Reply to Does anyone else believe the impending financial crash will be bigger than 2008-2009?

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Reply to "Does anyone else believe the impending financial crash will be bigger than 2008-2009?"

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[quote=Anonymous][quote=Anonymous]The markets are informationally efficient, meaning stock prices already reflect all available information about economic conditions and future risks, including those that are the subject of OP's rant.  PP's belief that they know more than all the markets is delusional. [/quote]

The idea that the market is an objective reflection of economic conditions is demonstrably false. If it were, crashes wouldn't happen-- instead, there would be a slow winding down as economic conditions deteriorated. The market in 2008 prior to the crash was strikingly irrational. But markets can be irrational for a very, very long time, and individuals are fearful of getting out too early. On average, that might be ok-- research shows that on average you do better not trying to time the market. But for a given individual, say someone who is approaching retirement and doesn't have 10 years to make up big losses, not getting out of the market before the crash can have huge implications. [/quote]

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