College of Business > News & Events > Black Monday Lamont Black
Andrew Zamorski | Photo by Kathy Hillegonds / 10/24/2017 / Twitter / Facebook
“Any day could be a Black Monday,” says Black, who teaches commercial banking and money and capital markets and is also the academic director for the
Center for Financial Services. “Stocks generate returns because of the risk involved, so the risk is inherent to the stock market. However, these types of ‘black swan’ events are almost impossible to predict.
“Even the idea that October is a good month for a market crash is probably a statistical anomaly. I think investors should be more focused on trying to assess the likelihood of a major market correction in the range of a 5 to 10 percent decline. With the stock market at all-time highs, it is only a matter of time before this happens.
“We are in a bull market that has already gone longer than most would have expected. The excitement of the stock market is deciding when to invest more and when to hedge.
“Despite the risks, there are still plenty of reasons to hope for more gains ahead.”
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