What Is a Market Crash?

Video Transcript

"Hello everyone, this is Chris Markowski, President of Markowski Investments, and host of The Watchdog on Wall Street radio show, here to talk about market crashes. I I hate market crashes. When people leave those carts in the, you know the grocery store parking lot and they hit your car that's a, that's an awful market crash. No ser; putting all that aside, we'll be serious now for a second. A lot of volatility in the overall markets right now. You got big words like that or like Armageddon, starring Bruce Willis, and Wall Street. I mean, a lot of different things out there are looking to scare people up in regards to the financial markets. We've had market crashes. We've had markets correct a significant amount. You want to go back to 1929. You want to go back to 1987. We had some market crashes, if you do remember; 1998 actually shut the markets down because of long-term capital management. You know, the reality is guys is that, you know when there's a lot of, when more people are heading towards the exits and there's basically no buyers out there, and there's a flood, it's a stampede, then you get market crashes. If if someone were to come up here right now, and they were to hold a gun to my head and they they said hey, you know, everybody out there that's watching Chris has gotta' sell his house today by six o'clock or else he's going to get it, and everybody knew about it, and everybody knew that I had to sell my house by six o'clock that very day what price do you think I 'd get for my house? Probably not a very good one, and that's when a lot of this irrationality comes into the markets when you talk about market crashes. It's a mass exodus to the doors at one period of time, and you know often they end up being great buying opportunities. The last great buying opportunity we had here in the United States was in October of 1987. After that market crash if you bought in; wow, you were doin' really, really well. And I've got a sinkin' suspicion, and I'm not a bottom fisher by any stretch cause' you can't pick bottoms and you can't pick tops; you're going to find some pretty good values right about now. This is Chris Markowski, your watchdog on Wall Street."