The Stock Market Crash of 2016: Top Investors say the Crash is Coming.

Some of the world’s top investors are warning that we are on the road to one of the largest market crashes we’ve seen in quite some time. While I’ve been warning about the instability of the economy for years, it seems most people are in complete denial over the actual state of the economy.

It’s hard to believe that people in this country continue to bury their heads in the sand; it’s almost as if everyone has already forgotten how close the U.S. economy came to a complete collapse during the 2008 market meltdown debacle.

The troubles that precipitated the 2008 crash were never fixed.

The problems that lead to the 2008 crisis are still with us. While many have bought into the government-media propaganda of a recovering economy, the fact is we are far worse off than we were in 2008. I would argue that things are even worse than during the lead up to the Great Depression.

Instead of the breadlines of the 1920’s today we have the EBT lines of the 21st century, with over 46 million Americans now on food stamps.

Investor/ Economist Warnings

James Stack, a money manager and editor of InvesTech Research warns the S&P 500’s bull market gain of 213% is more than double the median bull gain of 101.5%. The average bull market lasts for approximately 3.8 years. The current bull market has lasted over 2 years longer than the average.

Past Bull Markets Timeline

Jeremy Grantham, co-founder and chief investment strategist of Grantham Mayo van Otterloo has been telling his investors for the last year to watch out for 2016. He warns that stocks are 65 percent overvalued, and says the bubble will burst around or after the 2016 presidential election – something like a bad replay of the 2008 financial crisis that broke right before the elections.

Billionaire Investor Mark Cuban is warning that the current tech bubble, largely fueled by worthless apps that will never make a profit, is far worse than the Dot-com bubble back in 2000. “Small individual investors are putting their money into apps with no chance of getting their money back.” Just like the Dot-com bubble, the real estate bubble, and the 2008 crash of the stock market, this new tech bubble is going cause major economic problems.

Paul Farrell, author of nine books on personal finance, economics and psychology, including “The Millionaire Code,” “The Winning Portfolio,” “The Lazy Person’s Guide to Investing” writes in an article for Market Watch:

Sometime after the Great Crash of 2016, Fed Chairwoman Janet Yellen will be testifying before Congress, just like Alan Greenspan was forced to do in 2008. She will be explaining why America has already had three megacrashes in the 21st Century, each draining roughly $10 trillion, each a direct result of Federal Reserve policy failures. She will be forced to explain why the Great Crash of 2016 was a clone of the bank credit crash of 2008 and the 2000 excesses.

Jim Williams, an Economist who exposes and analyzes flaws in current U.S. government economic data and reporting, is warning that the actual U.S. unemployment number is 23%. The real unemployment numbers show that 92.9 million Americans are not participating in the labor force.

Labor Force participation rate chart

How to Prepare for an Economic Collapse

I devoted an entire section to financial preparedness and the coming collapse in my book, The Ultimate Situational Survival Guide; I believe it’s one of the most serious threats we face. Some of the suggestions I outline include:

Emergency Funds & Getting out of Debt: 26% of Americans do not have any Emergency Savings. During an economic crisis those who are buried in debt and those without emergency savings are going to immediately feel the pain. If you can get out of debt now, you limit your risk and put yourself far ahead of most Americans.

Start Cutting Expenses: Start cutting all non-essential expenses. From monthly cable bills, to your morning Starbucks, you really need to start paying attention to where your money’s going.

Invest in Long-term Consumables: During a complete collapse most of your investments will instantly become worthless. Start stocking up on things that you know you’ll need and use in the future. Emergency supplies, long-term food, and everyday household goods are all things that will continue to hold their value after the collapse.

Take a serious look at your Defense: If the collapse happens, one of the biggest threats you’re going to face is from people looking to take advantage of the situation. The riots that we witnessed last year in Ferguson, Missouri are going to pale in comparison to what we’ll see during a full-scale economic collapse. If you are in the financial position to do so, you might also want to invest in a good bug out location.

28 Comments

  1. The sad thing is it’s not denial, it’s stupidity and stubbornness. People want change but are unwilling to do what is necessary for change.People want things to get better without them having to lift a finger or change their routine in any way. Personally I welcome a collapse, we need it, we need something very serious to happen so people will wake up. Our forefathers would commit suicide if they were alive today, the behaviors of the general public just blow me away. The sad truth is at least in my area, people are going to suffer and suffer real bad because they are stupid and think the government is there to help them. I’m ready, bring it on. When SHTF I will be fast tracked to the top of the heap.

