So many top professionals in the financial industry are sounding the alarm about a coming stock market crash right now. And there certainly have been rumblings in 2018 – not too long ago we had a three day stretch that was called “the tech bloodbath”, and during that time Facebook had the worst day for a single company in stock market history. But we haven’t seen the really big “crash” yet. Many have been waiting for it to happen for several years, and some people out there are convinced that it is never going to come at all. Of course the truth is that we are in perhaps the largest stock market bubble that our nation has ever seen, and all other large stock market bubbles have always ended with a major price collapse. So whether it happens immediately or it takes a little while longer, it is inevitable that stock prices will eventually return to their long-term averages.
Thanks to crashing tech stocks, Americans have lost hundreds of billions of dollars in paper wealth over the past three trading days. As you will see below, we have just witnessed “the biggest market cap loss in history”, and many analysts believe that this is only just the beginning. At this point, even the mainstream media is fearing the worst. CNN is boldly proclaiming that “the tech bloodbath is here”, and there is a flood of mainstream articles giving advice to investors about how to ride out this crisis. But the amount of money that has already been lost is absolutely huge, and it isn’t going to take much to turn this panic into a full-blown stampede. In a lot of ways, what we are watching is very reminiscent of 2001. When the original tech bubble burst, the crash was so rapid and so dramatic that many ordinary investors were not able to react in time. As I have explained so many times before, markets tend to go down a whole lot faster than they go up, and the events of the last three trading days have been completely breathtaking.