Market sell-off could get 'significantly worse' this week — and it echoes 1987 crash, strategist say

He would blame it on the Fed.

 

87 crash was mainly because of portfolio insurance. May be current day Vol. targeting funds are some what similar.

 

This made me LOL

 

It can happen as it did in the 80s. Problem is that the inflation rate will be higher.

 

There is 0% chance of 1987 happening, market would get closed for the day or just talked up by fed and government to stop it.

 

The day the real crash comes the market will never resume trading. El Cubishi

 

you have automatic circuit breakers and the plunge protection team these days, but 6% drop would be peachy- just let the orange idiot loose on the financial system, that will bring the house down. Oh wait he has managed to crash a casino already!

 

That or risk parity funds. A crash-like selloff in bonds accompanied by a crash-like selloff in stocks would certainly be a perfect storm for a lot of people.

 

Bridgewater ??

 

so help me here. you are a risk parity player beginning 2018. rates move to 3.20 ...you are still leveraged from beginning of the yr on the bond side , right ? what is your move now ? equities are off 4 % from the high. what if we go to 3.5 and you are still leveraged from jan 2018 ?? or have you adjusted/taken losses all along ? thanks for the insight.