I was just starting at Merrill Lynch end of August 1987.
The biggest difference I can remember is the long bond went from 7%
in the spring to 9.5% on the day of the crash. Merrill was
hiring like crazy and the veteran brokers thought that was an
indicator of a top in the market. People could live on 9+%
yields, not what we see today. If we get 7% long yields
again, you will see baby boomer money leave the market for
good.
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Old Guy
Anybody here old enough to experience Aug 1987?
Posted by ralph on 22nd of Aug 2009 at 08:41 pm
I was just starting at Merrill Lynch end of August 1987. The biggest difference I can remember is the long bond went from 7% in the spring to 9.5% on the day of the crash. Merrill was hiring like crazy and the veteran brokers thought that was an indicator of a top in the market. People could live on 9+% yields, not what we see today. If we get 7% long yields again, you will see baby boomer money leave the market for good.