Economists have noticed alarming signs in the US economy. The US stock market bubble is rapidly expanding. Thus, there is a high possibility to follow the scenario of the dot-com bubble burst that took place in 1999-2000. A record percentage of money managers believe that the stock market is overvalued. Stocks are abnormally rising despite the coronavirus pandemic and massive protests. The rally looks so groundless that analysts are advising investors to review their portfolios. At the moment, there is high risk of a bubble and overvalued assets may start slumping as fast as they are soaring now.
Taking into account a large amount of global negative factors, consequences of the stock market collapse could really be disastrous. In this case, the crisis is expected to hit all stockholders, including individuals and such large investors as pension funds, banks, and insurance companies. A similar catastrophe occurred in 2000 after a rapid growth in the value of shares of many online shopping companies. It was a period when the Internet technologies were at the peak of their popularity. Investors were greedily buying shares of all online companies. At the same time, new companies were springing up like mushrooms. This mysterious rally was followed by a predictable slump and a devastating wave of bankruptcies.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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