The Next Stock Market Crash (How To Profit)

"The economist David Rosenberg believes there's truth to these claims that the stock market is poised to drop saying that just like the clown at a circus who keeps blowing up the balloon at some point the balloon is going to pop and a sort of look at the stock market right now as the clown of the circus blowing up the balloon his reasoning though is a lot easier to follow as he explains the S&P 500 is up 32% in the last 12 months while corporate profits Rose just 4% means that his bare case is an S&P 500 dropping to 3,200 or a 39% drop from today's levels unless companies can dramatically increase their actual earnings."

"The legendary investor Jeremy Grantham also seconds him by saying that prolonged bull markets typically begin when unemployment is high profit margins are depressed and stock valuations are beaten down current conditions are the polar opposite of that especially when the Shiller price to earnings ratio is within the top 1% of its historical range."

"over the last 20 years a $10,000 investment in the S&P 500 would have turned into $64,000 if you just kept the money invested without touching it however if you panic sell and Miss just the best 10 trading days over 20 years your return diminishes down to $29,000 if you miss the best 20 days you'd lose out on $47,000 worth of profit missing the best 30 days means you've basically broken even over two decades and if you miss the best 40 days you'd flat out lose money"

"The economist John husman makes the argument that non-financial stocks are trading at levels that we haven't seen since 1929 and 2001 because of that he believes that these levels indicate that the S&P 500 is likely to return around -5% annualized over the next 12 years."

"throughout the entire history of the stock market a 20-year holding period has never once produced a negative result that literally means that you could buy in at the absolute Peak that the day before a catastrophic collapse not do a single thing for the next two decades and still wind up making money according to past results"