There is a vicious ten-year cycle that periodically crashes global stock markets since 1877. We made a Special Report to check its existence and validity. Back in 2007, there was the sub-prime crisis. Going back every ten years, we spotted stock market crashes such as the 1997 Asian financial crisis, 1987 Black Monday, the second oil shock that hit stocks markets in 1977 and so forth. We also checked potential bubbles that may soon burst such as the US stock market bubble, the US student loans debt bubble and the China debt bubble. The PSEi’s drop-zone in case of a stock market crash is estimated for investor guidance as well.
A former head once asked me what an analyst is, and I replied someone who is able to present a company’s strengths and weaknesses well. She said that an analyst is someone who minimizes risks. The next cycle of the Vicious 10, as we coin it, is one huge potential risk. A good analyst is one who can turn this risk into an opportunity so we made guidelines for investors to steer clear and benefit from this. Raising liquidity is one thing followed by identifying prize stock catches in case this cycle occurs again. Our Special Report was not meant to alarm investors. Treating the start of the next cycle as ground zero for a stocks portfolio will generate superior returns from share price appreciation and cash dividend yields as well.