Why did Black Monday happen?

Question

the Stock Market crash of 1987

Answer 1

Program trading.

The big traders programmed their computers to sell the market with "Sell Stops" if it went below a certain level.

The selling became a self-fulfilling prophecy.

The only thing that saved the market was the companies coming into the market to buy back their shares.

P.S. Also Jim Baker reversed his position on a weak dollar.

Answer 2

Macroeconomic causes included international disputes about foreign exchange and interest rates, and fears about inflation.

Answer 3

1. Though market had nearly discounted double digit inflation, actual figure was a setback.

2. Indian political uncertainty (with CPM's stand against nuclear deal) did play a role - market doesn't stand uncertainties.

3. Of course, global recession.

4. Crude soaring and all are apprehending it to go above 180 $.

Answer 4

Simple answer:

More sellers then buyers,