Potential Warning Signs for the Stock Market

A segment on CBS’s “60 Minutes” highlighted concerns that record stock prices during President Donald Trump’s term might foreshadow a significant market downturn, reminiscent of the crash in 1929.

Host Leslie Stahl spoke with CNBC’s Andrew Ross Sorkin about his forthcoming book, which delves into the economic and societal conditions leading up to the 1929 crash. Sorkin noted that the U.S. could be experiencing a modern version of the “Roaring Twenties,” suggesting that the markets had been on a notable upward trend prior to previous recessions.

“From 1928 to September 1929, the stock market soared by 90 percent,” Sorkin said, making clear historical parallels.

Stahl expressed concern, stating, “Bringing up those past figures makes me uneasy. Isn’t it frightening?” to which Sorkin replied, “Yes, it is. I’m worried we’re at a price point that feels unsustainable. It’s either we’re riding a genuine boom—thanks to advancements in AI and tech—or everything is just too pricey.”

Stahl suggested, “Perhaps we’re reliving…?”

“1929,” Sorkin completed her thought.

Sorkin also shared his prediction of an inevitable crash, although the timing and extent remain uncertain. He mentioned that many business leaders are hesitant to criticize the Trump administration due to fears of backlash or government regulation.

“They worry about being penalized for their critiques, especially when navigating mergers with government oversight,” he explained, highlighting the anxiety surrounding the current administration.

Throughout Trump’s second term, the stock market had reached record highs, yet it has also faced sharp declines linked to tariff threats and trade uncertainties. Recently, the market experienced a downturn following Trump’s announcement of potential tariff increases on China, illustrating the volatile nature of current economic conditions.