www.varchev.com

Harry Dent: The market will collapse ‘by the end of June’.

“A huge collapse is imminent,” warns longtime forecaster Harry Dent. He added, “This thing is going to be hell,” it could be “the biggest disaster ever” and the beginning of “the next big economic downturn.”

When? It seems that by the end of June, if not earlier. This is less than 10 weeks.

Dent’s prognosis seemed to strike some emphasis. For about a week or more, the article was the most popular article on ThinkAdvisor.com. But while he may be unique in setting a deadline, he is not the only guru who predicts disaster.

In a note from Jonathan Ruffer, Money Manager in London, he warned: “I take it for granted that the 40-year-old bull market is coming to an end and that it will be replaced by difficult investment times. And Jeremy Grantham (also born in England but long ago based in the United States) recently concluded that stocks, bonds and real estate are in a bubble and could collapse together in the next year or two.

The US stock market is almost 90% above the level at which the Warren Buffett Rule should trigger red flashing lights and deafening warning sounds. The so-called “Shiller” or cyclically adjusted price / profit ratio], Q of Tobin’s – all measures tell us some version of Alien’s Danger! The emergency destruction system is already activated! The ship will detonate in T minutes 10 minutes. “Run, don’t walk, to the rescue pod.

And most of the most upward predictions we hear from Wall Street include the simple misconception of double-counting: The more stocks rise, the better their “historical returns,” which the seller then cheerfully extrapolates into the future.

The more expensive the shares, the more attractive they are.

The bears had a lot of logic and math on their side. But most have predicted various recurrences of the Great Depression for most of the past 20 years. Not only in 2000 and 2007, which were good times to get out of the stock, but also during the rest of the time, which were not.

Over the past 20 years, a US index fund such as the SPDR S&P 500 ETF SPY, or the Vanguard Total Stock Market Index VTSMX fund, has increased your money many times over.

These forecasts are always guaranteed to generate a lot of attention. More importantly, fears of a market crash completely keep the vast majority of ordinary people out of stock. “In my daily conversations, I’m amazed at how many otherwise sensible people think not just that the stock market is risky, but that you can and will probably ‘lose everything.'”

It’s not that bull market traders are obviously right. In fact, math and cold hard logic should worry everyone, especially about America’s most euphoric stocks.

But even if these skeptics turn out to be right, when will it happen? Will the market increase by another 10%, 20% or 50% before reversing? Will it happen in June this year – or in June 2025?

But there are options instead of trying to guess Boom and Doom. Instead, we can simply let the market decide for us. Money moneger Meb Faber realized years ago that almost every stock market crash or bear market in history has been signaled in advance. If you just cashed in when the market index first fell below its 200-day moving average, you avoided almost all carnage.

Is this system guaranteed? Of course not. This includes all those bullish forecasts that stocks will bring you inflation plus 6% per year. And these bearish predictions that once the market reaches a certain value, it is heading for disaster. All rules rely on some assumption that the future will be like the past.

And using this rule means that you can safely and happily ignore all the people who predict the end of the world.

0

 Junior Trader Mert Mustafa

Varchev Absolute Trader

борсова платформа

  • Търгувай над 3000 финансови инструмента: Crypto, Форекс, Акции, Индекси, Суровини, ETF-и
  • Използвай платформа с директно изпращане ордерите на борсите
  • Best Trading Platform - "Online Personal Wealth Awards" EU награждава Varchev Absolute Trader
  • Cloud base платформа - твоят трейдинг сетъп на всяко устройство
  • Traders Talk - чуй какво движи пазарите в реално време
  • Market Sentiment - търгувай с настроенията на инвестиционите банки
  • Top movers - най-горещите трейдове във всеки един момент
  • Stocks scanner - филтрирай най-подходящите за твоя трейдинг стил пазарни инструменти
  • Heat map - Търгувай в посоката на големите играчи


Read more:
RECCOMEND WAS THIS POST USEFUL FOR YOU?
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance