'The perfect storm': Black Monday 25 years on

BLACK MONDAY

clock

Henderson's Chris Burvill, manager of the £1.2bn Cautious Managed fund, recollects his experience of the 1987 stock market crash known as 'Black Monday', and asks whether it could happen again.

This crash didn’t come out of a clear blue sky, literally. The hurricane had happened only three days before and the UK market had been virtually closed on the Friday. The insurance and disruption costs in themselves were set to have been a big bill for the insurers. Ironically I remember thinking over the weekend that the DIY stores would do well out of the storm. The underlying issues had been brewing for some time: interest rates had been kept too low too long, as the bond markets were already indicating, and there had already been a sharp equity sell-off in the summer as some star...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Economics

Early Powell departure could be an 'unexpected gift' for EMs

Early Powell departure could be an 'unexpected gift' for EMs

Trump claims he will replace chair sooner

Eve Maddock-Jones
clock 01 July 2025 • 3 min read
BoE's Andrew Bailey: Pick-up in inflation makes outlook uncertain

BoE's Andrew Bailey: Pick-up in inflation makes outlook uncertain

UK inflation at 3.4%

clock 27 June 2025 • 2 min read
Jerome Powell warns of long term inflation if Trump settles on higher tariffs indefinitely

Jerome Powell warns of long term inflation if Trump settles on higher tariffs indefinitely

Policies' economic impacts ‘uncertain’

Eve Maddock-Jones
clock 25 June 2025 • 3 min read
Trustpilot