Warning Signs of a Major Market Downturn : Stocks, Gold, Crypto, and Real Estate – Signals & Smart Responses
Financial markets move in cycles. No asset rises forever, and no downturn lasts permanently. The key to long-term investing success is not predicting exact tops or bottoms, but recognizing warning signs early and preparing accordingly . In this article, we explore early signals of a major market downturn across stocks, gold, cryptocurrencies, and real estate, along with practical risk-management strategies for each asset class. 1. Common Warning Signs Across All Asset Markets 1) Liquidity Tightening Interest rate hikes Central bank quantitative tightening (QT) Stricter lending standards When liquidity dries up, asset prices often weaken first—before the real economy shows clear damage. 2) Rising Prices with Falling Trading Volume Prices continue rising, but participation declines “Fear of missing out” dominates market sentiment This often signals exhaustion near market peaks . 3) Weakening Economic Indicators Falling PMI (Purchasing Managers’ Index) ...
