Updated Aug 2020
What happens when the stock market crashes?
The Smart money backs the truck up and buys everything:
Fear is what leads to the demise of most investors 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 in a position 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 and when Trump was declared the winner.
This is a video article extracted from this article The scary Stock market crash that experts are overhyping. A small excerpt is provided below
If you look at history going all the way back to the Tulip bubble one theme rings out loudly; the experts always claim to know exactly when the market is going to crash. Interestingly these same jackasses had no idea as to when the market would take off, but suddenly they have become experts regarding when the stock market should and must crash. Hidden in this rhetoric is a hidden theme that the masses in most cases fail to spot otherwise, these snake oil salesman would have been out of business long ago; these chaps were wrong so many times that had you listened to them you would have bankrupted yourself several times over.
Note that even a broken clock is correct twice a day, 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 a long time ago
What happens when the stock market crashes: fear-mongers start to sing songs of doom
What happens when the stock market crashes; opportunity embraces you or slaps you in the face
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 that they would not follow even if their lives depended on it.
Some sage advice
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 over 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 in the same manner, leap first then look later. They are wired act this way and hence will continue to fulfil their primary purpose of being nothing but cannon fodder for the elite players.
Pay attention to what they do and how they react; if they panic, then it’s time to buy, and if they are jumping with joy, then it’s time to the bailout. Stock market crash 2018, Stock Market Crash 2017 or stock market crash 2016, the theme is always the same; the expert’s rant and rave but nothing of value come out. Their advice is on par with rubbish; do yourself a favour, switch off the boob tube and improve your knowledge on the topic of 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 that has decided that he/she knows what’s best without even taking the time to study oneself and the mass mindset. Market Update May 14, 2020
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 and 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 in fact, they should be embraced like a lost love. If you are interested, then head over to our website and just type the word crash or stock market crash in the search box to bring up a plethora of these articles.
The masses are still in a state of disarray, and therefore, 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.
Other Stories of Interest
Another Name for Fake News Is Misinformation (March 20)