I’m no financial expert, just a guy with a passion for personal finance who is sharing his own personal opinion, it’s your choice to do whatever you want. That’s all this is – an opinion!!!
In November of 2019 I wrote and then in December of 2019 I released an article predicting a coming recession in late 2020, and while the timing of my prediction appears to have been off I don’t think we’re anywhere close to seeing the bottom. We’ve still got many losses to go. That article was about selling things to give you more liquid assets in order to buy after a crash and during a recession but unfortunately I didn’t promote it well enough so nobody saw it. I’ll try and fix it this time around. Here’s why the coronavirus crash isn’t over but eventually everything will rebound.
The markets have dropped from 27,000 points to 21,500 or 5,500 points in 7 trading days, that’s an average of nearly 800 points per day. Including today two of those days were net gaining days also, so that should enlighten you on how bad it’s been.
It’s bigger than the 2008 crash and it’s happened in one week when the last crash happened over months. Here’s my prediction – the Dow will get to conservatively 18,000; realistically 14,000 and in the worst case scenerio I can see 11,000 but I don’t believe it will go below 10,000. I expect at least one other major market to crash before the end of April – either the Chinese market, or the EU (depending on their response). Currently I predict it’ll be 2022 by the time this storm blows over. It would take both markets to get to worst case scenerio and if it does we’re fucked for at least 5 years of recessing growth.
It may sound like doomsday, but it’s not; historically the US stock market has rebounded quite well after a crash, it always goes back up. If you’d invested in one NYSE share before the crash in 2008 at its peak of $9,500 you’d still have made $600 through two crashes, not to mention that after this recession is over that share will grow again.
Take a breather, we may be in a hurricane, those of us who didn’t get our money and run, but baton down the hatches and keep investing and weather this storm with me
Ricky J. Smith 