Why did the market crash?

In this blog, I will be mentioning a few reasons for the recent fall in the market.

Reasons -

• In the USA there are talks that the interest rate will be jacked up fairly quickly and it will hit somewhere around 4.5% interest rate, so as a result the liquidity will come down and the markets will fall.

So this news has already been factored in. Therefore please do not sell your stocks in case you feel that the interest rates are going to go up. In case the announcement happens that the interest rates are not hitting 4.5% in the next Fed meeting, then the markets will recover quickly.

• The second key reason, which according to me is a more prominent reason is that markets recently broke the levels of 18000. But the markets could not sustain at that level leading to profit booking. And whenever a little bit of profit booking comes, market can fall by 4-5 percent. You should not stress too much.