We are providing the three reasons that why we may have a crash in offing in next few months. However, no need to panic as it is based on assumptions and speculation.
Market cap to GDP is now 150 percent, like it was at the peak of the 2007-08 bull run.
Median trailing Price/Book of BSE500 company is 6x with 15 percent RoE compared with 4x and 25 percent P/B in 2007.
While corporate cash flows are better, this time not very different from 2007.
However, remember that in a bull market one may see higher highs and nothing is gospel truth and one has to just make assumptions and be ready for it rather than panicking.
