Coming up this Friday is the 25th anniversary of the single-biggest drop in the history of the stock market: the infamous Black Friday, October 19, 1987. On that day, the S&P 500 lost more than 20 percent of its value, which is more than twice as much as it's fallen on any other day in history, except one.
That one exception also happened in October - the crash on October 28, 1929, that kicked off the Great Depression. The S&P 500 lost 12.3 percent of its value that day. While we saw some bounceback in the market back in 1987, on the next trading day in 1929, on October 29, the S&P dropped another 10.2 percent, marking the third-worst day in market history.
Also among the top ten biggest market drops is yet another October day; back in 1937, on October 18, the S&P dropped by 9.3 percent. So four of the worst ten single-day losses happened in October. Let's hope we avoid that fate in the next three weeks.
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