Warren Buffet phenomenon?

Discussion in 'General Trading Discussion' started by foodietr, Jun 5, 2014.

  1. foodietr

    foodietr Member

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    I read an article today stating that the markets in the globe would collapse to 50% of the actual worth this year. And this prediction is called the WB phenomenon. Is this true? And what is the likelihood of such a global outage?
     
  2. turt

    turt Guest

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    I highly doubt that would ever happen in less than 6 months. That would be an all out depression! It sounds more like some rumor going around that has no backing.
     
  3. JR Ewing

    JR Ewing Super Moderator Staff Member

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    Where did you read it?

    It's certainly possible, but not something that anyone can be 100% certain will happen or especially will happen within a certain time frame. Anyone who would be accurate on such a prediction in such a timeframe would be making a lucky guess.

    The Dow and S&P were down 37-38% in '08, and even a bit more from Q2 '08 through Q1 '09.

    The best thing to do is keep some cash available for the inevitable selloffs / corrections / bear markets that happen from time to time. Many very good companies become much cheaper during these times.
     
  4. nashvilleshelby

    nashvilleshelby Active Member

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    I believe that his phenomenon is true. Know one knows how a stock is going to move. But, it goes in cycles and many people act in ways to bring on a crash.
     
  5. crimsonghost747

    crimsonghost747 Senior Investor

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    50%... I highly doubt that. Anything is possible though.

    Usually these people write that very same "the world is going to end" article each and every year with a few different reasons each time, and then when they do manage to hit the year of the crash (it always happens once in a while) they go around saying "see I was right!"
     
  6. Aprax

    Aprax Active Member

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    Somehow I doubt this. If it were true then within 6 months markets will crash and nobody knows about it? Seems pretty far fetched if you ask.
     
  7. dianethare

    dianethare Senior Investor

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    My query would be, what brings about such a prediction? and it happens in a span of how long, as in, in terms of years, months or weeks?
     
  8. Dola1991

    Dola1991 Member

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    As much as I respect Warren Buffet, I disagree. That just seems unrealistic. I highly doubt that could happen within a year's time. If it was the next 10 years or so forth, then I could take it more seriously.
     
  9. mark973

    mark973 Well-Known Member

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    I really doubt that something like that would happen but, hey, anything is possible because stocks are pretty much unpredictable. You mind telling me where you read about the WB phenomenon?
     
  10. mark973

    mark973 Well-Known Member

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    Even then, 50% of today's value is a huge dip. It would definitely cause some catastrophic results.
     

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