Stock Market Echoes of 1987 Crash: SocGen Strategist Warns of Devastating Blow

Société Générale strategist Albert Edwards warns that surging bond yields could deliver a "devastating blow" to stock markets, drawing parallels to the 1987 crash. He highlights the resilience of the equity market in the face of rising bond yields but cautions that any hint of a recession could be disastrous for stocks. Edwards points to recessionary signals such as falling trucking jobs, surging bankruptcies among smaller companies, and contracting money supply. He also emphasizes the importance of monitoring money supply weakness, which he believes has been disregarded by economists. J.P. Morgan Asset Management also warns of a potential "financial accident" caused by the yield rampage.