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I am still new to learning about stock markets, and I have more of a history question. Right now, I hear a lot of people express their concerns of a market slow down within the next 1-3 years, or even a significant bear market, or even a recession. I hear people say that you should still stay invested, but take a more defensive stance, and just be ready. People point to the yield curve having inverted in late March, and that it is a sign of bad times to come. People talk about how most stocks are over priced, that market prices continue to climb despite the negligible GDP growth in recent years. I don't fully understand all these things, but there's enough doom and gloom to make me think it might be a real thing.

This made me wonder if this atmosphere of doom and gloom also preceded the last few major market corrections? For example, was the concern among stock market investors just prior to the 2000 crash and just prior to the 2007/08 crash just as prevalent, serious and worrisome as it is today? Everyone believed it was coming soon, but they just got caught off guard, just like we will be caught off guard in the near future?

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  • $\begingroup$ “Magnitude” implies some way of measuring sentiment. There are such measures, but you often need to pay for the data. Based on my experience, there is always someone saying the stock market will fall, so anecdotal evidence (e.g. what is reported in the business press) is meaningless. $\endgroup$ – Brian Romanchuk Apr 12 '19 at 19:42

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