Are these the warning signs of a new 1987-style crash?

Anna Fedorova
clock

Fears over US monetary tightening, rate hikes, and recession triggered the 1987 stock market crash, and there are parallels with today's market environment, according to Société Générale's Albert Edwards.

In his latest note, the ultra-bearish strategist said the evolution of bond yields and equity markets this year looks similar to what happened before the market collapse of 1987. On 19 October that year, a day also referred to as 'Black Monday', the US market saw its largest one-day percentage drop in history when it plunged  22.6%. "In the wake of a run-up in US bond yields that year, equities were richly priced and so very vulnerable to recession fears, however unfounded," he wrote. "That could not possibly happen again, or could it?" Edwards warned investors global markets are "...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Advisers predict returns uptick in face of increased market volatility until 2030

Advisers predict returns uptick in face of increased market volatility until 2030

Investor Confidence Barometer from Scottish Widows

Jenna Brown
clock 07 January 2026 • 2 min read
Advisers see more market volatility coming in 2026

Advisers see more market volatility coming in 2026

Uncertainty over the global economy and UK inflation rate

Isabel Baxter
clock 06 January 2026 • 2 min read
Inflation falls faster than predicted ahead of BoE interest rate vote

Inflation falls faster than predicted ahead of BoE interest rate vote

3.2% in November

Michael Nelson
clock 17 December 2025 • 2 min read