Quote:
Originally Posted by nik-
Has a drop that significant in a single market ever even happened?
A lot would have to go wrong for that to happen.
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Happens all the time, London dropped 40 percent last time it popped, when housing bubbles go they really go as the people involved generally have no experience of markets and have literally all their assets in the house, when they see it start to disappear the panicked attempt to save some of their money is intense.
Bubbles don't need any market conditions or precipitating factors to crater, they both rise and fall on nothing more than optimism, right now I don't know anyone who has any confidance in the market, everyone's waiting for the crash to come, that, in and of itself, is the reason we'll have a crash.
The 'good' news is that the market tends to bounce back fairly quickly particularly if their isn't a rise in interest rates.
If you have a couple of hundred thousand it's the perfect time to buy, ironically.