Readers of American financial news might think that the pandemic stock market crash of 2020 happened in March and is over. That’s objectively not true: the pandemic stock market crash is still going on right now, and an analysis of past crashes suggests it’s about to get a lot worse.
A crash is not just a substantial daily or monthly decline. Instead, stock markets have two modes: crash and boom. The market is in a crash from its prior peak until its recovery. And seven out of 12 of America’s last stock market crashes have had at least one faux recovery.
Indices track the market. I use the Dow, but you can use the S&P 500, the Russell 3000, or whatever you like. The Dow’s most recent prior peak, before it suffered substantial declines, was of 29,551 points on February 12th, 2020. It hasn’t sustained that value again yet. Ergo, the U.S. stock markets are in a crash!