What happens if the Stock Market Crashes? Smile and Buy

Updated June 2023

What happens if the Stock Market Crashes? Opportunity!!!!

When The masses panic: the smart money buys. Sol Palha

For many years, the stock market has been a popular investment avenue for individuals and organizations. Despite its popularity, many experts continue to make predictions about when the stock market will crash, and these predictions have often been proven wrong. In fact, going all the way back to the Tulip Bubble in the 1600s, the stock market’s history is filled with examples of experts who claimed to know when the market would crash, yet they were consistently incorrect.

One of the reasons why experts continue to make these incorrect predictions is that the stock market is inherently unpredictable. A combination of factors, such as changes in government policies, geopolitical events, economic downturns, and unexpected technological developments, usually causes market crashes. Predictions about the stock market’s future are often based on speculation and intuition rather than sound analysis.

Another reason why experts get it wrong is that they often overlook the market’s underlying strength. Despite its volatility, the stock market has proven to be resilient over the long term. It has consistently delivered returns to investors willing to hold onto their investments for the long haul. This resilience is partly due to the market’s ability to absorb shocks, recover from downturns, and continue growing, even during economic turbulence.

Experts Always get it wrong.

What happens if the stock market crashes? A stock market crash should be viewed as a buying opportunity. During a market crash, prices of stocks often fall dramatically, and investors who are willing to take advantage of the dip can buy high-quality stocks at a lower price. Over time, as the market recovers, these stocks are likely to appreciate in value, delivering substantial returns to the investor.

What happens if the stock market crashes? A stock market crash can give investors a rare opportunity to pick up quality stocks at a discounted price. By buying during a market crash, investors can potentially capture higher returns over the long term as the market recovers.

While experts continue to make predictions about when the stock market will crash, their track record has been consistently poor. The stock market is inherently unpredictable, and its resilience over the long term suggests that it’s often wise to ignore the noise and focus on building a diversified portfolio that is well-positioned to withstand short-term turbulence. A stock market crash should be viewed as a buying opportunity to pick up quality stocks at a discounted price. Over the long term, the stock market has proven to be a reliable investment vehicle for those willing to be patient and stick to their investment plan.

On Stock Market Crashes: Even a Broken Clock Get’s it Right Eventually.

Note that even a broken clock is correct twice daily, depending on whether you follow standard or military time. Hence, even if they eventually get it right, you would have been blown out of the water long ago.

What to do if the Stock Market Crashes?

It would make more sense to have a frank conversation about investing and Stock market crashes, then hit the panic button. Fear and misery love company, so this is the favourite question of those who love living in a world where negativity is the order of the day. If you live in the “if world”, you will miss all that is taking place around you, including opportunity.

You will be so busy looking for any reason to justify that things won’t work out that even if opportunity slapped you in the face, you would notice it. In short, one should never panic when it comes to investing. If you use common sense and take prudent measures, you won’t have to deal with such a scenario. We always believe that stock market crashes are nothing but opportunities in disguise, and we covered this topic in the following article.

Can experts predict when the Stock Market will Crash?

Experts and market analysts are often touted as having a deep understanding of the stock market, but the truth is they are just spouting the same crap over and over again. They have no real insight into the market and only make predictions in order to maintain their reputation and credibility. It’s time to wake up and stop falling for their lies.

Experts struggle to predict market crashes because they rely on outdated historical data and patterns. The stock market is not a stagnant entity. It is constantly evolving, influenced by a range of unpredictable factors that can’t be predicted by anyone, no matter how knowledgeable they may seem.

Another reason why experts fail to predict market crashes is because they have a vested interest in getting it wrong. If they were to predict a market crash, they would likely cause panic and create a self-fulfilling prophecy. Instead, they prefer to keep spouting their false predictions, hoping they might be right one day.

Focus on history and not on fiction.

What happens if the stock market crashes? The answer is simple, nothing. Market crashes are just a figment of the imagination created by experts and analysts to scare people into selling their stocks. The stock market has always recovered from declines over the long term and there is no reason to believe that this time will be any different.

Market crashes are just a myth perpetuated by experts and analysts to maintain their credibility. Investors should ignore the fear-mongering and instead focus on building a well-diversified portfolio that takes advantage of market dips rather than trying to predict them. Over the long term, the stock market has proven to be a reliable investment vehicle for those who have the courage to ignore the experts and stick to their investment plans.

We have one expert after another predicting that it is time for the markets to crash; mind you these same chaps sang this same terrible song of Gloom in 2015, and 2016 and now they are singing it with the same passion in 2017. There is one noteworthy factor, though; a few former Bulls have joined the pack. Does this now mean that the markets are going to crash? Apparently not, well, at least if you look at the indices, as of Jan the market continues to trend higher. Furthermore, what is a crash or for that matter a pullback or a correction?

