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Are We Witnessing 1987 Stock Market Crash Déjà Vu?

ByChris Kimble
Published 04/14/2020, 02:58 PM
Updated 07/09/2023, 06:31 AM

The market action of late reminds me of what I experienced in 1987.

If we are repeating the 1987 stock market crash, it could be bullish, as the lows could be in play already.

I highlight the similarities and what to watch for.

In 1986-1987 (left chart), the S&P 500 rallied from 230 to 340 over 13 months before falling 35%. It then rallied sharply before giving back gains and putting in a higher low.

2020 deja vu?

You can’t make up the similarities in numbers! During 2018-2020 (right chart), the S&P 500 rallied from 2300 to 3400 over 15 months before falling 35%. We have once again rallied sharply.

This article was first written for See It Markets.com. To see the original post CLICK HERE.

Would you like even more details comparing 1987 to 2020? If so, watch the 10-minute video below.

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Latest comments

No we just witnessed a bear market rally. NDX got to the 61.8 fib retrace from top to local low, and reversed at the 61.8 fib in both 2000 and 2007 before the bear markets continued. Should be strong resistance at the 61.8 fib (where we are now) and good chance of retesting the lows. I think we will break the low
Correct if they keep handing out money they know how bad it is. And I’m gonna let all of you know there’s going to be a severe down day of 15 or 20% as no one is paying attention to oil the second black swan
That's some selective charting there buddy. You can arrange it to see whatever you want! If you want to buy into this rally, knock yourself out!
how can many people and buisness be broke for one lousy month of no activity. ?? this is not like 1987.. this is 2020!! and reality has hit the fan. most people are bankrupt along with many buisness
This situation cannot even be compared to 1987 - some businesses are 100% shut down - like Red Lobster and The Keg restaurant chains - and the airlines not even flying - just a few examples of things happening now that dd not happen in 1987 - Bloomberg News is reporting possible 30% unemployment in the USA in the coming weeks - the loss in GNP will be staggering -!!!   meat processing plants are shutting down - the US and Canada Govt's are borrowing trillions of dollars -  this may surpass the great depression before it is over with.   I am not a buyer yet in north american stock markets - the bottom, particularly for bank stocks, who will write off massive bad loans, may be no where in sight yet..........just my opinion as a guy who has traded for 29 years.
Agree with you....what are broadly the levels where you see dow n other indices bottoming ? .....if you pls
Was the federal reserve actively injecting liquidity in 1987 like it does today, and like it did in 08 to stabilize the markets?
Agreed. We may have the lows in the past from first shocker... I feel like I missed some. 08 I got BOA stock for about 2.75. About a week later, it mid-day have been 5. but this is now. I watched MU at 34.? How could I have missed that one?Anyway, thanks for the info & chart as it outs an eery similarity.
I would rather miss out on a 10% gain here than lose 40%...because the economic reality is very different than the p/e levels currently or in the next year.
I agree....... I do not see the economy roaring back from this mess !!
 what truly amazes me is how many people think this is going to bounce back with everyone getting their jobs back too....the structural damage done is tremendous.
Yeap! If we want the safer vet go long precious metals, go long the energy companies that will he able to sustain the upcoming hits, maybe long food staples- everything elae can wait a year or two
When we actually figure out a complete stop, is not like a usual recession where we see a small percent of earnings pull back. Many businesses are completely shuttered. The job losses will be closer to great depression than a recession. The uncertainty is too much to be holding equities long. So many companies have pulled guidance completely... puts on everything out to mid may but avoid shorting strong balance sheets
The stronger the economy is... the stronger the exonomy will fall
Most traders are waiting for a double bottom before going long. You are right: those lows may not come again
The numbers are similar but is the situation equal? Scare
yeeeesss. Economy is strong than ever. Like in 1987, Fed did nothing because it was not necessary
I like your sense of humor
I know good sense of humor, 16 million people lost jobs last month.
Joking in times of extreme tragedy relieves stress....... great stuff !!
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