    • In reality the American people are not stupid. They are simply biased to their own needs and desires. They have been inundated with propaganda from government and corporations to the point they don’t know what the consequences of the truth that will soon be upon them.
      Thomas Jefferson said ” if the American people ever let a central bank print their money and control I flatiron and deflation their children will wake up homeless in the lands their forefathers conquered.” Hello 1929 and 2006 economic crashes where millions lost their homes.
      Henry ford said ” if the Merida people really understood their banking system I suspect their would be a revolt tomorrow.
      the American people do not understand they are not depositors at a bank. They are LENDERS! The bank uses their money and then due to fractional reserve banking can create money to loan they only have to keep 10% on the books. If they make bad loans or investments the” depositor” funds are lost. The fdic only has 200 billion insurance against 17 trillion in bank deposits. So when the banks go under those with deposited wealth will suffer losses. The Greek banking crisis will be the result for those banks.
      the world is preparing for the collapse of the dollar as they create new exchanges, new payment systems and advance the Chinese currency as another reserve currency.
      The tide has gone out and the tsunami is soon at hand. The wise head for the hills the uninformed will be picking up seashells on the beach when it hits.

    • The American people also do not understand that unless they have physical stock certificate in their hand that is registered to them they do not own stocks. When you send funds to a brokerage firm again you are a lender.
      when you tell them to buy a stock or bond they buy it in “street name”. Their name not yours. They can then lend the stocks out and charge interest. If they go under their creditor takes all their assets (your stock registered in their name) and you, the unsecured creditor get nothing. The MS Global collapse will spell that out for you. So, when the reset happens all the hard work, savings, and investments will be wiped out and the u suspect get public will suffer the losses.

      • our family had 160,000 common MFNX metro media fiber they said we will be cash flow positive in July then they went to ch 11 then preferred stock they took our $86,000 common and gave it to the preferred stock holders James Kidney the SEC is corrupt like a cancer like a snake shedding its skin total world derivative exposure $1400 trillion we had stock, Solomon smith barney is corrupt $1400 trillion derivative global ready to avalanche
        depression global #2

  2. Oh I believe it. The amount of crazy tech companies receiving millions of dollars in funding for nothing has to be a sign of something bad happening. How can you have a company worth hundreds of millions of dollars and literally be selling nothing?

  3. I know this is very off topic but should I buy a cheap handcranked latern from walmart or should I save up and buy a streamlight the siege lantern, I am a 14 year old preper and have a little budget. Right now I have 22 dollars and if I saved to 35 I could by the handcranked or I could save even more and buy the siege. Anyone got an answer

    • I would buy seeds. Start going to your BOL now and every visit just drop seeds everywhere and anywhere. This has been done numerous times before. I think it’s good to stock up on canned food supplies as someone suggested but for several reasons I don’t believe you want to do that long term. There are health risks from long term consumption of canned food. At your age a couple years or so won’t do a thing to you(I’m not a doctor and I AM NOT giving you medical advice) but for older folks who may already be seeing the early signs of specific illnesses they want to avoid doing this long term.

  4. So my question is with all this crap going on in the world and the 2016 economic collapse coming is it wise for me not to buy a house right now.

    • depends, you can fortify a house, an apartment is a little more difficult to do so unless you can get other tenants on board. in which case the apartment is easier. the problem however is lack of land with most complex’s making farming crops hard to do, and livestock raising and breeding even harder.

  5. Oh boy im so scared!!!!!. Let me give you some advice. What u think is what you create. Preppers are paranoid social misfits and loosers who will ultimately get what they wish for. These idiots have been “prepping” since the 60s. What did they accomplish? Enjoy your life while you can. Life is too short for a bug out plan.

  6. Jim – Why do you assume us preppers don’t enjoy life? I am able to completely enjoy life knowing my family is protected from the coming collapse. We don’t hide in our basements clutching our guns. In fact many of us use our bugout locations as a family vacation spot. Our prepping is just one of many activities that bring the family together and brings us closer to nature and the world in which our ancestors lived. Preppers are not paranoid weirdos any more than people with car insurance are paranoid of car crashes. We’re just hoping for the best and being prepared for the worst.

  7. Funny enough, all of these predictions of doom have a paragraph in which a book on how to prepare is pitched. Could it be that this is just fear-mongering to sell books and the author is just making everything up?

