Best performing assets or markets since Black Monday stock market crash 30 years ago
Today is the 30th anniversary of Black Monday, or the stock market crash of Oct. 19, 1987.¬† And from it heralded the beginning of the Fed’s tampering with interest rates and cheap money to prop up markets to the point that the next three decades would be remembered for asset bubbles that led to even greater crashes.
However for investors buying the Oct. 19 dip from 30 years ago would be one of the most profitable times in history if one stayed the course through the Dot Com bubble, and 2008 financial crisis. And below is a list of the best performing assets and markets since that day.
Perhaps the biggest surprise that stands out is the number of European markets in the top 10 who led the way in market gains.¬† This is because between 1987 and today, Germany was reunified after the fall of the Berlin Wall and the Soviet Union, and Europe created a new currency in 1999 that would lead to their own central bank propping up markets similar to what the Fed did.
In the end, and despite the bull market in bonds that occurred around the same time as Black Monday, equity markets were by far the largest winners in the fiscal and monetary policies that emerged following the now famous stock market crash.¬† But in return both Europe and the U.S. took on massive price inflation that makes today’s all-time highs in these markets a virtual zero-sum gain.
Kenneth Schortgen Jr¬†is¬†a writer for¬†The Daily Economist,¬†Secretsofthefed.com,¬†Roguemoney.net, and¬†Viral Liberty, and hosts¬†the popular¬†youtube podcast¬†on Mondays, Wednesdays and Fridays.¬†Ken can also¬†be heard Wednesday afternoons giving an weekly economic report on the¬†Angel Clark radio show.