It’s a little odd, but it seems that perhaps we are getting close to a point where few media outlets are pointing to current market highs as a potential disaster. With the markets doing well, very few people are pointing to a potential stock market crash. This is quite unlike many times in recent history where media begins to monger fear as political unrest occurs and markets are doing well. Perhaps their control and their knowledge of future events are eluding to a future disaster that the vast population won’t see. Is their misleading nature a predictor of the next financial crash?
Who Is In Control?
Those who control the media, attempt to set the mood for financial markets and global emotions to manipulate future events and current situations.
What's the deal?
The media have often brought up the repeat of the GFC and other financially concerning reports over the past decade. After a clean decade from 2010 to 2020, or perhaps a long term repair period after the 2008 Global Financial Crisis, there are a few interesting points which are not being spoken about. The media control has smoothed us into a sense of security over the past few years with economies being portrayed as reasonable. In previous years we have seen highs and pushes back down, but we always had a lot of talk about the markets and fears of another GFC. But how about now?
So, what's different now?
After many “the world is falling” situations since the GFC, with no major financial effect globally (aside from a few bearish periods.. to be expected), have we finally been lulled into a false sense of security. One where we feel ok about the market, the economy and tend to somewhat disregard intensive negative news. The globe is warm, people are hot and we have forgotten that eco-systems run in cycles. And this is might be happening in financial markets too. There’s limited talk of a pending crash, yet some markets are at their peaks right now. The ASX200 has reached all time highs, but are things really as good as they were back before the GFC?
How do we prepare?
Consider which assets might be likely to take a fall over the coming months. Mentally prepare by knowing that if they are long term assets, you will have to hold them through a tough patch if things go bad. Building up cash allows you to be in a great position when markets are extremely cheap and will make the ride back up even more fun!