3 Reasons a 2021 Stock Market Crash is Coming #Shorts
A 2021 stock market crash is coming and you need to be ready! I’ve found three reasons why stocks could crash this year and even if they don’t, why it’s going to feel like a market crash to you.
In this quick YouTube #shorts, I’ll show you three reasons why stocks could still crash this year. It’s a follow-up to Tuesday’s short video and Sunday’s livestream detailing all six reasons for and against a crash. If you didn’t catch that livestream, make sure you click through to see the details behind why stocks aren’t crashing. https://youtu.be/3oOrVWw7CM8
Massive stimulus and consumer spending should keep us from a full-scale stock market crash of 20% or more for most of 2021 but the scenario gets a little riskier later in the year. Because the stock market is forward-looking, meaning investors look six to 12-months out to predict the economy and earnings, we could see stocks crash if it starts to look like next year won’t be so bright.
Even if there is no market crash, it could still FEEL that way for some investors. This is really the reason you need to look at your portfolio whether stocks fall or not. The most popular stocks have been the growth and momentum names like Tesla and Enphase Energy, stocks that can rise or fall double the market’s pace or more. They’re called high-beta stocks and it works great when stocks are rising but not so much when stock prices fall. Even if stocks only fall 10% or 15%…these stocks could crash 30% or more and destroy your portfolio. I’m not saying to not invest in some of these popular stocks, just don’t have all your money in them or be ready for a stock crash.
There’s also going to be a stock rotation in the market. Investors could sell the growth and momentum leaders of last year in favor of cyclical stocks in Energy and Financials for 2021. So even if the market stays flat or even goes up, those growth stocks that worked last year could crash hard!
🤑 Get The Daily Bow-Tie – my FREE daily email newsletter sharing market updates, trends and the most important news! Market Updates for the Smart Investor! https://mystockmarketbasics.com/dailybowtie
My Investing Recommendations 📈
📊 Download this Portfolio Tracker and Investing Spreadsheet! [Community Discount Code] https://mystockmarketbasics.com/spreadsheetdiscount
Check out the stock simulator and Get a FREE share of stock worth up to $1000 when you open a Webull investing account with a $100 deposit! 🤑 https://mystockmarketbasics.com/webull
Free Webinar – Discover how to create a personal investing plan and beat your goals in less than an hour! I’m revealing the Goals-Based Investing Strategy I developed working private wealth management in this free webinar. Reserve your spot now! https://mystockmarketbasics.com/free-investing-webinar
SUBSCRIBE to create the financial future you deserve with videos on beating debt, making more money and making your money work for you. https://peerfinance101.com/FreeMoneyVideos
Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.