The FTSE 100 index is at pre-pandemic levels now. As I write this Tuesday afternoon, it is above 7,200. And it has stayed north of this level for the fourth consecutive session. In this context, it might sound counterintuitive that I am talking about a stock market crash.
Why a stock market crash could happen
But there is good reason for that. While we are undeniably in a vastly improved state from last year, risks to the global economy are mounting. Yesterday, China reported lacklustre growth in the third quarter of 2021. It is the second largest economy in the world and big business for more than one FTSE 100 company, so it is not one to be taken lightly. Recently, Goldman Sachs reduced forecasts for the US economy as well. It is still strong, just not quite as strong as earlier anticipated. Growth in the UK too, is not … Read more