Next Stock Market Crash Prediction: Unveiling Insights and Impacts

The Next Stock Market Crash Prediction

Updated September 2023

This article examines the prediction of the “next stock market crash” through a combination of current analysis and historical perspectives. For reference, dates will be included next to the subtitles or headings related to historical events. From a current perspective, it emphasizes the futility of expending energy on such predictions or dwelling on when the stock market will crash. Instead, the focus should be on recognizing the opportunities that arise when a market crash occurs.

The historical perspective provides tangible examples of our actions and reactions in past market crashes. By combining mass psychology, sentiment analysis, and a touch of technical analysis, one can significantly enhance their chances of long-term success.

Sentiment Dynamics: Mass Psychology Assumes Control

Sept 2023 Update

As sentiment patterns normalize, Mass Psychology becomes significantly more effective. Over the past 18 months, these patterns have been far from typical, underscoring the temporary nature of any deviation from the mean. In the last seven weeks, bullish sentiment has surged, peaking at 54.5, which is at the upper boundary of our projected range (50-55). Consequently, bearish readings are expected to rise to the 50-55 range and possibly higher, maintaining the principle of equilibrium.

Our close monitoring of mass psychology places sentiment as a critical component. Thus, should bullish sentiment surpasses 55, we will promptly suspend all our activities, with further details in the General Market Commentary section.

Sentiment readings have now returned to the mean. Although they are not the sole component of Mass Psychology, they play an integral role as they are integrated into several of our tools. This implies that Mass Psychology will now take the lead. Major players have successfully convinced enough technical analysts and the crowd to abandon caution and vigorously pursue the next significant trend at any cost. Consequently, technical analysis and many fundamental ratios will not be as effective as in the past 12-16 months.

The markets are anticipated to enter a phase of dissonance or chaotic trading. It’s crucial to recall that a substantial decline usually follows when a rally, such as the one observed in the Nasdaq and AI stocks, reaches its zenith. Thus, exercising caution is prudent. However, there’s an important exception in this scenario. Given the distinctive nature of this concentrated rally, it’s anticipated that only the overheated sectors and indices will face significant impacts. Sectors outside the high-tech sector and indices like the Russell 2000, SP400, and to a lesser extent, the Dow Jones, may experience milder declines.

Market Crashes: Seizing Long-Term Buying Opportunities

The market crash scenario involves the naysayers and pessimistic experts losing their credibility first or causing their clients to suffer. However, a more relevant question is when the market will crash. Should we panic in the face of a stock market crash? It’s important to note that a market crash often refers to latecomers entering the bull market. From a long-term perspective, a stock market crash presents a buying opportunity.

Mass psychology clearly states that market crashes are long-term buying opportunities, with one critical condition: they become opportunities when the masses panic and bearish sentiment reaches extreme levels. However, if you have the courage, you can enter the market after the initial wave of strong selling subsides. If the pressure is too much, waiting for bearish sentiment readings to surge to the 50-55 range before considering entry is best. The 2020 Covid crash and the prolonged correction in 2022 are excellent examples where buying during times of mass fear would have yielded substantial returns.

So, will the stock market crash, and if so, when? According to various experts, the market is speculated to crash today or tomorrow, or it may have already done so. Relying on such unreliable advice is not advisable.

Article of Interest: Copper News: Playing the Shortage Story

Anticipating the Next Stock Market Downturn: Separating Fact from Fiction

Steering through market volatility can prove quite a challenge, especially for those new to the stock market. The uncertainty and rapid fluctuations often trigger fear, an emotion commonly experienced by many investors. However, some of the most profitable investment opportunities arise during these unsettling times.

Embracing the Wisdom of Warren Buffett: Be Bold When Others Are Fearful

Renowned billionaire investor Warren Buffett once imparted his invaluable insights, highlighting the significance of exhibiting boldness when others are filled with fear. This statement underscores the importance of capitalizing on market corrections when stocks are undervalued and trading at discounted prices. Savvy investors who maintain composure and confidence can seize the opportunity to acquire high-quality stocks at reduced costs, potentially yielding substantial long-term gains.

