If that were to happen then the global markets could be put to a halt. I do think there is some loss in profits that can take place in the global market. I do not think that it fall to 50% but it could be sustainable due to strong investments. I do not know this stuff is pulling my leg, but anything is possible.
Wherever you read this was likely trying to get more readership by inciting a reaction to a doomsday scenario. I'm not saying that such a phenomenon is impossible, but the current trends in the market show no indication of such a dramatic shrinkage. Of course, I'm sure some people were saying the same thing back in the second quarter of '07, but I'm prepared to eat my words if this does come to pass.
Buffett didn't actually make such a prediction. He has said that another crash will come eventually, but he doesn't know when, and doesn't think it will happen in his lifetime. I'm not sure why this prediction is called the "Warren Buffett phenomenon"?
The usual end of the world scenario, eh? If you make such a bold claim every year chances are you'll be right eventually. However, it's nothing really new to the markets. They always say when it comes to investing, make sure it's with finances you can afford to lose -- same applies here.
There's a lot of rumor like that going around all the time. I think it's not helpful to the economy at all, especially when investors or businessmen start to believe them and pull out their investments in a certain area. Overall, we need to be more objective and realistic whenever making assumptions related to the overall economy.
Yeah, I always tend to think in terms of what would happen in the worst case scenario and go from there. That's why I rarely have any more than 5% of my $ in any one stock, and limit my "speculative" activities to 5-10%, etc. Risk management.
I've heard Buffett talk about another collapse, but not this year, and definitely not with such an exacting tone. He knows what he is doing but he isn't a profit. I actually thinks he is taking the safe bet when he makes that statement, and I would be inclined to believe him.
I also do not think this is true. Things would have to get very bad very quick in order for that to happen and I just don't see it. I do think it is likely that things could go down hill gradually over the next 6 months as people are still hurting from the recession.
I remember in India a few years back there was a man who overnight shook up the entire Indian stock market, the people who came out and cashed at the right time became filthy rich, and the greedy pigs who held on to the shares lost all their money. So. I guess such a thing can happen, no doubt about it. But predicting it, the person must be a genius I guess.
I've learned in life that one should not be quick to judge or react to a certain situation before careful analysis and application of certain facts to a situation. In other words, do not be quick to make a comment when you have not gotten all the relevant facts of the case at hand, I doubt this proposition will be true as no one who I expect to make such a claim, says this will happen, I would expect to hear this from someone of high rank in the International Monetary Fund organisation or the World Bank, I haven't heard any such claim coming from those organisations and so I would take this statement,with a grain of salt. Even if it was said by persons I expected it to be said by, I do not believe that the entire Economy of the World will fall.
