So here’s the tea: Jim Cramer—the always-animated finance bro from CNBC’s Mad Money—just hit us with a big warning. He says Monday, April 7, could be another “Black Monday,” like the 1987 stock market crash that literally sent Wall Street into meltdown mode.
If you’re an investor (or just someone with a mutual fund via your dad’s advisor), that phrase alone should raise your eyebrows.
This isn’t just random finance chatter—markets globally have already started tumbling after former US President Donald Trump (yep, he’s back in the spotlight) announced sweeping new tariffs. The timing is messy, and experts fear it might trigger the worst market crash in decades.
🕰️ Flashback: What Happened on The Black Monday?
Let’s roll back to October 19, 1987. The Dow Jones Industrial Average dropped by 22.6% in one single day. That’s not just a dip—it’s a faceplant.
This market chaos started in Asia, swept through Europe, and ended with a bang in the US. What triggered it? A cocktail of overvalued stocks, panic selling, and early computerized trading systems going haywire.
Read more about it here from the Federal Reserve.
Now, fast forward to 2025. Cramer says we might see a repeat. Why? Because Trump’s tariff moves are shaking up the global economy again—and markets hate uncertainty.
📉 What’s Happening Now?
Here’s what’s gone down recently:
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Trump announced a 10% “baseline” tariff on all imports.
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On top of that, he slapped country-specific tariffs: 26% on India, 34% on China.
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Global markets didn’t take it well.
Last Thursday and Friday:
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S&P 500 fell 6%.
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Dow Jones plunged 2,231 points on Friday after losing 1,679 points the day before.
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It’s the worst two-day drop since March 2020 (you know, COVID crash vibes).
Even the Indian markets—usually chill about US drama—felt the heat. The Sensex and Nifty slipped, with foreign institutional investors pulling money out faster than we can say “global selloff.”
🧠 So, What Is Jim Cramer Really Saying?
Cramer’s not saying we’re doomed, but he’s definitely raising the red flag. He’s been around since the ‘87 crash and even claimed he called that one while he was trading.
He said this week on his show:
“If the president doesn’t reward countries that play by the rules, the ‘87 scenario… has the most cogency.”
Translation: if Trump doesn’t calm down the trade war vibes, we might be in for serious trouble.
But Cramer’s also not fully bearish. He points out strong US job numbers, which usually means a recession isn’t guaranteed. So it’s not all doomsday… yet.
What This Means for Indian Investors
Alright, let’s bring it home.
1. Volatility Alert
If global markets crash, India won’t be spared. FIIs (foreign investors) pulling out = Sensex tumbling. Time to brace.
2. Tariff Impact
India’s got slapped with 26% tariffs. That’s gonna hit export-heavy sectors like textiles, pharma, and auto parts.
3. Rupee Watch
Expect pressure on the INR. A weakening rupee could raise import costs (hello, costlier fuel and electronics).
4. What Should You Do?
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Don’t panic sell. Remember March 2020? Those who held on made big gains later.
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Diversify your portfolio. Don’t bet everything on equities.
🧐 FAQs: All You Need to Know
Q: Is another Black Monday really possible?
Not guaranteed, but market conditions are shaky enough for major volatility. Stay alert.
Q: What triggered this crash-like warning?
Trump’s fresh tariffs and global retaliation. Trade wars = investor panic.
Q: Should I sell my stocks now?
Unless you’re overexposed, hold tight. Short-term pain might give way to long-term gains.
Q: Will India see a recession?
Not likely yet, but slowdowns in exports and FII pullout could sting.
Q: Where can I track updates?
Keep tabs on CNBC, Bloomberg, and local platforms like Moneycontrol.
