When will the Stock Market Crash?

Definition: A stock market crash is a sudden dramatic decline of stock prices across a significant cross-section of a stock market, resulting in a significant loss of paper wealth.Crashes are driven by panic as much as by underlying economic factors.

For some time now, a prominent trader and investor have been telling stories about a coming stock market crash. He has been telling everyone that he is getting prepared with tons of cash waiting by the sidelines for a stock market crash to happen and then profiting handsomely from the event.

I can say from my experience that predicting a stock market crash is the most futile exercise I have ever done.

Very few people will be able to forecast correctly this event. Many more will see it but do not believe or understand until too late!

I know because I have been caught in 3 major stock market crashes in the past (1987,1998 and 2008) and each market crash was caused by a different factor from the other. 

I expect the next one will also be affected by a different factor from the last one and the others. What factor is it going to be is your guess is as good as mine.

So forget about predicting when the next stock market crash will happen. If you keep all that cash and the crash happened in 10 years time, you would have lost 10 years opportunity in the stock market. 

From my own experience, you will be better off investing slow and steady with SPARE CASH on good listed companies that paid good dividends and companies with growth potential for capital appreciation. Treat investing like a business and not a get rich quick scheme or a casino.

Also a general rule is don't put a large percentage of your CASH ...in the stock market. Your long-term investments and future need to be diversified and NOT dependent on a single vehicle. Good Luck!

More of this in a later article ....