3 Signs a Stock Market Crash Could Be Coming in 2016

U. S. markets have logged four consecutive weeks of gains, but investors shouldn’t get too comfortable. In fact, we’ve spotted three signs a stock market crash could be coming in 2016…
But before we get to the stock market crash warning signs, here’s what has been pushing markets higher…
The key driver of stocks has been the sharp rebound in oil prices. Crude oil prices, which have climbed each of the last four weeks, added 7% last week to $38.50 per barrel. The International Energy Agency said it saw signs of a price bottom last week, which sent prices higher. Talks of a production freeze from some oil producers supported the rally.
Stocks and oil prices have moved nearly in lockstep this year, and that continued over the last month.
The second reason stocks have rallied is the various rounds of unconventional monetary measures from global central banks, including negative interest rates. The European Central Bank last week cut its key interest rate to -0.4% from -0.3%. It also expanded its quantitative easing by 20 billion euros to 80 billion euros per month.

This post was published at Wall Street Examiner by Diane Alter ‘ March 14, 2016.