Should we panic over a stock market Crash? A Market crash which is a correction as the term crash usually applies to those who jumped in towards the tail end of the bull market. Before we examine the issue of when the Stock Market will crash, let’s just remember that a stock market crash is nothing but a buying opportunity from a long-term perspective. So will the stock market crash and if yes, when this will occur? According to most experts, the market is ready to crash today, tomorrow or it should have already crashed. Do you really want to rely on such faulty advice?
Jim Rogers, one of the co-founders of the Quantum Fund with George Soros, is becoming increasingly bearish as he feels that the financial system is due for a shock. In Fact, he went on record to state that the Fed does not know what it is doing on Bloomberg TV. “A $68 trillion ‘Biblical’ collapse is poised to wipe out millions of Americans”, said Jim Rogers. Should the masses panic and listen to these statements; we will answer that shortly. For now, let’s look at what other experts are stating.
Dr Doom Mark Faber a broken record also thinks the Stock Market Will Crash
He feels that the markets are destined to crash. If you had listened to chap, you would have been blown out of the markets a long time ago. Jim Rogers has made some pretty good calls in the past; Mark Faber, on the other hand, very few; treat him as a source of entertainment. He went on CNBC recently and made the following claims
“I believe the time will come when the weakness of the euro becomes uncomfortable for the Europeans, specifically the Germans, and then there will be a reverse,” Faber said. “And the dollar will go down, and the money that flowed into U.S. assets will flow out of U.S. assets, and so the market is more likely to go down.”CNBC
Carl Icahn Thinks we are heading for a disaster too
Carl Icahn another well recognised financial expert recently made the following comment
“The public is walking into a trap again as they did in 2007.”
Many experts think that the stock market is overvalued by at least 50%. Moreover, they feel we are about to face a crash of historic proportions
Andrew Smithers the chairman of Smithers and Co. stated
“U.S. stocks are now about 80 percent overvalued,” he backs this assertion with the claim that the current conditions match those of 1929 and 1999.
Kendrick Wakeman, of FinMason states
“If you look at the market historically, we have had, on average, a crash about every eight to 10 years, and essentially the average loss is about 42 percent,”
Forget the “Stock Market crash factor” and focus on the opportunity factor
The focus should be on what to do when the stock market crashes. One day it will crash and will you react in the same way or will you change course. The Tactical Investor, on the other hand, has gone on record time and time again to state the experts have it wrong since 2013. One day the markets will crash, but, that time is not upon us yet.
Warren Buffet focuses on spotting opportunities and not worrying about when the market might crash
In a recent letter to shareholders he made the following comment:
“American business and consequently a basket of stocks are virtually certain to be worth far more in the years ahead.” He also went to state that many people, especially experts were feeling gloomy the economy but “Heaven help them if they act on the nonsense they peddle.”
In fact, Buffet is so bullish on the Stock market that he bet $1 million in 2007 that index funds would outperform hedge funds. Unless the Markets crash he looks set to win this bet.
Mark Mobius, views market crashes through a positive lens
We agree with this stance and this is something we at the Tactical Investor have been doing since our inception. He recently appeared on CNBC and made the following comments on Russia
“Russia is very cheap,” the storied emerging markets investor told CNBC’s “Street Signs.” “The problem is the sanctions. Many of us cannot invest because of the sanctions. Once sanctions are released, then the market is going to do very well.”
Sir John Templeton one of the greatest Global Stock Pickers of all time views on Stock Market Crashes
“If you want to have a better performance than the crowd, you must do things differently from the crowd.”
“Invest at the point of maximum pessimism.
“Bull markets are born on pessimism, grown on scepticism, mature on optimism and die on euphoria.”
Jack Bogle former chief of the Vanguard group
Many naysayers will go out of their way to Twist Bogle’s recent comments on CNBC:
He stated that the crowd should prepare for two declines of 25%-30%, maybe even 50% in the coming decade. The host Scott Wapner made the following comment:
For a buy-and-hold guy, that is a little concerning, don’t you think?”
Bogle Calmly replied
“Not at all. They come and go. The market goes up, and the market goes down. It is never failed to recover from one of those 50 percent declines.”
Forget the stock market crash angle, instead, compile a list of Stocks You would love to own
The smartest thing to do if the stock market crashes in 2017 or any other point in the future it to keep calm. Learn from the previous masters and don’t follow the masses. At the Tactical Investor, our motto is simple; the trend is your friend everything else is your foe. We are strong advocates of mass Psychology and technical analysis. Mass psychology clearly states that the masses will always be on the wrong side of the markets; if you want to win then buy when the crowd panics and panic when they are happy.
One would think that the masses would learn from history, but sadly, they pay no attention to history. They are animals of instinct that only react and the main emotions they listen to are Joy and Panic. Sit on the sidelines when you feel that your emotions are about to get the better of you; in the financial markets, a hot mind is a dangerous mind. You need to be calm, cool and collected before you decide on a course of action.
Stock Market Crashes represent once in a life time buying opportunities
Free market forces ceased to exist a long time ago. What we have now is the illusion that the markets are free, but they are not; all the data is being manipulated. Fear is the emotion the top players use to stampede the crowd and fleece them of their hard earned money. The top players never work hard, they live off your sweat. Understand the game, and you can use this to your advantage. Stock Market Crash 2017 or stock market crash 2016, the story is the same; only the packaging changes. Don’t follow the masses for they have an uncanny knack of doing the wrong thing at exactly the right time