It’s the three words investors dread most: Stock market crash.
Since bottoming out on March 23, 2020, the broader market has been virtually unstoppable. The benchmark S&P 500 (SNPINDEX:^GSPC) rose by as much as 88% in 13.5 months, while the tech-heavy Nasdaq Composite gained as much as 106%. It’s been a bounce-back rally for the record books — and it may be coming to an end.
Big downside may await equities
Although we can never precisely predict when a stock market crash or correction will occur, how steep the decline will be, or how long it’ll last, I feel confident in suggesting that one is on the way. That’s because multiple aspects of history suggest equities are set for a significant pullback.
For example, each of the previous eight bear markets (not counting the coronavirus crash) saw at least one double-digit percentage pullback in the S&P 500 within…