Market Crashes and Fed Influence - Market crashes, potentially exacerbated by the Fed's actions, are inevitable [1] - The report references past sell recommendations in 1997, 1998, 2000, and 2008, highlighting the importance of being prepared for market downturns [2] Historical Market Analysis - The 1987 crash saw the market lose nearly 40% of its value in a few weeks [4] - Prior to the 1987 crash, the Dow was trading at 29 times earnings, considered extremely expensive [3] - Japanese investment drove up valuations to unsustainable levels in the 1980s [3] Portfolio Insurance and Market Impact - Portfolio insurance, intended to limit losses, amplified the 1987 crash due to the immaturity of S&P futures [5] - The failure of portfolio insurance triggered a flood of sell orders, wiping out bids on the New York Stock Exchange and NASDAQ [5]
Crashes happen sooner or later, I want you to be ready, says Jim Cramer
CNBC Televisionยท2025-06-17 23:52