There are skeptics who believe the surge in stock market prices is driven by foolish optimism, over-rated performance, and unrealistic valuations. They’re sensing a stock market crash.
What could cause a stock market crash or a housing market crash this year or next? Smart investors and homebuyers should be aware of market crash indicators, factors, and previous stock market crash timelines. A crash isn’t out of the question.
And is this the roaring twenties all over again? There are corollaries between then and now. Stock market experts and economists cite technical details while the real factor might go under their radar. It’s human emotion – optimism, joy, euphoria, what Robert Shiller calls “irrational exuberance.”
So far, the P/E ratios of the last year bear no resemblance to stocks real worth. As this chart reveals, stocks are overvalued, and may become even further overvalued this summer. We’re not yet at the peak of the .com crash, but it’s moving closer. With stimulus cash, …