- The Globe and Mail
- Feb 15, 2017
In a piece for The Globe and Mail, Professor George Athanassakos discusses the odds of a U.S. stock market crash.
He says market valuation metrics currently indicate the stock market is overvalued by as much as 60 per cent, which could be a precursor to a crash. He then assesses three proxy indicators from a recent study on bubbles and crashes: behavioural metrics, a liquidity metric, and a volatility metric.
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“Normally, it is difficult to determine whether a bubble exists until it is too late. But even if we know we are in a bubble, it is difficult to foresee when it will burst,” he says.