What happens when the stock market crashes? Nothing Serious

What happens when the stock market crashes? Time To Buy

The Smart money backs the truck up and buys everything:

Updated July 2023

We’ll start by sharing real examples of our past actions and statements. Learning from history’s patterns can help us avoid common pitfalls. We’ll then present our latest views for 2023, keeping it simple yet insightful. Remember, history repeats itself, but with wisdom, we can navigate wisely.

Fear leads to most investors’ demise when it comes to the financial markets. Instead of panicking, try to spend more time understanding how to protect yourself from market downturns. Markets don’t just crash suddenly, even though that’s what the jackasses masquerading as experts would have you believe. Markets are driven by emotion; hence, if you identify the emotion driving the markets, you will be able to determine the trend. Bull markets usually end when the masses are jumping for joy and start when the masses are panicking. Therefore the best time to buy is when the masses are throwing the baby out with the bathwater, as was the case during the financial crisis of 2008, when Trump was declared the winner and during the COVID crash of 2020

Doomsday Tunes: fear-mongers and Stock Market Crashes

Throughout history, dating back to the Tulip Bubble, a consistent pattern emerges: so-called experts always assert their certainty about the impending market crash. Ironically, these same individuals were clueless about when the market would experience growth, yet now they claim to possess profound knowledge of when the stock market will inevitably collapse. Buried within this rhetoric is a crucial observation that often escapes the masses’ attention; if people had paid heed to these deceptive figures, they would have faced financial ruin numerous times.

It’s essential to remember that even a broken clock can be right twice a day, depending on whether you follow standard or military time. Therefore, even if these experts eventually make accurate predictions, their flawed advice would have already caused significant harm long before.

What happens when the stock market crashes: Embrace Opportunity or Face A Slap.

Nothing silly should transpire if you are astute investors. A stock market crash should be viewed as a buying opportunity if the trend is up and vice versa. Don’t listen to the talking heads on CNBC; if they had any idea of where the markets were headed, they would be talking far less and investing a lot more. Instead, they make their money by selling the public crap advice they would not follow even if their lives depended on it.

Instead of giving in to panic, buy when the masses panic and sell when they are euphoric. If you can follow that simple strategy, you have eliminated a significant portion of the risk of failure factor from the equation. Next, take time to master the basic principles of mass psychology, which, if utilised correctly, will enable you to fine-tune your ability to spot market-topping and bottoming action. Lastly, take a look at Plato’s allegory of the cave. It provides some startling information on to inner workings of the mass mindset.

Stock Market Outlook Update

Nothing has changed since we first published this article. The masses still react similarly. Leap first, then look later. They are wired to act this way and will continue to fulfil their primary purpose of being cannon fodder for the elite players.

Pay attention to what they do and how they react; if they panic, it’s time to buy, and if they are jumping with joy, it’s time for the bailout. Stock market crash 2018, Stock Market Crash 2017 or stock market Crash 2016, the theme is always the same; the experts rant and rave, but nothing of value comes out. Their advice is on par with rubbish; do yourself a favour, switch off the boob tube and improve your knowledge on mass psychology.

What Happens when the stock market crashes Update Aug 2020

The above video states what happens, the masses panic and dump everything, and Tactical Investors jump in and buy, and so continues the sorrowful story of misery and suffering. The masses never learn they talk big, but when the time to act comes, they chicken out and flee for the hills. Look at how we reacted during that time frame.

Shortly after this stampeded the markets bottomed. Mass psychology in real-time. We hope your chaps kept a trading journal as suggested, for this crash will be remembered as one of the biggest B.S crashes of all times. Or if we put in terms of Aesop’s fables. This is a turbocharged version of the boy that cried wolf one too many times. Market Update May 2, 2020

The Crowd begs for a Market Opportunity, and when it comes……

They panic, stating that it would make more sense to wait for a better price. When the better price arrives, they say well, things don’t look so good, right now because so and so is saying this and the other brain surgeon is saying that. Let’s just wait for the dust to settle, and the only thing that settles in the dust is the poor chap who kept waiting for a better opportunity. Opportunity knocks rarely, and it does not take kindly to being ignored.

