People who have invested in the stock exchange are extremely stressed. They fear that a market crash is bound to happen soon enough. The people who have invested individually believe that the US stock exchange might fall down completely, resulting in a loss for many.
The pessimistic approach is actually not a bad thing. If the investors were thinking that the chances of a crash are not high, it would be a much more stressful situation.
Since people are already expecting ruin, a dip would not come as a huge surprise. The Dow Jones Industrial Average lowered down to 2.3 percent. This is the lowest one-day plunge since September.
Robert Shiller, a finance professor at Yale, and his fellow professors have been holding surveys, asking a very important question.
The survey questions the likelihood of a stock market crash taking place the same way it did in 1929 and 1987. The survey is then converted to a chart form, indicating the number of people that believe and the ones that don’t. The chart is called the US crash confidence Index.
In times like these, the index will obviously indicate that many people believe that the market will crash. Shiller believes that the anxiety people have about the market crashing means that something similar might happen.
On the other hand, it is also true that the pandemic has totally destroyed and ruined the economy. It is not only the US stock market that is getting affected every day. Every country is getting hit by losses every single day. The only solution to make things better is by working in harmony and working together.
Since elections are right around the corner, the market is expected to plunge even further. The coronavirus does not seem to be going away anytime soon either.
It feels like the stock market might not go up and remain rocky. The real question remains: will the market crash? No one can really know the answer to that. Although, people fear that it probably will.