ETN poised to benefit from a stock market crash, its in the right place at the right time!


#1

market crash

With all experts pointing to the next crash they all have one thing in common they all agree that it will be worse than the great depression of 1929. Stockmarket is poised to see a flight from equities into crypto and in particular ETN being one of the most practical and use case driven project.


#2

They have been saying that for years and wrong.


#3

At this point, the national debt is huge, so it is a reality we all face. Nobody can escape this.


#4

accept those with BTC ETN gold and silver ,

your doomed with fiat


#5

The debt issue has been around forever. Doesn’t matter how big it gets. Economists that have argued this line have been proven wrong.


#6

How come it doesn’t matter how big it gets? Who’s gonna pay for all this?
As the countries who paid for this, are in debt themselves as well.


#7

It is not a problem because the USD is the world reserve currency. The Federal Reserve can use monetary policy to manage it (e.g. print money and repay, and still hold a good credit rating). But more importantly the USA is growing now at 4%+ and looks likely to continue to grow even faster. So debt serving is manageable. Obviously fiscal controls would be great to reduce the debt but the Democrats make this impossible at the moment.

It is a problem for all other countries. However, the larger you are (stay top 10) and more vibrant your economy then you will be able to handle larger debt levels.

I could go on but I don’t want to bore you. :slight_smile:


#8

It’s true that anyone can try to predict a recession at any time, just like anyone can try to predict a crypto bull market at any time.

However, when you look at market indicators compared to historical values, it seems very likely that we’ll have a very big stock market correction in the next 2 or 3 years:

  • An bond yield curve inversion has predicted the past 7 recessions. View the graphs on this page to see how fast the spread between the 10y and 2y bond yield curves are dropping to 0, which would mean an inversion.
  • The Willshire 5000 index (market cap of top 5000 stocks) divided by US GDP is a sort of P/E ration for the entire stock market. In the graphs here, you can see that the previous 2 times that it crossed 100% were right before the stock market crashes of 2001 and 2008. It’s now at about 165%.
  • The Shiller PE ratio is a cyclically adjusted PE ratio developed by Robert Schiller, a professor at Yale. In these graphs, you can see that the past 2 times it went above 30 was right before he crashes of 2001 and 2008. It’s now at 33.53.
  • Combined corporate profits in the US usually reach a high in the middle of 2 market corrections and then fall to a low during a recession due to lower spending habits. This graph shows it’s on the way down.
  • For the last century, recessions came around on average every 8 to 10 years. It’s been 10 years since the last one.

I’m not saying with certainty that a crash is upon us, but the market indicators definitely tell a story. If there is a crash in the coming 2 years, it will be the first one where crypto is present (Bitcoin was only invented in 2009), and I’m very curious to see if people will use it as a hedge in times of trouble.


#9

A correction/s - sure, but a crash? Time will tell. But I see a lot of factors underpinning many years of growth under the Trump administration, as well as coinciding with 17 fundamental new industries leading us into a new economic revolution.


#10

Very insightful, I agree with your input. Currently China, Canada, Australia and New Zealand have massive debt caused by housing markets because of overseas cross border property and mortgage investment pushing the value of housing so high residents cannot afford to buy a home. Chinese especially, go to NZ and buy up investments then head back home leaving kiwis without rentals because there property’s are left empty and the government couldnt care less. When I was last in NZ it was rare to see homelessness now its everywhere, whole family’s living in cars, its a sad state of affairs. People can’t afford the standard of living and unemployment is on the rise. In NZ you pay $2.60 for a litre of petrol, $3.50-$5.00 for 2 litres of milk, $380 per month on average for the electricity bill. In this low wage economy the subservience to the powers that be is what controls society. It’s about to all drop like a wet bag of washing because the government has abandoned the people its supposed to serve. Bring on ETN because it may be the last option many good, honest and hard working people need.


#11

I am from New Zealand. Not sure what you are talking about. Always some poor people like you describe (and yes homeless in Auckland central). But NZ is very well off and has been growing well. Most people have enjoyed the growth. Many of the issues we have in NZ are social not economic but that is true of many parts of the world. Liberal policies are too blame for some of the vulnerable not being looked after.


#12

Regardless of stance on the topic, economic tension is rising in the world, more so lately than usual.

A potential “world currency” like ETN will look more and more enticing the longer this goes on.

That’s my non professional speculation anyhow. Contextual link below: