Sustainability Check of Global Stock Market Levels with Fundamental and Economic Analysis

Abstract

The COVID-19 pandemic has impacted the social as well as professional lives of individuals. The COVID-19 pandemic pushed economies into a Lockdown. However, it generated the worst recession since the Great Depression. This paper concentrates primarily on the most contributing factors to the worldwide stock market’s rise or fall. The worldwide economy’s current situation, rising debt, lowering GDP, increase in the bank’s bad loan, unemployment, and many more things contradict current market valuations. The market is at a lifetime high level. After studying behavioral patterns from historical data, we came to the hypothesis that the market will come to its original market valuation at some point in time, leading to a sudden market crash shortly. The data taken for GDP analysis includes the world’s top economic countries like Japan, Germany, the United States, and India. This paper primarily focuses on the United States and the Indian economy.

Keywords: Stock Market Crash 2020; COVID-19; Financial Crisis; Inverted yield Curve; Unemployment; Stimulus; Fed’s Money printing

JEL Classification: G01, G1, G11, G15, G21, G23, G33, E22, E2, E3, E4