6 Reasons You Should Fear a Stock Market Crash Now

In the case of a stock market crash, the value of stocks drops sharply due to investors selling their shares rapidly. Consequently, that drives down the value of stocks for other shareholders, who also attempt to trim their losses by selling their shares.

6 Reasons You Should Fear a Stock Market Crash Now

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

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.

2) Congressional Deadlock And Bloodthirsty FED

Democrats and Republicans are miles apart ideologically, so another government shutdown seems likely this year.  Stocks could crash in 2022 if the Fed turns hawkish.

3) Tech Crackdown In China Tightens

For Wall Street, China has been a headwind each year for the past two. Two years ago, the world’s second-largest economy entered a trade war with the U.S. Regulators began cracking down on technology firms last year, raising concerns.

4) USA’s Midterm Elections

Day-to-day politics doesn’t usually affect investors. However, the November midterm elections can have a tangible impact on businesses moving forward, which explains the current political breakdown in Congress.

5) Cryptocurrency Crash And The Margin Meltdown

The stock market makes money over the long run, and the cryptocurrency market has been flooded with speculators lately. There is a new level of FOMO (fear of missing out) after seeing Bitcoin gain 8,000,000,000% in a little over 11 years, and Shiba Inu gain 46,000,000% in 12 months.

6) History’s Habit Of Repeating Itself

The stock market could crash if history repeats itself. There have been nine bear markets (i.e., declines in the S&P 500 of at least 20%) since 1960.

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