The 1987 crash was largely influenced by the Fed’s rate hikes amid inflation concerns. It does feel like we’re seeing similar warning signs, rising inflation, interest rate hikes, and market volatility, though predicting an exact repeat is tricky.
1987 vs 2024 ✍️
Dow Jones:
Let's analyze the lead-up to the 1987 crash vs. now.
12-month performance:
Notice the upthrust? The steepness?
Wondering what the cattle was thinking back then before it let go? pic.twitter.com/pHVr83oBpL
— The Great Martis (@great_martis) November 28, 2024
Jeremy Grantham says global real estate prices to fall 30% https://t.co/hOzwWUYDwg pic.twitter.com/Lz5YB6HsrQ
— Darth Powell (@VladTheInflator) November 27, 2024
The Fed is about to face a policy quagmire, in my view.
With core PCE inflation now at 2.8%, today's data reaffirms that consumer prices are likely bottoming.
History suggests we might be witnessing the start of a second inflationary wave.
What makes this situation unique is… pic.twitter.com/ZxSdK7a5Mt
— Otavio (Tavi) Costa (@TaviCosta) November 27, 2024
Fed panics as inflation and bond rates rise
🚨 BREAKING NEWS 🚨
THE FED IS OFFICIALLY IN PANIC AFTER THE RECENT INFLATION DATA METRICS SHOWS ALL THREE (CPI, PCE, PPI) RISING.
MEANWHILE AT THE SAME TIME
BONDS ARE RISING AT RECORD RATES.THE LAST TIME WE SEEN ANYTHING LIKE THIS WAS 2008.
A CRASH IS IMMINENT SOON…$SPY pic.twitter.com/MDzXGLUFxs
— Mike Investing (@MrMikeInvesting) November 28, 2024
US government debt market collapse has begun
This has MASSIVE implications for the economy
2/ US government bonds have broken below a 40-year uptrend
After experiencing one of the most painful bear market since the 1980s pic.twitter.com/nWaGUmpAXx
— Bravos Research (@bravosresearch) November 28, 2024
4/ Since March 2020, gold has outperformed bonds by +100% amid surging government spending
Government spending has risen from $3.4 trillion to almost $4 trillion in just 2 years pic.twitter.com/MWnLuvKXLL
— Bravos Research (@bravosresearch) November 28, 2024
6/ 2024 Treasury bond issuance is expected to hit $1.9 trillion
This level is higher than even the peak of the 2008 Financial Crisis levels pic.twitter.com/orYmrf3Ujh
— Bravos Research (@bravosresearch) November 28, 2024
A reversion to the mean is inevitable. pic.twitter.com/za7q1RWwEn
— Guilherme Tavares (@i3_invest) November 28, 2024