Why stock market is crashing in 2020?

Why the stock market is crashing in 2020?


Why stock market is crashing in 2020


Multi leveraged stock markets

Very high P/E ratios for all stocks all over the world. (P/E ratios are in tune to that of 1929 and 1997 levels).
Exuberant debt levels of all nations (Nearing to 80+% of GDP). The largest debtor nation is the US itself with debt to GDP at an all-time high of 106%. On an average 60% debt to GDP ratio is considered optimal worldwide.
Real estate market collapse happening all over the world.
The extended bull run of the stock market for the last 8 years (Longest in history).
We are in bigger than all bubbles in our all know the history. You can do more research to get the full picture.

What do you wish you knew about investing and money when you were young?

Share market is a jungle that seems very silent and harmless but there are merciless predators hiding under the bushes to kill you in a ziffy! People jump from towers in stock market crashes. You can lose all if you are not cautious with leveraged money and its management.

3. One last rule: Today's markets are usually trading bets by huge algorithm-driven hedge funds. They promise to the upwards of 15% return per month (Yes not a typo!). They usually have very HNI (High Networth individuals, usually millionaires and above) and hence have a lot of capital even to move markets direction or even manage media outlets. Hence Never Feel the emotional need to sell a good stock in a hurry. These Funds short the stock and hence price fluctuates. Always remember the return to the mean rule. When news will become neutral again your stock will return to it's mean again. Again if the markets rise too fast due to long positional short term trades, exit at 20% profits at most. banks give 6% per year. 20% in one month is again great enough. Greed and fear create bankruptcies. Managed greed and fear create ultimate wealth.

Final words


I only suggest new players do short term trades for the next two years. Given the fact that this longest bull run in the history of stock markets and impending stock market collapse as well as an economic collapse in the next 2–3 years, it is best to sit in 50% cash at least. You will get all those blue chips at 70% discount. Be the smart money for this once in the lifetime opportunity.

Yes, it's coming, it's huge and yes never let a good collapse go waste. Sound selfish but it is as it is.

Update from comments about the coming economic collapse for non-believers.

The derivatives are always on margin money and leverage of hedge funds today is of the order 1: 20.

Research (Media will never tell you now but only when the ‘real-time’ comes!!)

Deutsche Bank Collapse Germany now.
Research Italy Debt crisis
China Debt Bubble
Venezuela, Zimbabwe, Vietnam, Argentina, Turkey, Iran, Brazil, Egypt, Cyprus, Pakistan (Latest) currency collapse. There are around 13 countries (sovereign nations) currently experiencing currency collapse. Turkey is world number 20 economy!
India is not far. We are one of the fragile five. Rupee to the dollar was 43 in 2014. Now 74. Our rupee also devalued around 90%! Why we never knew? Because oil was $30 per barrel!!
A few sessions back Sensex plunged 1500 points in just 3 minutes!! It will happen in minutes now!! Not even days!
World debt is 270 trillion dollars!! Who the world owes this all debt? Towards world bank, IMF and yes each other! One big nation goes, all go.
Many big stores like subways, Toys R Us, etc. are closing.
If the media doesn’t tell doesn’t mean nothing happens.

You will wake up one day only to find that an egg costs 10000/- and all your paper is worthless now!

Research, be prepared yourself. First, save yourself by this crisis of millennia a further benefit from it (Selfish but we can’t do anything else).

Don’t panic. You still have at most two years more. This circus cannot run forever. Till Trump is there, the US may ave itself. But for India…wake up Sid.

Endnote: the US will be last to go but the US will also go.

EndNote 2: India will go and will take whole of Asia.

Update 2 from comments :

Who knew that at the peak of 21000 Sensex will drop 70% and come to 6000? No one!

Research

India’s total (NET) NPA is about 11%. At 5% NPA, all banks are insolvent.
India’s NPA is among the worst five nations in the world. Italy is highest with 36% and is in deep financial downtrends. We are one of the fragile five.
Bull markets have no resistance and Bear Market s have no support. I am invested in the market but quickly lightening my positions. Now first time in 10 years in the share market, I only trade for a maximum of 1 month and no long holdings. The longest bull market is coming to an end.
Charts change as soon as positions change. Charts are like weather reports. They are very good when most of the things are fine. But when there is an earthquake, nothing holds.
I am not calling for a share market collapse. In a hyperinflationary scenario like Venezuela, share markets are at an all-time high. I Am calling for a total economic collapse as well as a global currency reset.
Right now enthusiasm of public and greed is at the highest level. Some days back my cab driver was advising me about trading and head and shoulder patterns!!

