This is one of the most negative periods sentiment wise I have ever seen. Every day there you can find news pieces in the financial sections outlining why someone else thinks the markets are going take a precipitous dive. We have the always negative Marc Faber predicting a 50% drop (Marc Faber Issues 50% Crash Warning on Stock Markets) and others telling you Why the Stock Market Could Be Headed for a 1987-like Crash.
Besides some quick spurts down and back up, the markets have gone up steadily from the beginning of 2009. For me, whenever the market is at all time highs, its easy to let my imagination take over and believe that things are too good and have to revert back to the mean. Its easy to see The Biggest 2016 Stock Market Crash Warning We've Seen Yet and believe it. Its easy to read about the 5 Fund Managers Expecting a Market Crash and start to get scared, which is what a lot of people are feeling now.
The word "crash" is being used A LOT now, instead of the word(s) "correction" or "pull back" that used to be bandied about. Corrections and pull backs are often thought of to be healthy for a stock market while a "crash" is, well, its a crash. Crashes are never good and UBS: Risk Of Bear Market, And Maybe Crash, Rising also thinks one may be coming our way.
If A Stock Market Crash Is Coming, These Ominous Technical Signs Reveal and there is No Clear Path To Avoiding The Bear, then what are investors to do? If you pull all your money out of the market just because a lot of pundits tell you to be scared, what if they are wrong? Then you will lose a lot of money trying to get back in at even higher prices. And if you decide to leave your money in and the market does crash, then you will lose a lot of money too.
Seems like either way you will potentially lose and that is the reason for all the tension on Wall Street. There are a lot of investors out there that are scratching their heads trying to figure out what to do or not do during this historically ugly month of September for stocks.
Are You Ready For Armageddon In The Markets?
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