Friday, October 19, 2012

Why the Market Tanked 25 Years Ago

Oldtimers remember "portfolio insurance." One of them, Floyd Norris, explains how an earlier generation of computers took the concept and ran with it, raising havoc on October 19th, 1987. With program trading, you needn't need an economic downturn to make the stock market crash.

After reading the article, you can resume worrying about today's  high-frequency trading.

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