So What Happens If The Stock Market Crashes? Smile & Buy

One individual could view it as a crash, while the other views it as a mild correction and an opportunity to purchase more shares. It would all depend on when you jumped into this market. If you embraced this bull market in 2016, then a pullback in the 10%-15% range would feel like a crash. On the other hand, if you embraced this beast (Stock Market Bull) anywhere from 2009-2011, it would seem like a mild orderly correction.

Most experts almost gleefully try to force their twisted perceptions on everyone. Just because the experts decide to label it as a crash does not mean you should follow their lead; experts are known for always getting it wrong. In fact, experiments have shown that monkeys throwing darts at a random list of stocks fare much better than Wall Street experts. Hence, take their so-called sage advice with a barrel of salt. Stock Market Crash 2017-reality or all Hype

What To Do After The Stock Market Crashes

The stock market is often seen as a source of uncertainty and fear, but it’s time to change our mindset and view market crashes as opportunities. Instead of worrying about what happens if the stock market crashes, we should hope for it to happen, as it presents us with a unique chance to build wealth.

When the stock market drops significantly, it can be tempting to sell and take the losses, but the smart money takes advantage of the panic and buys quality companies unfairly punished. The thinking is simple; when there is blood in the streets, it’s time to buy. Market crashes are often temporary, and the stock market has always recovered from declines over the long term.

Focus on quality

By purchasing quality companies at a discount during a market crash, investors can lock in high returns over the long term. The key is to stay disciplined and not get caught up in the panic, as the stock market has a way of punishing the masses who sell at the bottom.

It’s time to embrace the idea that market crashes are not something to be feared but instead, they are hidden opportunities waiting to be discovered. By switching our mindset from “what happens if the stock market crashes” to “I wish the stock market will crash”, we can take advantage of the panic and build wealth over the long term.

Change the Angle of observance.

Market crashes are often perceived as financial disasters, causing investors to panic and sell their stocks at a loss. But what if we changed how we looked at market crashes and viewed them as opportunities instead of tragedies?

Crisis investing dictates that all disasters present opportunities for those willing to change their lens and look at the situation differently. By doing so, market crashes can be seen as a chance to buy quality companies at a discount rather than a reason to sell and panic.

For those who got in early and banked some profits as the market trended higher, a market crash can be viewed as a grand opportunity to buy more quality stocks at a lower price. The key is to stay disciplined and not get caught up in the panic, as the stock market has a way of punishing those who sell at the bottom.

Market crashes should not be viewed as financial disasters. Instead, they present us with a unique opportunity to build wealth. By changing our perspective and embracing crisis investing, we can take advantage of the panic and buy quality companies at a discount.

Fear Mongers Thrive on Fear

Market crashes are often seen as financial disasters that lead to panic and selling. But for astute investors, these times of fear and uncertainty represent an opportunity to buy quality companies at a discount.

The masses are easily influenced by fearmongers who are paid to stampede them into selling their stocks at a loss. This is when smart money takes advantage and makes the biggest killing by buying the quality stocks the masses sell.

History has shown that fear-driven selling is nothing new, with the dot-com bubble and the housing bubble being two prime examples of how the masses have been fleeced. However, it’s important to remember that the stock market’s long-term trend is upward, as stated by Warren Buffett himself.

In conclusion, market crashes should not be viewed as financial disasters but as opportunities for astute investors to buy quality companies at a discount. By embracing this perspective, you can position yourself to take advantage of the panic and reap the rewards of a market recovery.

Stock market crashes equate to opportunity.

So, whatever the rubbish they pump out in the news, this pullback will resolve itself sooner than later because the Fed and its allies will either come out with new policies to push more money into the markets or directly invest into the markets. As the money supply is going to keep increasing for the foreseeable future, we are reaching the point where it makes no point to focus on stock market crashes. For in reality, it is only a stock market crash if you bought in right at the top, but if you playing the market from the prior crash, it should not be viewed as a crash but as the next buying opportunity. Market Update, May 31, 2020

Alas, ’tis a common tale that when the Markets suffer a crash, many are apt to panic and despair, seeing their investments dwindle to nought. But lo and behold, ’tis a grand opportunity for those of discerning mind who understand the ways of finance.

The crowd is easily swayed.

The masses, being easily swayed by fearmongers who profit greatly from their unrest, oft sell their holdings at a loss, nay, at a pittance. And verily, the shrewd investor, who hath seen such times before, shall swoop in and purchase quality stocks at a bargain, for they know the truth: that market crashes are but mere hiccups in the ebb and flow of finance and a chance to amass great wealth.

Forsooth, ’tis a guarantee that the stocks shall rise again, as foretold by the great sage Warren Buffett, who hath never been wrong in his predictions. Let not the machinations of central bankers, who increase the money supply to their own gain, fool thee. Though they may seek to disguise their ploy as an aid for the people, the wise investor shall see through their guise and take advantage of the opportunities presented.

Hot money will continue flooding the system and indirectly find its way into the markets. Sol Palha

Bearish sentiment is rising again, which indicates that this short-term correction might be over before it even manages to gain traction.

