“Each November, I review the year and give my views on the investment outlook for the coming year. This year it is particularly appropriate since the “Crash of ‘87” was an event none of us will forget. As you know, for some time I had felt that stocks were way too high. The extremely overvalued stock market simply was an accident waiting to happen. On August 10, 1987 I wrote you that stocks had reached the mania stage. Two months later, the Dow fallen to 1738, a drop of 36%. By staying with our long-held investment objective of above-average returns consistent with the preservation of capital, we avoided the debacle.”
– Edward Ackerman, Ackerman Associates Partner Letter, November 10, 1987
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THE STOCK MARKET CRASH OF 1987 OCCURRED OVER FIVE DAYS AND CULMINATED WITH THE SINGLE DAY, 22.6% DECLINE OF THE DOW JONES INDUSTRIAL AVERAGE ON OCTOBER 19TH, FOREVER KNOWN AS BLACK MONDAY. IT REPRESENTED THE GREATEST DAILY LOSS IN WALL STREET HISTORY.
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