How about a 50% crash? - MarketWatch

How about a 50% crash? - MarketWatch:

The triggering event for such a selloff would most likely be somehow associated with the Federal Reserve. Inability to control interest rates or a misstep in the taper could trigger extreme volatility. Just a simple loss of confidence in the Fed and/or its new Chair could be a catalyst for the first significant decline in years.



Complacency is at extreme levels, based largely on confidence in the Federal Reserve being able to stave off any and all evil forces in global financial markets. However, during previous periods of confidence and extreme bullishness, the Fed has been proven unable to stop significant stock-market declines.



While no one can forecast the future, one can get a feel for the "mood of the market" and whether the tide is ebbing or flowing. At this point, it's quite possible that the high-water mark has been reached and that the tide may be turning. In the final analysis, whether or not we see a 50% crash is irrelevant since all market environments offer potential opportunity for those who are ready to change and adapt to the challenges of today's new

'via Blog this'