With the memory of the 2008 / 2009 stock market crash still fresh in investor’s minds, many investors are wondering: How Identify a Stock Market Bubble To Avoid The Next Stock Market Crash? IM’s Weekly Business Cycle (BCI) Index is recession prediction gauge that the creators claim has provided an eleven week average warning for the past seven recessions that occurred in the United States, with no false positives. This gauge is useful to get out of the stock market ahead of a crash because economic downturns usually cause stock market sell-offs, and occasionally stock market crashes. If a stock market crash is caused by a recession, savvy investors look for an opportunity to get back in for an eventual recovery in stock prices. Mailexpress – A stock market crash certainly provides opportunities for anyone who is on the sidelines.
By the middle of 2008, many stock market indicators were flashing warnings signs concerning overvalued stock market valuation levels and the potential for a stock market crash, but it was not until a banking crisis ensued in the fall of 2008 that the stock market actually crashed. The time to put money back into stocks is approximately halfway through a recession, when stock market indicators are excessively bearish and the economy appears to be bottoming.
It’s not at nosebleed valuation levels as far as price/earnings go, but it is by some other measures, such as the The Ratio of Total Market Cap (TMC) Relative to the United States Gross Domestic Product (GDP) featured above. I believe after every economic crash comes a windfall of new opportunities followed by an increase of earning more money each week. Germany is the fourth biggest car market in the world, and the biggest in Europe.
We all know that investing in the share market is uncertain, especially when you are looking for making money consistently by trading shares on the stock market. The unique theory about making money in the stock market in a sure and easy way says – run against the flock and make easy and quick money from your stocks. Swimming against the tide can sometimes lead to minor wonders and for stock market investors such move may transform into huge profits quickly. As any experienced investor will confirm, the stock market has a tendency to react in exactly the opposite manner to which every one expects it to behave.
That this theory of ‘contrary opinion’ provides a simple, yet effective direction on how to make money in the stock market easily, would be apparent from the explanation that follows. In the hope that the market is going to rise, people start purchasing shares as a strategy to make money fast from his stocks. Stock prices will keep on rising as an increasing number of people start believing that the market will boom. Though crowd expectation is that the market will continue to rise, prices cannot really go up any further as there are no buyers left in the market.