🔵 How The Stock Market Crash Will Happen

Join Our 'Investor' Community! - https://www.patreon.com/neilmccoyward
Private Mentoring! - https://www.neilmccoyward.com/....neil-mccoy-ward-priv
Create A Property Business! - https://www.propertycashflowacademy.com/

How The Stock Market Crash Will Happen - (Step by Step!)

The 7 Stages:
- Stage 1: Unrealistic Rapid Growth = Fuelled partly by stimulus from the Federal reserve
- Stage 2: Low interest rates = Share Buybacks, easy liquidity to get into the market
- Stage 3: Which creates FALSE share prices/values, i.e. it creates a bubble
- Stage 4: Problem occurs (2008: ARM aka Subprime crisis / 2020 Government shutdown) = Spending stops
- Stage 5: = Start of Recessionary Cycle begins. Resulting in high Unemployment, then GDP crashes because 70% of GDP is consumer spending! We then get unemployment scarring & wage reductions. For companies this means less profits and even losses. All of this should have reduced the share price, so why hasn't it?
The stock market is slightly different to other markets in that it can sometimes be up to 6 months behind the real economy and we’ve seen this before in previous crashes.
- Stage 6: Quantitative Easing… Right now the Fed is buying everything!
- Stage 7: CRASH! When will the crash occur? well if we look at GDP, it started to crash back in April of 2020. so if we were to take 6-months after this period, we could see a stock market crash anytime from October onwards really.

However! We now have a Brand NEW BONUS Stage! Which I alluded to in Stage 6, which is the Quantitative Easing… Or as the Fed likes to call it: ‘large-scale asset purchases’ - In effect, the Federal Reserve, I can't believe I'm saying this, is actually propping up the stock market I'm buying assets all over the place. In fact, if many of the studies are accurate, as of this week, the Federal Reserve now owns over one-third of all mortgages in the United States.

Stage 7 (B): The said can only prop up the economy for so long, not because they are running out of currency, because they simply won't, this is because they create currency. no what would happen is that the stock market will finally start to implode upon itself as it comes to its senses, that businesses are losing money and we are going into a huge recession.
this will then become reflected in fair share prices not bubble share prices.

What are Share buybacks?
This is where a company borrows currency at historically low interest rates and uses this currency to buy their own stocks and shares, what this does is it reduces the number of equities available, pushing up the share price and artificially inflating it. Making the company look more valuable than it really is

Even worse than this, is that this new currency could have been used used to invest in R&D, strong growth, greater efficiency or by incense advising employees. So to the general public looking in, it appears as though these companies are doing exceptionally well and the stock market is rallying, when in actual fact, right now these companies are doing badly!

It's worth knowing as well at this point that until 1982, share buybacks were illegal, and many experts say that share buybacks either created or contributed heavily to the 1929 Great Depression.

Unfortunately it's too little too late to do anything about this now, because these large companies have already done it. and Surprise Surprise they are now facing a liquidity crisis because all of the the cash they had available, rather than use it to save jobs and of course the company, many of these businesses have instead done share buybacks and hope and pray that the government will bail them out.

They thought that inflation would simply do their job for them and pay off this cheap debt. But now that we have a financial crisis looming, these companies are in big trouble. It’s a gamble that hasn't paid off.

Share buybacks have now been banned, but not before a lot of the bailout money went into these buybacks, the damage is done! They are now illegal:
Hold on a second, and the government doesn't create any money, it raises its money from taxes, so actually it will be the taxpayer that bails out these businesses. Now you know why this practice was made illegal.

DISCLAIMER
This video is for entertainment purposes ONLY.
I am not a financial advisor or attorney. These videos shall not be construed as tax, legal or financial advice and may be outdated or inaccurate; all decisions made as a result of viewing are yours alone.

Time Stamps:
00:00 - Opening
00:35 - Introduction
00:59 - Stage 1
03:38 - Stage 2
08:35 - Stage 3
09:53 - Stage 4
10:48 - Stage 5
14:55 - Stage 6
16:24 - Stage 7