2016 Stock Market Crash?

[Peggy Liu]

So I read this article this morning..

http://www.marketwatch.com/story/stock-market-cras...

Anyone here think there's a good chance that there will be a 50% crash in the market next year?  Any thoughts on this and how this is going to impact us in real estate?

[Brandon Hall]

@Peggy Liu  Paul Farrell has been "predicting" a stock market crash for years. His logic is likely: if every year I predict a crash will occur, eventually I'll get it right and be called a genius.

You need to remember what his main goal is - to garnish viewers for his publisher. He likely gets paid on a "per click" basis so he writes sensational articles that will be quickly shared and drive up his income. Anytime you see a journalist write something, take a few minutes to verify and also seek out second opinions and differing opinions.

There is always a chance that the market could crash and you can always take measures to mitigate downside risks. Specifically, you can buy put options or invest in volatility funds so that you can earn on the downside (especially if you don't want to deal with short selling). People that don't know how to utilize these vehicles are the ones that get burned badly.

You can make money in any economic environment, so instead of being fearful, figure out how to do it. Take the emotions out of your investing and be prepared for various scenarios and market movements. Take Floyd Bostwick Odlum for example. The guy made millions during the Great Depression. There was also another trader who made millions during the Depression though his name is eluding me right now.

Anyway, to prove my point that Paul Farrell is likely a nut job, here are a few of his articles over the past few years "predicting" the upcoming crash:

1. Article written in 2008 predicting a 2011 crash:

http://www.marketwatch.com/story/well-great-depres...

2. Article written in 2011 speaking about impending doom:

http://socialistworker.org/blog/critical-reading/2...

3. Article written in 2013 claiming a massive crash is on the horizon:

http://investmentwatchblog.com/paul-b-farrell-the-...

4. And a Business Insider article calling the guy insane (which I agree with):

http://www.businessinsider.com/is-marketwatchs-pau...