Sam Zell joins the billionaires preparing for an imminent correction

Posted on 03 September 2014 with no comments from readers

Billionaire Sam Zell has joined the growing ranks of smart investors calling for a market correction. George Soros has expanded his short position recently and Warren Buffett is sat on a record cash pile (click here).

The stock market is at an all-time, but economic activity is not at an all-time,’ the chairman of Equity Group Investments told CNBC. ‘People have no place else to put their money, and the stock market is getting more than its share. It’s very likely that something has to give here.’

You can put your shares into and watch it grow in value, sometimes bear a fall in prices. For every investment added to it, there has to a return given, but from where? The up and down trend follows for some time until the market is unable to meet the growing demands for profit or withstand the tension from inside and outside environment.

What outside environment can affect the stock market leading it to crash? It has happened many times in the past and is likely to repeat whenever the disrupting forces show their strength. 1929, 1987, 2000, 2008, 2011….the list can get longer. You can click this link now to learn more about the 1929 crash, subsequent economic impact and how the world displayed resilience in detail. What is the purpose of revisiting these failures when we are always advised not to live in the past? There must be some valid causes that led to the crashes and being living beings with intuitive brains, we have to rectify the mistakes committed earlier and subtract the same to save the market now.

The stock market soared new heights then, much to the enthrallment of the investors, but to the dismay of economists who sensed that speculation was actually causing overvaluation the assets and that can fall apart any time. Then was the method of borrowing to pay off the existing returns. Were the conditions stable in the political scenario that time? Oil crisis and war cries echoed dangerously. When one government fell, another stock market felt the shock. The same in impending now.

Mr. Zell also expressed concern about tensions in many parts of the world, including the threats posed by the Islamic State militant group and the Ukraine-Russia standoff…

Video link click here!

Posted on 03 September 2014Categories: Banking & Finance, Bond Markets, Global Economics, Hedge Funds, Investment Gurus,Sovereign Wealth Funds, US Stocks, Video Channel