Alas, good sirs and madams, the market again teeters on the brink of uncertainty! With their pessimistic roars, the bears set upon the masses with unbridled fervour. But fret not, oh ye of unwavering faith!

The wise investor knows that in the shadows of the bear’s dark maw lies an opportunity to make the grandest fortunes. With its boundless wisdom and arsenal of monetary might, the Fed shall hurl all manner of economic provisions towards the market, aiming to restore its bullish vigour. And we, as investors, shall bask in the glow of its resplendence and reap the rewards of our foresight! So let us embrace this correction with arms open wide and look towards the future with steadfast determination!

Hot Money will continue to power the markets.

The Fed has pulled a Houdini, flooded the markets with money and triggered demand destruction in several sectors. Fear is a powerful tool, and the top players have used it with insane precision. It’s terrible news for the crowd but good news for the astute player. Sadly, everyone cannot win regarding life and investing in general.

There is a good chance that the Euro could end up trading not only on par with the dollar but well below the dollar, but that is a discussion for another day. Just remember though, all of this free money comes at a price. What’s the price, you say? Personal freedom; Gestapo-type forces start to emerge when the printing press runs amok. So given this trend, the US and many of the so-called top retirement places will continue to lose rankings. Fiat money and freedom are not a happy couple. Tactical Investor July 2020

The Fed has employed the art of deception and flooded the markets with copious amounts of money, thus unleashing a maelstrom of demand destruction in various sectors. The scent of fear has permeated the air and the savvy players have wielded it like a sharpened blade, bringing turmoil and despair to the masses.

But for the discerning few, this is nothing but a veritable feast. A chance to partake in the riches that are available for the taking. An opportunity to claim their share of the pie. Ah, but alas, not everyone can win in the grand game of life and investment.

It is possible that the Euro may soon be trading in the shadows of the mighty dollar, an occurrence that would be considered an unprecedented victory for some. But all this free money has come at a heavy price, a price that may very well include the loss of personal freedoms. When the printing press runs rampant, the forces of oppression are never far behind. The US and many other so-called havens for retirement may soon find themselves losing their coveted spots as the world changes. For fiat money and freedom are two ships that shall forever sail in opposite directions.

Insights and Observations: June 2023 Market Review

Contrarians, driven by their distinct perspectives, often experience bouts of unease as they diligently monitor their positions, searching for confirmation that the market has reached its lowest point. However, once the sector embarks on a rally, yielding fruitful returns, their apprehension dissipates, giving way to an overwhelming sense of bullishness—a phase characterized by euphoria. This is where the role of mass psychology becomes paramount. Discerning investors must keenly identify this transition and respond accordingly. While achieving a perfect sell at the pinnacle may prove elusive, exiting the market during this phase can bring one remarkably close to it.

Grasping mass psychology stands as an essential pillar within a triumphant trading system. Understanding the collective emotions and behaviours that propel market trends yields invaluable insights for making well-informed investment choices.

Equally significant is the mastery of multiple Technical Analysis (TA) tools while evading their standardized usage. Embracing the notion that each tool offers subjective interpretations empowers traders to leverage their adaptability and versatility. This fosters a nuanced comprehension of market dynamics and enhances the efficacy of TA in decision-making.

Moreover, the virtues of patience and discipline must be nurtured by traders. Recognizing that certain periods may necessitate months of waiting before entering a position is paramount. Nonetheless, exercising patience can yield substantial rewards in a matter of weeks. The ability to withstand the waiting game while adhering to a disciplined approach remains pivotal for long-term success in trading.

In summary, unravelling the stages of contrarian behaviour, comprehending mass psychology, employing TA tools subjectively, and fostering patience and discipline collectively establish a solid groundwork for attaining triumph in the ever-evolving realm of trading.

Unveiling the Path to Achieving Stock Market Success

Grasp the Power of Mass Psychology: Gain an advantage by comprehending the collective sentiment that drives market behaviour. Harness the insights into how the majority thinks.
Embrace Contrarian Investing: Embrace a distinct perspective and seize opportunities that others shy away from. Learn to identify undervalued assets poised for potential growth.
Anticipate Emerging Trends: Stay ahead of the curve by identifying sectors on the brink of breakthroughs. Recognize emerging trends before they become mainstream.
Pinpoint Promising Stocks: Discover the methodology for identifying robust stocks within these promising sectors. Uncover the criteria that distinguish the winners from the rest.
Master the Fundamentals of Technical Analysis (TA): Enhance your decision-making process with technical indicators. Fine-tune your entry and exit points using the powerful tool of TA.

Remember, while no magical formula guarantees success, integrating and applying these strategies significantly increases your chances of achieving remarkable results.

Final thoughts

What happens if the stock market crashes? A market crash should not be feared but instead viewed as an opportunity to buy quality stocks at a discounted price. By taking advantage of market dips, investors can potentially capture higher returns over the long term as the market recovers.

Originally published on August 2, 2017, this article has undergone multiple updates over the years, with the most recent update in June 2023.