🚨 Black Monday: 38 years since the largest one-day market crash

Today marks 38 years since Black Monday, the biggest one-day stock market crash in history. On October 19, 1987, the Dow Jones Industrial Average fell by 508 points, a massive 22.6% drop, while the S&P 500 declined by 20.5%. In just a few hours, over $500 billion in U.S. market value vanished, triggering a global panic and wiping out roughly $1.7 trillion worldwide.

🟡 What led to Black Monday?
This crash didn’t come without warning. After the 1982 recession, the stock market had been rapidly rising - the Dow had tripled, and in the seven months before the crash, surged another 44%. But by late 1987, valuations were extremely high, trade deficits were growing, inflation was rising, and the U.S. dollar was weakening. The Federal Reserve was raising interest rates, and Treasury Secretary James Baker hinted at devaluing the dollar, further eroding investor confidence. Markets had already fallen almost 10% in the days leading up to the crash.

🟡 The role of technology
One crucial factor was the rise of automated program trading, especially a strategy called portfolio insurance. Designed to limit losses by automatically selling futures as markets declined, it instead created a feedback loop of selling panic. This cascade overwhelmed the New York Stock Exchange’s systems, causing trading halts and outages. Panic spread rapidly, especially in the final hour and a half of trading.

🟡 The Federal Reserve’s response and recovery
The Federal Reserve acted swiftly. Chair Alan Greenspan promised liquidity support, encouraged banks to maintain lending, lowered interest rates slightly, and helped rescue critical financial firms. These quick actions stabilized markets and restored confidence. Remarkably, within two trading days, the Dow had regained more than half its losses, and by mid-1989, markets reached new highs fueled by strong economic fundamentals.

🟡 The lasting legacy
Black Monday changed market structure, the crash led to the introduction of circuit breakers to pause trading during rapid declines. It established investor expectations that the Federal Reserve would intervene during crises, what became known as the “Greenspan put.” Though a dark day in Wall Street history, it proved that resolute policy and solid economic foundations can convert panic into recovery.

Lessons from Black Monday remain highly relevant to today's markets with heightened risks and technological impacts influencing trading dynamics.

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💰 Gold Miners Are Quietly Printing Cash

When everyone’s busy chasing tech stocks, gold miners are quietly stacking record profits. The market might be underestimating just how much cash these companies are churning out while gold prices hover near all-time highs.

🟡 Free cash flow of the Philadelphia Gold and Silver Index surged 11x

🟡 Stock prices moved up, but not nearly enough to match the fundamentals

🟡 At current prices, miners are essentially “printing money”

The rally barely scratches the surface. The real gold rush might just be in the miners themselves.

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⏫ The Longer You Hold, The Higher Your Investing Win Rate

Trying to time the market?
The data says you’re better off simply extending your holding period.
Warren Buffet wasn’t joking - patience pays off for S&P 500 investors.

🟡 Over just 1 day, your odds are close to 50/50, almost a coin flip for gains or losses.

🟡 Hold for 1 year, and your chances of making money jump far above the average.

🟡 Stretch that to 10 years: more than 90% of all periods end profitably.

🟡 Stick with it for 20 years? Historically, every single holding period finishes in the green.

Forget chasing the perfect entry. Investing success isn’t about luck - it’s about time in the market, not timing the market.

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