Jack Crooks, formerly a currency analyst and writer for Martin Weiss of Money and Markets, is now writing at his own company Black Swan Trading. He has just produced a short analysis comparing the bond market today to the bond market just before the 1987 stock market crash: Currency Currents.
The charts in the last half are very interesting. Also during this timeframe the dollar was declining just as it has been now. Will we reach the “critical mass” necessary to reach an all out equity crash like the one in 1987? Well, we have certainly crashed all ready, but the markets are right now WAY overvalued by historic standards, and as I’ve been saying all along, a crashing bond market will absolutely pressure equities in an environment of debt saturation.