Core Insights - The stock market has historically provided an average annual return of 10.56% over the past 70 years, but this figure adjusts to 6.71% when accounting for inflation, indicating significant volatility that can lead to both gains and losses for individual investors [2] Signs of a Market Crash - There are no definitive indicators to predict a market downturn, but certain economic conditions may lead to increased volatility, including extended market concentration which poses potential risks for Wall Street products [3] - Current stock market valuations are significantly higher than historical averages, suggesting a risk of downturn. An overvalued market may have further to decline before finding support, and inflation could also play a role in adjusting market valuations [4] Economic Conditions - The annual inflation rate over the past 12 months stands at 2.8%, exceeding the Federal Reserve's target rate of 2% [5] - The effective federal funds rate is currently at 3.64%, with a slight downward trend observed over the past year [5] - Geopolitical risks, such as U.S.-China relations and new tariffs, can impact inflation, financial markets, and supply chains, contributing to overall economic uncertainty [5]