Stock markets up 223% since 1987 Black Monday

UK stock prices have risen 223 per cent in the 20 years since Black Monday.

On October 19th 1987 the FTSE 100 share index fell 11 per cent and by the end of that October the index was down over 25 per cent.

The causes of the crash are still debated – but it took the FTSE just under two years to recover to pre-Black Monday levels.

However, the markets since 1987 have been far from steady. It took seven years to match the highs recorded during the dotcom boom after the bubble burst.

"While the 1987 stock market crash was clearly one of the major events for financial markets and economies during the 20th century, the strong long-term performance of the UK stock market since then should not be surprising," said Martin Ellis, chief economist at Halifax Financial Services.

"The UK economy is in the midst of the longest unbroken period of economic growth on record and London's position as one of the world's major financial centres also makes it an important destination for global capital flows."

While the FTSE 100 has increased by 223 per cent over the last two decades, Land Registry figures show house prices have increased 222 per cent since 2000 and Nationwide research shows a 370 per cent rise since 1993.