FIVE REASONS TO TAKE A LOOK AT JAPAN
Burt White Chief Investment Officer, LPL Financial | Jeffrey Buchbinder, CFA Market Strategist, LPL Financial
This week marks the 30th anniversary of the 1987 stock market crash in what has come to be known as Black Monday. The Dow plunged more than 22% on that day — the equivalent of a more than 5,000-point drop today — while markets around the world suffered severe declines as well. Here we look back at the crash, draw some comparisons to today’s market environment, and offer some comfort to those who may fear a repeat.
REASON #1: IMPROVING ECONOMY
Economic growth has been improving in Japan with six straight quarters of real gross domestic product (GDP) growth, the longest streak since 2005–2006 [Figure 1]. That streak included a quarter that was essentially flat...