Hey. Have any of you watched this video:
http://www.economicprinciples.org/It is a 30 minute video of the stock market made by Ray Dalio who is a pretty successful billionaire investor. Now I know data fees in SA are just plain retarded so I don't blame you if you won't wanna waste your data in this video. I will try to give a synopsis of what he is on about in the video.
Basically he says there is a market crash roughly every 7-8 years and a super market crash every 75 years. In his opinion the next crash will be a super crash. He gives many reasons for this but one he gave, which I find many truths in, is that the tools that governments and central banks have at their disposal to deal with and remedy a market crash they do not have at their disposal currently. For instance, when the markets crash and a country goes into a recession, one of the tools a central bank will use to remedy the situation is to lower interest rates to stimulate growth. But if you look at America and many European countries they do not have that tool at their disposal if there were to be a market crash as their current interest rates are pretty much as low as they can go.
It is a really interesting video to watch. Even if you do not buy into his theories I would still advise watching it as it is very educational.
