1987 Revisited or just a Scare?

[william the wie]

The ETF era permits risk shifting techniques like the portfolio Insurance technique that led to the 87 crash. Such activity is hard to track or diagnose until a post-mortem becomes possible after the crash. Several bad theories of what happened in 87 were still being touted after the market began to recover but before all the data was analyzed. So revisitation or just part of the wall of worry?

 

[Toddsterpatriot]

The ETF era permits risk shifting techniques like the portfolio Insurance technique that led to the 87 crash. Such activity is hard to track or diagnose until a post-mortem becomes possible after the crash. Several bad theories of what happened in 87 were still being touted after the market began to recover but before all the data was analyzed. So revisitation or just part of the wall of worry?

The ETF era permits risk shifting techniques like the portfolio Insurance technique that led to the 87 crash.

ETFs aren't like 1987 portfolio insurance.

 

[DarkFury]

It needs a trigger. Iran was the trigger least time. Missle attacks on U.S. flagged ships. Even if they did trigger the effects would be short term. Our tech improvements in drilling and the new tech of fracking would offset any long term loss.

My guess is they would not do it. Oil sales would shift from there to S America. And a pipeline from Mexico to here has already been planned.

 

[william the wie]

Tend to agree on real economic output but 87 had a huge impact on retirement accounts and their regulation.