Market Crash, rumor or warning

[Sierra Johnson]

What are we thinking about the talk of the foreseeable "Market crash"? I suppose this is all opinion-based and speculations, but it doesn't hurt to hear others' suggestions and strategy. 

I work with a lot of people who ask this question, and often I tell them everyone needs to have a plan for a rainy day, no matter what happens. There's always things we can do now, to prepare for what's to come, if anything at all. Whether it's building your reserves, investing in other areas, following the market trends, etc. 

Real estate can and will always be a smart investment because regardless, people will need somewhere to live. It's big risk for a bigger reward.

I would love to hear from of you who are having to answer when people bring this up. 

[Nick Robinson]

@Sierra Johnson
I have mentioned this in some previous posts but if someone asked me about the market, I would say there is a higher probability that there will be a recession.  This is not just a feeling or a guess it is based on actual data and looking at different financial instruments.  Over the past year the fundamentals of the economy have been getting worse.  During the first week of December the Eurodollar futures curve inverted, which is projecting a worldwide recession.  The TIPS data in December was negative, the US treasury yields have been closer to inverting, and there is a spike in the REPO markets fails.  In all the recession since WW2 there has been a 63% chance that housing prices will fall.   

I would want to protect myself from downside risk by buying assets that produce positive cash flow.  I also would want to hold on to cash right now to take advantage of any opportunities that will come up while other people panic.