The Great Reset or The great Depression 2.0 is very much a real possibility. This is purely my pessimism and the reason I started trading and have stopped investing. There is so much risk in these markets even fundamental value stocks will be dragged down with this. can anyone even guess at this point where the s and p 500 will be in 10 years?
Of course no one can say where s&p will be:)
But like your apocaliptic scenario, I also have something similar in mind as a posibility.
Thanks for sharing
kishnara
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@zac_destroys_all, this would be the best decade to make money in stocks. Governments all over the world are going to spend trillions in green energy. So many things are going to change.
zac_destroys_all
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@kishnara, Bull crap government intervention does not help. If inflation is coming then growth stocks and highly indebted companies are screwed. Inflation typically means a sideways trading market. Worst case scenario a massive deflationary event due to debts at an all time high. Margin debt at it's highest ever. cooperate debt at it's highest ever, consumer debt, government debt need I go on?
kishnara
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@zac_destroys_all, Government debt is something that can be tackled using taxes and as long as government pays interest on the debt, no one cares about the total debt. We'll have correction but lost decade is out of the question. Bull market hasn't even started in my opinion.
@zac_destroys_all, Yes. Value of dollar/Euro will go down. By looking at S&P at absolute number, it would be at 10,000 sooner than later. Few things can change this.
a) If middle class wakes up and demand government stop inequality
b) Nuclear war
In my opinion, world in 10 years, will be very different. Hyperloop, Gene Editing, Flying to Europe in an hour, better infrastructure in America etc.,
zac_destroys_all
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@kishnara, look up the 500 year east west cycle my friend. You are suffering from recency bias. The long term debt cycle is coming to an epic conclusion. The interest will and are reversing. The USA will loose reserve status like the GBP did. Another empire will take the united states place. Increasingly that looks like it will be china although Russia holds the worlds gold. Time will tell but I'm not optimistic about the current trends of authoritarianism I'm seeing in the world. Stock markets might not even exist in the new world who knows.
kishnara
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@zac_destroys_all, You may be correct. But comparing Japan in 1990 vs US 2020s are not correct. Japan allowed lots of companies to maintain its debt. US has pretty much robust system to handle such systems.
Also, the future is never brighter. Cars will be self driven. Robots will be part of human life (Not just roomba but actual robot that can do physical work) and many more. We will have 10 billion people in the next 20 years. All of them need water, food, shelter etc., Other than US, there is no other country that can drive the innovation (May be China).
Platinum-Markets
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@kishnara, I think I agree with you perfectly, prices are just setting up for one of the greatest bull markets since the 80s, we might have a steady rise untill 2023 with midway corrections, between 2023 and 2026 we will see the correction or sideways market that will set up the origin of the bull in March 2026. Other fundamentals like you mentioned will be the key drivers
SLOPolarBear
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Using puts or short trades, one can still profit regardless of market direction. You may invest in inverse ETF's in your retirement or other restricted accounts. Think UP! Don't get down. Cheers.
But like your apocaliptic scenario, I also have something similar in mind as a posibility.
Thanks for sharing