Don’t underestimate the ability of the PPT in many nations to back the markets in times of dire need. They have unlimited capital at their disposal so they can (and have imo) jump in and stop a “Black Swan” event should it become necessary.
I am convinced this is what happened that day in October 1987 when then DOW dropped over 23% which if it happened at these levels would mean a drop of about 8000 points on that average and 3300 on the Nasdaq with the S&P tumbling just over 1000.
Investors make money when the markets go up as well as down and it does no one any good if the markets simply disappeared in a non recoverable crash.
>>Investors make money when the markets go up as well as down and it does no one any good if the markets simply disappeared in a non recoverable crash.<<
This may sound a lil conspiracy theory, but I do believe there are evil people manipulating the financial markets for their own gain. Talking the markets up, propping the markets and so forth and then the big...pop!
Transferring billions if not trillions of wealth from small investors through IRAs and 401ks into behemoth equity firms.
There are those who love to see the masses dependent upon government for their every need. I worked with a fella...twice retired. Rode the markets up to the corrections in 2000 I believe and again in 2008. He realized a dead zone trying to make up 30% losses in his portfolio. He had his work 401K and they do NOTHING to help preserve wealth. It goes down, they simply let it ride.
So he had to go back to work in his late 60’s and worked with us until he was laid off from the company at the age of 72.