On Oct. 19, 1987, the Dow Jones industrial average plummeted 22.6% in what would later become known as Black Monday. The causes of the crash are still debated to this day, but the severity of its impact is not. Stock market losses in October hit $1.7 trillion globally as 19 out of the 23 major markets experienced drops of over 20% for the month.
Now, Albert Edwards, a global strategist at French investment bank Société Générale, is worried history may repeat itself. The stock market’s strength in 2023 despite the economy-slowing effects of higher interest rates is a combination that feels awfully similar to the days when Ronald Reagan was president, the typically bearish and often sardonic strategist warns.
