As of January 21, 2025, there is no immediate indication of a stock market crash. Major U.S. indices, such as the S&P 500, Dow Jones Industrial Average, and Nasdaq-100, are experiencing slight gains. For instance, the SPDR S&P 500 ETF Trust (SPY) is trading at $597.58, up 0.01% from the previous close. Similarly, the SPDR Dow Jones Industrial Average ETF (DIA) is at $434.72, a 0.0074% increase, and the Invesco QQQ Trust (QQQ) stands at $521.74, up 0.0169%.
However, some financial experts express concerns about potential market volatility. Bill Smead, a seasoned investor, warns of a possible unwinding of a stock market bubble, citing rising 10-year Treasury yields that could pressure growth stocks.
Economist Harry Dent also cautions about an impending economic downturn, attributing it to high levels of private debt and historical patterns of economic bubbles.
Predicting exact market movements remains challenging. The Financial Times emphasizes that accurately forecasting the next market crash is impossible, as market dynamics are influenced by complex and often unpredictable factors.
Therefore, while current market indicators do not suggest an imminent crash, it’s prudent for investors to stay informed and consider diversifying their portfolios to mitigate potential risks.
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