If you are interested in the stock markets, you may have noticed that the markets are starting to look like they are overheating. Investor satisfaction is the highest since 2007. However, those who have been in for a longer time know that this phenomenon usually precedes the collapse. Let’s see if we can expect a market crash.
Why it matters
At the end of February, investors earned $814 billion in their portfolios. This is 49% more than in 1999, when the current maximum fell. The bank’s large institutional clients were net sellers of shares last week, and hedge funds are starting to join them. But can it be the start of a market crash?
What you can hear
Analysts hear that the sales indicator rose for the third month in a row to a 10-year high. On the other hand, banks generally issue statements about a neutral outlook. The reason is due to the increasingly euphoric sentiment of investors.
What it could mean
A total overheating of the markets could result in a market crash over time. Historically, it has always happened that the fall was caused by overheating. Concerns about rising rates or inflation may be on the rise as well and with them people are looking for alternative ways of investment, including stocks and shares.
What you can do
If you are investing, you need to be very careful where and how you invest. You need to regularly monitor the market and the behavior of the asset in which you invest. But if you are deciding whether investing would be right for you, you need to start studying. You can start your studies with our Platon Trading Academy, which will guide you through all aspects of the investment. At the same time, they will introduce you to the assets in which you can invest.