Barron's Looks Back At The Market Crash Of 1987

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  • This weekend's Barron's features a special report that looks back at the Black Monday crash of 1987.
  • Articles discuss whether a machine-driven meltdown could be imminent and a how investors can protect their portfolios now.
  • Also, four Wall Street vets remember Black Monday and share the lessons learned from it.

"Black Monday 2: The Next Machine-Driven Meltdown," the cover story by Ben Levisohn, says that in the rise of computer-driven trading, some hear echoes of the stock market crash of 1987. Do several anomalous episodes of "sudden, severe, and seemingly inexplicable" price swings in recent years mean that the next big selloff will be exacerbated by the fact that so much trading is computer-driven?

Reshma Kapadia's "How to Reduce Risk in Your Portfolio—Now" points out that de-risking a portfolio is no longer as simple as selling some U.S. stocks and buying Treasuries. See why Barron's says it's time for investors to grow cautious, and why strategists are recommending moving more money abroad and seeking out cheaper assets. Barron's offers a look at eight funds to consider of that fit the bill.

In "The Selloffs That Transformed Wall Street," Alex Eule and Avi Salzman offer a rundown of the big one-day crashes that rocked Wall Street, from the crash of 1929 that kicked off the Great Depression to the so-called flash crash of 2010. Circuit breakers that halt trading during market routs were born out of such days, points out this article -- as was the U.S. Securities and Exchange Commission itself.

See also: This Is What The Nobel Prize-Winning Economic Theory Means For Traders

"It's not the end of the world," said veteran financial journalist and longtime Barron's columnist Alan Abelson in the wake of the 1987 stock market crash. "Alan Abelson on the Crash of 1987" is a reprint of the Up & Down Wall Street column published on Oct. 26, 1987. See not only why the 22 percent loss of market value happened and how investors reacted, but also what corporations did afterward.

In Vito J. Racanelli's "Tears, Fears, Relief: Memories of Black Monday," see what four Wall Street vets remember about one of the most harrowing days in Wall Street history. Abby Joseph Cohen, Marc "Dr. Doom" Faber and the others share lessons learned from the October 1987 crash. Which one on these experts sees no parallels now to the 1987 crash, and which one self-describes as "ultrabearish"?

Also in this week's Barron's:

  • The latest Barron's Big Money Poll
  • Whether the market at all-time highs means a turnaround is nigh
  • JD.Com Inc JD versus Alibaba Group Holding Ltd BABA
  • The prospects for Dominion Energy Inc D
  • How Google can play catch-up in the cloud
  • The coming renaissance of macro investing
  • What is next for Procter & Gamble Co PG
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