Right now the biggest debate related to market is will it crashes or not, many economist and Wall Street guys are that every thing is fine and there will be no crash without realising the fact that whenever they say this kind of things something bad happens. I will mention some very important points which will confirm the crash, I am not saying that there should be crash or I am supporting market crash what I want to to do is make sure that everyone will know about it and prepare themselves from this because when market crash not everyone but poor people are the one who was hit by it the most.
The biggest proof of stock market crash is the all time high p/e ratio(price to earning) the average and stable pe ratio is approximately from 15–40 (40 is still high but it is acceptable). Pandemic hit the countries so bad that their economy started to go down and to save it countries started to print more and more money like USA printed 40% of the money they have in just last 12 months, it will increase the national debt of the country due to which there will be a bigger blunder and it can also cause the hyperinflation and decrease the value of “Dollar”.
In just 12 months USA has printed $4.2 trillion the largest amount USA has ever printed and it is the biggest debt to us GDP ratio which is approximately 129% it is the highest, even at the time of great depression(stock market crash) 1928–30 the ratio of around 121% and ratio of dot com bubble of 2000s and housing crash of 2008 is not even close to great depression always when there is increment in the debt ratio there is any kind of crash.
One more reason which make me think of the crash is sir Warren Buffet quote which says that “be fearful when everyone are greedy and be greedy when everyone are fearful” right now according to the situation more than majority of people are greedy they are not only investing blindly but also spending blindly like wasting money in NFT’s and investing their whole money in few worthless cryptocurrency I support cryptocurrency, but not support it blindly. The over spending of money will make many stocks overvalued which will create more chaos during the crash
When people didn’t have enough money to pay their debt it will make the banks system goes down, government who had already printed large sum of Dollar they have to print them more because everything is now breaking down and then “There will be the biggest crash ever happened in entire world history which will shook whole world”.
This all thing will not happen if USA government use more printed dollars in better way which increase the productivity and if people insure that what they are doing is not totally stupid invest in cryptocurrency but one best one, use NFT but only when they have real and good value.