5 Economic Indicators That Predict Market Crashes

Antara Bhattacharyya

Inverted Yield Curve : When short-term bonds yield more than long-term ones, it often signals looming recession and investor fear of future instability.

Soaring Inflation Rates: Rapid inflation erodes purchasing power and disrupts markets, often leading to central bank interventions and potential economic slowdowns.

Rising Unemployment : A spike in joblessness reduces consumer spending, weakens business confidence, and frequently foreshadows deeper economic downturns.

Plunging Consumer Confidence :When consumers expect tough times ahead, they cut back on spending, triggering contractions in economic activity and corporate revenues.

Overvalued Stock Market: Excessive stock valuations, disconnected from earnings, suggest speculative bubbles that can burst suddenly and crash the market.

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