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We can expect a stock market crash pretty soon.
I discuss 4 triggers that indicate towards a potential economic collapse and a stock market crash in 2018. It is important to understand the risks of investing in stocks before investing.
If stocks crash it can end up pretty badly an the S&P 500 can lose 75% of its value.
The triggers are related to the economic situation, government debt burdens, central banks losing control, political turmoil or inflation. I will discuss in a different video how to prepare for the imminent stock market crash. The current debt burdens are creating both an economic and debt burden.
However, a smart investor can prepare by investing in some hedges.


Gal Gilboa says:

hi Sven. the only bubble this time is the money itself. and the morror is the treasuries. The currencies are not strong as they appears. inflations unteel today was taking place in assets and not in products and services. therefore the treasuries are the bubble that is going to blow. its seems like its going to happen because of oil prices. The inflation is about to transfer from Assets to sproducts and services just like Communicating vessels. 2018 sound like the right time to it. its not hard to understand that the currencies which are goind to vaccume all the value are the ruble and the Yuan.

Zeus Valentine says:

I was around in the inflation of the 1970s. People's debts were inflated away, and if you owned a home you made bank. Wages eventually climbed. It wasn't all bad, and if you ask me, inflation is what is needed right now.

Miguel Deton says:

GLOBAL STRATEGIC HYPOTHESES — OVERCOMING RULING-CLASS 鈥楽TEALTH HUMANOCIDE鈥 [STEALTH 鈥淓UGENICS鈥漖: The genesis of the concept of 鈥樷樷楨quitism鈥欌欌 as successor system to the present, [state-]capitalist system of political economy [including to state-capitalist pseudo-socialism] was linked to several connotations of this term. The term 鈥樷樷楨quitism鈥欌欌 has, for example, name-resonance with the name of the tradition of 鈥淓quitable Jurisprudence鈥 in Anglo-American law.

Growing out of the 鈥淐rown Chancery鈥 in England [the Office of the Crown 鈥淐hancellor鈥漖, there emerged separate courts of equity, or 鈥渃ourts of conscience鈥, to which appeal could be made from judgments by those courts enforcing common law and statute law when a defendant held that a judgment rendered by such a common law/statute law court, even if in accord with 鈥渢he letter of that law鈥, represented a morally inadequate remedy, and thus violated 鈥渢he spirit of the laws鈥, therefore, per that defendant, failing to deliver 鈥渢rue justice鈥.

In U.S. jurisprudence, the two, separate kinds of courts where merged into one, and the convergence of their principles begun, with U.S. courts 鈥樷樷榩residing in [both] law and equity鈥欌欌, and allowing 鈥渆quitable鈥 arguments and remedies, as well as 鈥渢echnical鈥 arguments, and [strictly monetary] remedies. There have been homologous developments in the tradition of Napoleonic/Roman law.

In recent parlance, the term 鈥渆quitism鈥 is often used to refer to 鈥済ender equity鈥, as a 鈥渟ynthesis鈥, or 鈥渕ean鈥, of feminism and 鈥樷樷榤asculinism鈥欌欌. It is sometimes also used to name a 鈥渟ynthesis鈥, or 鈥渕ean鈥, between egoism and altruism. There was, earlier in American history, an individualist 鈥渆quitist鈥 movement for the amelioration of property rights injustices.

But most importantly, our term 鈥樷樷楨quitism鈥欌欌 is meant to invoke the concept of 鈥淐apital Equity鈥, and the tradition of 鈥淪tockholder Democracy鈥 [鈥渙ne-share-one-vote鈥漖 that follows from it.

鈥淐apital Equity鈥 rights — rights exclusively reserved to owners of capital [of 鈥渃apital equity stock鈥漖 — are seen as a 鈥渇irst [and inadequate] species鈥, but, nonetheless, as a first modern seed, of 鈥樷淓conomic Democracy鈥濃, as distinct from 鈥楶olitical-only Democracy鈥; are seen as the embryo of a more extensive and all-citizens-inclusive form of 鈥淪takeholder Democracy鈥, and of 鈥楶olitical-ECONOMIC DEMOCRACY鈥 as a whole.

鈥樷樷楨quitism鈥欌欌 is seen as signifying 鈥榞eneralized social equity鈥; as 鈥済eneralizing鈥 social equity, to beyond the small class of owners of 鈥渃ontrolling shares鈥 of capital equity, to encompass the whole society, including every citizen, by constitutionally recognizing in each citizen, as a human right, their ownership of new kinds of 鈥榚quitable property鈥, of equalitarian 鈥榮ocial shares鈥.


That concentration of capital-equity ownership eventually enables those 鈥渇ew hands鈥 to prostitute — to 鈥樷渂uy-out鈥濃, in a 鈥樷渉ostile takeover鈥濃, via an all-pervasive system of 鈥榣egalized crime鈥, e.g., 鈥渓obbying鈥, i.e., via 鈥樷樷榣egalized bribery鈥欌欌 — the executive, legislative, and judicial branches of political government.

