Timing the next financial crash of 2024 seems easy, but only some can predict it accurately on such short notice. There are never-ending gurus on the Internet that play the same old scare tactic of coming economic crash scare, which rarely turns right. And that is because crises and massive crashes happen on average in seven years. However, because the long-term crash predictions are mostly wrong, they develop another one and another one. It’s unbelievable. It is like in a never-ending Matroska’s doll.
This article suits those with investments in the stock market. However, even if you don’t have such an investment, it’s essential to understand that a sudden spike in oil price has consequences for everyone.
This meltdown will increase oil prices, soon impacting your daily life.
This article is not advice but a warning, even if you must
be prepared, cautious, and diversify.
But it will not tell you precisely what to do. It may be a stark warning, but not the whole picture.
For example, during the last market crash in the summer of 2024, when Japan’s markets dragged the markets worldwide, the world was simultaneously experiencing tremendous external issues.
Ongoing trade tensions, political instability in various regions, social unrest, and global markets recovered quickly, even if no bankruptcy or similar incidents catalyzed the move.
But even so, do you recall when the world experienced so many things that happened simultaneously? Have you found one period? I think you didn’t!
If you think the 2007-2009 period was similar, think again! Of course, we had some failed banks in 2023 and 2024—five in total —but the number is thin compared to 2009 when 140 banks failed.
Before the approval of the Dodd-Frank Act in 2010, the world faced only issues regarding financial fragility due to permissive policies and abuses.
Aside from regular investments, the financial markets became massive bet shops; the derivative market is like speculation on the back of speculation.
Aside from regular investments, the financial markets became massive bet shops; the derivative market is like speculation on the back of speculation.
Not only did the derivative market spike up to 100-200 trillion in value from 500 trillion in the pre-2008 financial crisis, but remember, there were some wars back then, but the players, the adversaries, couldn’t have a say and fight back. Not to mention, the costs of the 2008 wars were much lower compared to those that started in 2022.
The world wasn’t so interconnected and dependent on technology, resources, aid, and much more. It has changed so much since 2020 that it has become severe, and the world needs to adjust on the fly. It is not a pleasant thing to do.
Companies are lining up to catch the apparently last train of the “AI rush” like there is no tomorrow, as it was the ultimate survival kit, the holy grail of the holy grail.
The same thing happened with EV cars; now, companies are adjusting their costs because they fear a reduction in profit margins. Also, the increase in inequalities in the post-pandemic period makes the current situation more urgent and vital to understand.
So, how much time do we have until the next crash?
I foresee it in the coming weeks, between the end of the first and the start of the second week of October, between 6 and 9 October 2024.
But you must make some adjustments before that; otherwise, you might be unprepared and caught off-guard!
Will it be comparable to the crash that came from Japan?
This crash will be more significant and recover slower than this spike generated from JPY interest policies diverging from the other countries, which creates room for carry trades and more appetite for risk in some directions.
This crash will be more severe due to an external event in the financial system and will primarily affect crude oil.
Like the balls on the chain, the spike in oil will cause inflation, as will the cost of producing goods.
This future crash will be much more severe due to the multiple incertitudes simultaneously hitting the markets and trepidating from top to bottom.
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Sources:
List of failed banks: 2009-2024 – Bankrate.com
Disclaimer
This material doesn’t represent trading advice, and any financial loss associated with this article is strictly your responsibility.
