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The World’s Stock Market is Crashed?

we are in a stock market crash

the s p  was already down . at the

close of trading on friday and this

morning on pre-market trading it is down

another . so we are now down .

percent from the peak at the beginning

of january which takes us over the

line and most people will consider  to

be a typical market wobble  to be a

correction and once you go over that

mark you have a market crash we haven’t

got a name for this one yet just like

the dot com crash in  or the

financial crash in  i’m sure there

will be one coming any minute now if you

have a good name idea please stick it

down in the comments below if you are

invested in the stock market you will be

seeing your portfolio smash the pieces

so far this year especially if you’re

invested in any kind of growth or

earlier stage companies that got sold

off way way harder than the market

average so far and this market crash

could get a heck of a lot worse we are

only down by  i know it seems like

it’s been a long time coming but back in

the financial crash the s p  went

down by

from peak to bottom and then the dot-com

crash it went down by  if this crash

decides to go and do something similar

we are not even halfway down if you

thought this was bad you just wait

because this time around we have some

seriously nasty catalyst that we did not

have in the previous market crashes if

this russian invasion of ukraine

continues and gets worse we could easily

have the biggest energy crisis we have

seen with oil and gas prices already off

the charts in the last few days a war of

wars has erupted between china and the

united states about taiwan and if we

were to have any kind of military

conflict result from there that would

dwarf the ukraine situation because

china and taiwan just happen to produce

pretty much everything that the world

consumes in terms of electronics and

many other consumer goods many of the

biggest companies in the s p  are

entirely or very largely reliant on

china and taiwan for their production

and then we have the fastest rising

inflation in history that is already

sitting at . as of last week and the

threat that it now is going to go and

get out of hand because the fed and

other central banks around the world are

still sitting around scratching their

ass instead of taking any meaningful

action and we have the threat of a huge

recession where consumers will stop

spending altogether and the global

economy will go into a downward spiral

we just had data come out this morning

confirming that the uk economy has

shrunk by . in april after already

shrinking by . percent in march the us

economy shrank in q this year against

all expectations and although people are

expecting a bounce back it may well not

come so there are plenty of reasons for

investors to be concerned the mood out

there is sour stocks keep dipping week

after week after week even the almighty

hedge against the big bad fiat economy

bitcoin is down nine percent in the last

 hours down  in the last week and is

now trading lower than back in december

. how peculiar that the deflationary

asset that is not reliant on central

banks not reliant on governments

completely immune from the woes of the

rest of the economy seems to be

massively affected and directly impacted

by the actions of central banks the

actions of governments and the broader

economy anyway i actually have a very

important point that i want to make so

please listen up because this is really

really crucial we are now in a market

crash and market crashes do not come

around all too often especially big bad

ones that last excluding the two flash

crashes in  and in march  this

is only the fifth major stock market

crash in the last  years if you are

watching this and you are in your s

s or s this is the single biggest

investing opportunity you might have in

your life let that sink in because the

vast majority of investors will not take

advantage of this opportunity they will

choose to not take advantage of this

opportunity i know this because exactly

the same thing happens every single time

and it will happen again because people

have emotions and most people let their

emotions affect their decision making

when the market is crashing and all the

stocks are down  on average some down

 or even

most investors decide to do one of two things

one sell stocks before it gets worse

because what’s the point of holding

stocks if they are continuously falling

what if they fall down to  percent

even though they’re only  down surely

it makes perfect sense to go and sell

now before it goes all the way down and

then go and buy them back at the very

bottom when everything around you spells

doom and gloom this is a perfectly

natural feeling it seems logical it

seems obvious and there will be plenty

of people all over the news all over

social media absolutely everywhere

telling you to do exactly this there

will be people in the comments section

of this very video telling you to do

this exact thing in fact you will see a

lot of people that will tell you how

they

perfectly timed and sold back out in

december and are now waiting patiently

to perfectly time the bottom they

haven’t bought back in yet it is amazing

how many of these people magically appear out of absolutely

nowhere at times like these and they’re very very

strange that these same people seem to

not be around very much sharing this

wonderful hindsight back in december and

the second thing that investors do is

