Market Crash

[robertbanking]

Hello you very wonderful and amazing people that make up this forum. I truly hope you are doing well and you have had a nice weekend.

I note that reading about the markets that high interest rates always tip the economy into a recession which leads to a market crash. I always thought that 3 periods of negative GDP growth indicates a recession. I am guessing that the market could crash before this is declared. I kindly wondered what factors contribute in the economy to a market crash please? Further is there any Technical Analysis on for instance the FTSE 250 Index that could indicate signs of a market crash please? If anyone kindly had any thoughts on this i would be forever grateful and thankful for your support with this.

Sending you lots of good wishes and hope you have an amazing life and become enormously successful with your investing and trading. Very best wishes.

 

[THT]

Hello you very wonderful and amazing people that make up this forum. I truly hope you are doing well and you have had a nice weekend.

I note that reading about the markets that high interest rates always tip the economy into a recession which leads to a market crash. I always thought that 3 periods of negative GDP growth indicates a recession. I am guessing that the market could crash before this is declared. I kindly wondered what factors contribute in the economy to a market crash please? Further is there any Technical Analysis on for instance the FTSE 250 Index that could indicate signs of a market crash please? If anyone kindly had any thoughts on this i would be forever grateful and thankful for your support with this.

Sending you lots of good wishes and hope you have an amazing life and become enormously successful with your investing and trading. Very best wishes.

Hi,

Technically its 2 periods of negative GDP data

You will find that the stock market declines BEFORE economic confirmation comes out - you can prove this to yourself by going back in history and plotting vertical line on the stock Index of the official recession announcement

The market doesn't have to crash - it can do what its done of the past few months (sideways)

If you look at 2023 price forced the Moving averages into a DOWN mode AND most Importantly the price swings were of a LOWER HIGH & LOWER LOW nature (Ignore the Indicators)

It's my opinion, based on observing this over decades, that the market is always in the know and precedes any recession - this can be proved in the chart below because when the recession in the UK was confirmed by official economic data, the market then bottomed and rallied!