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The major difference between the '87 & '97 plunges was the percentage drop
and the panic factor. Don't recall the specific numbers, but they shouldn't
be difficult to find. It was a dramatic difference. If you can get data
for the last quarter of '87, you'll see what I mean. It took about 18
months for the S&P to fully stabilize. Spreads & Volatility were huge and
post-crash Volume was low for months.
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At 02:19 PM 10/2/98 -0400, Gaius Marius wrote:
>What about after the crash in Oct.'97? It's the same price pattern. The only
>difference between 87 and 97 is the volume. On a relative volume basis
>(comparing volume after the crashes to the volume before), it's still the
>same price and volume pattern. The only difference between 1987 and now is
>that the average volume in 1987 was about 200 million shares or so a day (if
>memory serves me correctly) and the average volume today is about 600-700
>million shares.
>
>:It has nothing to do with buy & hold. Yes, there will always be a market
>to
>:trade, but If the Retirement and Mutual Funds, as well as the vast majority
>:of individual investors who know nothing about Spoos, Options,
>:Short-Selling, etc., start running for the exits in droves-- you'll see a
>:very different (and difficult) trading environment than in recent years.
>
>:If anyone traded in the year following the '87 crash, maybe you'll have an
>:idea what I'm talking about. IMO, that environment was minor compared to
>:the one waiting up the road if the Markets break into a serious plunge
>:soon-- Especially if its due to Monica & Ken's revenge.
>
>
>
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