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  • Nope. Central Banks and Governments will work in tandem to buy up stocks should that ever happen. All they need to do is, print money, and then use those billions to buy up stocks.

  • Yes I think it is possible but not probable under our current system. As long as people have upward movement possibilities and act as individuals I think we are good for the foreseeable future.

  • ” I see subreddits like r/collapse ”

    I’m sure there’s a very balanced discussion there.

    ” Do you think there is any validity to the idea that one day the whole economy will collapse and everything you invested will be gone”

    Won’t happen overnight and if you’re talking the entire economy collapsing (dogs and cats living together, market never opening again, banks shut and worse: riots in the streets, etc) then the chances are extremely, extremely minor and at that point, your investments are going to be the least of your worries.

  • There is definitely potential for it to collapse but I don’t see it being very likely.

    The way I look at it, the current system is revolved around capitalism and unless we find a better system the stock market will continue going forward. Capitalism has its flaws but people tend to ignore the benefits it has brought us, just look at how much technological innovations came up in the past 10 years.

  • Why worry about this?

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    A giant meteor could wipe out life on earth , the Yellowstone super valcano could blow and plunge the earth into a 100 year winter.

    If the stock market fully collapsed , even if you had zero invested you would not be spared . For a total collapse the goverment would fall, banking would fall. Hell even gold silver and diamonds would be worthless . The only thing that would have value is Guns, Ammo, canned food and whiskey (or any liquor I just prefer whisky) and even then a roving band of bandits would just most likely steal it from you.

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    Point being its not worth worrying about

  • It would take a massive shift in investments and investment rules to trigger a collapse. The US Stock market is the worlds largest economy. We have investment from many other countries. Because of this globalization and global investment, no one is truly incentivized to see the stock market go to zero. Even if you’re a strong bear, you don’t want the entire market going to zero (100% return is the best you can get if you short a stock, and once the entire market is worthless, you’ve got nothing left to trade on).

  • If the entire system collapses, all the major companies (most likely including banks and walmart) will collapse as well. If this happens, who cares about money anyways.

  • Short of global be thermonuclear war, I don’t see the worldwide stock market collapsing without some sort of all encompassing collapse of private property rights.

  • The world economy would have to abandon capitalism. That is extremely unlikely to happen and if it does you’ll have plenty of warning signs as pointed out by others.

  • Of course it will. A giant meteor strike, or similar extinction level event is inevitable. However, the odds in one lifetime is small. There is also virtually nothing a person can do if humans go the way of the dinosaurs.

    Other more localized threats are the fall of government, collapse of currency, hyperinflation. In many of those cases, survival is the main priority. A few common sense precautions can help, but unless a person goes full prepper, it isn’t worth spending a lot of time or energy on.

    Remember the few people that moved off the grid for the Y2K scare? Most never got back their economic status. Preparing for the end of the world as we know it, is a poor way to live, even if some point the sky will fall.

    I mentioned common sense precautions. Have a week’s worth of water, three days of food, a flashlight, first aid kit. This costs near nothing, and will be enough for many emergencies. Half of the population may not even have that much.

  • Not unless Israel provokes a nuclear war which the US will gleefully participate in, at which point most economic activity will cease back to Medieval levels.

  • Nobody here mentioned anything about two of the biggest threats

    1. The expansion of credit and qe to the point that the market is dependent upon it. Trump will be berating JPow at the slightest hint of a bear market. The government’s debt goes up dramatically every year, to the point where interest on it is a a major budget item.
    2. The effects of climate change. The last 12 months have seen catastrophic fires and floods. PGE went bankrupt out of concern over lawsuits. Homeowners increasingly will not be able to get insurance. Climate migrants will leave behind unsaleable houses and infrastructure.

  • Stop focusing on stock prices. Do you think the entire US economy will stop the incredible innovation, growth, production efficiency increases, resilience and determination that has been seen for the last 100+ years? If so then yeap your right the stock market is doomed, but if all that sounds silly to you then so is your original hypothesis.

  • I think it would take a global catastrophe. Something that kills off a large portion of the population, something that severely damages electrical systems, or something that damages financial institutions and records.

  • If the US stockmarket fully collapses it will bring down the global economy with it and lead to complete anarchy where the only currency people understand is guns, water and ammo.

  • Next time there’s a big sell off check how many stocks are green. There will be none left if the economy ever collapses. No one will be safe, not one country.

  • You — and 80% of the rest of America — need to get a firmer grip on the difference between what’s **possible** and what’s **probable**.

    Make sure you have your “probables” sorted before you move on to prepping for things that are technically possible but HIGHLY unlikely.

    I’ve just had heart surgery. I’m not supposed to drive for 6 weeks. In fact, I’m not supposed to ride in the front passenger seat, either! “OK I guess,” until I learned what the “reason” was: IN CASE I’m in an accident, and the airbags go off, they -might- damage the sutures holding my sternum together.

