The Possible Depth Of The Next Stock Market Crash!

I believe we are in a financial assets bubble! As all debts come due, when this bubble deflates and things return to reality, it will be ugly and therefore I wish to discuss the possible depth of the next stock market crash.

My passion is to look for low risk high reward investment opportunities. I apply my accounting skills and investing experience in order to find interesting investment ideas that offer the possibility to lead me towards my financial goals.
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I often get asked about brokers, here is a low fee broker, an international one that allows you to buy on global markets, and also offers complex solutions like options for when your investing skills grow. For now, it is one of the best solutions I have found for global investors, also based on your comments and inputs:

[EmilyCarter-jywu]

I can never catch a break in the stock market. I was up by nearly $4000 but I regret not selling sooner. Sometimes I think I am too impulsive and sometimes I think I'm not fast enough. The market is too volatile.

[cortez]

I'm convinced that investing 50k-100k in the right company before it goes big is more important than buying the dip, however picking the right company can be hard. My question is, what are the best opportunities to accrue profits now, amid market crash?

[sarawilliam]

My portfolio doesn’t just cater to dividend stocks. I hold $VFIAX (S&P 500 index fund) in my Roth IRA and $VTI (Total Stock Market ETF) in my taxable brokerage account. Two of my largest holdings. The individual dividend stock positions all complement the index holdings.

[OptionData-eb]

You can spend all day speculating how bad things would look if the S&P500's P/E dropped to 6.
In the 1980s, when the S&P500 last tested those levels, interest rates were 12-15%. Why would anybody buy a stock if you can compound at 12-15% risk-free? Valuacions were cheap for a reason.
The Hang Seng index also traded around 5x earnings in 2022 and it isn't far from that today: you have a real estate debacle brewing and a dictatorial government that seems fixated on sinking its own market: again. cheap valuations for a very good reason.
Is the US overvalued? Sure. But it also has the best companies in the planet, the most friendly regulation possible and a population accostumed to dollar-cost averaging, so there is absolutely no reason to expect single digit multiples, not even long term average multiples.

[pauls]

Sven is becoming YouTube’s Harry Dent 😂😂

[jasonalexander]

Great video thanks. This current debt spiral cannot last much longer, probably

[ifrk]

Will stocks that already misvalued (i.e. PE <8 PBV <1 great business) also be impacted when the market crash?

[tbaloni]

The best thing to do for me is to just hold and continue buying stocks.

[robertc]

What is the current forward p/e of the S&P 500 excluding the mag 7?

[tracey]

Thank you for this wonderful video! I have incurred so much losses trading on my own....I trade well on demo but I think the real market is manipulated.... Can anyone help me out or at least tell me what I'm doing wrong?

[JohnStafford]

*If you are not in the financial market space right now, you are making a huge mistake. I understand that it could be due to ignorance, but if you want to make your money work for you...prevent inflation*

[DenniDeVideo]

thx sven good video as always! and how would you now prepare for such a scenario ? save as much cash as possible, for investing after the crash in then still high quality businesses ? and what to do with the already existing potfolio positions?
thank you for your work!

[TheodoricStrabo-tw]

Assuming that one does not sell anything at all during a market crash. What is better to own individual stocks or funds/ETFs?

[rhinelandattitude]

Any interest in doing an analysis on WW? From an educational perspective, it would be interesting to know if Weight Watchers is bound for bankruptcy, or a rebound at the prices that it is listed at.

[marius]

Sven, could you take a look into NYSE:CHK ? Natural gas play.

[JuanBattaglia]

‘If tax rate goes from 21% back to 35%, that results in an instant 18% decline in domestic earnings, making stocks more expensive than they currently are — a stock valued at 25 P/E suddenly becomes a 30 P/E if the “E” drops by 18%’ (John Huber).

So, we could expect a multiple compression from 33 (normalizing earnings according Huber) to 20 (average PE ratio last 5 decades); -40%.

[robertritchie]

There isn't a bubble, whats happening is the PE ratio appears high because people do not account for inflation etc. So the PE ratio being high in the great depression or 2008 for example is not high in 2024 (PE ration of 27 in 2024 is not the same as a PE ratio of 27 in the past)

[nonexistent]

Bets on the lowest CAPE ratio or highest excess CAPE yield reached during next big panic or sell off?

[TheodoricStrabo-tw]

Assuming one does not sell anything at all, is it better to own shares or funds/ETFs during stock market crashes?

[jazz]

If you would have bought the QQQ or SPY two years go would be up about 44% and 36% respectively. So if the market crashed 50% you would still be up 22% and 18% respectively. Which is much better than what most people would do. Sven, have you made more than that in last two years. It doesn't seem like it. So buying these ETFs is still much better for most people than trying to pick winners.