On TV yesterday, a B grade actress was advising a person to invest 6 lakhs rupees in the market which he got from the death of his father (maybe pension).

This is the greed plus elusion phase.

Real estate is at the all-time bear grip. Money has nowhere else to go but share the market. Before great real estate market collapse we may see a dead cat bounce over there also. Right now we are in the denial phase of real estate and the bull trap is working there (Refer chart in the answer).

I have done extensive research since 2014 about deep economic collapse. I have close to 10000+ hours of research to back my claim. I can explain for hours about what will happen and why it will happen.

Watch documentaries about 1929 great depression. How before collapse stock the market rose 50% in just one year prior to collapse?

People sold jewelry and houses to invest in markets. The same is happening right now. I find great trading opportunities both on the upside as well as a downside to earning great money.

After collapse, we shall have once in a lifetime opportunity to buy stocks at 90% discount. Only the very brave can enter at that point of time.

Average recovery time from a great collapse is merely 1.4 years.

That’s how wealth is transferred.

Never let a good crisis go waste. It happens once every 20 years.

Disclaimer: More research is solicited. Use Discretion in heeding my advice completely.

Update 3 from comments

It's along with research.


See the documentary ‘Money Masters’.
Learn how banks create money out of thin air and about credit creation theory.
Research how many quarillion are in the derivative market and how much leverage these funds use. Deutsche Bank has 1:30 so hard Lehman Brothers!
2008 crisis was a crisis of banks going bust but as you can see now we have governments going bust!
About India, research 1919 balance of payment crisis (Same which is happening in Pakistan now). Indian women deposited 60 metric tons of gold in London bullion exchange to get dollars needed for buying essential commodities.
After note bandi 2500 listed companies went bankrupt! Heard about NCLAT. Ruchi Soya, Videocon, Bhushan Steel, Electro Steel, JP associates and countless other high profile companies are bankrupt.
Essentially Note bandi has made our nation bankrupt. All bank NPA is doubled since these companies failed to generate enough revenue to sustain themselves. BJP is a popular government but with very bad economical acumen.
World-renowned economist professor like Subramanian Swamy is eating dust and a lawyer is now finance minister of India. If a locomotive driver will drive airplane we will see road accidents!!
For a collapse to happen we need only few HNI individuals to pull money very fast as it happened in 2008 when investors pulled 140 billion dollars out of Lehman Brothers and everything collapsed.
Research this fragile system. The volatility is unnerving! Why investors pull money so soon if the confidence in the economy is so high? Again short-covering comes sin a day. Money leaves the system and quickly returns. Both extreme greed (Since money has no other place to go) and extreme fear (Due to lack of confidence) are ruling the market now.
Lat point: Why invest for ‘long Term’ if you can earn a 10% return on both sides in a month!

Final terrifying cover image from The Economist magazine from 1988. (Don’t you see currencies burning and prediction coming true. Only Trump is stopping the catastrophe to some extent.

Rise of phoenix


On a lighter note

iPhoneX = PhoeniX.

Now to the original question ‘How it will turn out to be?’

I believe there will be unprecedented panic, all saving wiped out in very quick hyperinflation (Maybe for 3 months). This is the biggest wealth transfer event of our century.

Extreme panic and short selling of all assets by general public and even rich people.
After this hyperinflationary even we can expect a new world currency and global currency reset (May Be based on gold or silver bullion).
Surprisingly soon after (In maybe six months), we shall return to business as usual with zero savings in public possession. This reset will wash out all your savings sans government locked securities.
I expect universal basic income, more grants and relief for poor and mega-developments. The middle class, upper-middle-class, and so-called rich class will be most hurt in the collapse. For very poor things will only get better.
Those who will survive and benefit (Can benefit) from the apocalypse will become new riches (Maybe a handful of new millionaires!).
Remember wealth is energy and energy can never be destroyed or created but can only be transferred from one beneficiary to another.
Research Great Depression. Most millionaires of the century were born in great depression.
Timing : It can happen next month or might be next year. But with 99% certainty collapse will happen before 2021. Why these dates have been chosen and why it will surely happen will require me to explain you for 100s of hours.

Research, prepare and profit from the event of the Millenium.

Do you think that nobody knows anything about this, everything seems perfectly normal and this might sound bullshit?

Yes then this is a perfect time.

Storms come only after deep calm.

I am talking from the mathematical point of view. Mirrors and numbers never lie.


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1 Comments

  1. I see this article is published on March 19th, should I assume that the crash you are talking about is not the one we saw in March, and worse is yet to come?

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