Three Factors or Events that Affect the Stock Market

Automatic TRANSCRIPT

Nine hundred ninety nine when the market overheated bobble number one in Alan Greenspan was late to the game of raising rates. Finally, smoking the market and creating bubble number two in the real estate market. The credit crisis ensued killing the market in two thousand and eight we're now in bubble number three. In all likelihood this market needs to go lower reverting back to the mean the historical average would take the SNP down to a stomach churning drop of thirty eight percent. So it can go higher long term. If you have the time. This would take you back to September twenty thirteen wiping out five years of gains and the last third scenario where stocks are discounted for the prospect of a recession in the coming two years fears the most logical right now recessions typically reduce corporate earnings by an average of twenty to thirty percent such that a dropped from today's level would give the SNP downside of about thirty percent. If you're in this retirement, red zone of two to ten years for retirement, a falling market in the last few years before retirement or in your first few years into it cannibalize is your nest egg due to retirement killer, one sequence rest the secrets of when you take losses. Relative to

Coming up next