How investors can learn from Black Monday and crashes

INVESTING SHOW: What if it happens again? How investors can learn from Black Monday and other crashes

Published: 12:15 BST, 19 October 2017 | Updated: 14:50 BST, 19 October 2017

It’s 30 years since Black Monday – a day when the FTSE 100 fell 11% and went on to lose a third of its value through the months of October and November.

But can investors learn anything from that crash?

Does the financial world of 1987, a time before the internet, have anything to teach us today – and what can we also learn from the dot com bust and the financial crisis crash?

On this episode of the Investing Show, Simon Lambert, of This is Money, Ben Kumar of 7IM, Richard Hunter, of Wilson King, discuss how investors can learn from the past for the next time a crash arrives.

Do company earnings justify share prices?

Stock markets have been hitting record highs recently but are company profits keeping up?

In the second part of this week’s show, we look at whether the earnings justify the prices and if investors should see slightly higher inflation as good or bad news.

Plus, Nick, takes us on a whistlestop tour through the important headlines for investors in his paper review.

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