Are Stocks Heading for a 1987-Style Crash?

A year ago, Wall Street pundits and prognosticators were busy marking the 25th anniversary of the great stock market crash of October 1987, and speculating whether it could happen again to a market that had doubled over the prior three years, despite a weak underlying economy.

While October 2012 ultimately saw the Dow Jones Industrial Average (^DJI) decline by about 2.5%, that was nothing compared to the 22% one-day wipe out that crushed the market two-and-a-half decades earlier.

Today, with the Dow up more than 2,000 points since last October and trading at record highs, fears are rising that the red hot stock market could be setting up for something sinister once the summer slow season is over. (more)

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