Is the market already crashed?

The market hasn't officially crashed, but there are significant concerns and predictions about a potential downturn.

Experts explain that market crashes occur due to sudden drops in stock values triggered by investor panic and mass sell-offs. George Kamel highlights that despite numerous crashes in history, the market typically recovers quickly. For example, the 1987 crash saw a 22% drop but rebounded within two years, while the 2020 pandemic crash was the fastest to recover in history 1 2.

Emanuel Derman discusses how the 1987 crash reshaped the financial landscape, particularly in how options are priced. This event changed the perception of market behavior, highlighting the tendency of markets to crash down quickly but recover slowly 3.

There's ongoing speculation about future crashes due to current economic instability, inflation, and systemic issues within sectors like decentralized finance (DeFi). While some experts express certainty about an impending crash, the exact timing and impact remain uncertain 4 5.

In summary, while a crash has not occurred, concerns and speculative indicators suggest it could be on the horizon.