facebookWith the market at a high point now, looks like the bubble may come down soon? - Seedly

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Anonymous

26 Jan 2021

Random

With the market at a high point now, looks like the bubble may come down soon?

Any thoughts on the market bubble bursting soon?

Discussion (11)

What are your thoughts?

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It is impossible for anyone, even Warren Buffett, to accurately predict whether the market is going to crash soon! If we all know when the market is going to crash, then the 'risk of market crashing' is no longer risk.

I do understand your concern as I used to be fearful about market crashes as well. But I soon understand that instead of being worried about whether the market is going to crash, perhaps I should focus more on learning how to pick the fundamentally strong stocks to buy and learning about how to protect myself in the stock market by managing the risk. Because with every return you get, it comes with risks. Avoiding the risk totally would mean zero return. So I would say if you do proper research on the stocks you are intending to invest in and buy them at an appropriate price, then you should generally be doing fine in the market. Even if the stock market crashes, you know you just have to wait it out for the market to recover because your portfolio is already made up of good companies.

Happy investing! :)

Chris

31 Jan 2021

Owner and Writer at Tortoisemoney.com

Well, it may or may not. Truth is, it is pretty hard to time a market crash. Even if the conditions are ripe for a crash, it might take months or even years for the market to truly crash. From 2010 to 2020, there were always cries of the market crash coming soon. But alas, if you had sat out all those years, you would have missed out on one of the most insane bull runs of our time.

Instead of focusing on when the market is crashing, just focus on choosing strong companies for your portfolio, and removing the weak ones. When the crash comes, add more to your positions and hold through the swings.

There tends to be a bullish bias in the market over the long run. People are always afraid when it will crash. It never moves up in a straight line, it will have pullbacks here and there but a bear market (defined as a drop 20% or more) only comes an average once every 5 years. since 2019 we alr have had 2 bear markets and just by statistics we have overrun our quota!!

However, that's' not to say the market can't crash tmr or next week. Nobody can predict the future consistently and we will nvr know when it will come for certain.

It tends to come at extreme greed and over confidence and the catalyst tend to be smth no one was talking about. Just like early 2020, people were worried by US China tension, HK unrest, BREXIT etc... markets however, tend to alr be priced in for known events. No one saw a virus creating chaos and that's when a true catalyst arrived.

"The biggest risk to the market is the one nobody is talking about."

The stock market is a leading indicator of the economy. It does not represent the economy. Stock market usually moves 3-9months ahead of the economy, that's why it's often said that it prices in the past, present and future.

The fact that the stock market has always been on an uptrend when viewed on a long term basis sugges...

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