What average investors [ $50,000 to $250,000 usd in the stock market ] mostly don’t realize is that about 80% of the advice which is given to you as the ‘little guy’ investor is designed to make money for the guy who is giving the investment advice. Most brokers advise their customers to buy thus and such and they get a commission on that transaction, whether the stock soars or tanks. Small companies rise and fall like the daily tides in a global market beset by constant graft, corruption, currency manipulation, and the incessant tinkering with stock markets that governments attempt to do, which only makes matters worse in the end. The commentary of Dr. Marc Faber comes as a refreshing dose of pragmatic, experienced wisdom and common sense which stands out in the sea of self-centered profiteering which seems to run most contemporary investment advisories. Dr. Faber successfully predicted the now famous 1987 US stock market rout. What he sees happening today in 2016 is not dissimilar as a prelude of events to come.
It is now very difficult to ascertain REAL market conditions, as opposed to murky smoke and mirror tactics initiated by governments designed artificially to prop them up, year in year out. Blunt truth tellers are rare in the business of assessing and forecasting where the world economy might go. Joel Skousen is one of the few men who will fearlessly tell his subscribers the truth, ugly as it may be. But today I’d like to focus on market analyst Dr. Marc Faber, who has been making specific warnings to investors since last fall about a major correction or collapse of inter-connected world markets.
The impetus for this post was an event which took place early this morning, about 2-3 am pacific time in the US. When the Chinese CSI stock market opened at 9:30, traders immediately began dumping their stocks and selling off. 29 minutes later at about 10 am, the Chinese closed the market entirely, and halted trading. Had the Chinese not halted trading, we would be now facing a worldwide market crisis of epic proportions this very afternoon. As it is, this morning’s drop of 7% in China’s stock market has caused a drastic cascading effect around the world in nearly every market exchange. Dr. Faber had begun warning investors about this very real possibility last fall.
My own opinion is that today’s events might be likened to the moment the Titanic first hit the iceberg. The damage was there, but it was beneath the surface, not yet visible. Investors have two choices: remain on the ship, believing that it was just a small bump, and that everything will be fine – or listen to the sound of the water gushing into the floors below deck and get off the sinking ship before it’s too late. Today’s events are the sound of that initial “crunch” of the ship hitting that iceberg. Investors are forewarned.
Be willing to take the right actions necessary to protect your nest egg. And if that means getting out of the US stock market, take that action. Sometimes the very smartest thing an investor can do is just park their money for awhile. It’s worth noting that a considerable amount of money has flowed into gold, silver and the Yen today – worth considering. In one of his reports Mr. Faber stated that gold could double in the next few years, during all of this market wash-out.
Below are collected reports:
Tags: world economy, Chinese stock market, US stock market, value of the yuan, value of the US dollar, investing, world economic collapse 2016, stock market correction 2016, Marc Faber, Chinese credit bubble, global recession 2016