This 鈥榰ltimate M&A鈥 thus totally defeats the constitutional 鈥渃hecks-and-balances鈥 among those three, political, branches; 鈥渃hecks-and-balances鈥 which were constitutionally designed to prevent this degeneration into dictatorship, and that were at least somewhat effective in doing so during the earlier phases of capital accumulation and capital ownership concentration.

The 鈥楨quitist鈥 reform/revolution is seen as a 鈥樷樷榞eneralization鈥欌欌 of 鈥淐apital Equity鈥, forming a new 鈥榮ocial genus鈥 of 鈥榞eneral social Equity鈥, by adding, via constitutional amendments, several new, inclusive 鈥樷樷榮pecies鈥欌欌 of 鈥樷樷楨quity鈥欌欌, as newly recognized universal constitutional human rights.

鈥樷樷楨quitism鈥欌欌 is a 鈥榗onstitutionalization鈥 of 鈥樷樷榮takeholder democracy鈥欌欌 — a 鈥榗onstitutional institutionization鈥 of 鈥樷樷榮takeholder rights鈥欌欌.

Social Equity — Social Justice — requires 鈥楿niversal Equity鈥; recognition of every-citizen-ownership of three new kinds of equity-property, as a matter of fundamental human right.

These new species of equity-property most prominently include:

(1) The [collective property] human right of 鈥楥itizens鈥 Externality Equity鈥 [which can be seen as a collective property implementation of the so-called Coase 鈥渢heorem鈥, e.g., via decentralized, comprehensive, democratic, 鈥榞rassroots regulation鈥 of polluters, supplementing the failing strategies — failing increasingly as capital ownership concentration deepens — of bureaucratic external regulation, due to, e.g., 鈥渞egulatory capture鈥, and of court-mediated, litigation-based mitigation of externality-damages, due to the increasing 鈥淏ig Money鈥 prostitution of the judiciary];

(2) The [personal property] human right of Citizens鈥 Birthright Equity [universal 鈥榮ocialized trust-funds鈥橾, a unified, totally portable social safety net for each citizen born, serving, e.g., as a source for monthly guaranteed minimum annual income payments during periods of involuntary unemployment, e.g., due to 鈥淎I鈥, and;

(3) The [鈥渋ndividual property鈥漖 human right of Citizens鈥 Stewardship Equity [via 鈥榮ocialized venture capital鈥橾, granting access to means of production to, potentially, every citizen — to citizens self-organized into democratically self-managed, COMPETING 鈥榮ocialized producers鈥 cooperatives鈥 [鈥榗ollective entrepreneurship鈥橾, that promulgate qualifying business plans, and that successfully enlist a Social Bank, also a Citizens鈥 Stewardship Equity 鈥榮ocialized producers鈥 cooperative鈥, to take the risk of backing/funding that business plan. [This conception, of 鈥楥itizens鈥 Stewardship Equity鈥, owes intellectual debts to the work of David Schweickart].

The citizen owners of successful such cooperatives hold their means of production as 鈥樷樷榮ocial property鈥欌欌, in stewardship, not in local ownership, and pay a monthly social rent for their use that helps to fund the Citizen Birthright Equity personal Trust Funds of all citizens. They elect, and can recall, their own management. Each citizen co-owner of a successful such cooperative receives two income streams co-produced by it: [possibly unequal, skills-based] compensation for time worked in that cooperative, and an equal share of the net operating surplus of that cooperative. Continuing capitalist firms will have to compete, for labor, with these cooperatives, wherein the way workers are treated is per their own decisions. Note that this — Stewardship — relationship to the means of production constitutes a break with, and beyond, the wage-labor relationship [i.e., with, and beyond, the capital-value-relation as predominant social relation of [social self-re-]production]. Even if the economic dynamics of this new kind of — economic-democratic — social economy do not immediately bring the intrinsic, episodic, and worsening 鈥榙epressionary-tendency鈥 of capitalist economic dynamics to its blessed end, there is reason to suppose that Stewardship cooperatives, democratically managed by their Steward members, the producers themselves, will tend to avoid the mass lay-offs by which capitalist crises self-amplify, e.g., to share reduced work hours among all the Stewards, rather than to layoff some 100%, and retain others 鈥100%+鈥.

The dual incomes earned by Citizen Stewardship Equity producers鈥 co-op co-owners will gradually shift economic power, and social power — hence political power — decisively to the working/middle-class majority, and increasingly out of the 鈥渆ver fewer hands鈥 of the concentrated, mega-capital ownership plutocracy faction who presently rule GLOBALLY, and who presently push public policy relentlessly in the direction of a global system of 鈥榟umanocidal鈥 [鈥減eople are pollution鈥漖, 鈥榚xterminationist鈥, 鈥渆ugenics鈥 police state dictatorships.

