The stock market has taken a tumble this year… so far. 

Will the rout continue, or will the major indexes recover just before breaking through support levels into bear market territory? 

It’s the million- dollar question. 

The one who either knows the answer, or surmises (doesn’t exactly know but makes an educated guess) correctly, stands to make money regardless of bull or bear market conditions. 

If the S&P 500, the NASDAQ and the DOW sink into bear market territory, money will be made by investors who are shorting falling stocks (betting that stock prices will drop instead of rise). 

If the 3 major ‘benchmark’ U.S. indexes stage a rebound, money will be made by speculators who are ‘long’ (meaning they are betting on rising stock prices, and against short sellers).

“To tank or not to tank?” 

People who hold mutual funds, retirement accounts, stocks, bonds, options (puts and calls) and even crypto- they all have one thing in common…

They want to know: Will the stock market crash in 2022?

And since the market has now entered ‘correction’ territory, it’s a question that’s become more urgent for investors, speculators and gamblers alike. 

If the market’s recent tumble turns into a real sell-off,

Similar to the 1999-2000 market crash, then over-priced and over-hyped tech stocks will come back to earth.

These stocks would easily lose 50% to 100% of their value, virtually overnight. 

And even the companies with solid fundamentals and good earnings in strong sectors get hit in this scenario. 

“A rising tide raises all ships”

The opposite is true as well: When the tide goes out, so do all ships. 

Whether an investor buys stock in a profit- generating, time-tested business, or a money- losing speculative tech stock or crypto currency, a bear market sinks the whole ship. 

That’s the reason large amounts of money are made during these periods of turbulence. 

Investors and speculators who understand the reality of broad market conditions stand to make a fortune in good times or bad. 

If the Dow falls 50% (highly unlikely yet entirely possible), the people who see storm clouds before the general public, are not only immune to a market crash, they make serious money during the chaos. 

Understanding market conditions gives investors an advantage in times of widespread misinformation peddled by the mainstream media and by other ‘official sources’. 

Remember last year when the fed claimed inflation was “transitory”?

Now they concede that inflation is not transitory. 

This means the value of dollars people save is going down at an accelerated rate. 

And now ‘officials’ in the government and monetary system are admitting it. 

The stock market has become a hedge against inflation for millions of people. 

Getting returns of 20% to 30% per year in the stock market is one way to avoid losing the purchasing power of your dollars. 

So the topic of market tops and market bottoms, bulls and bears, recessions and depressions, is one that deserves study and careful consideration.

For he who can understand whether the tide is going in or out, not only preserves what he has, but also has found the method to profit through good times and bad.