Predicting When will the next world stock market crash happen is not on easy task. Today 28/September/2017, mark my words within next 4 months the world stock markets are going to crash.
If you are new to stock market and don’t know What is stock market Crash It’s time to walk up.
When Will The Next World Stock Market Crash Happen:
Timing the stock market crash is the most important thing in investors life because missing a trade is not a bad thing compared to losing most in a stock market crash. If one believes that world stock markets are going to crash, then his next question will be when the global stock markets will crash.
If You Read One Article About Will the Stock Market Crash This Year Read this One
Build, Crash, Fix: Stock Market Phases:
Build, Crash, Fix is the simple and easy to understand stock market phases. In Build Phase market finds quality stocks, valuation discounts, future opportunities. Initially, smart money enters into the markets followed by institutional investors and finally public jumps in and drives the valuation to the highs.
In Crash Phase everyone finds valuation of stock markets are not justified. At first Smart money exits quickly. After a bull trap institutional investors start to exit and finally, uninformed retail investors find and exits with the huge loss.
And Then the Fix Phase comes in here once again smart money finds cheap valuations, new economic ideas and starts to build.
We are at “Blow Off Phase”:
If one wants to know when will the world stock market crash happen he must know what are the phases of the stock market. The Stock Markets has 4 Major phases. Now we are at the final phase that is we are in “Blow Off Phase”
In Blow off phase, there will be no mercy on stocks, peoples, governments. Fundamental analysis will not work, the high valuation of stocks not justified. In this phase, Stock markets will try to return to the mean. Normally Blow Off Phase occurs after a long mania phase.
Now, we can assume that we are near to the world stock market crash.I am predicting that within next five months world stock markets will start to crash.
Probably, the next question on everyone will be, what can lead to the next stock market crash?
what can lead to the next world stock market crash?
It is not possible to predict, what causes the world stock market crash? Because Stock markets are always well ahead of the news. But we can guess what will lead to the stock market crash?
The Crash may be triggered by the US Dollar crash or Banking NPA bubble or WW3 anything may trigger a crash either good news or bad news.
As of now, If a Nuclear war between the US and North Korea happens it may trigger the world Stock Market Crash. And then some consecutive negative pieces of news will flow only to trigger further fall in stock markets.
If the Stock market crash was triggered by a crash in the US Dollar then ensuring your portfolio by investing in gold is a wise decision.
Venezuela announced that it will no longer accept payment in US Dollar for its oil.
And China plans to introduce Gold-Backed Oil benchmark denominated in yuan and convertible into gold.
Major stock Market Crash in the history and Reason:
24 October 1929 – Great Depression
28 May 1962 – ‘Flash Crash of 1962’
19 Oct 1987 – Black Monday
13 October 1989 – Leveraged Buyout of United Airlines
10 March 2000 – Dot-Com Bubble
11 Oct 2007 – United States Bear Market
16 Sep 2008 – Financial Crisis
How The Stock Market Crash Happen:
The 1907 stock market crash took a Year to develop, in 1929 it took a Month. But the market now (Means at present situation) can tank in a few seconds.
In today’s Automated and Algorithmic trading world market has no time to respond to the reassuring words of the policymakers.
We already experienced the flash crash, Beside the big one in May of 2010, we’ve also seen crashes in the silver market this July, the stock market in August 2015, the U.S. dollar in March 2015, and the Treasury bond market in October 2014.
So Automated algorithmic trading may cause severe damage to the stock markets if the crash happens.
how to preserve yourself from the coming World stock market crash:
As of now, the risk-reward ratio of stocks is not favorable for investors. So cut your entire or maximum equity holdings. Keep it liquid. I am expective the stock market crash to be here for more than 2 years. So don’t jump and buy if the market drops 10%.
keep in mind “Wealth never destroyed, but price destroyed”. In The US stock market history, this is the third longest expansion.
In the Stock Market Crash Survival is the major thing because it causes more socio-economic effects like job loss, economic collapse and etc. Planning Stock market crash and keeping cash for economic collapse is also important.
When Will The Next World Stock Market Crash Happen? Final words:
The first stage for the world stock market crash is built so it is already started. The bigger moves will happen after the exit of smart money.
The reason for the current stock market crash will not be predicted as of now because markets are always well ahead of the News.
As of now, Nuclear War between the US and North Korea or a crash in the US dollar may cause the world stock market crash.
Automated algorithmic trading will cause drastic damage to the stock market in the world stock market crash.
The one way to be protected from the world stock market crash is exiting from all the financial assets immediately and holding liquid cash.