The 1987 sharemarket crash
- When
- 20 October 1987
- Where
- Auckland · Tāmaki Makaurau
- Reach
- Nationwide
The New Zealand market fell further than almost any other and took years longer to recover, wiping out a generation of small investors.
Deregulation had produced a speculative boom in investment companies with little behind them beyond cross-shareholdings. The index lost about 60 percent over the following months against roughly 30 percent in most developed markets. Household names collapsed, unemployment climbed, and ordinary savers who had bought shares for the first time were badly hurt. The experience left a lasting New Zealand preference for property over equities.
Regions affected
Sources
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Related
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Queen Street, Auckland