We look forward not back
Does your accountant seem obsessed with last year? If you want to legally pay less in taxes, you need a professional who looks forward. Relax Tax helps our clients focus on planning for a better future, and not the past. If we want to look back at anything, we thought it might be fun let our blog look back at what we learned in the last 50 plus years. You can get a FREE COPY of the entire guide at back.relaxtax.com. Now lets take a look at 1987.
1987 Big News Story
The Black Monday Market Crash
1987 saw a big jump in median home prices — up to $83,979. That was countered, however, by the devastation in Wall Street near the end of the year. On October 19th, the Dow Jones Industrial Average had its biggest one-day percentage drop in history, falling 22.6 percent and earning the name “Black Monday.” 1987 also saw the unfolding of the Iran Contra scandal, a complicated governmental scandal that threatened to bring down the presidency.
Monday, October 19,1987 is known as Black Monday. On that day, stockbrokers in New York, London, Hong Kong, Berlin, Tokyo and just about any other city with an exchange stared at the figures running across their displays with a growing sense of dread. A financial strut had buckled, and the strain brought world markets tumbling down.
- The "Black Monday" stock market crash of October 19, 1987, saw U.S. markets fall more than 20% in a single day.
- It is thought that the cause of the crash was precipitated by computer program-driven trading models that followed a portfolio insurance strategy as well as investor panic.
- Precursors of the crash also lay in a series of monetary and foreign trade agreements that depreciated the U.S. dollar in order to adjust trade deficits and then attempted to stabilize the dollar at its new lower value.
1987 by the Numbers
Economic Data from 1987
Grocery Prices from 1987
Personally, 1987 was a key year in that I graduated high school and started majoring in accounting at Villanova University. Yet not only do I remember Black Monday, I was ready for it before it even happened. Predicting an inevitable stock market crash was my senior thesis at Immaculata High School that year. The paper was entitled The 87 Stock Mark Crash via the (19) - 29th Parallel. My paper focused my prediction of a pending stock market crash, based on the over similarities between 1929 and 1987.
Unfortunately my writing skills have never been the best and I don't remember the exact grade. What I do remember was not getting an A. My teachers felt the premise of another stock market crash was too far fetched and reaching. In reality it was exact blindness that made up the essences of the paper. I was already at Villanova when Black Monday happened. I probably should have taken it back to have my grade amended, but unlike a tax return that would have been a waste of time. :)
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