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Warren Buffet and friends predict 2014 Stock Market Crash

Discussion in 'The Pub' at netrider.net.au started by robsalvv, Mar 17, 2014.

  1. Excuse the lack of formatting and link copying - I don't have any formatting options available from this pc for some reason... but I thought this article might spark some discussion.

    = = = = =


    Warning: Stocks Will Collapse by 50% in 2014
    Saturday, 15 Mar 2014 08:10 PM

    It is only a matter of time before the stock market plunges by 50% or more, according to several reputable experts.

    “We have no right to be surprised by a severe and imminent stock market crash,” explains Mark Spitznagel, a hedge fund manager who is notorious for his hugely profitable billion-dollar bet on the 2008 crisis. “In fact, we must absolutely expect it."

    Unfortunately Spitznagel isn’t alone.

    “We are in a gigantic financial asset bubble,” warns Swiss adviser and fund manager Marc Faber. “It could burst any day.”

    Faber doesn’t hesitate to put the blame squarely on President Obama’s big government policies and the Federal Reserve’s risky low-rate policies, which, he says, “penalize the income earners, the savers who save, your parents — why should your parents be forced to speculate in stocks and in real estate and everything under the sun?”

    Billion-dollar investor Warren Buffett is rumored to be preparing for a crash as well. The “Warren Buffett Indicator,” also known as the “Total-Market-Cap to GDP Ratio,” is breaching sell-alert status and a collapse may happen at any moment.

    So with an inevitable crash looming, what are Main Street investors to do?

    One option is to sell all your stocks and stuff your money under the mattress, and another option is to risk everything and ride out the storm.

    But according to Sean Hyman, founder of Absolute Profits, there is a third option.

    “There are specific sectors of the market that are all but guaranteed to perform well during the next few months,” Hyman explains. “Getting out of stocks now could be costly.”

    How can Hyman be so sure?

    He has access to a secret Wall Street calendar that has beat the overall market by 250% since 1968. This calendar simply lists 19 investments (based on sectors of the market) and 38 dates to buy and sell them, and by doing so, one could turn $1,000 into as much as $300,000 in a 10-year time frame.

    Editor's Note: Sean Hyman Reveals His Secret Wall Street Calendar in This Controversial Video, Click Here

    “But this calendar is just one part of my investment system,” Hyman adds. “I also have a Crash Alert System that is designed to warn investors before a major correction as well.”

    (The Crash Alert System was actually programmed by one of the individuals who coded nuclear missile flight patterns during the Cold War so that it could be as close to 100% accurate as possible).

    Hyman explains that if the market starts to plunge, the Crash Alert System will signal a sell alert warning investors to go to cash.

    “You would have been able to completely avoid the 2000 and 2008 collapses if you were using this system based on our back-testing,” Hyman explains. “Imagine how much more money you would have if you had avoided those horrific sell-offs.”

    One might think Sean is being too confident, but he has proven himself correct in front of millions of people time and time again.

    In a 2012 interview on Bloomberg Television, Hyman correctly predicted that Best Buy would drop down to $11 a share and then it would rally back up to $40 a share over the next few months. The stock did exactly what Hyman predicted.

    Then, during a Fox Business interview with Gerri Willis in early 2013, he forecast that the market would rally to new highs of 15,000 despite the massive sell-off that was haunting investors. The stock market almost immediately rebounded and hit Hyman’s targets.

    “A lot of people think I am lucky,” Sean said. “But it has nothing to do with luck. It has everything to do with certain tools I use. Tools like the secret Wall Street calendar and my Crash Alert System.”

    With more financial uncertainty that ever, thousands of people are flocking to Hyman for his guidance. He has over 114,000 subscribers to his monthly newsletter, and his investment videos have been seen millions of times.

    In a recent video, Hyman not only reveals the secret Wall Street calendar, he also shows how his Crash Alert System works so that anybody can follow in his footsteps (click here to watch it now).

    © 2014 Moneynews. All rights reserved.
  2. Surely just an alarmist headline as a leader to a sales pitch?
  3. Share markets rise and share markets fall. No one loses money unless they sell. As long as you haven't borrowed money to invest, or are living off shares income through your superannuation, it is no big deal.

    The US market is way overpriced compared to the Australian market. A correction is inevitable.

    And yes, I would not buy his calendar.
  4. By making these statements they introduce instability and guess who benefits from these instabilities? That's right! the actual speculators who made these comments.
    • Agree Agree x 2
  5. Pricks are just trying to manipulate the market for their own gains, it's what they do.
  6. Really?