Investing amid market apprehension necessitates adopting a long-term perspective and the ability to hold investments during periods of volatility. Recognizing that market corrections are an inherent part of the market cycle, often followed by periods of growth, is crucial. Historical data showcases the stock market’s consistent delivery of impressive returns over the long haul, even accounting for these periodic corrections.

Disciplined Investment Strategies: Emphasizing Quality and Diversification

Investing during market corrections encompasses more than just buying low and selling high; it also involves focusing on quality. During times of market fear, investors often offload high-quality stocks alongside lower-quality ones, presenting an opportunity to acquire quality stocks at discounted prices. These quality stocks boast a proven track record of delivering strong returns and exhibit less susceptibility to market volatility than their lower-quality counterparts.

Maintaining a diversified portfolio that includes a blend of stocks, bonds, and other investments is vital for managing risk and capitalizing on market opportunities. This approach enables investors to harness stock market growth while mitigating risk exposure.

Unveiling Stock Market Mastery: The Winning Strategy Revealed

Grasp the Power of Mass Psychology: Gain a competitive edge by understanding the collective sentiment that propels market behaviour. Tap into profound insights into the prevailing mindset of the majority.
Embrace Contrarian Investing: Adopt a unique perspective and seize opportunities others tend to avoid. Learn to identify undervalued assets primed for potential growth.
Anticipate Emerging Trends: Stay ahead of the curve by recognizing sectors on the verge of breakthroughs. Identify emerging trends before they enter the mainstream.
Pinpoint Promising Stocks: Uncover the methodology for identifying resilient stocks within these promising sectors. Discern the criteria that set the winners apart 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.

Exciting read: Economy: Exploring Different Economic Systems

Untimely Views on the Next Stock Market Crash Prediction

March 2017

Jim Rogers, one of the co-founders of the Quantum Fund with George Soros, is becoming increasingly bearish as he feels that the financial system is due for a shock. In Fact, he went on record to state that the Fed does not know what it is doing on Bloomberg TV. “A $68 trillion ‘Biblical’ collapse is poised to wipe out millions of Americans”, said Jim Rogers. Should the masses panic and listen to these statements, we will answer that shortly. For now, let’s look at what other experts are stating.

Is the Market Poised For A Crash?

The average trader often has a distorted perception of the markets and the world. They are prone to manipulating the definitions of risk and opportunity to align with their current perspective. When prices are low, they believe it’s the wrong time to buy, anticipating further declines. Conversely, when prices are soaring, they see it as the right time to buy, expecting even higher gains. The concept of risk versus reward is disregarded; they claim to seek low-risk opportunities, but their actions prove otherwise. No bull market has ever concluded in an atmosphere of fear; they end when the crowd is euphoric.

It is crucial to comprehend the distinction between a battle and a war. In a war, one can lose multiple battles and still emerge victorious or win many battles and still lose overall. The key lies in minimizing the damage incurred rather than focusing solely on winning or losing individual battles. Minimizing the impact of losses makes it possible to sustain consecutive losses, retreat, regroup, and ultimately come back to secure victory in the larger war.

Stay Ahead of the Curve: Updated Outlook on the Stock Market Crash

March 2020

Considering the significant intensity of the current market sell-off, it is likely that a rally will follow. However, based on historical patterns, the initial rally attempt often fails. If we trust historical trends, this failed rally could be followed by another downward wave, potentially leading the market to reach new lows on an intraday basis. If this pattern proves strong enough, it may be suitable to consider a short-term put play or an open-up strangle position, which involves opening both a call and put option with different strike prices.

Maintaining a trading journal to track and analyze your trades is essential. The most opportune time to take notes and learn from your experiences is when the highly volatile market and opportunities arise amidst the chaos.

It is intriguing to observe how the hysteria surrounding the coronavirus can dissipate swiftly once the objective of lowering interest rates and approving multi-billion dollar bailouts is achieved. Data on the coronavirus suggests that the high mortality rate primarily affects older individuals, and upon further examination, it may be discovered that these individuals already had underlying health conditions.

