When Will the Next Market Crash Occur… and What Will Cause It?

I recently promised to answer two questions we’ve been getting…

When will the next market crash happen? And what will cause it

As the physicist Niels Bohr noted,

Prediction is very difficult, especially if it’s about the future.”

But here are five things we do know…

  1. Last month we entered the longest-running bull market in history, at 9½ years
  2. No bull market has ever made it to its 10th birthday
  3. The second-longest bull market was the dot-com-fueled rally of the 1990s which caused investors losses of nearly 80% when it flamed out
  4. While there’s no guarantee this bull market will crash before it hits its 10th birthday in early 2019, we do know that, historically, the longest-running bull markets go out “with a bang, not a whimper”
  5. As the experts who study behavioral finance note again and again, we humans have an enormous capacity for forgetting the lessons and pain of past crashes, and most people will be as woefully unprepared for the next crash as they were for the previous ones

Let’s Look at What Will Cause the Crash…

There are a number of things brewing that might trigger the next collapse. Take your pick:

Interest Rates Jump – Thanks to extraordinarily low interest rates for longer than ever before, risk-taking and leveraging have exploded. Interest rate increases that are faster than expected could push down stocks and commodities and trigger a domino effect.

Certifiably Crazy World Leaders with Their Finger on the Trigger – The threats posed by countries like North Korea and Iran are very real… and very unpredictable.

Cyber Attacks and Disruptions to the Power Grid – These attacks by countries like China, North Korea, Russia, and Iran are becoming more common and more debilitating. They’ve hit major companies and governments, both local and Federal. They have unimaginable power to paralyze the country and cripple our economy.

Emerging Markets in Distress or Chaos – Countries from Turkey to Argentina and South Africa are experiencing market and currency plunges, along with interest rate and recession woes which could spread to other countries. We easily forget how economically connected we are to other countries around the globe.

China Could Crack – China has so far weathered the threats of a trade war and a rising dollar. But a real-estate crash or defaults of local government-owned financing vehicles could be the breaking point and would impact our economy.

Trump Might Be Impeached – Although he would likely stay in office, confidence in the bull market that really took off when Trump got elected could be undermined.

Very Tight Labor Market – Wait a minute! Isn’t record-low employment supposed to be a good thing?

There are always unintended consequences. In this case, an incredibly tight labor market has resulted in 911 emergency call centers not being able to get enough people to answer the phones. And prisons are now training inmates to be coders.

What could possibly go wrong with that?

The bad news is this is just a partial list of potential causes of the next financial crisis

The bottom line is that the current bull market isn’t going to last forever.

If you don’t have a “Plan B” and a significant portion of your savings portfolio in safe and liquid financial vehicles, you are in for some serious pain that could last for many years.

The Very Best Place to Put Money You Need to Keep Safe and Liquid is in a Bank On Yourself Plan

A Bank On Yourself-type high-cash-value dividend-paying whole life policy comes with an unbeatable combination of advantages, which include:

  • Guaranteed, predictable growth every year – even when the markets are crashing
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  • Liquidity and control of your money – get access to it when and for whatever you want, no questions asked
  • It’s backed by a five-layer safety net
  • The Bank On Yourself strategy comes with numerous tax advantages, including tax-deferred growth and tax-free withdrawals, under current tax law

It’s easy to find out what your bottom-line numbers and results could be if you added the Bank On Yourself safe wealth-building method to your financial plan. Just request your free, no-obligation Analysis here.

Do it today, and you could soon be enjoying an unprecedented level of financial security and peace of mind:

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