Here's to the Next Market Crash Predictions

Posted by plusaf 9 years, 1 month ago to Business
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"All of the above merits mention given the amazing frequency with which market and economic pundits publish articles predicting the next "crisis" and "crash." Readers know the titles well. Perusing some of recent vintage one can find "There's a new mortgage crisis brewing" (Richard Bove), "History Says There's a Crash A-Comin" (Robert Brokamp) "Please Be Warned: Even Greenspan Thinks a Crash Is Coming" (Mac Slavo), and just today "Stock-Market Crash of 2016: The Countdown Begins" (Paul Farrell). The individuals predicting "crisis" and "crash" in their columns, and the names previously mentioned are but a small number of the countless pundits who do, deserve the mocking scorn of readers."

MarketMinder's View: Here is an excellent discussion of markets’ ability to discount widely known information, with special attention paid to pundits’ common practice of forecasting bear markets or crises based on factors most of the world is well aware of today. "Crashes are once again the result of new information entering the marketplace, not what you, me, and the pundits already know." We’d suggest keeping the points raised here in mind next time a spooky headline catches your eye.
SOURCE URL: http://www.realclearmarkets.com/articles/2015/02/26/pundits_predicting_crisis_and_crash_deserve_our_laugther_101549.html


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  • Posted by fivedollargold 9 years, 1 month ago
    The next market crash is coming. And then recovery followed by the next crash ad infinitum. It's the nature of markets given the propensity of humans to bid up prices on the latest fad to unsustainable levels. Tamny correctly states if someone knew WHEN the bubble will burst, they wouldn't be blabbing about it in the media; they would be profiting from it.
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    • Posted by $ jbrenner 9 years, 1 month ago
      Boom and bust is a natural consequence of fiat money not being fully backed by precious metals.
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      • Posted by 9 years, 1 month ago
        J, that one always puzzled me. Got any references that can explain the veracity of that assertion?

        No, seriously... why are precious metals (or whatever) THE Foundation of 'good money'?

        Thanks!
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        • Posted by $ jbrenner 9 years, 1 month ago
          I think I recommended you read The Creature from Jekyll Island by G. Edward Griffin to you a previous time we had a discussion.

          If I remember correctly, you were one of the people who used Wikipedia's site to find info on him. Rest assured, that site was written by those who have a vested interest in the Federal Reserve - which is his (and savers') enemy.
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  • Posted by fivedollargold 9 years, 1 month ago
    Fivedollargold's two cents worth is that, barring a catastrophic event, the stock market will do okay in 2015 for the simple reason that, with interest rates so low, common stock dividends are more attractive than bond interest. Fivedollargold's banker wouldn't even bother to give him a rate on CD's.
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  • Posted by flanap 9 years, 1 month ago
    Here's the trend:
    "It will crash, no one knows when" ---> Sell off, markets drop---> "are we at the bottom?" ---> bullish buying spree until, concern for another crash.

    Self-fulfilling prophecy's reign.
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