Will the Stock Market Crash in 2022?

2022-02-19 05:00:00

Not all stock market crashes look the same. Sometimes the market falls rapidly and unexpectedly due to a short-term catalyst but recovers quickly. That happened a number of times due to the Covid pandemic.

A catalyst like fear about potential shutdowns or a spike in numbers can cause a sharp selloff. But instead of prompting a long-term bear market, investors quickly see that whatever triggered the crash wasn’t as bad as they thought or maybe turned out to not actually be a thing.

In other cases, like the stock market crash of 2008, a deeper problem leads to the stock selloff. In that case, it was the housing crisis caused by loose lending standards, an increase in foreclosures, and people losing their homes.

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