Is there a stock market crash just around the corner?
Jennifer McClelland | RSS | 4 Comments
With the Dow reaching above the 10,000 mark yesterday, there is a lot of stock market optimism going on. However, in July Enzio von Pfeil, the chief executive at EconomicClock.com said that there would be a crash this month in the stock market. He reiterated that yesterday saying that the crash doesn’t have to be a huge one that shakes the foundations of the financial system, but it will still happen.
He told CNBC, “There is going to be quite a bit of strong downward earnings revisions going forward, especially the outlook for 2010. And that is simply because the economic clock, of which we tell the economic time, suggests that the excess supply of goods is here to stay and you can’t keep on making profits if unemployment keeps rising.”
He said that the worst earnings would come from industries that are labor intense and others that are driven by consumer spending.
It always seems like everything that goes up has to go down, but there is no indication of how high that the market has to climb before it finds its top and it has to fall again. Most of the worst crashes that have happened usually happen around this time of the year. I don’t think that we’ll see a huge drop in the market like we did in the beginning part of this year, but I do think that the market won’t stay above 10,000 for long, but it will increase to this point again after the holidays.
No one wants to see a recession continue. No one wants to see people unemployed. These labor intensive jobs are so tight for money right now, that they have fired all the people that they can manage to get away with and still have a functioning factory.
Consumers still aren’t spending money like they did a couple of years ago.
These earnings reports will come out, but will they really be enough to send the market into another downward spiral?
Save money even with the holidays around the corner
Tags: economic time, recession, economic clock
John from Small portable generator | Thu, Oct 15 2009
I think the stock markets have just returned to the level they were at before this recession. I think it’ll probably stay at a steady growth now as it was before the crash.
anthony from display case | Fri, Oct 16 2009
I hope the market have now stabilized, I do spread betting so I am looking for a steady incline, I have read your article and don’t think the market will crash again for long time.
Chris McClelland | Sat, Oct 17 2009
Spread betting is a nice, nice way to make some extra dinero, but I would advise you to maybe move your strikes out about 10-20% farther out than you normally would in the next couple of months. Sure you will take in less credit on the spread, and might even have to go even further out of the money but I think you will sleep better at night.
Ikini from online trading | Wed, Nov 11 2009
I had the same thought like you when it first reached 10,000. Then it came down. I think it came down because of fear. Now it is above 10,000 and I believe it would keep on going up. I am not sure if the market follow consumers spending index.