# Massive 60% Stock Market Correction Headed Our Way?



## Denton (Sep 18, 2012)

This, from SHTF Plan site.

Massive 60% Stock Market Correction Coming: "Period Of Extreme Turmoil"

Yes, I know that if you ask an oncologist he'll see cancer, and the immunologist will see disease, and the survivalist will see collapse in the same x-ray.

Still, you might want to read this and think about it.


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## pheniox17 (Dec 12, 2013)

if this is true, go blow $100 on Australian currency, as at the lowest point 1 aud was buying 1.30 USD at its peak, and at it now its 1 aud is worth around .90usd so you may make $30 lol


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## Mish (Nov 5, 2013)

Hopefully most of us have learned from the past and don't have all our eggs on that crazytrain anymore.


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## Denton (Sep 18, 2012)

There are a lot of people who have company retirements in 401(k) plans. Can you imagine if their eggs are in the baskets of the biggest losers?


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## Deebo (Oct 27, 2012)

Well, I went stable funds on my 401 early this year. Might not be making any money on the ups and downs of microapples expected return on dividends, or Alan Grrenspans bowel irregularities, but at least I'm saving 13% of my check, and company matches 6. 
So, in a good and bad way, someone is holding 19% of my paycheck for me. Hope when it's time to collect, they are still around.
My futures fund is looking like a parts on sale AR.


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## Denton (Sep 18, 2012)

Deebo said:


> Well, I went stable funds on my 401 early this year. Might not be making any money on the ups and downs of microapples expected return on dividends, or Alan Grrenspans bowel irregularities, but at least I'm saving 13% of my check, and company matches 6.
> So, in a good and bad way, someone is holding 19% of my paycheck for me. Hope when it's time to collect, they are still around.
> My futures fund is looking like a parts on sale AR.


The banks are already set up to raid our money as another bail-in tactic. We are now considered unsecured creditors.

I reserve a special kind of hatred for the global corporation/big banker types.


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## Mish (Nov 5, 2013)

That right there!
Those mothereffers are more dangerous than ISIS! Bankers are going to take down the world, not just a building.


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## Smitty901 (Nov 16, 2012)

Obama has been pumping paper money into the bond market all a long. it is worthless paper and in huge amounts. He has done this to keep interest rates lower than they should be. It will come to a head he is just hoping it will be after he is gone. When Interest rates go up the market will bail back to gold, sliver or other safe hide outs.
No secret to this we have had warnings for years.


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## PalmettoTree (Jun 8, 2013)

Denton said:


> There are a lot of people who have company retirements in 401(k) plans. Can you imagine if their eggs are in the baskets of the biggest losers?


You have hit on the precise point. Most with 401Ks are completely ignorant as to how they are invested.

Although I doubt a market collapse as described. Calling it a "correction" demonstrates the utter ignorance of those reading the chicken bones.

In my early days of trying to understand the stock market and its relevance to accounting, I was astounded by how high P/E ratios got.

There are many companies that are over valued. Many have zero earnings they do not even have positive operational cash flow. If all these collapsed to almost zero then the market average might have an average drop of 60%.

Such falls generally cause across the board sell offs. This is primarily caused (recent history) because ETFs and mutual funds are forced by their own prospectus to sell part of their positions they should be holding and buying into. So that is how corrections can turn into collapses.

No investor or group of investors can prevent price drops. IMO the secret to holding ones own during such is investing in companies that have a history of paying dividends, never decreasing the a points of those dividend and regularly increase their dividends.

Such companies have what might be called an automatic price safety net. As their price falls their yield increases and the incentive for people with cash to invest in such.

I must admit we are in global uncharted waters because of the global nature of our economy, Russia, and Islam. If we had a reasonable corporate tax policy we would not be dealing with inversion. Global conditions are right for companies to relocate to not out of the US. Western Europe is trying to turn away from socialism but socialist policies are causing US and Western European invasions. Both Russia and China continue to have internal problems. China is trying to address theirs but Russia as always ignores the needs of their citizenry by crushing them under the weight of supporting their military.

The bottom line of my opinion is the two men predicting a 40 to 60% sell off profit off of such doom and gloom. They are not men of true analysis. I am always skeptical of people with 20% slop in their predictions. Worse yet no time frame. It is like predicting the sun will rise within 2 hours in the next 24.


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## Denton (Sep 18, 2012)

quint said:


> 60% is a collapse and would result in 10's of millions of deaths in the US within a year. Nobody would have a clue what anything was worth, including the $100 bill. So no oil, no gas, no shipping. probably no farming, other than for local trade and personal consumption. Looting, fires everywhere.


So, you are saying we would become Detroit?


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## Camel923 (Aug 13, 2014)

More propaganda so the taxpayers will enthusiastically throw their hard earned cash to the big boys for bad decisions. The too big to fail crowd will be the winners and the politicians will get their usual and customary kick backs. I have no doubt that we are nearing a bubble burst in the stock market. We artificially prop up the too big to fail companies so they have no reason to reform. They get the most money that way. I would be very leery of the market. Problem is where else can you earn interest on your money?


