GDP And Earnings: Is It 1987? [CHARTS]

Everyone is talking about whether it is 1987. In 1987, stocks shed 31%, although GDP accelerated and earnings kept growing. A similar story is present today – GDP is likely to have accelerated in 3Q, earnings are still growing, albeit at a considerably lower pace, and stocks are jittery. There are, of course, important differences between 1987 and today. Here’s a look a 6 macroeconomic variables and how they performed in 1987. The top left is bond yields. In 1987 yields jumped from around 7.2% to 9.1%, a jump of 26%. In contrast, yields are not about to jump in…