Stock Markets Will Crash

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Stock Markets Will Crash

Global Stock Markets Are Near A Crash?

It was back in 2020 when COVID was brewing, but the markets were making new highs. This was then followed by panic selling in both the FTSE 100 and the S&P 500.

Within a minute, both of these stock indices were down by 30%. This shows that markets ultimately react to what's happening in the real world, even if the reaction is a little late.

Large Economies Face Risks

Now that the geopolitical tensions are high and with the ongoing trade wars, are we heading towards another market crash?

Any increase in geopolitical tensions will ultimately lead to higher oil prices. In turn, this will disturb the global economy and will also make it tough for the stock markets.

According to Kristalina Georgieva (IMF), any turbulence will find its way into the large economies. In turn, this will lead to lower revisions for the global growth forecasts.

If we look at the markets, it seems that the investors are still not concerned when they should be! So, does this mean we can expect a replay of the COVID era?

quick look at the S&P 500 shows that it has been up since the start of the year. Also, a lot of stocks in the growth category look very overvalued.

The Palantir stock, in particular, is trading at x112 of its sales. Given the global economy and all of the uncertainty, that's a massive multiple which can't be justified.

That's why it is better for investors to look at other markets such as the FTSE 100 instead of the S&P 500. There are many stocks on the UK market which are still cheap and affordable.

So, the chances of yet another crash in the US & UK stock markets are very high. At times like this, it seems that the stocks from the FTSE 100 offer a much better investment sense as the US stocks are way too overvalued.

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