As markets hit highs, what could possibly go wrong?
A decade on from the start of the greatest economic depression of modern times, investors are growing increasingly worried that stock markets are heading in a similar direction today.
Many financial observers pinpoint the beginning of the recent global depression to August 2007, following the failure of two Bear Stearns hedge funds and a sharp fall in Lehman Brothers stock that effectively locked in the bank’s inevitable meltdown a year later. A groundswell of concern has been building that the US stock market is now in dangerously high territory, as the Nasdaq, the Dow Jones and S&P 500 continue to post record highs, with the value of the market almost 150% higher than the nation’s GDP. That’s a level previously seen before the dot-com bust from 2001.
