{"id":438,"date":"2023-02-05T10:01:28","date_gmt":"2023-02-05T15:01:28","guid":{"rendered":"https:\/\/embarrdowns.com\/major-stock-market-crash-looming-what-investors-should-know\/"},"modified":"2023-02-05T10:01:29","modified_gmt":"2023-02-05T15:01:29","slug":"major-stock-market-crash-looming-what-investors-should-know","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/major-stock-market-crash-looming-what-investors-should-know\/","title":{"rendered":"Major Stock Market Crash Looming: What Investors Should Know"},"content":{"rendered":"

The US stock market could be facing a major crash in the near future, according to legendary investor Jeremy Grantham’s 2023 outlook letter. His calculations of the S&P 500’s trendline value, adjusted for growth and inflation, is about 3200 by the end of 2023, which could mark a 20% decline for the year and 40% from the market’s last peak in January of 2022.[0]<\/a><\/sup> He estimated the odds of the market reaching these levels to be 3 to 1.[1]<\/a><\/sup> In the worst-case scenario, the market could overcorrect more than expected and stocks could sink by up to 50% from their previous peak.[1]<\/a><\/sup><\/p>\n

Adding to this, a Finnish economist from the University of Vaasa is warning of an “armageddon” financial crisis in the next few decades that could bring on an epic stock market collapse.[2]<\/a><\/sup> This could be even more severe than Grantham’s prediction and could potentially lead to a full-on crash by 2050.<\/p>\n

Investors should be aware of the potential for a significant decline in the near future and should time their investments accordingly. However, if the market does decline, it will still be a far smaller percent deviation from trendline value than the overpricing we had at the end of 2021 of over 70%.[0]<\/a><\/sup> Therefore, it may not be wise to think that a 50% decline is absolutely impossible.<\/p>\n

0. <\/span>“Jeremy Grantham warns of a massive stock market crash in 2023 outlook” Markets Insider, 29 Jan. 2023, https:\/\/markets.businessinsider.com\/news\/stocks\/jeremy-grantham-stock-market-crash-warning-2023-bubble-outlook-2023-1<\/a><\/a><\/p>\n

1. <\/span>“Legendary investor Jeremy Grantham warns stocks could drop another 50% this year\u2014but he doesn\u2019t say to stay away from markets entirely” Yahoo! Voices, 30 Jan. 2023, https:\/\/www.yahoo.com\/now\/legendary-investor-jeremy-grantham-warns-173553990.html<\/a><\/a><\/p>\n

2. <\/span>“An economics researcher is warning that the next few decades could bring a massive stock market collapse” msnNOW, 4 Feb. 2023, https:\/\/www.msn.com\/en-us\/money\/savingandinvesting\/an-economics-researcher-is-warning-that-the-next-few-decades-could-bring-a-massive-stock-market-collapse\/ar-AA176z05?li=BBnb7Kz<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The US stock market could be facing a major crash in the near future, according to legendary investor Jeremy Grantham’s 2023 outlook letter. His calculations of the S&P 500’s trendline value, adjusted for growth and inflation, is about 3200 by the end of 2023, which could mark a 20% decline for the year and 40% from the market’s last peak in January of 2022.[0]<\/a><\/sup> He estimated the odds of the market reaching these levels to be 3 to 1.[1]<\/a><\/sup> In the worst-case scenario, the market could overcorrect more than expected and stocks could sink by up to 50% from their previous peak.[1]<\/a><\/sup><\/p>\n

Adding to this, a Finnish economist from the University of Vaasa is warning of an “armageddon” financial crisis in the next few decades that could bring on an epic stock market collapse.[2]<\/a><\/sup> This could be even more severe than Grantham’s prediction and could potentially lead to a full-on crash by 2050.<\/p>\n

Investors should be aware of the potential for a significant decline in the near future and should time their investments accordingly. However, if the market does decline, it will still be a far smaller percent deviation from trendline value than the overpricing we had at the end of 2021 of over 70%.[0]<\/a><\/sup> Therefore, it may not be wise to think that a 50% decline is absolutely impossible.<\/p>\n

0. <\/span>“Jeremy Grantham warns of a massive stock market crash in 2023 outlook” Markets Insider, 29 Jan. 2023, https:\/\/markets.businessinsider.com\/news\/stocks\/jeremy-grantham-stock-market-crash-warning-2023-bubble-outlook-2023-1<\/a><\/a><\/p>\n

1. <\/span>“Legendary investor Jeremy Grantham warns stocks could drop another 50% this year\u2014but he doesn\u2019t say to stay away from markets entirely” Yahoo! Voices, 30 Jan. 2023, https:\/\/www.yahoo.com\/now\/legendary-investor-jeremy-grantham-warns-173553990.html<\/a><\/a><\/p>\n

2. <\/span>“An economics researcher is warning that the next few decades could bring a massive stock market collapse” msnNOW, 4 Feb. 2023, https:\/\/www.msn.com\/en-us\/money\/savingandinvesting\/an-economics-researcher-is-warning-that-the-next-few-decades-could-bring-a-massive-stock-market-collapse\/ar-AA176z05?li=BBnb7Kz<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":437,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/438"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=438"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/438\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/437"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=438"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=438"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=438"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}