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History Says These 3 Warning Signs Precede Major Stock Market Crashes. All 3 Are Flashing Red Right Now.

Should stock investors start selling now? History offers some lessons.

History Says These 3 Warning Signs Precede Major Stock Market Crashes. All 3 Are Flashing Red Right Now.

Published August 12, 2026 · Category: Finance

Overview

The stock market has been on a winning streak for almost four straight years. The S&P 500 hit a low of 3,577 on Oct. 12, 2022. Since then, it's more than doubled to around 7,750 today. The tech-heavy Nasdaq Composite has performed even better, up 155% during the same time period.

But all bull markets come to an end eventually. In fact, three of the most ominous warning signs that preceded the biggest market crashes in history have been flashing red for months. Here's why history says a market crash might be in store for us, and how investors should react.

Image source: Getty Images.

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Originally published at www.fool.com.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.