Emma Dahl Comments
Because we’ve had such a sustained growth period, it seems like investors have forgotten that at some point the market has to cool down. Even though market indicators might suggest that a cooling period isn’t coming for another year or so, once investors speculate that a crash may come, they themselves can cause the crash. It’s a self-fulfilling prophecy.
Current market trends foreshadow a crash in the near future, and denial of an impending crash in the financial sector may worsen the impact. With wild fluctuations in the stock market, the question is whether a bear market will stick, creating a longer term downturn, or if bargain hunters can keep Wall Street from suffering losses that affect a broader swath of business activity.
Slowing growth and higher interest rates will be driving direction, while experts warn that bargain hunting investors will more likely be waiting for an emotional selloff. What’s next?