(This is financial advice)
Hello everyone this isn't the type of topic I usually like to talk about as I feel it is very over saturated and people say that the market is primed for a crash and a bear market is coming all the time. But within in the next few months and maybe if were lucky a year we are in need of a long bear market of at least a few months and maybe a year or more. The S&P is up 500% from the last actual long bear market. in 2008. We have had the odd flash crashes since then like in 2015, 2018 and 2020. But none of these crashes can compare to the crashes there were in dot com crash and the financial advice. Even in 2020 we saw a big crash but this crash really only lasted for a 2 months and we came back going straight flying up. I assume we will have around a 50% drop when the bear market does finally come. This will probably be around the same time as crypto winter. Which will mean that there will be even less ways to make money in the markets.
Things that go to show we are bound for a crash are things like the buffet indicator being way over ATH's, inflation and the mass printing of money, everything skyrocketing in price (lumber etc), record high margin debt, 40 year low for interest rates and the price to earnings ratio of the S&P. All of these things are just things with a basic amount of research that shows the market is at an unsustainable highs.
From a technical stand point as well the MACD is at ATH's and is very over extended as well as the RSI now in the overbought area
Anyway to conclude I could talk about this forever but in the mean time I would just keep in the mind because all bubbles must pop eventually and although we all wish stock only go up that just isn't the case and we are sadly due for a time where instead will only be going down. In the meantime I would also look for shorts on the SPY and DOW with options or in things like the SDOW etc.
If you agree or disagree or wanna talk about it be sure to leave a comment, if you like my ideas be sure to leave a follow and like.
Thank you.
- Vlaire