After the radical plunge in the global stock markets in August, the stock prices rebounded once and are seeking its direction after this turmoil.
Investors are carefully watching what the central banks will do. Some of them first even expected the Fed might restart the QE, but after the Fed policymakers revealed to remain seeking a rate hike, this kind of subjective hopes disappeared. We already explained why they would remain hawkish:
Continue reading Why 2015 resembles 1987 before Black Monday: central banks and rate hikes
Throughout the last hundreds of years, the essence of the financial markets has never changed, and the investors repeatedly experience absurd financial bubbles of the common root.
This perhaps gives this article some significance, as we explain here the cause of Black Monday in 1987. Many say there was no specific reason of the market crash, or it is difficult to identify the cause, but some great investors indeed predicted the collapse in advance, as there were the definite causes of the bubble we can explain here.
Continue reading Why did Black Monday happen in 1987: Reaganomics, the Plaza Accord and the German rate hike