Saturday, June 20, 2020

Get Ready: 10 Reasons a Second Stock Market Crash Is Coming

Equities have had a ferocious rebound from the March 23 lows, but a bounty of negative catalysts remains.

Equities have had a ferocious rebound from the March 23 lows, but a bounty of negative catalysts remains. Image source: Getty Images.

By Sean Williams

There's little question that when 2020 comes to a close, investors will not soon forget it.

For a nearly five-week period, beginning Feb. 19, panic and a record amount of fear regarding the coronavirus disease 2019 (COVID-19) pandemic sent the broad-based S&P 500 (SNPINDEX:^SPX) to its quickest bear market descent in history. Before it was over, the benchmark index had shed 34% of its value.

Over the subsequent 11 weeks following the March 23 bottom, the S&P 500 bounced more than 40% off of its lows and got within sight of an all-time high. In fact, the technology-heavy Nasdaq Composite did hit a record high of more than 10,000. All of this was accomplished as the unemployment rate hit levels not seen since the Great Depression, nine decades earlier.

While there's no question that the stock market has a history of bottoming out well before the U.S. economy does, there's a veritable laundry list of reasons to believe that this rebound rally in equities has come way too far, way too fast. I present to you 10 reasons why a second stock market crash is coming.  Read more >>