Is a Market Crash Imminent?
The Hindenburg crashed and burned in 1937 and many investors think the same thing is about happen to the global stock market. According to this indicator if the stocks are at 52 week highs and in the same period of time stocks are at new 52 week lows then the market is experiencing uncertainty and will crash. This indicator takes effect when over 2.2% of the stocks are at highs while a different 2.2% or more are at new lows.
This criterion has been met, so good luck to the investors out there. For more information about the Hindenburg effect go to Investopedia.
It's a very risky and unstable time for the market,no doubt.
ReplyDeleteNow is not the time to have the mindset to invest in the short term; you won't make any money.
The market is absolutely going to have many drastic ups and downs in the coming years, and those in it for the long term investment are more likely to realize a profit. One needs to be able to "stay" when a stock takes a dive and hang in there till it recoups.
I think it's important to realize that the market does it's own manipulations. It has it's way of letting you know how it's reacting to a certain headline of the day. It has a way of resetting itself after it's had a booming week. It's really just a risky game, and if you don't have the money to lose - don't get in it, especially now.
Personally, I can't wait to see how the market reacts to the November 2012 election when Obama is booted out of office - now that's going to be a great time to make some money!