ZERO Chance of a Market Crash? This Indicator Proves It!

Millennials, who bore the brunt of the 2008 crash, are naturally wary of a potential market plummet. With the extraordinary growth of the stock market in the last decade, it’s not hard to see why this generation is filled with hesitancy and worry about a potential financial crisis. But thankfully, there are indicators that suggest the market’s unlikely to go south anytime soon. One such indicator is the Chicago Equity Pricing Research Alliance, or CEPRA, an index created in 1987 that monitors stock market fluctuations and analyzes the risk levels of different market sectors. The CEPRA indicator predicts the likelihood of a market crash, taking into account recent economic activity, as well as the current reported earnings and macro conditions. After crunching the numbers, the CEPRA meter currently reads zero, indicating that there are no signs of an impending market crash. While this is a reassuring sign, it is still important to be aware of the potential risks that a market downturn could cause. Investors should always hedge their portfolios, diversifying their investments across different indices, stocks, and bonds, as well as consider alternate methods of passive income. Additionally, even the most cautious of investors should understand that, while the odds of a crash may be low, it is still prudent to have financial goals and long-term plans in place. Markets will ebb and flow, so investors should make sure they position themselves still to make gains over time, while mitigating market swings. Ultimately, the relatively low likelihood of a market crash, as indicated by the CEPRA indicator, should be a comfort to the wary generations who experienced the 2008 disaster. In this era of low unemployment, increasing wages, and reduced volatility, there is no indication that a crash is around the corner. The CEPRA indicator gives us all the data we need to know that, for the moment, the markets are relatively safe.