Echoes of the 1987 Crash
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.

Lost in the intense focus on the current financial crisis is a major new market risk that appears to be developing — investor capitulation, a situation in which many investors, fed up with mounting losses, say enough is enough and throw in the towel. While such capitulation helps clear the air, over the short term it’s often a forerunner of big declines in stock prices and even market crashes.
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