Will the stock market crash before the end of 2024?

Will the stock market crash before the end of 2024?

Story by Zaven Boyrazian, MSc

Provided by The Motley Fool

The stock market and economic conditions, in general, have been improving throughout 2024. And investors both here in the UK and in the US have enjoyed a fairly significant market rally. However, warnings of an upcoming stock market crash seem to be on the rise.

Harris vs Trump

As usual, with the political landscape heating up, notable investors from Wall Street have started sharing their opinions of what the election outcome means for the stock market.

One voice that’s getting a lot of attention is that of John Paulson. He’s built quite a reputation after successfully predicting and profiting from the 2008 financial crisis, earning some of the biggest returns in Wall Street history – approximately $15bn.

As such, his word carries a lot of weight. So it’s no surprise that concerns are rising after he announced a stock market crash could occur if Kamala Harris wins in November. Digging into the details, his prediction’s based on proposed legislation to introduce higher corporation tax and new taxes on unrealised capital gains.

Needless to say, that’s quite alarming. The problem is there are similar forecasts for a Trump victory. Goldman Sachs has released its own set of forecasts indicating that Trump’s plans to increase international trade tariffs could trigger a massive spike in US product prices, leading to a recession.

So which predictions should investors believe?

Will the stock market crash?

Personally, I wouldn’t be worried about a looming collapse of stock prices, at least not from the upcoming election. Fears of catastrophe are pretty common in the US every time a presidential election takes place. Yet most of the time, these concerns never actually materialise.

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Markets don’t normally crash if u expect them to, as it would be too easy.

Normally it’s an unexpected event, a black swan, that triggers a crash.

So the answer to the question is, the market will crash one day but will one day be before the end of this year is the unknown.