Could We Have Another 1987-Like Crash in the Not Too Distant Future?

[bobbyw24]

Could We Have Another 1987-Like Crash
in the Not Too Distant Future?
by Chris Puplava | august 28, 2009 Chris Puplava

There are many market participants out there whose nerves appear to be pricking up lately as we approach the two worst months of the year, more so given the fact that the S&P 500 has risen more than 50% from the March lows and is overdue for a correction. Last year should have made the point that in terms of the financial markets, anything and everything is possible as we appeared to be on the brink of a systemic collapse. However, while anything is possible, how likely is another 1987-like sell off in the weeks ahead, or even a sell off similar to the 1998 Asian Currency Crisis?

Whether one looks at seasonal patterns over the last 20, 50, or even 100 years, September has consistently proven to be THE worst month of the year by a sizable margin as the enumerable folks at Bespoke Investment Group show below. . . . .


http://www.financialsense.com/Market/wrapup.htm

[Zippyjuan]

It could go down, or it could go up. If it is average to the past 50 years, it will be down 1.23% according to the chart. Not really a dramatic decline. At current levels that would be about 117 points. The Dow is over priced right now in my opinion but do not think we will see a 1987 sized sell off. Nobody can say what the market will do in the future.