Should You Be Worried About a Stock Market Crash? Here’s What the Data Suggests


Over the past 19 months, investors have witnessed history on both ends of the spectrum. They’ve navigated their way through the quickest decline of at least 30% in the history of the storied S&P 500 (SNPINDEX:^GSPC), and they’ve subsequently reveled in the strongest bounce-back rally from a bear market bottom of all time. Since bottoming out on March 23, 2020, the benchmark index has more than doubled in value.

But this monster rally begs the question: Is another stock market crash or potentially steep correction around the corner, and should you be worried about it?

The answer, based on an abundance of data, truly depends on your investing style.

A concerned person looking at a plunging stock chart on a tablet.

Image source: Getty Images.

If you’re a short-term investor/trader, you have reason to worry

To be upfront, we’re never going to know precisely when a stock market crash will begin, how long it’ll last, or how steep the decline will be. We also rarely know what’ll…

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