After the events of 2020, there's no wonder that people are wondering what will happen during the remainder of 2021 and into the following year. One topic that's on the lips of quite a few people is the stock market. Will it crash in in the months to come? Will it be somewhat flat or suffer some damage that leads to another recession? While the market can shift at any time and for a number of reasons, it pays to be aware of the warning signs indicating less than ideal movements. You can bet that business professionals like Nicholas Kyriacopoulos are paying close attention to these signs.

The Bubble Created by Stimulus Programs

It's no secret that quite a few people would not have made it financially through the pandemic without the stimulus programs provided by Canada. Some had to deal with the elimination of their jobs as companies shut down. Others had to make do with reduced hours and the subsequent lack of income. Others faced hardship as spouses and partners became ill and could no longer generate income in any form. As a real estate expert, Nicholas Kyriacopoulos has certainly seen what might have happened to that market sector without stimulus funding.

As Nicholas Kyriacopoulos and others recognize, stimulus programs helped keep the economy going. That included ensuring the populace had funds to buy products made by companies and help keep their stock offerings somewhat stable. Even so, there will come a time when the money printing that goes hand in hand with providing stimulus funding will take a toll. Those providing the bleakest of predictions indicate that toll will be a stock market crash rather than a mild recession.

The Accelerated Rate of Baby Boomer Retirement

A shift in work force dynamics is also happening. Some would say that the pandemic accelerated a phenomenon that would have occurred at a slower rate and thus not threatened the economy so severely. That phenomenon is the accelerated rate of the baby boomer generation leaving the work force. As Nicholas Kyriacopoulos, some of them have left for reasons other than wanting to retire a little earlier.

Why is this a potential threat to the stock market? The generations following the baby boomers are not collectively entering the work force in numbers that offset the number of people who are retiring. While the fact that some industrial sectors now have less jobs than in the past does impact the situation, filling vacant positions has never been more difficult. As business professionals like Nicholas Kyriacopoulos understand, companies with inadequate numbers of employees can't meet demands and shortages result. Those shortages can undermine stock performance. That could be enough to lead to a crash.

The Apparent Peaking of Cryptocurrency

Like most investors, Nicholas Kyriacopoulos has watched the rise of cryptocurrency over the last couple of decades. In fact, it has proven to be a sound investment. It's also emerged as a strong indicator of how the stock market will move.

That's why so many investors like Nicholas Kyriacopoulos take note when there's a nosedive in the value of cryptocurrency. Will that market right itself later this year and begin an upward movement in 2022? Could the downward trend continue rather than remain somewhat flat? If it's the former, that movement of cryptocurrency could indicate that the stock market will follow the same trend and crash.

Market Growth Was Already Slowing Before the Pandemic Began

While much of the focus is on what the pandemic has done to the market, professionals like Nicholas Kyriacopoulos know that growth was modest for quite some time prior to 2020. Those who see the worst coming note that also, and point out that a more robust market that was not shored up by additional money printing would have reduced the risk of a crash. As it stands, the previous slow growth has left the market vulnerable.

While there are wildly differing opinions from a variety of analysts, there does seem to be one point that most can agree upon. If there is a stock market crash, the impact will not drag on for years, as was the case with the crash in 1929. Some even see the potential crash as the market correcting itself and becoming positioned for a return to growth by the end of 2022.

For now, investors like Nicholas Kyriacopoulos continue to monitor their assets closely, note movement within specific market sectors, and identify what to hold, how long to hold it, and when to sell. Whether the worst comes to pass or the crash turns out to be no more than a temporary downward trend, paying attention to how your holdings are projected to perform is always a smart move.