On 19 October 1987, stock markets crashed around the world, an event that became known as "Black Monday". This crash, which saw the New York Dow Jones Index plummeting 500 points overnight to about 1700, was deemed the worst such crash since 1929. Market panic ensued.
Despite not having experienced a crash on this scale before, GIC took decisive tactical action by increasing its exposure to bonds for safety and liquidity. Yet it stood firm on its investment policy objective of investing for the long term.
GIC weathered the crisis in the financial markets. The experience gained from this crisis gave GIC managers the confidence to deal with other crises that would occur later.
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