Sorry, but the Mother of All Crashes Is Coming and It Won’t Be Fun
History ain’t changed.
In the late summer of 1929, a well-known investor suddenly decided to sell all his stocks.
The markets were spiking, but after receiving stock tips from a young shoeshine boy, the investor decided to keep his money.
“If the shoeshine boy is giving stock advice,” he thought, “then it’s time to get out of the market.”
The investor realized the market had become too popular to do well, and thanks to that intuition, avoided the crisis.
While thousands of people were brought to their knees when the big crash happened, he kept his wealth intact. And when things got disastrous, he was able to buy several assets at rock bottom, increasing his wealth tenfold.
Today, almost a century later, as the echoes of 1929 grow louder, that investor’s behavior becomes, if not a model to follow, at least one to keep in mind.
For months now, several finance heavyweights have been suggesting a coming market correction.
High valuations, uncertainty about pandemic trends, and other weak statistics do not favor a rosy outlook.
Worse, a mix of excessive debt, near-zero interest rates, and wild speculation appears to be…
