Is Stock Market Crash Coming Soon?

in #stockmarket3 years ago

First of all, I'm not an expert in the stock market nor do I have a degree in finance. I'm an engineer but the stock market has always been my area of interest since I was a kid. Since then I have been following the stock market.

I come from a business family. My dad, most of my uncles, and many of my friends are businessmen. I often talk to them about their business how things are going and how things work in their business.

We all know the stock market crashed in March 2020 because of the pandemic. But the biggest surprise was the way it recovered from the crash. I talked to relatives and friends who are running a business. After talking to them about it, I found out that their business has not been in great shape since then. Almost all of them are facing losses in their business. Many of them sold/closed the business. And until today, they are yet to witness a good amount of profit.

Yes, a few businesses like software, pharma, kids products are not much affected by the pandemic. But most other industries are deeply affected.

The questions:

  • US stock market was all-time high when the pandemic was at its peak and people were losing their jobs. Most of the businesses were facing a loss while the stock market was at its peak.

  • US stock market impacts all the major stock markets of other countries like the UK, Japan, and India. Since the USA market was at an all-time high, Indian and other markets were also on the bull run and got billions of dollars as a Foreign direct investment.

Once these countries will stop getting foreign investments, their market might crash.

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