorp. Could not sell it so letting it ride was the only option and the right one.
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Old 10-15-2017, 09:37 AM   #5
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I was a bartender, working a stock broker dinner. Out of ~35 people that were supposed to be in attendance, only three showed up.

I was in college and really did not have much invested.
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Old 10-15-2017, 09:42 AM   #6
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I was just a young puppy a few years into my career and didn't know about investing at the time (nothing but savings and checking accounts for me).

I remember older co-workers in a panic talking to others. Some folks came up and asked me it I had any stocks and I said "Nope". They looked to me like I was a genius of some sort, when really I was just green .
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Old 10-15-2017, 10:02 AM   #7
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I sold all my company stock to buy a Corvette the week before, sometimes it pays to be a spendthrift
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Old 10-15-2017, 10:06 AM   #8
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I was still in high school. I remember thinking on Black Monday in 1987 that Rachael who sat three seats in front of me in Physics was *really* hot.
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Old 10-15-2017, 10:18 AM   #9
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Thanks for posting that. I think the key is "for young investors", like you mentioned. You can weather quite a financial storm early in your investment career and still win the game. My wife and I bought a business in 2008 that were eventually closed while still owing money on it in 2014. We took no income out of it in those 6 years. Not a mistake I would like to make at 50+, that's for sure.
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Old 10-15-2017, 10:55 AM   #10
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Don't recall having a clue - we were starting to roll on the rentals. Had spent years fixing up a single rental house to absurd personal standards, then used it's equity to buy another rental house 4/1/85, a triplex in '86, and some nine unit apartments on 4/1/87. We were totally focused on trying to bring the places up to snuff and make our payments.
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Old 10-15-2017, 11:04 AM   #11
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Quote:
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I was still in high school. I remember thinking on Black Monday in 1987 that Rachael who sat three seats in front of me in Physics was *really* hot.
Ditto. Except it was History and her name was Sheri.
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Old 10-15-2017, 11:14 AM   #12
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Thanks for the trip down "memory lane". I reached FI by 11 am that morning, retired the next day with a hangover and it has been 30 glorious years since.
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Old 10-15-2017, 11:15 AM   #13
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Didn't have anything significant investments aside from some CDs (this was the 80s remember) and was a resident in surgery. The surgeons' lounge sure was a down place that week. Interestingly, the lesson I took away was probably that stocks come back if you just hang on because by the time I had significant money to invest it went largely into the markets.
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Old 10-15-2017, 11:16 AM   #14
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Back then, I was an engineer being sexually harassed (think Harvey Weinstein) by the VP of Product Development. I had finally been able to transfer out of Product Development and thus avoid this lecher, for the most part.

I clearly recall the VP calling me several times that day as the market slid ever-downward, bemoaning his losses. All I could do was laugh (mostly silently) as I made some sarcastic comments to him.

I had very little in the market as I'd recently bought a condo.

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Old 10-15-2017, 11:59 AM   #15
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I was fresh out of college (23 years old) and have only vague recollections of it, as something that was apparently quite bad, which happened to other people. When I think of October 1987, my particularly vivid recollection was very carefully parallel parking the car in front of an office building on Lake Ave in Pasadena on the morning of Oct 1st. I had recently passed my driving test and was still taking pains to master my parking skills. I gingerly backed the car into the space, only to see the car behind me wobble a bit. Weird - I was pretty sure I hadn't hit it, but I was really green at this stuff and not too sure of my abilities. I decided to quickly put the car into forward and, as I looked at the car in front of me, saw that it was wobbling too. Then I glanced over at the office building and saw that all the windows were shaking too! In a second it hit me. My very first earthquake. How exciting. Much more exciting than a market crash!

I was 23 and brand new in the US, with a few hundred dollars of debt on a British credit card, and absolutely no savings or investments whatsoever. Stock market crashes were exceedingly dull, but earthquakes? Now those were fun
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Old 10-15-2017, 12:00 PM   #16
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Quote:
Originally Posted by Stormy Kromer View Post
I'm sure several forum members remember October 19, 1987, aka Black Monday.

I was 22 years old and had just invested my life's savings into two different mutual funds on Thursday, October 15th. $10,000 hard earned dollars were worth about $6,000 the next week. I didn't sell and actually kept buying as I could and stuck to it. It hurt, but calm heads won. The only saving grace for me was that the MN Twins won the World Series, something I thought I'd never get to see.

Just a friendly pointer to young investors on the forum, there are going to be corrections in your investment lifetime, take them in stride and stay the course. It really does work.
remember it well. I was 23, working for the man and still paying off bar tabs so I wasn't affected
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Didn't lose a dime because I didn't have one
Old 10-15-2017, 12:09 PM   #17
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Didn't lose a dime because I didn't have one

I was fully invested in a wife and kids. They paid off in more than money.
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Old 10-15-2017, 12:20 PM   #18
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I had just bought a house a year earlier after a divorce, my net worth was a negative number, and I was working midnights so slept through it.
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Old 10-15-2017, 12:27 PM   #19
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I remember a quote from Sam Walton, then the wealthiest man in the US. A reporter told him how much his Walmart stock had declined, right down to the dollar. Sam calmly replied "It doesn't matter to me, I'm not selling it".
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Old 10-15-2017, 12:39 PM   #20
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I remember we were on the second floor of our building and there was a news ticker machine in Public Relations downstairs. Folks would run down, check it, and come back upstairs and report all day as the market tumbled.

No internet or financial TV back then.

I was 25 with just a little money in the market. Back then there was a 3-year wait to join the 401(k). Which I guess worked out pretty well for me in the end, now that I think about it.
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