The Stewardship co-ops will also be 鈥榠ncented鈥 to harness, and unleash, high productivity — high 鈥渟ocial-re-productive force鈥 — 鈥榰niversally prosperizing鈥 technologies, which the ruling faction is suppressing, e.g., fusion power, whose spread would rapidly 鈥榯echnodepreciate鈥, to ~$0, the core capital assets upon which the power of that ruling faction is founded, e.g., their 鈥楪lobal Dictatorship of Petroleum鈥, and enable the institution of total, 100% elemental recycling, via the 鈥渇usion torch鈥, etc.

For more about these proposals, see —

My blog on this topic can be visited via the following link —

Regarding ruling class 鈥渇alse flag鈥 鈥榙isaster engineering鈥, see Michael Crichton鈥檚 novel 鈥淪tate of Fear鈥.

John Stark says:

That historically high NYSE margin debt is setting up a major correction. National debt, state debt, municipal debt, and individual debt have made me cautious about North American markets. Another crack; sub prime car loans are at historic highs and delinquencies are rising, while the value of owner's cars depreciate.

napos papas says:

Recession is good for the economy because bad business go bankrupt and we can buy more stocks from quality companies.I don't think we will have a market crash soon and if we have in the next 5-10 years the inflation will be under 5%.

David Wu says:

Thank you Sven for sharing your research! What do you think about the following scenario? The world economy is on drug of central bank money printing and asset purchasing. There is no easy way out. We just continue down the path for long time. The downside is that fiat money is devalued and inflation will pick up. But government could do price control on essentials and other things to maintain stability. Maybe that is the reason some people are parking their wealth in cryptocurrencies.

John Anselmo says:

Hi Sven, what are you holding for gold miners – GUY?

Liqun Pu says:

To tell the truth, I don't know and I don't care if US market will crash next year or not, the point is that if I buy at this market level, most likely I will make nothing during the next 5 years. And if put my money in market like Hong Kong (especially Chinese bank stocks average PE ratio at 6), I am sure I will make tons of money within 5 years. Investing is not that complicated. You just need a little optimism and patience when everybody don't.

Stamat Arsenikos says:

is there a way to short for an indefinite amount of time the italian banks…? I have never shorted.

Hansen Hansen says:

Another factor, albeit minor compared to central banks, is the change in corporate tax rates in the U.S. Companies that have underfunded pensions will want to increase pension funding for the current year at a 35% tax rate and then reduce contributions next year at a possible 20% tax rate. This will have the effect of reducing a source of tax-free investments in the markets.

Nicholas J. Paris says:

Good video again! How are you personally hedged Sven? Would be good if you showed us your position here.

Caleb Block says:

I am very, very sneaky sir

Jeff Woerth says:

I enjoy your videos!

Isal L says:

Hi Sven, how are you?
Dcix is risky stock..especially lately. Do you think it's a good time to buy? What's your forecast? Thank you

Liqun Pu says:

Another awesome video. Always click like. Always like to read the comments from all these smart people. Always buy cheap and sell high.

Rapha毛l Rabusseau says:

Hi Sven, sorry to come out of the blue with my question but JP closed around $20.40 yesterday. As you made an interesting video about the stock, I wonder about your sentiment today.
Thanks for all your work. It really makes a difference for a layman like me 馃檪

Nicklas Hansen says:

Hello Sven
Would you care to tell us something about prepairing for a potential crash. How do you prepade for this?
Best wishes

Reinhard says:

Maybe the expected 4% world GDP growth is already priced in. Even the US tax cut program. So what else could be a reason for higher stock prices? At the moment everything is nice. But emotions can change quickly if stocks start to go down. Then people might be looking more at risks. So I will focus more on low risk investments 2018 and except that I could miss out some returns.

I think that's better. Missing out some returns (the last 20% for instance) might be the better alternative than suffering huge losses and have no liquidity to buy cheap (I know I repeat myself, but to do the opposite is not easy so repeating can help).

Rahul Chahal says:

Loved your analysis and post. US stock market is on record – the longest up move without a 3% pullback, getting close to record without having a 5% or 10% correction. Also concerning is the yield curve as 2 year, 5 year rates have gone up but 10 year and 30 year rates have not gone up thus the yield curve is flattening. While the stock markets can keep going up for weeks and months but at some point this may not continue.

Gainde 113 says:

Maybe it sounds naive but what is the risk for a longterm buy & hold investor that is worldwide invested (index MSCI ACWI/FTSE All-World)? Will the stock prices never go up again? 馃槈 Also during crash companies/shares are on sale. Crashs are part of the stock market/capitalism system. What is bad with them? Even Buffet doesn't care a lot about but will go on shopping.
I'm talking about longterm investing. Other strategies will may not work.

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