The masses are far from bullish; in fact, they are downright panicking, and therefore, this blood-curling pullback has to be embraced with enthusiasm. The stronger the deviation, the better the opportunity. Six months from the crowd will regret having through the baby out with the bathwater. March 12, 2020

Compelling Piece Worth Delving Into: The Stock Market Forecast For Next 3 Months: Buckle Up

New Stock Market Crash Update: Key Insights Unveiled

Now is an excellent time to sit back and dwell on how you felt back in March when the markets were crashing. At the Tactical Investor, we repeatedly warned our subscribers that this was a manufactured crisis and that the markets would recover. Fast forward, that appears to have come to pass. We are roughly 3K from Dow 30K, while the Nasdaq has already soared to new highs. In the end crowd always losses; remember that the next time the experts state that markets could crash and burn, the only that goes up in smoke is the egos of these shady experts.

This was the smallest bear market in history. It was killed before it could even gather traction. As the trend is bullish, the plan is simple. Embrace all pullbacks ranging from mild to wild, like a lost love.

When will the Market Crash: Feb 2019 Update

The above two gauges show that the masses are far from happy. Every sharp pullback should be embraced until they embrace this bull market; the more substantial the deviation, the better the opportunity.

Monkey Business Prevails: Primate Prowess Outshines Experts

In 2010, a Russian circus monkey named Lusha picked an investment portfolio that “outperformed 94% of the country’s investment funds” to great acclaim. Given 30 blocks, each representing a different company, and asked, “Where would you like to invest your money this year?” the chimp picked out eight blocks. An editor from a Russian finance magazine commented that Lusha “bought successfully, and her portfolio grew almost three times.” He suggested that “financial whizz-kids” be “sent to the circus” instead of rewarded with large bonuses.

Dr Doom: The Relentless Pessimist

March 2017

Here’s Marc Faber’s next stock market crash prediction. Remember, if you follow this dude’s advice, you better take it with a bottle of whisky and a jar of salt. He feels that the markets are destined to crash. If you had listened to chap, you would have been blown out of the markets long ago. Jim Rogers has made some pretty good calls in the past; Mark Faber, on the other hand, very few; treat him as a source of entertainment. He went on CNBC recently and made the following claims.

“I believe the time will come when the weakness of the euro becomes uncomfortable for the Europeans, specifically the Germans, and then there will be a reverse,” Faber said. “And the dollar will go down, and the money that flowed into U.S. assets will flow out of U.S. assets, and so the market is more likely to go down.” CNBC

Carl Icahn’s Insight into the Next Stock Market Crash

Carl Icahn, another well-recognised financial expert, recently made the following comment

“The public is walking into a trap again as they did in 2007.”

Many experts think the stock market is overvalued by at least 50%. Moreover, they feel we are about to face a crash of historic proportions.

Andrew Smithers, the chairman of Smithers and Co., stated

“U.S. stocks are now about 80 per cent overvalued,” he backs this assertion with the claim that the current conditions match those of 1929 and 1999.

Kendrick Wakeman of FinMason states

“If you look at the market historically, we have had, on average, a crash about every eight to 10 years, and essentially the average loss is about 42 per cent,”

The Redundancy of the Stock Market Crash Topic

The focus should be on what to do when the stock market crashes. One day it will crash, and will you react in the same way, or will you change course? On the other hand, the Tactical Investor has repeatedly gone on record to state the experts have been wrong since 2013. The markets will crash one day, but that time is not upon us yet.

Mark Mobius’ Optimistic Perspective on Market Crashes

We agree with this stance and this is something we at the Tactical Investor have been doing since our inception. He recently appeared on CNBC and made the following comments on Russia
“Russia is very cheap,” the storied emerging markets investor told CNBC’s “Street Signs.” “The problem is the sanctions. Many of us cannot invest because of the sanctions. Once sanctions are released, then the market is going to do very well.”

Sir John Templeton, one of the most significant Global Stock Pickers of all time, views Stock Market Crashes

“If you want to have a better performance than the crowd, you must do things differently from the crowd.”
“Invest at the point of maximum pessimism.
“Bull markets are born on pessimism, grown on scepticism, mature on optimism and die on euphoria.”