This is the one reason the masses are destined to repeat history forever and ever Amen. Nothing will ever change; the equation must balance. For the few to win, many must lose; you are welcome to try to alter that equation. No one can change you; only you can change the way you think or act. Counsel with the wisest of men and women is not going to help shape a silly man or woman who has decided that he/she knows what’s best without even studying oneself and the mass mindset. Market Update May 14, 2020

The coronavirus crash was a once-in-a-lifetime Market Opportunity.

Markets never trend in a straight line; they zig zag upwards. While the masses panicked, Tactical Investors jumped in, backed the truck, and loaded up on top-quality shares. Now the markets are letting out some steam again, and the masses, as usual, are overreacting. The only way to change the outcome is by doing something new. If you follow the mass mindset, it’s groundhogs day every day, and nothing will ever change. If you alter the angle of perception, you can alter the outcome; start by viewing market crashes as buying opportunities.

Over the years, we have published so many articles on how crashes are viewed through a prism of negativity when they should be embraced like a lost love. If you are interested, head over to our website and type the word crash or stock market crash in the search box to bring up many of these articles.

The masses are still in disarray; regardless of the intensity, every pullback should be embraced like a lost love. Buy the fear and sell the joy; that’s the perfect recipe for long-term financial success in the markets.

Ignoring the Warning Signs: A Look at Past Market Crashes

July 2023 update

Despite the striking resemblance to past financial crises like the dot-com bubble, the housing bubble, and the 1973-1974 market pattern, many seem to be turning a blind eye. This is largely due to the prevailing belief that the current situation is unique. This echoes the sentiments expressed during the housing market crash. In truth, the markets peaked in 2007 and saw a significant recovery in 2008, a pattern that mirrors current events. The markets hit rock bottom in 2009, leaving many investors who had joined during the rally phase shell-shocked and hesitant to re-enter the market for years.

What Happens When the Stock Market Crashes: A Look at Current Investment Trends

The current number of market participants is on par with, and soon to surpass, the numbers seen in 2008, with over 61% of people actively investing. Surprisingly, a large segment of those aged 85 and above are almost fully invested. This week’s bullish reading has finally hit 50, marking five consecutive weeks of bullish readings exceeding the historical average of 38.5, after being below this mark for 18 months.

The Sriracha Shortage: A Lesson in Market Dynamics

An interesting case study is the ongoing sriracha hot chili sauce shortage, which has driven prices up to over $70 per bottle on the secondary market. This year-long shortage has resulted in high demand for the popular sauce, with resellers capitalizing on the situation by selling bottles at even higher prices. This situation underscores the strong consumer demand for sriracha and the extended duration of the shortage.

The Danger of Misclassifying Desires as Needs

The collective mindset often tricks us into mistaking wants for needs. Once this occurs, price becomes a secondary concern, until financial resources are depleted. This mentality is evident in the markets, where the belief that AI will transform the world and that investing in the markets is a guaranteed way to profit has led people to invest without considering the price, confident that it will keep rising. This is reminiscent of one of the first recorded bubbles, the tulip mania.

The Risk of Falling Prey to the “It’s Different Now” Theory

This mindset lays the groundwork for a new way of thinking, making it easier to succumb to the “it’s different now” theory. It also amplifies feelings of elation, which will inevitably give way to intense fear and panic when the market takes a downturn. While history may not exactly repeat itself, it often comes uncomfortably close. It’s highly likely that the AI sector will see a sharp drop, while cyclical stocks and key commodities experience higher lows during the next market correction.

Advice for Low to Medium-Risk Investors

For those with a low to medium risk tolerance, it’s recommended to proactively downsize a significant portion of your long positions in stocks that are currently or have previously been part of the AI investment craze. As bullish levels continue to rise, the likelihood of hitting 55 becomes clear, which inherently suggests a significant increase in bearish readings when the market sentiment changes. When bearish readings begin to rise, it’s time to act.

Originally published on March 3, 2017, and consistently updated over the years, with the latest update in March 2023.