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Will the Stock Market Crash Soon?

3m 8s

Will the Stock Market Crash Soon?

The speaker observes that the stock market is currently volatile, rising and falling unpredictably, yet fundamentals remain strong. They are a positive, risk-taking investor who uses pound-cost averaging to invest monthly in global markets, taking advantage of falling prices to buy more units. However, they keep a large cash reserve ready for a potential crash, believing that sharp declines are often caused by overreaction and novice panic selling. The speaker predicts that ongoing economic problems—stemming from decades of excessive credit inflation, borrowing, and consumer debt—will lead to a major deflationary crash. They argue that the Federal Reserve’s easy credit policies inflated money supply, prices, and salaries, borrowing from the future. Now that payback time has arrived, the speaker warns that interest payments on existing debt will become unaffordable, triggering a second Great Depression. They criticize multinational corporations for creating consumer culture globally, leading to debt and poverty for consumers, while only producers benefit. The speaker concludes that no leader can fix the situation, only shift the cost onto savers and taxpayers. They invite comments and questions from the audience.

Transcription

629 Words, 3410 Characters

English
Will the stock market crash soon? It seems to me, as a person who follows these things, that the stock market is not really sure what to do at the moment. One day it goes up 100, the next day it is down 100. The fundamentals of the market are very strong however the credit crunch is hanging over it like a dark satanic cloud, so how will the stock markets of the world perform in 2022? I am a very positive thinker and I'm also a risk-taker. I strongly believe in the concept of risk and reward and Emma willing investor of stocks and shares. I am currently investing into various areas of the world on a monthly basis. This strategy is known as pound-cost averaging and is very popular in these turbulent times. When unit prices fall you are able to purchase more units for your monthly premium etc. At the back of my mind is the realization that a stock market crash could be imminent and for that reason I am keeping in reserve quite a large amount of money which I will invest if such an event takes place. I am somebody who likes to invest on the stock market in the aftermath of a dramatic fall as I believe that most of these sharp declines are as a result of an overreaction and because of panic selling on the part of novice investors. If there is more bad news on an economic front such as a deepening of the credit crunch or a series of profit warnings from some of the major companies on the index then share prices may well fall. These are situations which could well happen and is the reason why I'm keeping some cash back. The market, in my opinion, is strong and robust enough to withstand the current problems and historically does well in the years when Americans vote for a new president. But we are merely borrowing and spending to sustain our unsustainable lifestyle. This is like being a rich kid who inherited a fortune and is wasting it on nightlife. Consumer economy is a myth. When the multinational corporations are done plundering America they will simply move out to suck the blood of other nations. They are working hard to create consumer culture elsewhere around the globe. Consumer consume, go into debt and become poor. Only producers prosper. Imagine life if Uncle Sam cannot borrow. It is going to be the biggest crash the world has ever seen. We cannot sustain our jobs at the current salary levels and the free market is telling that to us as it is. Loud and clear. We need to cut the deficit soon, before our hand is forced. Today's economic problems are not about what we are doing now. They are about what we have already done for many decades. The mistake was to inflate credit to excessive levels. Fed made credit easy, America borrowed. Inflated the money supply with borrowed money, inflated the prices and salaries. We borrowed from the future. The future is here. Money supply will deflate. It is not reasonable to expect that all will be fine when the payback time arrives. Prepare for a deflationary crash. Joe cannot fix it. Nobody can. They can only change who pays for it and so far it is the savers and the tax payer who is paying the bill for borrowers and the bankers. Soon we won't be able to afford interest payments on existing debt. Then the party will end and the great depression number two will start. Anything I missed? And now I'd like to hear from you. Or maybe you have a question. Either way, let me know by leaving a comment below right now.

Podcast Summary

Key Points:

  1. The stock market shows daily volatility with uncertain short-term direction, though fundamentals remain strong.
  2. The speaker uses pound-cost averaging to invest monthly but keeps a cash reserve for a potential crash.
  3. They believe sharp declines are often due to overreaction and panic selling by novice investors.
  4. The speaker warns that excessive credit, borrowing, and consumer debt have created an unsustainable economy.
  5. A deflationary crash is predicted, similar to a second Great Depression, as debt repayment becomes impossible.
  6. The speaker criticizes multinational corporations and consumer culture, arguing only producers truly prosper.

Summary:

The speaker observes that the stock market is currently volatile, rising and falling unpredictably, yet fundamentals remain strong. They are a positive, risk-taking investor who uses pound-cost averaging to invest monthly in global markets, taking advantage of falling prices to buy more units. However, they keep a large cash reserve ready for a potential crash, believing that sharp declines are often caused by overreaction and novice panic selling.

The speaker predicts that ongoing economic problems—stemming from decades of excessive credit inflation, borrowing, and consumer debt—will lead to a major deflationary crash. They argue that the Federal Reserve’s easy credit policies inflated money supply, prices, and salaries, borrowing from the future. Now that payback time has arrived, the speaker warns that interest payments on existing debt will become unaffordable, triggering a second Great Depression.

They criticize multinational corporations for creating consumer culture globally, leading to debt and poverty for consumers, while only producers benefit. The speaker concludes that no leader can fix the situation, only shift the cost onto savers and taxpayers. They invite comments and questions from the audience.

FAQs

The speaker believes a crash is possible due to excessive credit and debt, but the market fundamentals are strong. They are keeping cash in reserve to invest after a potential fall.

Pound-cost averaging is a strategy of investing a fixed amount monthly. When prices fall, you buy more units, which can be beneficial in turbulent times.

They keep cash to invest after a dramatic market fall, believing sharp declines often result from overreaction and panic selling by novice investors.

Bad economic news like a deepening credit crunch or profit warnings from major companies could cause share prices to fall.

The speaker notes that historically the market does well in years when Americans vote for a new president.

They view it as a myth, arguing that consumer debt leads to poverty and only producers prosper. They warn of a deflationary crash due to excessive borrowing.

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Transcription

629 words