Stock Market Shows Some 1987 Crash Warning Signs But Major Plunge Unlikely: Analysts
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Today's stock market has striking similarities to 1987 before the big crash, including weakening breadth and inflation concerns.
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However, Ned Davis Research says an October crash is unlikely due to key differences like circuit breakers.
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While trends in stocks are similar, the magnitude is far less extreme than in 1987 when stocks peaked nearly 20% higher.
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The economy and inflation were accelerating faster in 1987, while today's growth has been more modest.
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Though there are similarities, not enough factors line up to indicate a crash is likely, per Ned Davis Research.