Crash or Correction?

[Mark Douglas]

I've heard people recently mentioning that the US is headed towards a market correction.  In what ways is this different than a full crash, like in '08?

[Bill R.]

It's funny because whatever point of view you have, you'll find news and data to support that point of view.  

For instance, @Thomas Bouchereau, you are correct.  Things are very different than they were in 2008.  Yet, I can argue that many of the flaws in the Las Vegas economy (you're in Henderson) which caused the recession to hit it harder than it hit almost anywhere else in the country still exist.  

It's interesting that you keep hearing "well, things are different" as if a crisis has to be caused by the same factors as the last one.  

The reality is that both recessions and crashes typically look nothing like the immediately prior recessions and crashes.  I highly doubt that the next recession or crash would happen due to sub-prime housing lending.  That would be far too obvious.  Just like the 2008 crash was not caused by over-inflated tech stocks like the 2000 recession was.  

There's a quote from Gary Vaynerchuk that I think some might benefit from.  "Never be romantic about how you make your money."  His point is that if you fall in love with anything in business, for instance, a specific investment strategy, your eyes are closed to change.  

Ultimately, nobody can tell you what will happen next.  The market will go up.  The market will go down.