Most stock indices lost between 10 and 15 per cent in recent weeks. That is significant enough to wonder whether a stock market crash is in the making. Needless to say, the 2009 crash is a stigma in the psyche of the majority of investors. Media has been fast to call the ongoing retracement the stock market crash of 2018, which is not helpful to investors looking for guidance as we have not discovered any meaningful theory or method underpinning those articles. This suggested that InvestingHaven’s research team had to look into the question, and report back to its readers. This article gives an answer to the question whether the stock market crash 2018 has started or not.

Before looking deep into our central question we want to highlight that this is not a moment to get emotional. Financial media like CNBC, Bloomberg, Yahoo! Finance, continue to publish fearful articles. On the one hand, rightfully so, as investors always should remain vigilant as markets are a high risk place to be. On the other hand, though, it is mandatory to be factual, and only take decisions based on a well thought through method that has stood the test of time.

We work on a method that answers key questions for investors.

The stock market crash that we predicted as a flash crash

Last year we predicted a flash crash to take place early 2018. This is what we wrote 3 months ago:

Let’s put the current stock bull market in historical context. As the charts speak for themselves we believe they suggest a stock market crash is brewing, and it could start as early as the first days or weeks of 2018.

We went on towards the end of last year to forecast that it would be more of a flash crash alike correction: sharp and fast, somehow simlar to the 1987 stock market crash.

One thing we are closely monitoring, and we do not have a final answer yet, is whether U.S. stocks will crash in 2018. As per our forecast 2 months ago we believe there will be at least a flash crash similar to October 1987. However, it is not set in stone, markets can behave different than how we expect they will, so we always keep an open mind towards our own forecasts, and readers must do the same.