If you are greedy, fear a crash.
Investors have enjoyed an amazing run. Stock prices are up by nearly a third over the past 18 months and seem to be hitting new record highs daily. And the run-up has been almost a straight line, with stock price volatility—the ups and downs in prices—the lowest it has ever been.
But if you are an investor, soak all of this in, because it will soon be nothing but a memory. The stock market is due for a significant correction—defined as a greater than 10% decline in stock prices—and stock returns in the next several years will be very pedestrian if they increase at all.
It’s not that the stock market is a bubble ready to burst. Bubbles are created by speculation when investors buy a stock simply because its price has risen strongly in the recent past, and therefore conclude it will rise strongly in the foreseeable future.
Today I want to talk about a possible market crash which may happen in 2018, just a personal opinion. As Dow hit 25k and bitcoin price is increasing again, people are calling it a bubble. The worst thing about these stages is that they can burst anytime and goes down to nothing in a day. History can repeat itself like 1987 when the stock market went down to 22% in a single day.I'm having this doubt after trump commented about it and even other big economist are giving hint about it. I'll tell about this later as i don't have enough information about it right now.
see ya