6 Reasons You Should Fear a Stock Market Crash Now

Stock market crashes happen quickly and without warning causing the value of stocks to drop sharply. Fear pervades the markets causing the value of stocks for other shareholders to fall which in turn, causes more selling.

Consequently, investors stand to lose a significant amount of capital.

If we wish to understand the performance of exchange listed stocks, we should analyze indexes such as the Nasdaq, S&P 500, and Dow Jones Industrial Average.

Analysts have been whispering about the possibility of a stock markets crash greater than the plunge seen at the beginning of the 2020 Coronavirus pandemic’. Is there still a risk of a stock market crash?

Here are 6 reasons you should trend carefully with your money – risk management is key.

One of the most pressing concerns for Wall Street remains the Coronavirus. COVID-19 strains are unpredictable and virulent, so a return to normal is still potentially a ways away.

1) High Inflation And The Spread Of The New Corona Variants

There may be supply chain issues and workflow disruptions as countries tackle the pandemic differently. COVID-19 has made Wall Street’s need for certainty impossible.

Rising interest rates, as the Federal Reserve tightens monetary policy, and rising inflation and uncertainty about the Ukraine crisis continue undermining the current stock market’s outlook. However, companies’ ability to use cash could reduce a few concerns of investors.



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Learn About Emerging Trends In: Mortgage rates  Buyer demand Home values Real estate investor trends

2% inflation is normal in a growing economy, and prices should remain modest in a growing company. However, the 6.8% increase in September’s Consumer Price Index for All Urban Consumers (CPI-U) was the highest in 39 years.

Generally, it would help if you avoided politics in your portfolio. However, Capitol Hill decisions need to be closely monitored occasionally. A stopgap funding bill was passed and signed by President Joe Biden in December’s first week to keep the federal government running, and it only funds the government through Feb. 18.

2) Congressional Deadlock And Bloodthirsty FED

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