Despite the similarities this is not a repeat of October 1987
The unwind sparked huge losses in global stock markets and saw Japan’s Nikkei notch its worst day since 1987. Japanese leaders rushed on Tuesday to assuage concerns about the sharp swings in the country's financial markets, with the prime minister urging calm and senior finance officials convening an emergency meeting to discuss the global stock market sell-off.
Days of volitility in global markets sent financial analysts rushing to calculate the size of a global carry trade in which investors have borrowed money from economies with low interest rates to fund investments in higher-yielding assets elsewhere.
Todays Dow Jones Industrial Average is 39,150 the October '87 crash saw a 22% drop in the average. In todays numbers that's a drop of 8,613 points. The markets came nowhere near that magnatude of selling.
Below I have links to previous blog posts on this topic:
The common theme is fear and panic’ Fortune.com
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