Gotcha didn't I! The headline for this article is something you would find at CNBC, Zerohedge, CNNBusiness, but not something you would normally see here. It attracts readers. People love a train wreck. A headline like "Stocks to slowly grind higher for the rest of 2013" would garner very little interest. "Stock Market Crash Coming" , now that's an article that will draw readers. Its something we've seen since the financial crisis in 2008 and the more I see headlines like that the more I think stocks will continue to defy almost everyone... except us.
Here's a fresh one:
"Ten Real Reasons the Stock Market Could Crash All Over Again into a Depression"
Ten REASONS! Just ONE reason has me shaking with fear!!! 10!! What am I doing here writing this article!
"HONEY!! Grab the kids and your vibrator we are moving into the DOOMSDAY shelter!!"
HUSSMAN: I Would Be Remiss Not To Tell You That The Stock Market Will Probably Crash
Read more: http://www.businessinsider.com/hussman-the-stock-market-will-probably-crash-2013-8#ixzz2fFHWtEXK
"Probably" is the key word to take from that headline. Next year the headline might say "May", instead of Probably. And the year after, could......If, Maybe, Likely..... you get the point. We could have that headline every year from now until 2020 and Hussman will never be wrong. He said "probably", he didn't say it was definitely going to happen.
Just type stocks crash into Google news and each week you have someone calling for stocks to plummet.
Those same people calling for a crash and positioning themselves for one over the last five years, they either have an unlimited bank account, like the FED, or they are trading with fake (or some elses) money. Why is it the media brings in the same people, who have been wrong everyday since the lows in 2009, to talk how negative they are on the market.
"Welcome Bob Johnson to the show. He's been calling for DOW 1,000 since 2009. Unlike a broken clock that's right two times a day, he's never been right. Bob for the 500th time where do you see this market headed?"
"Well Maria. We at AccountZero.com have been positioning ourselves and our clients for downside in this market since 2009. We stand by our Dow 1,000 Call, just like we did the other 499 times you've had us on this show!"
It gets ridiculous, but again with ratings for many of these shows at record low levels, bringing a complete train wreck on the show should, in theory, help ratings.
Do I think the stock market is going to collapse in the future? Yes. But if we've learned anything since the financial crisis its that all of the underlying issues are being ignored and papered over through massive central bank manipulation. They have been very effective at kicking the can down the road. I've said it for years that the stock market was going to make new all time highs and defy the bears. Here are some articles I have written over that time.
STOCK MARKET CRASH!
Yes its coming, the market has cycles. But you won't hear me say it every day until I am right. We collapsed in 2000, 2008, and maybe 2016 will be the year. This is what I see from a long term chart perspective. We have broken out after 13 years of consolidation. This is bullish and if we've learned anything over the last five years, its that the market can perform far beyond most people's expectations. While some think its smart to be preparing their Doomsday Shelter, those preparing for further gains from the equity markets, while in the minority, might be the smartest of all.