The Skyscraper Effect is a fascinating economic indicator that suggests the construction of the world's tallest buildings often coincides with major market peaks and subsequent economic downturns. This correlation has been observed throughout history, from the Empire State Building during the Great Depression to the Burj Khalifa before the 2008 financial crisis.

The theory posits that when economies are booming and credit is abundant, developers and investors become overly optimistic, leading to the construction of increasingly ambitious and expensive projects. These massive undertakings often serve as a warning sign that the market has reached unsustainable levels of exuberance.