Warning: Stocks Will Collapse by 50%

[Drifter]

It is only a matter of time before the stock market plunges by 50% or more, according to several reputable experts.

“We have no right to be surprised by a severe and imminent stock market crash,” explains Mark Spitznagel, a hedge fund manager who is notorious for his hugely profitable billion-dollar bet on the 2008 crisis. “In fact, we must absolutely expect it."

Unfortunately Spitznagel isn’t alone.

“We are in a gigantic financial asset bubble,” warns Swiss adviser and fund manager Marc Faber. “It could burst any day.”

More here.....

http://www.moneynews.com/MKTNewsInt...os34vz&utm_source=taboola&utm_medium=referral

 

[Vegeta]

Bit of a bubble going on but 50%, nah its not that bad... if i was a betting man... which i'm not.

 

[Wall]

Bit of a bubble going on but 50%, nah its not that bad... if i was a betting man... which i'm not.

Your post indicates that you think there is a 50%chance of the a collapse. the article is inferring that stocks will lose 50% of its value, the statement indicates a 100% certainty, which is BS.

The stock markets could crash would be a better statement to make IMO.

 

[ToxicBunny]

I do not have an issue seeing a collapse, but 50%? This oke is smoking his socks in a big way.

50% stock market crash would be worse that 1929, and that led to the Great Depression.

 

[R13...]

I think this is just speculators looking to cash in the collapse they predicted but yet to come to fruition.

 

[Wall]

I do not have an issue seeing a collapse, but 50%? This oke is smoking his socks in a big way.

50% stock market crash would be worse that 1929, and that led to the Great Depression.

+1, no way in hell will the markets lose 50% of its value

 

[Drifter]

]Your post indicates that you think there is a 50%chance of the a collapse. the article is inferring that stocks will lose 50% of its value, the statement indicates a 100% certainty, which is BS.

The stock markets could crash would be a better statement to make IMO.

Dont shoot the messenger, I never said that I agree or it's my point of view. Just posting what I think is a controversial article.

 

[satanboy]

Never say never...

but it seems highly unlikely

 

[ToxicBunny]

Never say never...

but it seems highly unlikely

If we experience a 50% crash in just Wall Street alone, say good bye to the world economy as you know it.... anyone who is betting that a collapse that large happens is a sick fsck in my opinion.

 

[Wall]

Dont shoot the messenger, I never said that I agree or it's my point of view. Just posting what I think is a controversial article.

I was replying to Vegeta. His comment about being a ' betting man' seemed like he misconstrued the meaning of the article.

 

[Garson007]

If we experience a 50% crash in just Wall Street alone, say good bye to the world economy as you know it.... anyone who is betting that a collapse that large happens is a sick fsck in my opinion.

+1

If the stock market crashes by 50% the least of our worries would be the stock market crash.

 

[Verde]

I do not have an issue seeing a collapse, but 50%? This oke is smoking his socks in a big way.

50% stock market crash would be worse that 1929, and that led to the Great Depression.

Actually the 1929 crash took 3 years to reach its low point resulting in an 84% drop. As can be seen from the table posted based on Rober Shiller's data, even the world's most efficient stock market suffered many hair raising crashes, with 2 massive calamities around the 50% mark in this young century alone.

That said I would not pay any attention to perma-bears like Spiznagel and Faber who predicted more doom and gloom for the stock market even at the low point in 2009.

 

[Thor]

I do not agree with them, 50% drop, not likely anytime soon

 

[Gallderhen]

Its a marketing gimmick to sell his "Crash Alert System"

-G-

 

[supersunbird]

In my mind, only a problem if a shorter term trader/investor or close to retirement and cant postpone that retirement or havent moved to less volatile investments.

 

[Verde]

In my mind, only a problem if a shorter term trader/investor or close to retirement and cant postpone that retirement or havent moved to less volatile investments.

How did that theory work out for stock heavy 40 something investors in 1929 USA or 1989 Japan?
Risk is real - very few investors can or need to have more than 60% of their portfolios in risky assets.

 

[Vegeta]

I was replying to Vegeta. His comment about being a ' betting man' seemed like he misconstrued the meaning of the article.

No man what I said or meant to say was that yes there is a bubble that might burst but it's not so bad as to cause shares to loose 50% of their value. I would bet against these "reputable experts" if "i was a betting man"

It made more sense in my own head it seems

 

[Verde]

+1

If the stock market crashes by 50% the least of our worries would be the stock market crash.

So what were you worried about in 2008-9 when the stock market crashed more than 50%? I know what caused my sleepless nights back then.

 

[supersunbird]

How did that theory work out for stock heavy 40 something investors in 1929 USA or 1989 Japan?
Risk is real - very few investors can or need to have more than 60% of their portfolios in risky assets.

You have a point, I agree, also shows the need for diversification which at least is getting easier and easier to go.

 

[LPCPT]

Ok where can I park some dough, just in case?

I am getting some moolah soon and was thinking about the stock market (unit trusts etc).
Maybe just dump it in my mortgage bond.