Wasn't the problem mostly with futures trading and deviations in those instruments from the underlying S&P 500 index?

Because we have kick ass dudes like Denis in the industry now, Black Monday will never happen again.

Because we have kick ass dudes like Denis in the industry now, Black Monday will never happen again.

IIRC at the time they threw computer program trading under the bus as well.

Another thing I remember is that shortly thereafter, Trump's first book came out and he bragged about how he sold all his stocks just before the crash.

Wasn't the problem mostly with futures trading and deviations in those instruments from the underlying S&P 500 index?

I never put much thought into that drop because the market ended the year flat and that a lot of that drop seemed technical in nature. It is bubbles and fundamental factors that concern me much more. That was a very short lived dropped. Interesting nonetheless.

It worries me that these low interest rates are creating a mammoth bubble in risky asset classes.......

I am not a fan of ETF's. If/when the market blows up and liquidity becomes an issue, you are going to see those things fail (in terms of midday trading) much like Auction Rate Securities failed in the February 2008. Like the ARS', ETF's provide the illusion of liquidity that will disappear when markets become volatile.

The cap gains tax is at a relatively attractive rate, but it is tough to give up the stock's value with a 20%-ish haircut. One good way to do it is to cull any losses you have to offset the gains.

I am not a fan of ETF's. If/when the market blows up and liquidity becomes an issue, you are going to see those things fail (in terms of midday trading) much like Auction Rate Securities failed in the February 2008. Like the ARS', ETF's provide the illusion of liquidity that will disappear when markets become volatile.

The cap gains tax is at a relatively attractive rate, but it is tough to give up the stock's value with a 20%-ish haircut. One good way to do it is to cull any losses you have to offset the gains.

The only safe investment is Beanie Babies.

The only safe investment is Beanie Babies.

Hah, I am not in the industry at all. I am merely educated in a way that qualifies me to work as an investment advisor or mutual fund manager. My work experience is in the financial lines insurance industry with a specialty in publicly traded companies and financial institutions.

My track record in trading of late has been poor as I continue to view the retail sector as oversold. But it has remained out of favor for some time.

The index funds I own are all Vanguard S&P 500 funds. I feel those are pretty safe and have the long track record by this point. They have already ridden the great recession and those who held on and kept pouring in money through the market decline and recovery have really come well out. One of the Vanguard funds I am in has been around since 1976.

I cannot agree with you more. (I guess that's a kiss of death )

Events like this are one of the reasons my plan is to just buy index funds with each pay period and set on them for the next 35 years before I retire (and then transition to bonds). The market will go up an down, will have recessions, and booms in that period, but I can expect to gain 8% per year over my lifetime in the market.

I just never understood the appeal day trading. Playing games like that is little more than gambling. It's way too high risk when you're talking about your retirement fund.

I honestly think John Bogle unlocked the best strategy for retirement investing decades ago.