they stop investing it is the classic

issue where investors were lining up in

their droves to buy their favorite

stocks at peak prices just a few months

back but absolutely do not want to go

and buy the same exact stocks of the

same exact companies with the same exact

projections in some cases better

projections when the price has fallen by

fifty percent nobody wants to catch a

falling knife you go and buy a stock and

next week it’s five percent or ten

percent down much better to wait and

then buy when it falls all the way down

even further unfortunately the power of

hindsight is not as great when you’re

trying to predict the future and the

overwhelming likelihood for every

investor trying to perfectly time the

market is that you will go ahead and

lose a colossal amount of money instead

i know it is very disappointing that

we’re not all perfect fortune tellers

and i know that the voices of the few

who tell the exact opposite ring much

louder in your ears but it’s just a fact

and i’m not here to sugarcoat it or sell

you a magic pill that will make

everything better you can go and read

any foundational economic study that you

want the outcome is the same if you go

and sell your stocks after you’re

already  or  or  down or whatever

and you then go and try to time the

bottom on average the overwhelming

likelihood is that you are going to lose

money compared to doing nothing at all i

know i know sasha the boring perma bear

is too scared to make board moves i am

going to be poor for the rest of my life

and i suck because i can’t perfectly

predict every single market movement

using tea leaf patterns or tarot cards

and if you are holding cash waiting for

the perfect time to enter the market the

mathematical likelihood is again that

you will lose a lot of money compared to

just dollar cost averaging each and

every month each and every week as and

when you happen to have money to invest

in the stock market in fact a market

crash makes this point way more relevant

you are staring at a stock market where

everything is on sale pretty much the

stock that you wanted to buy for a

hundred dollars very recently now costs

fifty dollars and you are sitting there

wondering

what if i can wait and buy it for just

forty dollars surely that would be an

amazing idea because then i would be

able to write it all the way back up

from forty to fifty dollars and hey

presto i’ve made a huge amount of money

and you know what the reason is for why

you’re sitting there thinking that

thought it’s greed when you see stocks

going up on price you want to buy right

now whatever the price is it’s kind of

irrelevant because you are greedy you

want to get that growth that you keep

seeing every other week you are seeing

everyone else benefits so you want to

get a piece of the pie as well you see

stocks going down in price and you

suddenly do not want to buy them at all

because they might fall even more it is

amazing how greed can rapidly shift your

perspective and completely change how we

approach some of the most important

decisions in life a stock market crash

and the potential of recession will mean

that a lot of companies that were valued

in pure hype will die

companies that have weak balance sheets

with piles of unsustainable debt will

also die companies that are loss making

with no path to making a profit will die

and everyone invested in those types of

companies is going to lose their money

this has happened before this will also

happen again but there will be plenty of

other companies that do have robust

businesses that actually do make profits

or have sustainable robust realistic

paths to making profits there are

companies that aren’t going to suffocate

because their debt repayments will

skyrocket as interest rates go up there

are companies that will grow and deliver

value even during a recession just like

it’s inevitable that the stock market

will crash every now and then it is also

extremely likely that it is going to go

back up and hit all-time new highs at

some point in the future because people

are enterprising people tend to create

value over time that is how the global

economy works as an investor you only

have so many times in your life when the

stock market lets you invest at a

massive discount money you invest during

a downturn will yield a much greater

returns than the money you invest at all

other times if you want to get that  or

 return per year that the stock market

gets on average you have to invest

during a stock market crash if you do

not invest through a market crash and

instead you choose to wait you will not

get your  or  return because this is

where the money is being made in fact if

you only invest when the market is going

up and then sell in a panic when your

stocks are  down you will end up

losing a ton of money on average over

the long period of time

 this is the moment to act

because it might take another  or

years until the next market crash comes

around and presents yet another

opportunity and the money invested

during this one will have  or  years

to work before i might have another

opportunity to go and shop in the sales

aisle so i’m going to be going to the

stock market shop every single time i

happen to have spare cash and i’m going

to keep buying my favorite stock so the

big fat yellow discount stickers on them

while most other investors sit around

waiting for the sale to end so that they

can have the opportunity to start buying

them again at full price

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