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The 50% Drop is Coming in 2016

Published 02/27/2015, 06:21 AM
Updated 07/09/2023, 06:32 AM

Nowadays doomsayer and bears are forecasting this crazy thing, but I fully doubt that. That is always so funny to read about the people are crying about the market when the European indices just in 2015 are around at 10% profit. 50% drop really? Why only 50%, why not 90%? Frankly this 50% market crash prediction came early this year, is that like the countdown from the Mayan Calendar?


I think the mainstream media love these gurus since time by time they allow them to write and publish their doomsday forecasts. They might have the same article in a time capsule, and just regurgitate it every six months or so. But I am fully convinced these forecasters have no more idea what will happen in the future than anyone else.


I remember well in the last five years during one of the best bullish rally they forecasted the same along the way. It was going to be 2013 but then 2014 happened, and then... I am afraid these guys never predicted the crash in 2008, but have predicted 20 times since 2010 though. How many times and how many years will we hear that the sky is falling? Sooner or later he will be right, the broken clock is right twice a day, but they haven't been right since 2010. They are the boys who cries the wolf.


If you listened to these gurus over the past few years you would have missed the biggest stock market appreciation in history. They are the best contrarian indicator. The total return of the S&P 500 over the last 10 years is 7.7%. If one is truly a long term investor then another 2008 style "crash" is not a doomsday event, it is a buying opportunity.

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The Dow Jones 30 is in a record territory closed steadily over the last year record level of 18.060. The rally started from the lowest dip point at 17.160 and now the Dow is over 18.200. So what a bear market they are talking about? We are expecting more gains and still this year for sure we will see 18.500 levels later on.

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