Experts Say Stocks Are Going To Crash—So What Are You Going To Do About It?

Ted

FYI: Last week, my friend Simon emailed me in a panic. “I just read that stocks are going to crash,” he wrote. “Should I trade my stocks for bonds or cash?” He linked to a November 6, 2014 article in MoneyNews, Warning: Stocks Will Collapse By 50 Percent. Even the hearts of stoic investors skip a few beats when reading such headlines. Why wouldn’t they? Nobody wants to lose money. And watchful experts have stethoscopes on the heart of the economy. If they’re predicting a market crash, we should listen, right?
Regards,
Ted
http://assetbuilder.com/andrew_hallam/experts_say_stocks_are_going_to_crash—so_what_are_you_going_to_do_about_it

Bitzer

There will always be some prognosticator who will make an outlandish prediction on the off chance he will be correct. I hope he isn't.

LLJB

I don't believe we're going to have a crash. Another minor correction, or some consolidation wouldn't surprise me. The US economy is better than most others now and I think if we saw the market down 10% there'd be lots of buying interest. I don't even think we'll see a 10% correction but I'm confident we're not going to see a 50% crash.

BobC

Anytime an article or headline starts with "Experts", you can bet it will be full of crazy predictions. Just look at Faber. He got the 1987 call right, but has missed almost every big prediction since then. But he is considered an "expert" by the financial press. Go figure. And most of the so-called experts are really trying to sell their worthless newsletters for ridiculously high prices.

scott

As I've said in other threads, I sleep well at night because of 1) dividends. 2) a focus more on investing in "needs" (health care, energy, infrastructure, etc) than "wants" and 3) real assets. Wants are fine and over short periods can do exceedingly well, but I just find owning largely needs (and needs can do well, look at health care) more consistent and less stressful.

Mark

I'm with Scott on this question, I frankly care very little which way stock prices go as long as the dividends keep rolling in. Market pessimists make some valid points perhaps, but I believe that most market action today is driven by computer programs rather than investor emotion and logic. If you didn't write the program then you probably have no better idea than anyone else what the markets are going to do. As always "price" will show you the way.

icyone

Formula:

1.) Sign up for multiple domain names.

2.) Ditto multiple aliases

3.) Quickly, quickly write official-sounding predictions, preferably citing multiple sources (including many at random, since few will actually read the sources) containing all kinds of predictions of immediate debacle.

4.) If you want to actually invest the time, look for a few really bad predictions to quote from well-known dire predicters.

5.) Couch your own prediction of immediate catastrophy in the most dire-but-official-sounding terms.

6.) Publish as widely as possible. (May take time since many will dismiss you as a quack, but find some who will prefer to fan your flame.)

7.) Pour a drink & enjoy.

JohnChisum

Recently, experts like Wilbur Ross, Carl Icahn and others have been predicting this correction or a crash. Corrections are normal and healthy. Chances are if one sold they would be whipsawed price wise. I'm staying pat for now.

Sven

I am definitely NOT smart enough comparing to these experts. I do agree with Scott that healthcare and energy are long term themes we need, and that where I look for buying opportunities.

joe74

commentary from FMI on the matter (pages 2-5)
http://www.fiduciarymgt.com/funds/shrpt/ann_shrpt_093014.pdf