Unexpected, major negative news (like pandemic shutdowns) causes rapid reassessment of asset values. Helpful Resources & Context:
While technically occurring over a few days ("Black Thursday" and "Black Tuesday"), this crash was a swift turning point that initiated the Great Depression, characterized by a rapid loss of confidence and massive sell-offs. Key Themes in Fast Crashes: fastest_crash
has an in-depth, detailed explanation of Black Monday (1987) and its causes. fastest_crash
Herd behavior accelerates the downward trend. fastest_crash
provides analysis on how the 2020 crash broke records for speed. If you're studying this topic, What regulatory changes happened after 1987 ? How to spot early warning signs ?