    How'd they manipulate the GFC?
  7. “You make your best buys when people are overwhelmingly fearful,” Warren Buffett quote.
    "Billionaire Warren Buffett has proved yet again that he can find value amid uncertainty, with his financial crisis bailout bets delivering more than $US10 billion in returns so far." BRW
    Perhaps that in itself doesn't prove my assertion but if it looks like a rose and smells like a rose..............
  8. That was a sales ad.

    But regardless, people should be looking at their investment timeframe, their risk appetite and their asset allocation.

    Not all stocks move in the same direction, and certainly not all asset classes.

    Diversification is the key. If you're worried about a crash in equities, reduce your exposure.

    You can even buy ETFs these days that will go up in value as the market comes down.

    Perfect way to hedge your portfolio.

    There are opportunities in every type of market.

    That's what a good financial adviser is for.
  9. makes sense.... every 7 years, we're due for a dip
    • Agree Agree x 1
  10. Indeed.

    In a market dominated by speculation, reliant on perception, and -let's be honest- partial to a bit of superstition, the larger a guru's audience, the greater the chance of his prophecies being fulfilled.
    • Agree Agree x 1
  11. Buy bricks and Mortar, Its still there when the market picks up again,
    The market can crash all it likes, Two years later the market is booming again,

    Stocks and Shares crash, you have lost your money Cold, Its Gone,

    My property Lost $50,000 in 2002, I didnt give a hoot, I lost it from the Profit margin,
    Even losing that much according to the So Called Money Managers,
    My property was still 3 times higher in value than what I paid for it,

    But you must keep Property for a Minimum of ten years, Any thing less and you will do your dosh, You may even end up with a Mortgage with nothing to show for it,
  12. If these Money Managers and Financial Experts were so good at what they are selling,

    How come they are still working for wages for some one else, ????????????????
  13. parasites. it's easy to take a risk with other people's money. These people do not add any value to the world and we'd be better off without them.
    • Agree Agree x 2
  14. Diversification is key: too many people are 'all property' or 'all shares'. Every sector has its cycles. Have some eggs in each basket. Actively manage your super, because it'll likely end up being your largest investment. It also practices 'dollar cost averaging' on the share market, which is an excellent growth strategy. More growth shares when you're younger, moving to less risky investments as you get closer to retirement.

    And cash is king. Keep some: because when the market crashes you can be there to pick up the pieces, when everyone who went 'all in' is skint.
  15. 'Dollar cost averaging'. Your employer (and you, hopefully) keep buying into super each pay day. That means you buy some shares when the market is up, and also some when the market is down. The balance of your account will move around a bit due to market fluctuations, but you'll buy shares cheap when it drops, and ride it back up. Over time, dollar cost averaging means strong gains: much greater than just sticking the money in a savings account with interest.
  16. How are they risking your money though? In fact, their warnings are trying to help you avoid a massive risk...?

    I don't know how these guys apparently caused the GFC or how they'll be causing the next crash... but that is the inference in this thread.

    If they are pointing to measurable parameters that anyone can measure, then it's a relatively objective assessment yes? What might be good for balance is finding a commentator in the "know" who is looking at the same parameters and making a rational argument that a crash is not imminent.
  17. Tried to find a graph, but can't at the moment. I think there are some pertinent numbers here:

    Dow Jones
    Dec 08 closing: 8776.39
    Today: 16222.17

    A rise of about 85%

    All ordinaries
    Dec 08 closing: 3659.3
    Today: 5333.90

    A rise of about 46%

    This in a time when the Australian economy has easily outperformed the US. There has been some adjustments of US to AUD in this time, but not enough to account for all of the difference. The Us policy of "fiscal easing" has lead to the growth in stock values above economic growth, and that would lead to predictions of a correction. Hopefully the rest of the world doesn't catch the cold when will street next sneezes.
  18. "adjustments"... "corrections"... euphemisms for the trips and falls of a blind man.
    I hope it catches fire (that's a euphemism too... :))
    • Like Like x 1
  19. So the crux of your post is to be ultra mega rich. Gotcha, thanks for sharing ;)
  20. I don't think "catching fire" is going to help the average person. The mega rich will stay that way, and the poorer members of society will lose their employment and end up poorer than before. I think major changes to our financial systems would be positive (well, some changes...), but revolutionary changes causes significant "collateral damage". Decent regulation, proper policing of financial markets and players would be a start.