My foreign funds, oil, gold, silver and stocks have been flying (in dollar terms) since Bernanke's panicked cut a few days ago. Flying. But I've got a strange feeling....
The housing market may still be in denial, but it appears that Wall Street and foreign markets are in Denial Squared.
It looks like the majority of you think the stock market is going to crash this October (see poll to the right). Kinda tough to have that opinion when a full-fledged stock party is breaking out, eh? And remember, 1987 was a blip in the road. 1929 on the other hand...
I've got one finger on the SELL button. And remember, from Manias, Panics and Crashes, eventually cash will be king. The only question is when.
This October marks the 20th anniversary of the 1987 stock market crash, the biggest one day post-war percentage drop for US markets.
In a few short hours on Monday, October 19, 1987, the Dow industrials (DJI) gave up 508 points, or 22%, bringing an abrupt end to what had been a lively Wall Street party.
The crash came against a backdrop of inflation fears, rising oil prices, Middle East tensions and a host of other eerily familiar worry signs in Wall Street's most notorious month, and helped cement October's reputation as the toughest month for the markets, at least psychologically.
So, could it happen again?