A Stock Market Crash Scenario – 06.26.17

 

  • The one thing we can know with certainty is it won’t be easy to profit from the crash.
  • After 8+ years of phenomenal gains, it’s pretty obvious the global stock market rally is overdue for a credit-cycle downturn, and many research services of Wall Street heavyweights are sounding the alarm about the auto industry’s slump, the slowing of new credit and other fundamental indicators that a recession is becoming more likely.
  • Few have taken the risk of projecting a date for the crash, this gent being a gutsy outlier: Hedge Fund CIO Sets The Day When The Next Crash Begins.
  • Next February is a good guess, as recessions and market downturns tend to lag the credit market by about 9 months.
  • My own scenario is based not on cycles or technicals or fundamentals, but on the psychology of the topping process, which tends to follow this basic script:

Read more at:A Stock Market Crash Scenario

Source: charleshughsmith.blogspot.com