Monday, 15 February 2021

Is a stock market crash coming?

Jonathan Ponciano at Forbes sees signs of a stock market bubble and a possible crash.

“A 12-year-old bull market; SPAC mania; IPOs that more than double on the first trading day; an army of amateur traders and GameStop mania. It certainly feels like irrational exuberance–and it triggers alarms for those who remember the dot-com bubble of the late 1990s,” he wrote.

“The parallels we have today are historically very, very concerning,” he quoted Jim Stack, president of Whitefish, Montana’s InvesTech Research and Stack Financial Management, as saying.

Ponciano wrote that out of 11 key market metrics that flashed warning signs just before the stock market crashed in March 2000, seven are signalling bearish, three bullish and one neutral.

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