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All the sound bites I'm reading; there is a 40% correction on the horizon?
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in the last 35 years, there have only been two 40% drops. They are not common.
There is always a 40% crash (not correction as that is 10-19%) on the horizon. They are always coming. You just don't know when. It could be tomorrow, next week, month, year or decade or even two decades.
What is more likely to be coming in the short term is a more typical crash. The type you see every 3-5 years. A 20-25% level. Again, they are always coming. You just don't know when.
Sites and people that call crashes tend to do so every year. Sooner or later they will be right. Just like a stopped clock is correct twice a day.
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why would someone invest today when tomorrow the same investment might be a fraction of today price?
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Because you don't know what is going to happen tomorrow and growth periods outnumber negative.
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But then why not hold out for the crash? Same stock cheaper price., or am I missing something?
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When is that 20% crash coming?
Will it be after a 5% gain? Will it be after a 10% gain? Will it be after a 40% gain?
How will you know when to reinvest? Crashes occur over a period. Not one moment in time. That "crash" could be over a week or it could be over 6 months. The early part of the millennium saw the decline over 3 years. So, when is the high point and when will you know when the low point is?
You don't know any of that. You just know that there are always gains coming and losses coming. You know an economic cycle is around 10 years and you will get good years, bad years and nothing years and that you average them out. Beyond that, you know nothing.
I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.