Is the Stock Market Going to Crash Again?
It's been a rough year in the stock market so far, and investors are worried that things are going to get worse. It's no time to panic, because fear can ruin your investment plan. However, now's a good time to assess the situation in the market and review your portfolio allocation to make sure you're ready for whatever comes next.
The short answer to the headline question is yes. The stock market has crashed numerous times in the past, and it's going to crash many more times in the future. Stock valuations rise and fall with supply and demand, and supply and demand are influenced by a variety of factors. Greed, fear, FOMO, and business outlook all play a role, as does the availability of other investments.
These factors can all change abruptly, and these changes can be triggered by a wide variety of events. Those include recessions, pandemics, wars, government fiscal crises, financial system failures, or shifts in monetary policy. It can also be a natural process of investors learning about new technology, such as the internet or blockchain.
Source Fool.com