    Will the author print a retraction and apology and buy back all of his books when his prediction is shown to be wrong?

  8. Preppers will be the last ones standing – I will & do have Wut I need for me & my family to survive ! And every one should try to do the same .. I won’t be the one telling my kids there is no food or water for them or watching them do with out … And there will be no one coming to take Wut I have worked for & saved for my family !!! So for the ones who read these prepper comments & laugh …? We will see who has the last laugh !!!! Good luck to all

  9. We are certainly in hard times, and wake up people! Things are about to get more tough. Should the 2016 collapse actually pull through, it’s going to be every man for himself. the stock market crash is only a preview of things to come, a war with our own government is imminent, they keep taking, taking, taking, and because of these ways, we’ve hit rock bottom. Fortunately for me, I’m single and unmarried, no kids, no other lives to look out for. Though, I will be honest, if you’re a family out there destined to stay alive at the expense of other people, I’d slaughter all of you in cold blood to keep myself alive, don’t get mad at me! Go after your stupid government!

  10. Hey Lil Matt-E, so I assume learning how to write in English is not a priority in your “prepper” world? You do know that “Wut” is not capitalized, and is in fact, spelled: what? Good luck to you, for you have deserved it.

  11. The market is 3X overpriced per historical measures for an economy in the toilet. Small caps are actually more at 4X overpriced.

    Real GDP growth is still deeply negative upon proper accounting and this means not the fabricated government way in which they deal with the real GDP growth figure. You have to exclude confounding factors in going from the nominal GDP growth rate to the real GDP growth rate and the three large factors include:

    1) Deficit spending as a percentage of the GDP
    2) Monetary inflation
    3) Population inflation

    The past six years and this current year all place us in a deep depression. But with the lies and unlawfully manipulated up stock market (the Federal Reserve is mandated for stable prices, not in making terrifically inflated prices) it’s a masked depression (my coined term 5-6 years ago). We not only have around 50 million on food stamps, but we have food pantries and soup kitchens all over this country getting swamped yet the media ignores this. Besides the real 23-26 percent unemployment rate, those not wealthy have incomes that do not keep pace with the rate of inflation and thus are hurting really badly. Add to this the Federal Reserve hijacking bank interest it’s taken more money away from people who need it and whom diligently saved and should be expected to get a trifle income from the banks using the money to make money. Rents, home prices up is BAD for the economy yet the dumb talking heads will say this is great, sure it’s great if you are in the wealthy class but not if you are a renter with or without the desire to own. I could go on but I doubt many are looking at this page. Go look up some of my web sites on this matter. I am giving the solutions to our failed overpaid leaders. They will not act upon them until the populace also stands with me.

    • My friend I am with you you’re definitely awake I agree with everything you said and I have just read thanks for some startling truth we have a lot of dumb asses in the world with their head in the sand

  12. The 30 years us treasury bank economy evaluation is not yet;but an fmi new monetary system is also a reality that the us financial system has to face.Also the metal parity in relation with the gold and silver is necessary from my point of view,knowing of the silver dissaparence like a metal the support a monetary system.so the fmi new currency is also necessary knowing also the over 18 trillion debt.rafael d.

  13. Its febuary 10th 2016 at 12:45 am.Bernie Sanders just beat Hilary Clinton in New Hamshere..its late i know spelling messed up, and oh Mr.Trump is doing quite well, beating them rebuplicans that is at 35% percent, the worlds gone crazy, i actually felt sorry for senator Hillary Clinton, when President Bill Clinton and daughter Chelsy i know i didnt spell that right ,anyway,its a strange world,the world as we know it is going thru,changes,heck its time to pop a brew, and ponder life as we know it…..

  14. Election 2016! Republican establishment doesn’t want Trump. Hillary goes to jail for emails scandal. Market collapse before elections. Mr Obama reelected for a third term to guide us through. Just a thought!! Two parties one goal for America not promising.

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  16. people are in denial of the coming stock market crash. when England got out of the European union there was already a lot of countries that where bankrupt the whole world is in trouble. they are going to a monetary system where all paper money will be gone. they have a chip made in a factory in the u.s.a. that will be used in the future, but stock market will have to crash first before they use it. October was when it crash in the 1920’s. so I figure it will happen then. why? look what happen in January 2016. it happen in march of 1920’s before the market crash that same year.

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