A big bear market is looming in Global Markets

In the earlier post, in which we have written about Dubai and we have stated that this was the tip of the iceberg. Now we are hearing about Greece crisis. Greece is on the verge of collapse financially.

What is happening in Greece and will it end with Greece, or will it take further toll? The answer to this happen is, yes, the toll is likely to continue in coming months. Below I have given the technical reason for that.

Since 1929, there was not a big bear market in the world Markets. We have seen bear markets during the past twenty years, but, they were not as worst as the bear market in 1929. Various Technical studies say we are likely to see a big bear market of that magnitude in near future.

Any market would undergo a correction of larger degree every 100 years. Since 1929, we have not seen any major bear market like that. The 2000 dot com bubble burst and 2008 reality bubble burst are foretelling a big correction ahead.

Be prepared for it.

Which is going to be the next Bear Factor?

Which is going to be the next Bear Factor?

The late 1980s bear market in the world Stock Markets were fuelled by the Gulf war and failure of East Asian Economies like Malaysia, Singapore, Hong Kong and etc. The bear market sustained till 1998.
The early 2000s bear market was fuelled by the dotcom bubble burst and also by the terrorist attack on WTC in USA. Then it terminated only on 2003.
The 2008 bear market was fuelled by real estate bubble, which impacted heavily the USA and also the World Economies. Since then it has pared some of it losses but still vulnerable for another bear attack.
If so, then which is going to be the biggest factor for the next bear market. May be it is real estate itself. As I believe the real impact of the real estate bubble is yet to be felt.
Another possible factor could be a Gold asset Bubble. Peaking Gold prices would lead to Bubble in days to come.
Let us wait and see…

Which is the long term Investment bet? Deposits,Gold, Stocks or Real estate?

Which is the long term Investment bet? Deposits,Gold, Stocks or Real estate?
During the 20^th century, investments in the real estate showed steady returns. Sometimes the price rise is fast and sometimes it is slow. But the rate of return is some what better than the Fixed deposits and also above Gold. But is somewhat riskier than fixed deposits.
Likewise, Investments in the Gold also showed good returns and at times it is stagnant. It sometimes performed better than fixed deposits and at times it is under performed when compared to fixed deposits. But is riskier than fixed deposits.
Investments in the Stocks is the riskiest of these investments. But the returns were phenomenal during the Bull Market and it showed negative growth in bear markets. But on Average, it performed better than other investment avenues. But the risk factor is much more in Stocks.
My investment plan would be to invest 30% in Stocks, 30% in Real estate, 20% in deposits and 20% in Gold. Any investment plan should take into consideration atleast 5 years time frame. And the best way to invest is to invest at bear markets.