CAUSE OF MARKET CRASH
A market can decline for a number of reasons, including:
Economic factors: A stock market crash can occur when the economy is overheated, inflation is rising, and there is uncertainty about the economy's path.
Banking failures: A banking panic can occur when many depositors lose confidence in a bank's solvency and demand to be paid in cash.
Market speculation: When there is excessive speculation in the market, it can lead to a stock market crash.
Firm value: A security's price can drop if a firm's intrinsic value decreases.
Support level: A security's price can drop if it falls below its support level.
Other causes of market failure include: negative externalities, incomplete information, concentrated market power, inefficiencies in production and allocation, and inequality.
It's not possible to reliably predict when a market crash will occur. Instead, it's generally recommended to build a portfolio that can withstand market crashes.