Will There Be a Stock Market Crash this Year?

This is a syndicated repost courtesy of Money Morning – We Make Investing Profitable. To view original, click here. Reposted with permission.
With U. S. stock markets continuing to trade near record highs, many investors are wondering if we might see a stock market crash this year. You see, we’re in an almost nine-year bull market that is full of over-priced stocks. The S&P 500 ended 2016 up nearly 10% after a sluggish start. The Dow Jones Industrial Average (DJIA) posted gains of 13.5% in 2016 and is now closing in on the psychologically significant 20,000 level. The Dow is down to 19,932.17 after coming within a half a point of the 20k level on Friday.
With stocks near historically high prices, we’re seeing some of the same red flags we’ve seen from stock market crashes before. That’s why we’ve researched the previous signals of a stock market crash…
Learning from Past Stock Market Crashes No one can predict the exact movement of the markets. However, understanding the bumps of the past and the signals the market gives can help us make educated guesses about what is coming next.
When most of us think of a stock market crash, we picture the resulting recession or even the Great Depression. The infamous stock market crash of 1929 occurred in October when the bubble boom of the Roaring Twenties popped.

This post was published at Wall Street Examiner on January 9, 2017.