Prediction: A Stock Market Crash Is Coming. Here's What Investors Should Do Based on Nearly 70 Years' Worth of History.
The Motley Fool · Anthony Di Pizio ·
A growing chorus of risks could send the S&P 500 stock market index tumbling.
The S&P 500 (^GSPC -4.36%) stock market index has more than doubled from its 2022 bear market low point, but it faces a number of challenges that could derail its current bull run.
Rising oil prices are stoking inflation, which prompted the Federal Reserve to raise interest rates at its September meeting, and additional hikes might be on the way. This alone has been enough to spark a correction in the broader market in the past, but investors are also wrestling with a potential slowdown in artificial intelligence (AI) infrastructure spending, which is impacting some of the largest stocks in the S&P 500.
To top things off, the S&P is trading at a very expensive valuation, leaving it particularly vulnerable to a sharp sell-off. Fortunately, there is a way investors can capitalize on a downturn based on almost 70 years' worth of history.
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