This Stock Could Be Headed for a Crash
Let's face it... the stock market hasn't been normal -- whatever that means -- in a while. Even before the pandemic, the price-to-sales (P/S) ratio of the average stock on the S&P 500 index was 2.36. That's a lot higher than the 1.77 just before the dotcom bubble burst.
Now, it's 3.19. The volume of trading is way up, too.
If a crash comes, it won't just be high-flying stocks of the Nasdaq composite that get crushed. That's where the company Nasdaq, Inc. (NASDAQ: NDAQ) comes in. It has a strong market position and excellent leadership. But history shows it isn't immune when exuberance turns to fear in the stock market.
Source Fool.com