2023 Bears Resemblance to 1987 Market, But Key Differences Ease Crash Fears

There are similarities between 2023 and 1987 in terms of S&P 500 performance, like a strong start to the year and a Q3 sell-off. This is making investors nervous about a crash.

But there are also differences, like lower inflation now and market safeguards against a massive single-day drop.

While charts look similar at first, the S&P 500 rose much more in 1987 before crashing.

The economy was running hotter in 1987 with higher growth and inflation than now.

Some indicators like breadth look ominous but not as extreme as in 1987. Overall the case for a crash isn't strong.