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## Denton (Sep 18, 2012)

PalmettoTree said:


> You have hit on the precise point. Most with 401Ks are completely ignorant as to how they are invested.
> 
> Although I doubt a market collapse as described. Calling it a "correction" demonstrates the utter ignorance of those reading the chicken bones.
> 
> ...


I was hoping you'd spot this thread.


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## Arklatex (May 24, 2014)

I have no understanding on this topic. Like palmetto said, I have no clue how the firm (principal financial) manages my 401k. They send me quarterly statements and I just glance at them to see if the balance went up or down. It's usually up. Lately I have been hearing talk of these coming financial collapses and started to wonder if I am a fool to continue putting money into it every week... would it be wise to take the penalties and cash out to reinvest in something tangible? My company has no retirement program other than the 401k.


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## AquaHull (Jun 10, 2012)

Denton said:


> So, you are saying we would become Detroit?


You do mean De Toilet?


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## PaulS (Mar 11, 2013)

The penalties for withdrawal from a 401K is 10% pluse the tax rate. It is roughly 30% when all is said and done. To do this because of a market prediction is a bad move. Doing it after the market crashes is even worse. 

There have been threats of the government taking the retirement funds to shore up the dollar for a long time - it isn't going to happen anytime soon. If it did happen I think the people would revolt, after all you are then stealing from the people who elected you. I doubt that any politician would do that because it directly affects them too.


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## PalmettoTree (Jun 8, 2013)

I have never seen a 401K that funds could not be held in cash. This would avoid such corrections. Such market timing is difficult.


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## 7515 (Aug 31, 2014)

Arklatex said:


> I have no understanding on this topic. Like palmetto said, I have no clue how the firm (principal financial) manages my 401k. They send me quarterly statements and I just glance at them to see if the balance went up or down. It's usually up. Lately I have been hearing talk of these coming financial collapses and started to wonder if I am a fool to continue putting money into it every week... would it be wise to take the penalties and cash out to reinvest in something tangible? My company has no retirement program other than the 401k.


Dont take you money out just move it to a cash fund inside your 401k


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## Zed (Aug 14, 2014)

Denton i'm a banker..hahaha
But friends, i've seen some nasty situations in my profession. My advice, gold is the best investment ..atleast in India in SHTF situations.


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## PalmettoTree (Jun 8, 2013)

Zed said:


> Denton i'm a banker..hahaha
> But friends, i've seen some nasty situations in my profession. My advice, gold is the best investment ..atleast in India in SHTF situations.


Just how much gold are you holding and what is your plan for liquidation when you retire? Maybe you are already retired like I am.

I do not have any gold except for a few rings but plenty of silver. If I had to live off that silver I would lose a huge percentage and or it would be a lot of trouble. Plus it's market value is down over 40% from its high a few years ago.

This is my 5th year in retirement. The market value of my stocks are $100,000 higher than at retirement. I paid my house off and purchased a beach house during that period. My dividends go to cash and accessing that cash is as simple as writing a check.

Just how do I beat that with PMs?


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## Slippy (Nov 14, 2013)

All my "extra money" goes towards Whiskey and Woman...


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## BagLady (Feb 3, 2014)

There are other creative ways to invest in the future, without chancing your hard earned dollars. 
The good news is, we have plenty to eat.


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## PalmettoTree (Jun 8, 2013)

BagLady said:


> There are other creative ways to invest in the future, without chancing your hard earned dollars.
> The good news is, we have plenty to eat.


You are correct. Managing a food supply is going to be more than a full time job for most.


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## Renec (Dec 21, 2012)

ever wonder why you continue to hear stories about rolls of cash taped to the underside of a desk ,found after a person passed away? the older generations learned the hard way not to trust the banks.
stock market is a curbside shell game...we all know how that ends!


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## PalmettoTree (Jun 8, 2013)

Renec said:


> ever wonder why you continue to hear stories about rolls of cash taped to the underside of a desk ,found after a person passed away? the older generations learned the hard way not to trust the banks.
> stock market is a curbside shell game...we all know how that ends!


My sister and family moved on with my parents when my brother-in-law could not work because of ALS. My mother passed, then my brother-in-law by this time my father needed someone to keep him from pissing in the closet. When my nephew had to have minor surgery I stayed with my father. Something came in the mail that needed immediate attention that my sister had ignored. I searched through everything, never found what i was looking for but found $580. I gave it to my sister upon her return and told her i found it 20 here and there. She almost stroked out. She had just thrown away a ton of my mother's things and no telling how much money. I straightened the other matter up in person.

Before this their house caught on fire. My mother with advanced osteoporosis was home alone. The fire was in the back of the house so the good samaritan went to the front door. When she finely came to the front door she tried to go back inside. She had a thousand dollars squirreled away in her bedroom.

Just in case some of you are thinking where was I? I remodeled our basement so they would not have a single step to do anything even shower. They refused to leave the small town SC. My sister refused to evacuate to my house during hurricanes because her dogs would have to stay on our garage.

All that to say thins some people are stupid.


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## Zed (Aug 14, 2014)

PalmettoTree ..Heck no..i'm not retired...I'm just 31 yrs old...way long to retire..But i do own about a KG of gold ornaments..In India people will do anything for gold. Many people in here have their chunk of investments in gold..not 100% but 15-20% for sure


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