The Demise of Free Market Forces: A Paradigm Shift

Forget the Market Crash Angle and focus on the Opportunity Factor. Sol Palha

Free market forces ceased to exist a long time ago. We now have the illusion that the markets are free, but they are not; all the data is being manipulated. Fear is the emotion the top players use to stampede the crowd and fleece them of their hard-earned money.

The top players never work hard. They live off your sweat. Understand the game, and you can use this to your advantage. Stock Market Crash of 2017 or the COVID crash of 2020: the story is the same—only the packaging changes. Please don’t follow the masses. They have an uncanny knack for doing the wrong thing at precisely the right time.

Tactical Investor Insights: A Viewpoint on Market Crashes

At the Tactical Investor, our motto is simple; the trend is your friend. Everything else is your foe. decide on a course of action.

It may sound counterintuitive, but the smartest thing to do during a stock market crash is to stay calm and avoid following the masses. Humans tend to rely on our instincts and emotions, leading to poor decision-making in the financial markets. It’s important to remember that the Crowd is always on the wrong side of the market. And blindly following their actions can result in significant losses.

At the Tactical Investor, we believe in the power of mass psychology and technical analysis. By analyzing market trends and understanding the behaviour of the masses, we can make informed investment decisions that are less likely to be influenced by emotions.

It’s important to remember that history tends to repeat itself. Past market crashes are a testament to this. Yet, the masses often fail to learn from their mistakes and continue to make the same emotional decisions that lead to losses.

You must control your emotions and think logically to succeed in the financial market. Panic and joy are unreliable indicators of market performance. Basing your decisions solely on these emotions is a recipe for disaster.

During a market crash, staying calm and making informed decisions based on analysis and logic rather than emotions is essential. Avoid following the masses, and remember that the trend is your friend. Doing so can increase your chances of success in the financial markets.

Next Stock Market Crash Prediction: Final Thoughts

In conclusion, successfully navigating market corrections requires discipline, patience, and a long-term investment mindset. By investing in high-quality stocks during times of fear, investors can leverage discounted prices and benefit from the stock market’s long-term growth potential.

Market corrections are a natural part of the market cycle, providing opportunities to acquire quality stocks at lower prices. It is important to note that investing in the stock market carries inherent risks, and seeking professional financial advice before making investment decisions is always recommended. While investing during market corrections can lead to significant long-term gains, it is crucial to understand the risks involved and maintain a long-term focus on investment strategies.

Originally published on April 17, 2017, this article has been continuously updated over the years, with the latest update in June 2023.

FAQ on Next Stock Market Crash Prediction

Q: What is the main idea behind the stock market crash prediction?
A: The main idea is that market crashes are often seen as buying opportunities in the long term, and they occur when the masses panic, and bearish sentiment reaches extreme levels.

Q: When is the best time to enter the market during a crash?
A: One can enter the market after the initial wave of strong selling subsides, or if the pressure is too much, it’s advisable to wait for bearish sentiment readings to surge to the 50-55 range before considering entry.

Q: Are market crashes a cause for panic?
A: No, market crashes should not be a cause for panic. They often present buying opportunities, especially when the masses are fearful.

Q: Can market crashes be predicted accurately?
A: The article suggests that relying on specific predictions about when a market crash will occur is unreliable and not advisable.

Q: What are some experts’ predictions regarding the next stock market crash?

A: Jim Rogers, Marc Faber, Carl Icahn, Andrew Smithers, and Kendrick Wakeman have made predictions or expressed concerns about an impending market crash. However, the article advises caution in following their advice and suggests treating some predictions as entertainment.

Q: How should one approach the stock market during a crash?
A: It is recommended to focus on what to do when the stock market crashes rather than trying to predict when it will happen. The article emphasizes the importance of staying calm, avoiding panic, and making informed decisions based on analysis and logic rather than emotions.

Q: What is the Tactical Investor’s viewpoint on market crashes?
A: The Tactical Investor believes in the power of mass psychology and technical analysis. They advocate for staying calm, avoiding following the masses, and making informed investment decisions based on research and logic during a market crash.

Q: How can one increase their chances of success during a market crash?
A: By controlling emotions, thinking logically, and basing decisions on analysis and market trends rather than emotions like panic or joy, individuals can increase their chances of success during a market crash.