Very few investors saw the 2000 Tech Bubble crash or the 2008 Financial Crisis coming.
This is reminiscent of the housing bubble and crash where home-equity borrowing soared only to later see homeowners saddled with debt and crushed by falling home prices.
First was the Tech Bubble, then the Housing Bubble and stock market crash of October 2007 to March 2009.
Investors who are sensing high stock returns and are planning to jump back into the market must be careful and remember that this could be yet another bubble followed by yet another crash.
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This is higher than during the burst of the Internet bubble or the 1987 stock market crash.
Besides debt woes in Greece, countries like Ireland and Spain were deeply exposed to the crash of the housing bubble.
The housing market was in a steadily inflating bubble from the mid-nineties through 2007 and 2008, a bubble that popped alongside the financial crash.
In the case of the U.S. economy now, the double-whammy of wealth shocks from the real-estate bubble and the stock-market crash has made consumers understandably cautious.
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Before the financial crash and the housing bubble burst, dealers seemed willing to sell cars to just about anyone with a job or some kind of income.
Many will remember the awful feeling in the last recession, in the early 1990s - or the 1987 stock market crash, or the British property bubble - where you know nothing fundamental has changed - but people who spent freely before, took chances before, stop doing all those things, and everything slows down, share prices fall - confidence ebbs away.
Try to foil the emotional trigger that often causes individual investors to buy in the euphoria of the bubble and sell low in the depression of the crash.
Considering October of 1987, bubble theorists would likely explain the Oct. 19 crash as a function of a market that similarly spiraled out of control--its impressive rise throughout the '80s a precursor to its ugly, 24.5% collapse.
Jim Stack spotted the 1987 crash and the 2000 burst of the tech bubble and moved his clients into cash and profits.
The financial crisis that resulted from the bursting of the housing bubble, accurately foretold in my book, was not the crash itself, but merely the overture to a much more tragic economic opera for which the curtain is just now rising.
The U.S. is still reeling from the manipulative build-up of the housing bubble, the sub-prime mortgage mess, the resulting real estate crash, and the financial crisis of 2008 that required a multi-trillion dollar bailout of banks and brokerage firms.
Such longevity is impressive though not unheard of (East Asia grew for decades before its crash and Japan's economy roared for 15 years before its bubble burst in the early 1990s).
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Jim Stack has helped his subscribers maximize bull market gains, but has also told them to sell prior to the 1987 crash, the 1991 bear market and the bursting of the tech bubble in 2000.
Stocks will then crash, big time, taking down the economy and deflating the commodity bubble for good.
This GREATLY exacerbated the housing bubble which had already started and led to near financial armagedon with the housing price crash and banking insolvencies.
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Home prices are climbing rapidly in the Bay Area, where the economy is performing better, and could reach 2007 pre-crash levels within the next year or two, if the current tech bubble continues.
The post-crash rally in these securities was more likely a feature of a long-run bubble in the dollar itself in response to macroeconomic conditions.
We all remember the popping of the April 2000 tech bubble that had run the NASDAQ up to 5000 for a moment, followed by a gut-wrenching crash to 1140 a year and half later.
FORBES: Investors Need to Summon Elephant's Memory before Charging Back to Stocks
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