Stock market crash ahead or inflation ahead? That is the question many ask themselves and I’ll try my best to explain the stock market scenarios, the crash scenarios, the possibility that stocks are ridiculously cheap and also inflation.
0:00 Stock Market Crash
2:03 Crash Ahead
3:17 Market Timing
4:48 Inflationary Crash
7:23 Lynch Macro Strategy
8:15 Low Interest Rates
11:21 Cheap Stocks Scenario
12:33 Higher Rates
15:37 Hyperinflation
17:20 How To Invest
20:19 Best Strategy
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#stockmarketcrash #inflation #investing…(read more)
LEARN ABOUT: Investing During Inflation
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
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Stock Market Crash Ahead or Inflation & Stocks A STRONG BUY!
Recent events in financial markets have left investors questioning the future of their portfolios. With mounting concerns about a potential stock market crash and the threat of inflation, investors are left with the difficult decision of whether to stay invested or sell their positions. While market uncertainties cannot be completely eliminated, careful analysis can help us make informed decisions and uncover potential investment opportunities.
Let’s start by addressing the fears surrounding a stock market crash. Periodic market downturns are a natural part of the investment cycle and have occurred throughout history. However, it is crucial to distinguish between short-term market fluctuations and long-term trends. While it is impossible to predict the exact timing or severity of a market crash, historical evidence suggests that markets tend to recover and eventually reach new heights over time. Therefore, panic selling during downturns can often result in missed opportunities for long-term gains.
The key to navigating market volatility lies in diversification and a long-term investment strategy. By spreading investments across different asset classes such as stocks, bonds, and real estate, investors can mitigate risk and potentially reduce the impact of a market crash on their portfolios. Moreover, adopting a buy-and-hold approach instead of trying to time the market can provide much-needed peace of mind and allow investors to benefit from compounding returns.
Concerns about inflation have also dominated recent discussions. As economies around the world recover from the impacts of the pandemic, central banks have injected massive amounts of liquidity into the global financial system. This, combined with fiscal stimulus measures, has raised worries about a potential surge in inflation. While inflation can erode the purchasing power of currency, it can also present opportunities for stock market investors.
Historically, stocks have demonstrated an ability to outperform during periods of moderate inflation. Companies can pass on increased production costs to consumers through higher prices, ultimately boosting their revenue and profitability. In addition, stocks can act as a hedge against inflation as their value tends to rise with prices over the long term. Therefore, instead of viewing inflation solely as a threat, investors should consider it as a potential catalyst for stock market growth.
To identify investment opportunities, investors should focus on sectors and industries that have historically outperformed during periods of inflation. These include commodities, energy, infrastructure, and technology sectors. By carefully selecting stocks within these sectors, investors can position themselves to benefit from potential market upswings driven by economic recovery and rising prices.
It is important to note that investing in any market carries risks, and every investment decision should be based on individual circumstances and risk tolerance. Consulting with a financial advisor can provide valuable insights tailored to specific goals and objectives.
In conclusion, while concerns about a stock market crash and inflation loom large, investors should approach these uncertainties with a level-headed analysis. Diversification, a long-term investment strategy, and a focus on sectors that historically perform well during inflationary periods can help investors navigate market volatility and potentially generate significant returns. By staying informed and making informed investment decisions, investors can position themselves to weather market storms and reap the rewards of a resilient stock market.
WARNING: As the channel grows (thank you all for that), there are more and more scammers impersonating me. The only thing I am selling is my Research Platform and Book https://sven-carlin-research-platform.teachable.com/p/stock-market-research-platform
All that I do, the real links to my content are in the description of the video, I don't give out my Whatsapp number and I don't sell any Cryptocurrency related things! BE CAREFUL OUT THERE!
Just a reminder that if you were out of the market 2 years ago, you've missed on some great returns since then!
Wisdom
Sven has a brilliant accent.
Another excellent video! Thank you
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Clickbait. Zero content. Buy low, sell high kind of advice. But at least he warned everyone in the beginning.
The stocks too expensive now especially the tech stocks.
I hold cash now. I don't see any stocks worth investing now.
Where will be the market? We don't know. Where will be cash? Well with us but the value is not fixed. I see investing in good companies as an insurance from inflation.
good work!
Are you sure you don't have a crystal ball?
I think as soon as the spread (10y vs 2/3 months) goes to 2% the market will go rapidly down. And gold would be a good hedge.
Thanks Sven for another insightful video. This is great advice!
putting most of my savings in short term bonds cuz i get a better return there than my bank acc with low risk. investments are mostly berkshire and ADM with some real estate stock (HOV), my dad worked there for decades so i know it's going nowhere. putting a small bet on square cuz if crypto keeps exploding it will keep exploding
i figure short term bonds are better to cash cuz if the economy drops they maybe drop 5-6 percent but if it keeps exploding then my cash pile drops by roughly the same amount anyways to inflation.
I definitely understand what you're saying, but I still can't seem to figure out a strategy that would allow me to stay in the market if either scenario 2 or 3 did happen, especially if it was a repeat of what happened with the Dow taking 30 years to return to where it once was. I definitely see how dividend stocks can help but I don't see the dividends really making a huge difference with potential crashes of that magnitude. I might just resort to a few small investments in emerging economies with dividends, but that still leaves me with a huge lack of diversification. In either case I appreciate your genuine explanations and videos even if it's not what I wanna hear lol
19:36 you're a legend, love the balkan roots… people Invest with Sven "the OG" Carlin and be safe…
I was at a retirement seminar and the speaker spoke on how he quit his job after he made well over $950,000 PROFIT within 3months he invested $120,000. I just began investing and i will really appreciate any tips or helpful guide.
Japan has been at zero interest rates so long, we coined the term 'ZIRP' just for them. Europe is at zero interest rates. How long will the U.S. be 200+ basis points richer than the rest of the world.
