{"id":37428,"date":"2018-09-06T07:03:16","date_gmt":"2018-09-06T12:03:16","guid":{"rendered":"http:\/\/olduvai.ca\/?p=37428"},"modified":"2018-09-06T07:03:16","modified_gmt":"2018-09-06T12:03:16","slug":"beware-buffets-words-these-3-critical-stock-market-indicators-signal-huge-losses-ahead","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=37428","title":{"rendered":"Beware Buffet\u2019s Words: These 3 Critical Stock Market Indicators Signal Huge Losses Ahead"},"content":{"rendered":"
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Beware Buffet\u2019s Words: These 3 Critical Stock Market Indicators Signal Huge Losses Ahead<\/a><\/h3>\n

Last month, I wrote a piece about Warren Buffet\u2019s favorite stock market metric and how it was signaling huge<\/em> losses ahead.<\/p>\n

If you haven\u2019t read it yet \u2013 you can here<\/a>. It\u2019s even more<\/em> relevant today.<\/p>\n

And though Buffet\u2019s favorite market indicator\u2019s signaling huge danger ahead for investors \u2013 he just recently preached<\/a> that stocks are still attractive.<\/p>\n

This seems rather contradictory if you ask me. . .<\/p>\n

Even though his favorite market value metric is at an all-time high<\/em> \u2013 more so than during the DotCom bubble and Housing bubble. And with the S&P 500, NASDAQ and Dow Jones Index at record levels \u2013 Buffet\u2019s still<\/em> recommending stocks.<\/p>\n

But, here\u2019s the best part: he went on to say that he believes there will be another stock market crash eventually<\/em>.<\/p>\n

So, why does he talk about buying stocks when he\u2019s expecting a coming crash?<\/p>\n

His reasons are pretty simple: investors can\u2019t<\/em> time when the market will crash. So instead of sitting on the sidelines \u2013 waiting and missing the upside \u2013 just buy now. And when market prices do<\/em> crash eventually \u2013 which he acknowledges they will \u2013 you can simply buy more at lower prices (also, he adds, compared to bonds \u2013 stocks are more attractive).<\/p>\n

 <\/p>\n

I kinda-sort-of<\/em> agree with him. It\u2019s not the best idea to try and time a market crash, as many value guys call it a \u2018fools errand\u2019.<\/em><\/p>\n

There\u2019s always that one<\/em> person<\/em>\u00a0(we all know them) who thinks they will sell out right before<\/em> prices collapse. But in reality, it never works out that way.<\/p>\n

History\u2019s littered with the corpses of investors and the hedge-funds that thought they could do this.<\/p>\n

So instead of trying to time things accurately \u2013 just measure\u00a0the potential risk and reward. <\/em><\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

Beware Buffet\u2019s Words: These 3 Critical Stock Market Indicators Signal Huge Losses Ahead Last month, I wrote a piece about Warren Buffet\u2019s favorite stock market metric and how it was signaling huge losses ahead. If you haven\u2019t read it yet \u2013 you can here. It\u2019s even more relevant today. And though Buffet\u2019s favorite market indicator\u2019s […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[19913,19915,1138,2567],"class_list":["post-37428","post","type-post","status-publish","format-standard","hentry","category-economics","tag-adem-tumerkan","tag-palisade-research","tag-stock-market","tag-warren-buffet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/37428","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=37428"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/37428\/revisions"}],"predecessor-version":[{"id":37429,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/37428\/revisions\/37429"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=37428"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=37428"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=37428"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}