The stock market will crash. We know markets do not go up forever. It is not a matter of it rather than when.
In this video I discuss my thoughts on preparing for it. Understanding that it is out there and not living in a dream world which tells us the market is going to keep going up forever.
▶️ 3Speak
If the stock markets crash the crypto markets soon follow, at least it's what I've observed for the past 3 and a half years
Posted Using LeoFinance Beta
That was true but it is still. There was correlation with crypto and equities but the leader, Bitcoin, is in a different realm now. With the institutions, it might not be subject to the whims in the past.
Posted Using LeoFinance Beta
Looking today at the stock market and at my portfolio and seeing most of my assets declining, I see a downtrend at the moment. This year I was expecting for it to grow with the vaccine going out and with some businesses getting back to normal. Now as I am at 40% profit across all my assets, I might survive a more severe pullback. Still, emerging and new technologies with volumes increasing also in this period might have a word to say against such a downfall. Thus, I believe that there will be a market "crash", but I don't see it too soon. I see first for it to ramp up upon the enthusiasm and maybe afterwards fall.
Posted Using LeoFinance Beta
A lot are expecting that and banking on it. Personally, I dont think it will go as they expect. I think there will be a lot of issues with the plan.
We shall see what comes out.
Posted Using LeoFinance Beta
Here's the Venezuelan stock market:
I don't think a lot of Venezuelan businesses have great earnings.
Posted Using LeoFinance Beta
Another example of how the markets dont reflect what is going on with mainstreet.
Posted Using LeoFinance Beta
Yep.
The Venezuelan stock market is at such insane levels of appreciation because of the insane money printing.
Posted Using LeoFinance Beta
Thankfully I already bailed on most of my stocks - I go quite lucky with a 400% gain over 10 years I think, i've been astounded how they've kept going up and up in the last year - I finally pulled the plug on about 70% of my stocks last month.
You're right, this can't continue.
I have this feeling that in the UK at least the property bubble might continue a while longer - people are VERY attached to their houses.
Posted Using LeoFinance Beta
Summary:
In this episode, Task shares his thoughts on the impending market crash. He emphasizes the inevitability of stock market crashes and urges viewers to be prepared for a potential downturn. Task discusses various scenarios of market pullbacks, ranging from 30% to 70%, and emphasizes the impacts of the global economic downturn, extended lockdowns, and diminishing returns on stimulus measures. He highlights the challenges faced by businesses across different sectors, especially small businesses, and warns of defaults and foreclosures that could affect the housing market. Task stresses the importance of agility in managing one's portfolio during uncertain times.
Detailed Analysis:
Task begins by addressing the upcoming market crash, predicting a downturn in both the stock market and the real estate market. He stresses the importance of preparedness, given the cyclical nature of markets and the certainty of downturns.
He touches upon the unpredictability of when the crash might occur, be it in the next few months, six months, or even a year down the line. Task emphasizes the need to be mentally and financially ready for significant market pullbacks of varying degrees.
Task delves into the global economic situation, highlighting plummeting economies, prolonged lockdowns in Europe, and potential lockdown considerations in the United States. He notes that the market's current high levels are not reflective of the actual economic situation.
The discussion moves towards the impacts of stimulus measures, with Task mentioning the law of diminishing returns and the challenges faced by businesses in terms of earnings and growth rates. He mentions the disparity in economic impacts, with some industries thriving while others, like retail, commercial real estate, and hospitality, face obliteration.
Task discusses the interconnectedness of various industries, where the struggles of one sector can trickle down to affect others. He addresses the effects of lockdowns on businesses, particularly small enterprises, and the consequent impact on consumer spending and overall economic health.
The conversation then shifts to the role of earnings in setting off market fluctuations, highlighting the importance of cash flow and the limitations of stimulus initiatives. Task warns about defaults and the potential consequences of propping up markets artificially to maintain an illusion of economic stability.
Finally, Task emphasizes the need for agility in managing investments, stating that being prepared to make quick decisions in response to market volatility is crucial. He underscores the importance of actively monitoring one's portfolio and being ready to adapt to changing market conditions swiftly.
In conclusion, Task's insights serve as a cautionary reminder for investors to stay vigilant, assess their risk tolerance, and be prepared for potential market downturns amidst economic uncertainties and volatility.