blog

A 70% Stock Market Crash?

2018 has been one of the most volatile years global stock markets have seen since the 2008 financial recession. This volatility, combined with rising interest rates, may prove to be an explosive combination and is just one reason many hedge fund managers are predicting a stock market crash in 2019.

In some cases, there have been predictions of a 40% - 70% crash in the stock market:

  • Scott Minerd, Chairman of Investments and Global Chief Investment Officer of Guggenheim Partners, has forecasted a 40% drop.
  • The CIA's Financial Threat and Asymmetric Warfare Advisor Jim Rickards has claimed that a 70% drop is the best case scenario.

At the last Federal Reserve meeting of the year on 19 December, Chairman Jerome Powell reiterated his bullish stance on hiking interest rate in the future. With interest rate hikes preceding more than 10 economic recessions in the past 40 years, it is little wonder that stock market investors are predicting the worst for 2019. The technical chart also has some investors concerned.


Get Started for Free

© 2018 – Born2Trading, All rights reserved.

Trading spot foreign currencies (“forex”), indices, commodities or futures contract is not appropriate for all investors, and the risks of trading can be substantial. You should carefully consider whether trading is right for you in light of your particular circumstances and financial resources. By acknowledging this statement and contracting for the services provided by Born2Trading.com (“B2T”), you acknowledge that you have not sought advice from B2T regarding the appropriateness of trading for you, and B2T has not provided any such advice to you.

You agree and acknowledge further that the trading signals provided to you by B2T (trading signals) are not, and are not intended to be, an offer or solicitation to enter into any trading transaction, or any type of trading or investment advice, recommendation or strategy. You acknowledge that it is solely your decision to determine which, if any, B2T trading signals to use for trading (whether actual or simulated) at a Retail Foreign Exchange Dealer, Futures Commission Merchant or other financial institution (collectively referred to as “Financial Institution”), and whether to send all, some, or none of the B2T trading signals to such Financial Institution for execution.

You understand that past performance associated with any trading signals offered by B2T, whether actual, hypothetical or historically “back-tested” is neither necessarily indicative of nor a guarantee of future performance or success.

Trading B2T signals may result in the total loss of the funds that you deposit at a Financial Institution, and you may incur losses in excess of your deposits. Leverage can work against you as well as for you, and can lead to large losses as well as gains. Moreover, funds held at such Financial Institution are typically not guaranteed or insured against misappropriation or the bankruptcy of the Financial Institution. You should only trade with funds that you can afford to lose.

Based on the foregoing, you agree that you shall not seek to hold B2T responsible for any losses associated with any trading signals provided to you by B2T. In the event that any claims, suits, actions, damages, liabilities, obligations, losses, or expenses (including reasonable attorneys’ fees) arise out of or relate to the relationship between B2T and you, and/or any trading signals provided by B2T to you, you agree to indemnify and hold B2T harmless therefrom.

THIS BRIEF STATEMENT CANNOT DISCLOSE ALL THE RISKS AND OTHER ASPECTS OF THE MARKETS. YOU SHOULD CONSULT WITH YOUR FINANCIAL ADVISOR PRIOR TO TRADING OF ANY MARKETS.