It appears that a crash in the stock market is coming, and there’s nothing that we can do to stop it. Respected experts in the industry agree that the predicted stock market crash may be as high as 50%. Mark Spitznagel, a hedge fund manager who was known for predicting the previous economic crisis in 2008, claims that a stock market crash of such stature is more than likely to happen soon, and we have no reason not to expect it.
Spitznagel isn’t the only one who’s expecting the stock market to completely flop. Marc Faber, a Swiss fund manager, agrees with Spitznagel’s foresight, recognizing the probable burst of the financial asset bubble that we’re enclosed in. Even the famous Warren Buffett is rumored to be making preparations for a stock market crash. But what does all this mean to the average retail investors?
In the event of a perceived stock market crash, there’s always going to be 2 main alternatives:
1. Take everything out and keep your money in cash that’s stored safely in your pockets, and hope that the market actually does crash so you can boast to the rest of your friends ‘see? I told you so!’
- Take a risk and go all in, hoping that you’ll be able to come out on top in the end. If you do, it’ll be worth it. But if you don’t, you would have pretty much lost everything.
Of course, all of this boils down to your risk appetite, the amount of capital you have access to, and the investment strategy that you’ve cultivated over the years. Sean Hyman, on the other hand, points out a third strategy that most people don’t really know about. If you aren’t familiar with Sean Hyman, he’s the founder of Absolute Profits, and also has access to a Wall Street calendar that has beaten the market repeatedly. According to Sean, there are a number of very specific industries and sectors that are pretty much guaranteed to outperform the market in the coming months, and not playing the market during this time-frame would be far too costly.
This is a period of financial uncertainty, especially with oil prices tanking in the recent weeks. However, there’s one certain thing that’s certain: most experts are predicting a massive stock market crash, they just don’t know how soon it’s coming.