Dear readers, Dow Jones, S&P 500 and NASDAQ Composite went south yesterday respectively by 1.23%, 1.14% and 1.24%. Reasons cited by some analysts included the Omicron variant and the effects on the markets from the Federal Reserves’ tapering.
Has the stock markets starting to crash? Is the perfect storm brewing for a massive stock crash? Let us watch the video from Epic Economist (whose videos I regularly watch to understand more about the stock markets from a different angle) below to find out.
I know all of you are busy people and hence here are the highlights of the video which I find useful for investors’ noting:
Point 1: Warren Buffett indicator, which compares stock valuations to GDP, is at an all-time high
Point 2: the Schiller price-to-earnings ratio is at levels last seen during the peak of the dot-com bubble in the late 1990s
Point 3: Jon Wolfenbarger, who runs BullandBearProfits.com and is a former investment analyst for Allianz Global Investors and JP Morgan mentioned that there are two phases to the “bubble collapse” which investors are looking at now. Phase One which related to the collapse of small-cap and meme stocks is now over and investors are headed to Phase Two is going to be about growth stocks plunging to record-lows
Some investors may be a bit worried for the upcoming stock market corrections which to me is really a matter of when it will occur rather than whether it will happen. I recommend investors to continue saving to save for a rainy day, as the proverb says as well as to build up an investment warchest to bargain hunt good stocks at the bottom of the stock market.
Please treat the next stock market crash as a very good discount that does not come often to build wealth with none other than your Cash which will be King when stock markets correct. I know Cash seems not much valued as an asset nowadays with inflation, low interest rates. But when it comes to the next stock market crash, Cash will be one of the few assets investors and individuals will appreciate.
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! Connect with me here to follow the daily exciting and useful posts on these two blogs, Thank You for your support!
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