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Global stock markets have had an incredible run since their April lows. Major indexes such as the S&P 500 and the FTSE 100 have flown to new all-time highs while some stocks like Palantir and Joby Aviation have risen more than 100%.
This level of enthusiasm for stocks has surprised a lot of people given that economic uncertainty remains high. And it begs the question – is it now only a matter of time until we see a stock market crash?
The truth about stock market crashes
Volatility in the stock market’s very common. But it’s not often that we see a full blown crash. This is generally defined as a drop of 20% in a short period of time. And these only tend to come around every five to 10 years.
According to Capital Group, on average they occur about every six years. It’s usually when something unexpected happens (eg Donald Trump slapping huge tariffs on the whole…
