Should we fear another stock market crash and recession will occur soon?

In the previous post I stated I would I will explore the wisdom of fear as it relates to the subject of the stock market.

The Purpose of This Post

Is not to explain the mechanics of the stock market. Approximately 50 percent of USA population own stocks either because they are rich, investors, gamblers, or have a 401 K pension fund.

The purpose is to focus on Franklin D. Roosevelt statement we have nothing to fear but fear itself to help restore confidence in the USA after the 1929 stock market recession.

For example, a Chicago Tribune article written by pundit columnist titled, Are Fake News Media trying to crash Trump’s economy? We really are. Stated: “I’m sorry I truthed on you America; Ire won’t happen again.”

What is the truth about the stock market in relation the Wisdom of Fear?

King Solomon

The wealth of the rich is their fortified city, but poverty is the ruin of the poor. (Proverb 10:15)

Excerpts Gils Bible Commentary

 Or he is lifted up with his riches, is in high spirits, and despises others; thinking himself safe, as in a strong castle, and fears nothing, distresses, diseases, or death;

the destruction of the poor is their poverty: or their poverty is their consternation, as the word (h) signifies, it frightens them; they, knowing their circumstances, are afraid of everybody and of everything; not being able to defend themselves against their enemies, or support themselves in times of public calamity, as war, famine, or pestilence.

What’s My Point?

The stock market is a viable tool for enterprising people to obtain funds to grow and/or expand their businesses or markets to profit.

People with money to spare originally were the principle owners of stocks. Whether they profited or not on stock market did not affect the majority of the population. The consequences of a stock market crash only affected poor people if their employer’s sales market failed because people did not have money to buy their products.

All economic graphs show the more money businesses or consumers have to spend, the stronger the economy.

Today the consequences of a stock market crash will affect both rich and poor because employers no longer offer fixed pensions and instead provide 401K plans for retired workers. The exception is government employees still have pension funds and the majority of government pensions funds have huge deficits of funds available for retirees plans.

Rich people who understand how fear can cause the stock market to fall have less fear than poor people.

In fact, most rich or knowledgeable people love when the market falls because they will sell when the market is on the way down and buy when the market begins to rise again it after every recession in the past since 1929.

My point is directed to the Chicago Tribune columnist who is well known to not be a Trump admirer and is not a stock market analysist. The truth of the stock market is that today stock market is driven by computer driven buying and selling programs that buy and sell millions of stocks every day instead of knowledgeable analysis of a business ability to grow and profit.

Whether it is truth or fearmongering by news reports, once fear and anxiety fuels emotional selling of stocks, the prices will retreat instead of advance. The same terminology of Franklin D Roosevelts speech.

In My Opinion

If you have a 401k, make your own decisions to buy or sell based on a knowledgeable skilled and trusted source instead of news pundits.

When it is your money you are similar to a king who makes decisions In my opinion, take this ancient advice who to choose to serve you with their work knowledge on the stock market investments…

Do you see someone skilled in their work? They will serve before kings; they will not serve before officials of low rank. (Proverb 22:29)

Keep in mind the rich investors have greater access to more skilled or knowledgeable stock market information to predict whether the stocks prices will rise or fall.

If you are poor, you will likely have greater fears of stock losses a rich investor. If you are poor and greedy, and not wise enough to understand the need to have at least a six-month source of funds to tide you over falling stock markets or economic recessions, you will likely have greater fear of stock market crashes.

If Interested

Read the Source Links Below

In the Next Post,

I will explore Machiavelli and the politics of fear, Christian wisdom of fear and love, and USA government justice for gun violence victims.

You Decide

The only truth you should be concerned about the stock market is that it is your money and/or 401k pension. You choose what fear or emotional level you can personally tolerate?

Is it wise to read or listen to news sources that have a bias for or against President Trump, or  may benefit politically by a recession or rich enough to not worry about another stock market retreat?

Was King Solomon correct about the Wisdom of Fear as it relates to the rich or the poor?

Who will be hurt more after 2020 if news sources report fake or truthful news reports that serve to retreat the economy and stock market? Will it be rich or poor, Democrats or Republicans?

Regards and goodwill blogging

Source Links

When Fear and Greed Take Over

https://www.investopedia.com/articles/01/030701.asp.

PolitiFact

https://www.politifact.com/california/statements/2018/sep/18/ro-khanna/what-percentage-americans-own-stocks/.

Previous Posts on Wisdom of Fear

Post One

https://rudymartinka.com/2019/08/04/king-solomon-china-trade-war-insight-and-perspective-wisdom/

Post Two

https://rudymartinka.com/2019/08/16/king-solomon-wisdom-of-fear-post-two/

Post Three

https://rudymartinka.com/2019/08/18/king-solomon-wisdom-of-fear-post-three

Post Four

https://rudymartinka.com/2019/08/22/king-solomon-wisdom-of-fear-post-four/

Post Five

https://rudymartinka.com/2019/08/24/king-solomon-wisdom-of-fear-post-five/