People Fear a Market Crash More Than They Have in Years – The New York Times

The coronavirus crisis and the November election have driven fears of a major market crash to the highest levels in many years.

At the same time, stocks are trading at very high levels. That volatile combination doesn t mean that a crash will occur, but it suggests that the risk of one is relatively high. This is a time to be careful.

I base these conclusions largely on research I ve been doing for years, including findings from the stock market confidence indexes that I began to develop more than three decades ago. These indexes are drawn from surveys of a random sample of high-income individual investors and institutional investors in the United States that are now conducted monthly by the International Center for Finance at the Yale School of Management.

via www.nytimes.com