{"id":41237,"date":"2018-12-03T14:21:18","date_gmt":"2018-12-03T19:21:18","guid":{"rendered":"https:\/\/olduvai.ca\/?p=41237"},"modified":"2018-12-03T14:21:18","modified_gmt":"2018-12-03T19:21:18","slug":"market-analyst-the-stock-market-will-lose-60-or-20-trillion-in-next-crash","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=41237","title":{"rendered":"Market Analyst: The Stock Market Will Lose 60%, Or $20 Trillion In Next Crash"},"content":{"rendered":"

Market Analyst: The Stock Market Will Lose 60%, Or $20 Trillion In Next Crash<\/a><\/h3>\n
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Market analyst John Hussman, who is a market bear, has claimed that the stock market will lose about $20 trillion in the next crash.\u00a0 That is equal to 60% of the market value.<\/p>\n

Hussman has been warning\u00a0that stock\u00a0valuations\u00a0have been extreme\u00a0for years, and is long overdue for a return to historical norms, according to Investopedia<\/em><\/a>.\u00a0\u00a0\u201cThe only time we\u2019ve ever seen a confluence of risk factors anywhere close to those of today was the week of March 24, 2000, which marked the peak of the technology bubble,\u201d he wrote in a\u00a0recent blog post<\/a>\u00a0quoted by<\/a> Business Insider.<\/em><\/a><\/p>\n

While Hussman\u2019s\u00a0prediction is certainly severe, a drop of that magnitude is far from unprecedented. In fact, it is not much worse than the\u00a0last\u00a0bear market<\/a>\u00a0that ran from 2007 to 2009, also known as the Great Recession<\/a>. Additionally, some other market indices fared even worse than the S&P 500 in these episodes. Most notably, the tech-heavy\u00a0Nasdaq Composite Index (IXIC)<\/a>\u00a0lost a whopping 78% of its value during the notorious \u201cdotcom crash.\u201d<\/p>\n

\u00a0The market value of all publicly traded U.S. stocks reached\u00a0$30 trillion in January, per\u00a0Barron<\/em>\u2018s<\/a>. Since then,\u00a0the Russell 3000 has fallen\u00a0by 1.5%, suggesting that its market\u00a0value is just slightly lower\u00a0today. As a result, the $20 trillion plunge\u00a0predicted by Hussman would represent roughly a 66% decline. Other prominent investors and market watchers have issued bearish forecasts in 2018. \u2013Investopedia<\/em><\/a><\/p><\/blockquote>\n

Hussman is blaming the Federal Reserve\u2019s quantitative easing program for this major problem.\u00a0\u201cThe current back-slapping about the success of extraordinary\u00a0monetary policy<\/a>\u00a0is a lot like declaring victory in a football game at halftime, just before a flock of fire-breathing dragons swoops onto the field and eats the leading team.<\/p>\n

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

Market Analyst: The Stock Market Will Lose 60%, Or $20 Trillion In Next Crash Market analyst John Hussman, who is a market bear, has claimed that the stock market will lose about $20 trillion in the next crash.\u00a0 That is equal to 60% of the market value. Hussman has been warning\u00a0that stock\u00a0valuations\u00a0have been extreme\u00a0for years, […]<\/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":[7619,6489,501,6490,1138],"class_list":["post-41237","post","type-post","status-publish","format-standard","hentry","category-economics","tag-john-hussman","tag-mac-slavo","tag-market-crash","tag-shtfplan-com","tag-stock-market"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/41237","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=41237"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/41237\/revisions"}],"predecessor-version":[{"id":41238,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/41237\/revisions\/41238"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=41237"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=41237"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=41237"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}