Z Best Place to Talk Stocks Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Z Best Place to Talk Stocks

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: E.J. Neitz Jr who wrote (49296)	9/28/2003 12:55:23 PM
From: Larry S.	Read Replies (1) of 53068

Portfolio Insurance was the big thing in 1987. Programs were set up so that if the market fell a certain percentage, a portion of a portfolio (mainly blue chips) would be sold, if the next lower point was attained, more stocks would be sold. not to worry, the computers would protect the value of a portfolio by this automatic selling. only problem was, when the market collasped on Monday Oct 19th, these automated sell orders became wave after waves of selling, as there were no buyers. each suceeding trigger point unleashed more stock for which there was no buyers. not diminishing the factors that let up to the 10/19/87 crash, but the portfolio insurance surely turned a sharp downturn into a crash. larry

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next