Good Lifestyle

For years, experts have declared that the American economy is due to a recession and a stock market correction, but that the two continue to extend despite the opposite winds such as high interest rates and less levels of inflation levels What helps. This month, the market recorded its best week of 2023 despite the release of what The investor affairs daily called "generally low economic data". So, is a comedown likely to soon, and how can you say? As experts say, past performance does not guarantee future performance, but history shows that certain developments tend to announce what is called euphemistically a market correction. These are 13 signs of warning a stock market crash, according to experts, and how you should react if the sky seems to be down.

"When the equity courses rise beyond their intrinsic value, it is often a precursor of a market correction," explains the financial expert Michael Ryan . "The price / benefit ratios of the sky are often a red flag." When investors realize that stocks are too expensive, a market accident can follow. "If the stock market has experienced a prolonged period of earnings without corresponding improvement in business profits, this could be an indication that a correction is on the horizon," said Adam Garcia , CEO of Stock wood .

When the "yield curve" increases, it can predict a stock market crash. "Normally, longer -term interest rates are higher than short -term rates because they include more risks," said Frank Barber, an expert in commercial and financial development Learn more about gold in California. "But when an inverted yield curve occurs, this means that investors accept lower yields on longer -term investments. It is often because they expect future yields to drop. Maybe may be bad for actions. "

"A series of them can reduce businesses and consumers, which leads to economic slowdowns," said Ryan.

"Black Swan events are these sporadic and unexpected things that can spoil the financial world and make the stock market crazy, such as the Pandemic of Covid-19, the financial crisis of 2008 and the terrorist attack on September 11," said Rob Whaley , a finance specialist with Horizon financing group .

"When the" fear gauge "of the market is low, it is often a sign that investors are too comfortable - usually just before a slowdown," said Ryan. "Excessive confidence can blind investors to risks, preparing the ground for a fall." AE0FCC31AE342FD3A1346EBB1F342FCB

The VOCHAGO exchange index (VIX) reports the level of fear or stress on the market; The higher the index, the more investors are unstable. "Volatility is a great way to confirm a real accident," said Dan Callahan, CFA, director of investments at Capasso Planning Partners . "When fear increases, various volatility indicators will increase quickly."

"Economic indicators, such as GDP growth, employment rates and inflation, are important to keep an eye," said Garcia. "If there is a sudden economic slowdown or a contraction, it can trigger a market crash because it affects the benefits of companies and the feeling of investors."

"It was incredibly obvious during the most recent evolution of the cryptocurrency in 2020 and 2021," said Callahan. "Valuity and NFT parts would increase from 10 to 20 times in a day or two. It is a classic sign of an unsustainable market."

"Political instability, trade disputes or world conflicts can contribute to the turbulence of the market," explains Garcia. "Sudden geopolitical events can lead to the panic of investors."

"Be aware of abnormal trading volumes, especially in the sale of panic, as this could indicate that investors flee the market," said Garcia. "This sudden exodus of investors can trigger a severe slowdown."

"Business initiates, such as managers and members of the board of directors, the sale of their mass actions may indicate a lack of confidence in their own companies, perhaps reporting to come," said Ryan.

A warning sign of an imminent stock market crash is "a negative dynamic when less and less actions participate in the gatherings", explains Jake Hill, CEO of Hammer . "To prepare for a potential stock market crash, it is important to further diversify your portfolio. Revalle your portfolio spread and move funds to safer / stable assets can reduce the impact of the accident. This is particularly important for Retirees, many of whom have their investment portfolio as the main source of income. "

"High levels of margin debt, where investors borrow money to invest in stocks, can worsen market accidents," said Garcia. "A margin call cascade can cause forced sale and amplify the market down the market."

"I'm not sure of a full accident, but we have to be sold," said Scott Bauer, former director and CEO of Goldman Sachs de Prosper Trading Academy . "The default defects of the credit card and car loan defects are at all times. It will not take much to completely change what this market looks like."

In relation: 11 Easy things you can do to slow down aging

"Whatever your age, if there are signs that a stock market crash arrives, it's time to move your retirement assets to reduce risk levels," explains Ann Martin, Director of Operations for Creditdonkey . "Actions, real estate and mutual funds, in this order, tend to be the most volatile assets during market accidents. Although you may not be entirely deactivated by these assets, you must move Some of your assets most at risk to be sure of ports such as savings obligations or CDs, at least until the worst is finished. As soon as the accident is finished and recovery begins, it is Time to start buying while the active ingredients are low. "