Business, Markets, Nation, Financial Crash, Financial Markets, Market Latest, Warren Buffett, Economy, Market Correction, Covid Pandemic

Business, Markets

Mega-crash is coming, get ready! Expert urges act now on Warren Buffett 'rule number one'

Mega-crash is coming, get ready! Expert urges act now on Warren Buffett 'rule number one'

10/17/2021 11:35:00 AM

Mega-crash is coming, get ready! Expert urges act now on Warren Buffett 'rule number one'

A HUGE mega-market crash is fast approaching and people need to act now to avoid inevitable economic disaster, a leading investment expert has warned.

00:00, Fri, Oct 15, 2021| UPDATED:16:29, Fri, Oct 15, 2021Link copiedFinancial expert predicts a market crash in OctoberMake the most of your money by signing up to our newsletter forFREESUBSCRIBEInvalid emailWe use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time.

Rohingya sue Facebook for £150bn over Myanmar hate speech Bristol school founded by slave trader Edward Colston to change its name Lara Croft: 25 years of Tomb Raider and a British gaming icon

More infoThe Covid pandemic over the past 18 months has continued to blow gaping holes in markets around the world. Economies are attempting to bounce back and ease their way out of the financial crisis, but some significant and lingering problems refuse to disappear. Tom Stevenson, an investment director at Fidelity International said although it is now known if a sharp correction in markets is around the corner,"the odds are clearly shorter than they were".

Related articlesState pension age rethink ‘not beyond realm of possibility’He warned the"list of things to worry about has got considerably longer since the spring" - just as countries were beginning to ease lockdown restrictions brought on by the pandemic.

These mounting issues now include inflation, ever-creaking supply chains, surging energy costs, an imminent turn in the interest rate cycle, stretched profit margins and slowing earnings growthMr Stevenson wrote in The Daily Telegraph:"Even if it is not imminent, a correction will happen at some point.

"If you look at the performance of the S&P 500 in the three years following each of the major bear market bottoms over the past 60 years, there has been a pull-back of at least 10pc at least once.Financial crash: People are urged to act now on Warren Buffett 'rule number one'

(Image: GETTY)Financial crash: Markets have plummeted during the Covid pandemic(Image: GETTY)"We are now a year-and-a-half on from the Covid bottom and we are yet to experience that double-digit decline."Given the 5pc or so retreat in September, it is not unreasonable to wonder whether the inevitable correction is under way. It’s going to happen at some point."

The financial expert said he had recently seen something that promised him holding shares for at least 20 years would have given back a return of five percent a year only twice in the past century.He added:"In 40 of those years the average annual return over a 20-year holding period would have been 10pc or higher.

Storm Arwen: Far too little has happened for powerless homes across the North BBC 100 Women 2021: Who is on the list this year? Amalia: The heir to the Dutch throne keeps it normal at 18

READ MORE: Financial crash: Warren Buffett is a US business magnate, investor and philanthropist(Image: GETTY)Trending"That really is reassuring if you are 29, but less so if you are 59 let alone 89."For most of us, without a lifetime of investing still stretching ahead of us, there is merit in Warren Buffett’s 'rule number one': don’t lose money."

Mr Stevenson advised people to slightly raise cash holdings, and said:"Remember, you don’t have the same constraints. You can have as much cash as you like, and when that correction does come you will be glad you have it to hand."But remember too that the cash you do hold is guaranteed to lose money in real, inflation-adjusted terms right now.

Read more: Daily Express »

Bibaa Henry and Nicole Smallman: Met PCs jailed for crime scene images

The men took photos of the bodies of Bibaa Henry and Nicole Smallman instead of guarding the scene.

You can buy 14-bed MEGA mansion for £450k - but there's a pretty big catchA WHOPPING 14-bed mega-mansion has gone on the market for £450,000 – but there’s a huge catch. The dreamy property in Bolton doesn’t actually exist yet. Instead, the ambitious new… It's a full street, saved a click.

Pregnancy series: Preparing for birth and recovery with My Expert Midwife!We caught up with My Expert Midwife to collaborate with our YouTube pregnancy series to find out more about preparing for birth and recovery!

Holly Willoughby is 'ageing gracefully' with her style and status, says expertEXCLUSIVE: Fashion expert reveals how and why Holly Willoughby's style has developed as her status has grown

Will our pets suffer when we go back to work? We ask the expertAnimal behaviour specialist Ryan Neile on how to get pets used to not being able to sit on our laps all day

Will aliens ever visit Earth? We asked an expert for his verdictAliens are everywhere in popular culture. We’re all familiar with the conspiracy theories behind Area 51, the alleged crash at Roswell, and those shaky flying saucer videos. Only to end their failed experiment 😉 I still can't believe that real account manager exist I am so happy trading with lisabryant025 i never took her serious because I taught she was a scam like others until my first withdrawal of $8500 within just one week of trading! I am so grateful to her and i can't keep this

64% of us now have back problems after WFH, so here's how to get your back health back on trackRule number one - don't just ignore it