George Athanassakos | Are we on the verge of a stock market crash?

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.

“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.