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Last Wednesday, I warned during my live show that the market could crash soon.
And it did:
The next day the NASDAQ lost more than 5% — and for the next few days it kept moving lower.
And not to brag, but I pretty much nailed my prediction:
I said the S&P would correct to 3,400 and then bounce back. Well, I was off by a few points. It went down to 3,330 and then bounced back. Close enough
So why did the stock market just have a bit of a flash crash?
And will they keep crashing, or is the worst over now?
In order to answer the question “why are the markets crashing,” let’s back off for a moment and discuss why stocks exist in the first place.
At some point, a company may need to raise capital, and they don’t necessarily want to borrow it from the bank. So they sell parts of the company to investors, and these are shares.
Let’s take a look at a company like Apple APPL:
They have issued 17.1 BILLION shares.