    I consider that to be so ridiculously unlikely in the next six weeks, I’m sitting in the front passenger seat if I damn well feel like it!

  • This is a natural human emotion playing against you my friend. Greed and fear rule the world. Only in your world, fear clearly is winning. To be successful in any market, you have to be emotionally detached. Do you think the richest people on the planet worry about the stock market collapsing? Of course not! They understand how to make, keep and multiply their money better than anyone. If they worried that their entire fortunes would blow up in smoke, then they simply wouldn’t make a move at all. Inaction, in terms of investing and putting your money to work, tends to be one of the major reasons people fail to ever successfully abuse compound interest to the fullest. Remember, Einstein once said that compound interest was the eighth wonder of the world. Learn to harness it, and you will reap the rewards.

  • I can say with over 95% certainty that it will, ΔS of the universe is always increasing and the heat death of the universe is anticipated to occur, taking the market with it.

  • Ignoring the eventual heat-death of the universe, let’s limit the question to our lifetimes. I don’t think “the whole system” will “completely collapse” in our lifetimes. The Great Depression is obviously the closest it’s come, and though many people were financially wiped out, the system survived and some people did OK. The system made it through WW2, which was a clusterfuck beyond anything people these days generally worry about, so it seems pretty damn robust. Of course individual countries have had their financial systems collapse, so that could happen to the US, but there will be places to run where things are still working. Humans are some adaptable motherfuckers.

  • I think it’s been well said that “in a situation where the global stock market has gone to 0, how your personal portfolio is doing will be the least of your concerns.”

  • I live in Ukraine and I’ve actually watched a stock market (shitty and undeveloped one but still) pretty much die. In case of Ukraine it was a slow death with drying up liquidity. And of course you can find more dramatic examples in history. Think the Bolsheviks revolution in Russia that basically made all financial assets worthless.

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    So in case of US – a Ukrainian scenario could be caused by several decades of recession. When no stocks make you money in 20 years – you start not giving a fuck about them, liquidity dies etc. The market will continue to exist, but with like 100x less trading and much lower price levels.

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    A revolutionary scenario also could theoretically happen at some point and the increasing inequality is increasing this probability. It doesn’t even have to be a communist revolution with forced nationalization, just some revolution that causes a state to collapse into some civil war like in Syria etc. But still these things are too unlikely to worry about imo. But if you are paranoid and really need some hedge in case the US state collapses – diversify geographically, but not via some US ETF/US custodian etc, actually open accounts in other countries and keep some investments there.

  • I read /r/collapse on occasion but like most subreddits, it tends to be rather hyperbolic and pessimistic. Now is the collapse of civilization a possibility? Of course. Many civilizations have collapsed before this one. I accept regression of civilization as a possibility because of climate change and all of the complex systems mankind has created to keep it together.

  • I guess if you are really worried about it you can take away 1-3% of your portfolio and spend it on things like MREs ( they last like 10 years IRRC) and take up shooting and gardening as hobby.

    I really wouldn’t spend the money on this unless it is kind of fun for you

  • If the stock market were to collapse it is game over anyway. Regardless of where you put your money a collapse of the monetary system would be Armageddon. If you are “Investing” or preparing for a stock market collapse then put your money into guns, your health (you want to be as completely healthy as possible when medical services are no longer available also health is always something you want to be up on) and basic survival tools/medicines.

    Your physical gold and silver will be completely useless in such a collapse. The way I look at it is if there is economic Armageddon you are so fucked in 100 different ways that it isn’t worth investing in trying to prevent maybe 2-3 ways you would be screwed. You really can’t prevent Armageddon and live a normal sustainable life.

    The risk you take in not sitting in a bomb shelter surrounded by freeze dried food, medicine and guns all day is that you get to live a normal sensible life and take your chances. If you are worried about risk with stocks invest 30% of you money into Bond ETF’s and Gold ETF’s both will do well in recessions for the most part. You also want to sell bonds and Gold during a recession as opposed to taking a huge loss on a stock. So having a significant portion of your portfolio invested into things you can sell easy without taking too much of a loss or slight profit taking in case you get fired or something dire happens is a good idea.

    The permeant portfolio recommends 25%, 25%, 25%, and 25% into Stocks, Gold, Shot-Term Bonds, and Long Term Bonds. It is a disciplined approach to investing that will yield at least one asset that does well in every type of non-Armageddon situations which limits losses in bad times and does well in almost any economic climate. Personally I am not sure if you want to diversify that much but 30% into gold and bonds seems like a good idea, also having a section of your portfolio into safe utility stocks is generally speaking a good idea too.

  • It’s more likely you will die a gazillion different ways than the economy to collapse and never recover. I mean it’s not like humans will be around forever.

    People need food, people need jobs, people need all kinds of shit. Markets will only collapse fully if there are no more humans. Otherwise if you just invested in a few companies and those never recover then yea, your money is done for.

    All kinds of shit can happen, but you can invest wide and if the whole market collapses, money will be the least of your worries.

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