Friday, 15 February 2019

Stock Market Crash Indicator (Revisit)


In a previous article, we reviewed a quantitative method to predict stock market bubble (Read more here).  This week, we are going to revisit whether we are heading to a stock market crash.

The following chart shows the potential crash of various asset classes.  It showed that the risk was at the highest point during the beginning of 2018, and indeed market experienced a bad plunge during January 2018.  However, as at January 2019, most of the indicators were at low risk level, thus a big crash is not anticipated in the near term.



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