The Number 1 Risk To Your Retirement? Inflation

12/10/2016 stock market crash

Click for a PDF (portable document format) printable version of this Every-Day Edit activity. John Hussman is a former professor of economics and international finance at the University of Michigan, and the information in his latest weekly market comment is staggering. However, how a stock market crash affects individual stocks and if stocks with different financial characteristics are affected differently in a stock market crash is an issue that has not received sufficient attention. One is the stock market’s performance over the few months prior to each survey: During bear markets, investors tend to believe crash probabilities are greater. In 2016 inflation-adjusted terms, the price of a single ounce of gold rose from just $291 an ounce in 1929 to $539 in 1939. In particular the EURUSD, which typically weakens during market panics, rose 700 pips in four days.

Over the next month the market continued to decline sharply, however, …