NOW A Big Bubble in the Stock Market and Biggest Crash could be coming
- April 2, 2018
- Posted by: lakshay
- Category: News
The biggest stock market crash could be coming, want to know the reasons, read them below, and yes please read the full information. Just read 20 points mentioned below : it will take 5 minutes of your time But could save big money..
1) RBI has said there is disconnect between real economy and stock markets, what it means is that economy is weak and stock market is still rising means its a bubble in making which will burst soon.
2) RBI`s Financial stability report has warned that there would be rise in defaults. what it means in simple words that many small and big businessmen’s wont be able to pay their loans back to the back and even many big industrialists could fail in paying the loans back to the bank, even Some people who lost their Jobs due to covid 19 will be unable to pay their loans back. This could be the biggest trouble Indian banking system has ever faced .
3) The cases of corona are rising all over the world and the pandemic is not ready to stop and is still spreading at a great speed, it has completely halted the world economy. in simple word it means that world economy is even in bigger depression than ever .
4) Some central banks in world have already told that as the pandemic ends they will stop providing interest at lower rates which they are providing now due to corona ,This will suck out the liquidity which is available now and stock markets will crash so badly that people will not be able to even exit their positions and will be facing huge losses.
5) Specially in India where the economy is in problem and facing slowdown since last three years due to bad implication of gst, demonetisation and Taxes like LTCG On stock markets, There could be Huge rise in bad loans.
6) Economists are Forecasting That gross domestic production can shrink between 5 to 10 percent which is a very bad sign for Indian economy.
7) If one carefully studies the data of this rise ,most mutual funds ,fiis and star investors are exiting mid caps and small caps in this rally which means even fiis and mutual funds and smart investors know that this is not a real bull market rally but a bear market rally which will end soon trapping lots of investors on the buying side.
8) Most of The rally in Indian stock market is due to reliance industries and not many large caps ,mid caps and small caps are participating in this rally clearly indicating that there is not much buying interest in other stocks.More than 50 to 60 percent of rally in Indian stock market is fuelled by reliance ,the day reliance starts correcting no sector will be there to support Indian markets .
9) On whats app there are thousands of messages going around to buy mid caps and small caps ,on you tube one can find thousands of videos predicting multibaggers, sms are roaming around like wildfire to buy stocks ,lots of traders and investors have started betting on small caps and mid caps on basis of this kind of recommendations on whats app ,you tube and twitter .
10) Around 1.2 million new demat accounts have been opened since lockdown , This means that people who are free due to job losses or business shutting down have started betting or investing in stock markets, This kind of new investors may be going for short term money or quick money and may be investing in mid caps or small caps.
11) Even Imf has warned about the on going rally in the world markets, it simply means that this rally in world markets is a big big bubble which will burst in a bad way.
12) Auto and auto ancillary industry is in bad shape in india since last 3 to 4 years showing no signs of recovery and no recovery is expected even in next 3 to 4 years.
13) Trade war between USA AND CHINA is escalating ,this is the new cold war of our times and the most dangerous one, this cold war between America and china will keep the world growth engine slow and very slow.
14) This rally in world markets is mainly due to liquidity, As the bond buying by fed and European world banks end, liquidity will dry up around the globe leading to huge world market crash globally .
15) Around 400 million Job losses are estimated in the world due to covid 19, some predictions even go to 650 million Job losses.
16) INDIAN GDP HAD FELL TO 4.5 PERCENT EVEN BEFORE CORONA STARTED SPREADING .
17) It is highly feared that second wave of CORONA will be even dangerous than the first wave.
18) IT is feared that China has bought WHO, so world is not trusting WHO anymore, even usa stopped providing aids to WHO.
19) Situation in Hong kong is out of control, Protests are not stopping in hong kong.
20 ) Developed and major economies of the world such as European region, America, great Britain, Japan, Saudi Arabia, China, Dubai, Russia, south korea, Taiwan, Hong long, Australia, new Zealand, Brazil, mexico etc are starring at longer recessions.
Note– we are facing the biggest downturn of the century due to covid 19, when the liquidity gush ends in world markets which is expected to end soon, we could be looking at biggest stock market crash of the last 2 decades, Please be cautious. Do not leverage for buying stocks, Do not get aggressive in buying stocks in the bad times of covid 19, global economy is still in lockdown mode. Growth will take a long long time to come back.
this an whatsapp forwarded message!