Stock crash warnings

JUST days ahead of the 30th anniversary of the 1987 Black Monday stock market crash, investment giant Vanguard has warned a market fall could be coming.

The caution from Bill McNabb, chairman of investment firm Vanguard, came within days of the US and UK stock markets hitting record highs. ‘We expect there to be a decent-sized correction at some point,’ he said.

McNabb said the firm, which manages some £ 3.5trillion of investors’ cash, was also watching Brexit.

A crash could be bad news for investors using Vanguard as it focuses on so-called tracker funds which copy the performance of a chosen market.

Last week the FTSE 100 hit a record 7556.2 while the S&P 500 reached 22,957 on Monday.

Other factors causing concern include rising inflation, large corporate and consumer debts, and low unemployment putting upward pressure on wages.