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LostInParadise's avatar

When is the stock market going to crash?

Asked by LostInParadise (32215points) January 15th, 2020

It has been growing at 20% to 30% while the GDP grows at 2% to 3%. Lately, it has gotten a boost from the China Phase 1 agreement. This can’t go on indefinitely.

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8 Answers

zenvelo's avatar

There are structural reasons for the stock market growth. The general pool of savings in retirement plans continues ti grow. But there are significantly fewer shares available for purchase. Between stock buy backs and a number of companies that have been bought or gone private, the number of listings on the NYSE and Nasdaq is way off from where it was in 2000,

The biggest threat to the stability of the market is funding the federal deficit. With the deficit at record levels and a refusal by Washington to increase taxes, the market cannot sustain low interest rates.

gondwanalon's avatar

I think that the stock market will crash when (if) one of the far left presidential candidates is elected US President. Investors will see that as a signal to get out of Dodge.

zenvelo's avatar

^^^^Counter intuitive after ten years of stock market growth fueled by recovery efforts from a Democratic President.

gondwanalon's avatar

@zenvelo Obama was a conservative compared to Bernie and Pocahontas.

zenvelo's avatar

Warren is an expert in consumer financing and consumer protection. She is a mild threat to those earning over $50 million a year, the rest of us have little to worry about.

Better to worry about the GOP record deficit.

gondwanalon's avatar

When the people making over $50 million/year and billionaires are taxed to the out of business then Warren will be taxing the middle class into the lower class. Why? There aren’t enough rich people to pay for universal health care.

Obama added more to the National Debt than any US President (nearly doubled it). (Yes I do know the difference between the deficit and the debt).

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