Strategist Warns Current Conditions Echo 1987 Crash; Recession Could Spark New Stock Market Plunge

Strategist Albert Edwards sees similarities between today's stock market and the 1987 crash, warning a recession could spark another major downturn.

Edwards points to rising bond yields, economic uncertainty, and signs of weakening growth as reasons to worry.

Unlike 1987, interest rates have not just suddenly spiked after years of cuts, but the concurrent rise in rates and stocks echoes that period.

While the exact causes of 1987's Black Monday are disputed, a "crash mentality" and investor panic played a role.

After 1987's crash, markets did recover before an eventual 1990 recession, but Edwards still urges investors to "brace yourself and hope for the best."