According to many analysts, economists, traders and investors, stock market is surely going towards a crash if compared to the last major crash of the stock market back in 2009.
Ten years later, the market is once again showing warning signs, with many investors indicating that the market will be pushed towards another crisis due to cheap credits and high interest rates in oppose to the 90’s crash driven by the internet bubble.
One of the firmest indicators that the market is going towards yet another crash is the fact that 2018 has been the most volatile year since the 2009 market crash, which indicates that the crash is more likely to happen 10 years later.
2018 the Most Volatile Year Since the Crash in 2009, Indicating Potential Crisis in the Market
As Dow Jones Industrial average fell by 420 points, which is around -2%, many investors are certain that another crisis will hit the market already by the end of 2019 or the beginning of the next year.
Investors and economists are stressing out the importance of signs in the market that indicate a potential crash that is more likely to take place with the rising interest rates and the notably increased volatility.
Based on the latest report, the majority of analysts believe that the market is probably going to fall by -70%, despite the fact that the US has the strongest economy in the last 40 years.
Scott Minerd believes that the market is going to arrive already in 2019, while he expects to see equities going up, and Paul Tudor Jones stated on the matter of the upcoming crash that he sees the recession arriving by the beginning of 2020, as he added that “we are playing an age-old storyline of financial bubbles”, as seen many times before.
Ray Dalio, on the other hand, believes that the market is already in a pre-bubble state, waiting to make a transition already by the beginning of the next year.