I wasn't supposed to sell mom? Oh crap!
An exceptional answer, as usual Sven! Great content!
The Problem is Deflation!
They say this is the mega bubble of all time yet we haven't even reached the .com bubble size this bubble is much larger. We are due for a correction but a correction is 10%. Tech stocks could be 20% for correction.
When investors use a strategy of long term US hi quality stocks they will most likely be very successful; that is 3 or more years out. History has proven that. So has Warren Buffet.
Playing catch up on your videos Sven… This one was invaluable. Crazy inflation is by far my biggest financial concern longer term. Trying to position my assets appropriately just in case. Thank you my friend!!
Thanks for 3 different scenarios, and the vote of confidence for staying cool on the long term strategies.
Great video!
Buffet’s way is very simple: buy good stocks when they are on sale, not when they are at all time highs. Be patient and buy the dips.
Brilliant.. nice video.. what do we need more than those giants indirectly hinting on a crash.. as they definitely can't say it more clear
you're awesome
Awesome content, thank you. I previously haven’t considered inflationary crashes so this was a good learning for me.
– If you are afraid of crash you may take out some money and then buy when stocks go down. If crash doesn't happen then you will risk less. They won't go down 40% or so, Amazon won't sell less than $2,500 otherwise it will produce 20% IRR, and everyone will jump and buy. There are tons of stable, predictable companies like that, and they will hold their value regardless.
– There are several main asset classes, when stocks go down cash pile goes up. Cash pile can go up say 500 bil purely because all that money people pull out of stocks, but stock market can go down 1 T, it's not like whatever you buy or sell is exactly how market cap goes up or down, price of stock is function of supply and demand not how much money is pulled out or put in. But people will be looking to invest that money to other asset classes, so diversification to different asset classes should mitigate crash too. Blue chip stocks with stable dividends and predictable and stable earnings, with wide moat and excellent balance sheet will recover very fast. JNJ, KO, etc are few to mention. So, if someone is 60 years old has 3 mil, he can invest in these types of stocks and not worry about the crash and just ignore it. If (BIG IF) interest rates will ever go up then some of these stocks can be converted into bonds. For younger people I would just ignore anything related with crash but keep some money to buy in deep just in case crash happens. Just because crashes happened in the past it does not mean they will happen in the future too. Lots of stuff happened in the past which does not happen now, and visa versa. USA becoming more regulated and affected by feds economy anyway. Robots are starting to produce stuff, so taking about inflation may not make any sense. There are huge deflationary forces along with exponential growth. Just look average revenue produced by one employee in some companies, it's crazy. It's not like USSR collapsed or Germany after WW1 with collapsed production. There is always tons of products available businesses want to sell people and compete for prices in USA. Even after great depression inflation did not happen. 1980s inflation in USA was because of getting out of gold standard. Yes some people are becoming richer, and charter flight from LA to Vegas may cost double but same person can go to Whole Foods and spend about the same for same groceries after 5 years and buy much cheaper Tesla and other cars competing with Tesla. Middle Class is getting crashed, and businesses must adjust their product prices to sell them too.
– Warren Buffet does not have the best track record, he talked lots of nonsense as everyone else. Nobody predicts everything correct. Kathie Wood just inclined that big crash will happen in 2021, but He just has been too long of a time, and his compound interest combined with his age made all that situation. There are tons of other investors who have much better track record. You cannot copy Warren Buffet's investing strategy. It's like you try to manufacture airplanes from your garage like Boeing or Boeing making cheese to sell on Amazon from their offices.
– Yardeni thinks we are on 2nd stage of market bubble, there are 2 more stages to go. CAPE ratio is close to 1929 but much lower than 1999 but never in history all three factors existed at the same time 1. Huge growth of money supply PLUS 2. Almost zero interest rates PLUS 3. Hume increase in number of retail investors which itself can be such a big factor that can negate CAPE and Yardeni PLUS 4. Direct involvement into stock and bond market by Feds which never happened before and this itself only can negate CAPE and Yaredi too . I think USA is going to copy Japan and Europe, interest rates will go up slightly if inflation hits close to 5%, but there is a good chance before that tech deflationary forces can get even stronger. Japan has the biggest money pricing and government just keeps their stock market on live support for already 40 years. This is what I think will happen in USA especially so many baby – boomers similar to big proportion of Japanese retired people.
– If crash happens, Feds will jump in and remedy situation as they did in March 2020 but no idea how much it will correct the markets and how long it will take.
Again some things are very new in market, never happened before so comparing historical data and predicting from it should be limited.
I plan to remain fully invested, but will pull out immediately at first sign of market crash consensus. Not a perfect plan, but its a plan.
Charlie Munger an out of touch old fart!? You don't really think that is the case do you 😉 I think he is brilliant.
Bill Gates is a Luciferian parasite
Ok if the banks do bailins maybe buffet is not affected but what about small investors? I mean we could go in short running t-bonds but will we be able to access the broker if he goes bankrupt and sell to get cash. You now have to keep this risk in mind. During a 70% or more crash this can easily happen.
I would wait till May to buy. There is supposed to be a correction in March or April
Markets are at the the greatest bubble, im waiting for the fall with a big hedge of flow traders!
Another great one Sven!!
Hi Sven, I know that this is an investment channel, but I would like to ask you about trading, do you trade personally? Should someone do both?
I press the like button when I saw "sell ur mother and buy".
Hello YouTube algorithm 😀
I invest in foreign markets as a potential hedge against inflation. There's also tips.
Smart and entertaining, great videos Sven!
I'm a firm believer in dollar cost averaging. Buying at regular intervals means that you get the average price over time.
market crash is certain , the time of occurrence is unknown
Sell beoch sell!!!!