STOCK MARKET CRASH 2021 | My plan.
STOCK MARKET CRASH 2021 | My plan.

STOCK MARKET CRASH 2021 | My plan.

حمادي الزوي

15 min
Business & Finance
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<p>WE ARE CURRENTLY at peak overall market valuations, peak debt, peak market cap to GDP ratio, peak corporate debt and peak household debt. 35% of all US dollars were printed in 2020 - a strong indicator of upcoming inflation. Things may seem bleak. But are they? Should we be worried? &nbsp;It's worrying I won't lie. But at this point a relevant debate is whether or not the economic environment actually justifies higher multiples... Our financial systems are MUCH more robust than in 08 - financial systems are now more regulated. And, unlike in 02, fundamentals are strong and can arguably back up higher multiples. So it's not an obvious answer, we're not necessarily in a bubble. Markets can stay overvalued for years. &nbsp;&nbsp;Another thing worth mentioning is that tech and growth's valuations have already decently corrected. The market is overvalued, but not the majority of tech and growth. &nbsp;&nbsp;Something else worth noting is that inflation makes everything look bigger than it is - hence the definition of inflation. In a low interest rate / inflationary environment, companies can borrow greater amounts because interest payments are so low. Debt then can be used to fuel expansion, which then ripples throughout the economy. &nbsp;I'm staying 90% invested. 10% of my wealth is held in cash and cash equivalents (SPACs) in case opportunities present themselves. If the market rips upwards for the next few years, I want to take part in it. But if we see another crash, I can still rely on my plan. The most important thing is to be cautious with things like speculative investments and margin.</p> <p><u>Plan</u></p> <ol> <li>Selling all $10 SPACs to create liquidity (already started doing that... still have approximately 7% of my portfolio left in SPACs which could be liquidated if needed)&nbsp;</li> <li>Starting to go on margin&nbsp;</li> <li>Selling all of my common shares and transferring them to LEAPs (long-term call options). I already started doing that with my highest conviction stock, CleanSpark. Approx

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