Will Collapse in Oil Price Cause a Stock Market Crash? By TOM THERRAMUS AND STEVE AUSTIN for OIL-PRICE.NET, 2015/01/14 The Black Monday stock market crash of October 19th, 1987 was the largest one-day percentage decline in the Dow Jones Industrial Average. The crash was a genuinely perplexing event. To informed observers it seemed to have little basis in economic fundamentals. There were various hand-waving theories, including that the introduction of automated trading on the Dow had injected instability into the market. However, at the time, Black Monday appeared to come out of nowhere. Perspective In an analysis published in 2009, Therramus pointed out that Black Monday fell into a broader pattern in which nearly every stock market crash and recession of the preceding 50 years had occurred shortly after a large and abrupt change in the price of oil. In the case of the 1987 Dow crash, it was foreshadowed by a tumble in oil price that ensued in the wake of disputes within OPEC - which had come to a head in the previous year.
Posted on: Thu, 15 Jan 2015 14:44:41 +0000
Trending Topics
Recently Viewed Topics
© 2015