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 "...
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