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Bond market warning signal is back as equities shift toward returns like 1987

Wall Street veteran Larry McDonald says equities are beginning to deliver “equity-like returns,” a pattern he links to the lead-up to the summer of 1987.

Reported · Written up by our desk · Fund Industry

MarketWatch reports that a key stock-market warning signal that previously appeared in the bond market is showing signs of returning, according to Wall Street veteran Larry McDonald.

McDonald said equities are starting to deliver “equity-like returns,” and he drew a parallel to the conditions seen during the summer of 1987.

The outlet frames the renewed signal as a reminder that bond market dynamics can foreshadow changes in equity performance.

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