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Carrick on money: Should we be worried about the stock markets?

It’s a day that has became known as Black Monday and for good reason. A quarter century ago – on Oct. 19, 1987 – the U.S. stock market suffered its biggest one-day drop in history. The Dow Jones industrial average swooned 508 points, or 22.6 per cent, leaving investors stunned and shaken, while triggering a worldwide rout in equity prices. Toronto stocks fell in sympathy, but only about 11 per cent, or half the decline seen on Wall Street. (Photo: A Toronto Stock Exchange trader at the end of the day on Black Monday.)

TIM CLARK/The Canadian Press

The best of the web on money, markets and all things financial, as chosen daily by Globe and Mail personal finance columnist Rob Carrick.

Should we be worried about the stock markets?
Surging stock markets have led to speculation about whether we will see a major correction or even a crash. Since the advent of the Dow Jones industrial average 100 or so years ago, there have been 11 declines of 35 per cent from peak to trough. Here are the details.

"Gun to my head, I'm optimistic" – this comment typifies the lukewarm sentiment toward financial markets at a recent conference of Big Money people in New York.

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More money
Join the 33,000+ people who subscribe to my Facebook personal finance community for talk about investing, retirement, real estate, banking and other financial matters. I'm also on Twitter.

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About the Author
Personal Finance Columnist

Rob Carrick has been writing about personal finance, business and economics for close to 20 years. He joined The Globe and Mail in late 1996 as an investment reporter and has been personal finance columnist since November 1998. Rob's personal finance columns appear in The Globe on Tuesday and Thursday, and his Portfolio Strategy column for investors appears on Saturday. More

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