The Global Stock Market Crash JUST HAPPENED. And Its Much Worse Than We Could've Imagined…

This is what happened in the Japanese stock market today. This is what happened in the Taiwanese stock market today. This is what happened in the british stock market today. And this is what happened in the american stock market today.

All around the world, stock markets took a tumble. And almost every single big stock took a big dip today. Except for one…

You see, one stock shot up so high today, that it might be signaling to the rest of the world, that something really really bad is about to happen…

But lets start off with where this stock market collapse began, and that is japan. You see, Japans stock market didnt just have a bad day today, but it had its worst day in almost 40 years. In fact, it crashed worse today than at any time during the pandemic. The only other time it was worse was black monday in 1987. An infamous day when the world lost trillions of dollars in the stock market in just a few hours.

But why did this happen, well there are a few hypotheses.

One is something called a carry trade.

You see, Japan over the last few years actually has kept their interest rates low and have experienced very little inflation. And so, what a lot of very big corporations and wall street firms have been doing is borrowing tons of money in japanese yen with low interest rates, and then taking that money and investing it in other currencies and stock of other countries like in australia and the usa who have higher interest rates. Pretty much meaning these large investment firms borrowed cheap money in japan, and have been using that debt to invest in the united states. And its estimated that between 5 and 10% of the entire american stock market is on a carry trade.

But, what happens when that cheap money in japan, has there interest rates go up. You see, japan has not raised their interest rates since 2007. Meaning they have been a safe bet to borrow cheap money for nearly 2 decades. But in march, Japan raised its interest rates for the first time. And they did so again just 5 days ago.

Meaning that now all of the wall streets firms and financial institutions that have been relying on japans cheap borrowing cost, now are worried that their payments will go up on their debt, or that they will no longer have access to cheap money for future investments into the stock market.

And on person who may have actually seen this coming is the renowned investor, warren buffet. A man who has been known for outperforming the stock market for about 70 years, decided to cash out pretty much immediately after hearing this news out of japan. Now this could have beena coincidence, because he has been cashing out slowly over the last 12 months. But 4 days ago, he nearly doubled his cash position, meaning that he expects some sort of market correction or collapse soon.

And that brings us to the next point about why the globa stock market appears to be showing signs of a collapse right now. And that is the fears of a real recession.

You know, one of the interesting tidbits I always bring up is after world war 1, the world was expecting to experience something like the great depression. Essentially something terrible was supposed to happen after the war and spanish flu decimated the world population and global industries. And one somewhat brief recession did happen in 1920 and 1921. A single year recession that was fairly quick but also a very large downwards spike. But then afterwards, the world experienced what was called the roaring 20s. A time when we hear about the glitz and glam and wealth explosion that everyone got to experience. But in reality, only the top half of the wealthiest people got to really reap the financial rewards of the roaring twenties. Because asset prices began to sky rocket and debt was very cheap to borrow. But if you were a lower middle class person or were working as something like a farmer, than you actually lost ground during the roaring 20s.
But hey, as long as the people who owned assets got richer, thats all that matters, right?
Anyways, what followed after the roaring 20s was the great depression. The worst, and longest economic downturn in modern history. A horrible economic decade that essentially needed a world war, to take the world out of this economic downturn.

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Podcast:

[JackChappleShow]

Bears, Arise! haha, but thought? is this a long term situation, or a short term speed bump?

[Greggsberdard]

Last week, while stock prices dropped significantly, retail investors sold $1 billion worth of shares, whereas institutional investors purchased over $14 billion. This is a prime example of market manipulation.

[cybshbv]

Well, there goes the global stock market again! Good thing I've got $221k in my emergency fund just sitting there, waiting to jump in at rock-bottom prices. Now, just gotta figure out where to start... any headstart tips?

[Cynthia-mmcv]

Every crash/collapse brings with it an equivalent market chance if you are early informed and equipped, I've seen folks amass up to $1m amid economy crisis, and even pull it off easily in favorable conditions. Unequivocally, the collapse is getting somebody somewhere rich

[gingerkilkus]

Coming out of facing alot, I knew two things about the stock market: It caused the Great Depression, and the fastest way to make a million on the markets was to start with two million. And then the Great Recession happened only a few years later. So yeah, I wish someone had better explained it to me earlier in life. Having a good entry and exit strategy will make you succeed in the stock market.

[kortyEdna]

Crash fatigue is showing with most people. Most are so tired of hearing about the worse even though its true. We are being boiled slowly in the pot! I want to diversify my $80k portfolio.

[Christine-wpbw]

Honestly, this concerns me and has left me uneasy. Especially this potential depression, no more a recession. I'm now thinking of ways to protect my portfolio worth of $800k from this bloodbath.

[RickWatson-xugw]

I dont even know where the stock market is headed to right now. my portfolio of around 200k is not increasing more than 5% and people are predicting a crash .

[Evelina-vu]

Used to think investors lose out amid crash, meanwhile some make profits. I also thought folks went out of business during the great depression, but some went into business. Bottom line, there's always depression for some while others amass wealth gains.

[rachelonigirl]

To be kinda blunt, I am giving up on investing in stocks... I put between 2000 to 3000 a month and it's nothing but down down.... frustrating and I only invest in boring big companies. How can I capitalize in such a market?

[albacusBC]

But the market recovered soon after this prediction. That’s why I prefer to do my own further personal research so I make independent decisions. I’ve made mid six-figures this year alone, more than my entire income for the past fifteen years, after so many obstacles just by thinking in first principle.

[vickylarue]

Its worse here, our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.

[Dantursi]

The recent stock market crash, losing about 1.7 trillion in just 24 hours, is a stark reminder of how volatile the market can be. It's a challenging time for many investors, but it's crucial to stay informed and make decisions based on long-term goals. This underscores the importance of having a diversified portfolio and a sound investment strategy, ideally with guidance from a financial adviser to navigate these turbulent times effectively.

[BrewerVera]

Biggest lesson i learnt in 2024 in the stock market is that nobody knows what is going to happen next, so practice some humility and follow a strategy with a long term edge.

[annaj.osorio]

Since the crash, I've been in the red. I’m playing the long term game, so I'm not too worried but Jim Cramer mentioned there are still a lot of great opportunities, though stocks has been down a lot. I also heard news of a guy that made $250k from about $110k since the crash and I would really love to know how to go about this.

[deeannagartenhaus]

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

[MarioGuillermo]

Fantastic 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??

[RaymondcrawRaymondCrawley]

Transfer of wealth usually occur during market crash, so the more stocks drop, the more I buy, in the meanwhile I'm just focused on making better investments and earning more as recession fear increases, apparently there are strategies to 3x gains in this present market cos I read of someone that pulled a profit of $350k within 6months, and it would really help if you could make a video covering these strategies.

[JohannLang-ry]

I feel investors should be focusing on small cap stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises of plummeting stocks which were once revered and i don't know where to go here out of devastation.

[CrystalJoy-]

The market's direction can swiftly change, with indexes frequently transitioning from a bear market to a bull market. It's tricky during election years. I recently inherited a lump sum and want to invest it wisely. Any tips or strategies to take advantage of this potential upswing?