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How Extended Are Stocks Relative To 1987?

When stocks are making new all-time highs, many are wondering if the markets are setting themselves up for a repeat of Black Monday. On Monday, October 19, 1987 the Dow Jones Industrials plunged 22.61%. This week’s stock market video addresses the following questions:

• How does December 2016 compare to the period leading up to the 1987 stock market crash?
  

• Is the present day similar to the latter stages of the dot-com bubble (1998-2000)?
  

• Does the present day look more like the high-risk periods noted above or more like outstanding buying opportunity periods, such as 1982 and 1994?