The Rain is Coming

Yesterday was the 20 year anniversary of Black Monday and Wall Street’s worst ever one day crash. On that day -- October 19, 1987 -- the Dow Jones Industrial Average plunged over 500 points. That day, arguably, closed a party that some people had thought would never end.

Ironically, bizarrely, or perhaps just because things must come in cycles, the Dow sank yesterday -- Friday -- over 367 points. The day closed a sinking week after -- more irony -- record high upon high just 10 days ago.

Newsday had this to say:

Some investment professionals see disquieting similarities between 1987 and today, including a weak dollar, surging commodity prices and a protracted bull market that could be wearing thin. The market also fell sharply on the Friday preceding the infamous Black Monday.

Later in the article Newsday, like a lot of other US media outlets, tried to put a positive spin on things, but some business journalists outside of the US were less optimistic. From The Independent:

Gathering fears of a recession in the United States sent shares tumbling before the weekend, a miserable end to a week of disappointing financial results and gloomy predictions on future growth from corporate America.

I’m not saying anything. That is, I’m trying not to say anything. Those who follow this blog closely know that I’ve been predicting gloom for quite some time. I’m tired of hearing it and I want to be wrong. But I don’t think I am. The rain is coming. Put up your collar, get your umbrellas ready and prepare for a wet ride.