Are we heading for a 1987 style crash?

Recent weeks have unnerved investors around the world, starting with U.S. markets gyrating wildly from a loss of 390 points to a gain of 480 points just last week. Such volatility, while not unique, has been a good predictor of major market events. Our study also reveals that the Hong Kong market has outperformed the U.S. recently even as its volatility drops below that of US markets.