In the recent years, the Dow Jones Industrial Average finished the first week of January under 13,000. In case you're wondering, that's not good. Want a point of reference? How about this?
It was the worst year's opening in a quarter century.
On top of it all, crude oil briefly found its way to the $100 a barrel mark for the first time ever and gold, for a moment, traded at $868 dollars an ounce. So you know: The record was $875 an ounce according to WorldNetDaily, and that was during the Iranian hostage crisis.
Continued below...
Want us to stop? Sorry, can't. On Tuesday January 8th, Wall Street finished the worst five consecutive trading days ever. Said another way, the S&P 500 lost 5.3% in just five days. That broke the record of 5.2% in 1932.
Said another way, we've been moving in this direction for awhile now. "It was nasty," says Chuck Stutenroth of ZAR Fund Group. "We had November, December and now, this."
Now this, meaning what? A recession? A stock market crash?
Yes, my friends – it's possible.
The worst stock market crash in history: The Great Depression
Back on October 29, 1929, the worst stock market crash in our country's history took place. Why? Because between 1921 to 1929 the Dow Jones rose from 60 to 400. Isn't that a good thing?
Not this time.
You see, this caused people to buy stocks at an alarming rate, considering it an unbelievably safe investment. Thus, the market became overheated. The Feds tried to raise the interest rates in response to this, but the action didn't work. People got rich. They continued to buy stock.
Unfortunately, when the crash occurred-remember that anything that seems too good to be true probably is-most people's money was invested in the stock market. Thus, it was gone.
Hence, The Great Depression had begun.
How to Survive a Stock Market Crash
Here's the number one little nugget. Don't have all of your money tied up in high-risk American stocks. Those that didn't back in 1929 weren't hit as hard. In other words, have your money in foreign stocks, bank accounts, real estate, hard investments, and bonds so if stocks crash it doesn't guarantee you're in immediate trouble. Further, it's always a good idea to have a significant amount of cash on you in a safe place at home (this will be brought up again later in this article). After all, when it all hits the fan cash is a good thing to have (especially considering that terrorists would probably love to hit us during a terrible stock market crash).
But that's another story.
By the same token, it's probably important to remember that Dow Jones and S & P falls are the rule, not the exception. In other words, they're healthy to an extent. For example, during the terrible slide of 1973-74 (when Richard Nixon was President) the S&P 500 index lost 48 percent of its value. On top of it all, Nixon was out as President, oil prices went through the roof, and inflation flew up to 12 percent.
Then came the rebound. Namely, in 1975 there was a 37.2 percent return and in 1976 a 23.8 percent gain.
So panicking is never good. Selling every stock you have probably isn't the best thing for you either. That said, there are some things you can do in advance to safeguard your family.
Byproducts of a Stock Market Crash
Remember that if a major crash occurs, gas prices will go up, people will lose jobs, food prices will rise, and the same with oil. Now imagine if you lost your job and all of that took place on top of it.
That wasn't rhetorical. Really, you should imagine it. Because if you do then it might lead you in the right direction. Along with this, here are some ideas.
Safeguard Yourself in Advance
Get rid of debt: This is idea number one. Pay off those credit cards. Pay off all loans that you can. If you can start paying off more of that mortgage, now may be the time to do it as well. Those with the least amount of debt will be affected the least when the crash occurs.
Have cash on you: If such a crash were to occur, banks would be rendered useless for a period of time. In other words, say goodbye to checks and credit cards. Thus, having a significant amount of cash in small bills (people won't have change) would be wise.
Invest in hard assets: We're talking gold and silver bullion and coins here. These will endure beyond the problem and can also be used under terrible circumstances if needed.
The Final Thing to do in Preparation for a Stock Market Crash
Be ready to survive. There will be civil unrest. Terrorists might choose just that time to strike. In other words, chaos could ensue.
Think about an alternate fuel source for heating and more. Do you have the kind of warm clothing you might need to survive? Do you have dry foods and other non-perishable food items that can last for a long period of time? How about water supplies?
Also, make sure that you have proper food storage bins, etc.
If things get really bad, it might be wise to have a good hunting rifle on hand (if you have to take to the forest to find food), and – if you live in the city – a hand gun to protect from looters.
See: Suggested Emergency Supplies to Keep Around Your House
The Third and Fourth Seal of Revelation
EDITOR'S NOTE: With oil prices now at an all time record high, and the housing market in it's worst slump in 16 years, and knowing that so many pieces are in place and that the Tribulation appears that it can begin at any time -- it's possible that we are currently in the Third Seal of Revelation.
Revelation 6:5-6 - When He opened the third seal, I heard the third living creature say, "Come and see." So I looked, and behold, a black horse, and he who sat on it had a pair of scales in his hand. And I heard a voice in the midst of the four living creatures saying, "A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not harm the oil and the wine."
Here we have a description of what is likely the world's financial markets, and it appears that God shakes it up, so to speak, when the Third Seal is opened.
In contrast to this, when the Fourth Seal is opened, a fourth of the earth's population is killed.
Revelation 6:7-8 - When He opened the fourth seal, I heard the voice of the fourth living creature saying, "Come and see." So I looked, and behold, a pale horse. And the name of him who sat on it was Death, and Hades followed with him. And power was given to them over a fourth of the earth, to kill with sword, with hunger, with death, and by the beasts of the earth.
Clearly something big has to occur between the Third and Fourth Seal. Considering that it still appears to be life as usual for civilization when the Third Seal is opened -- which is reflected in the description of the world's financial markets -- I believe that when the Fourth Seal is opened the Tribulation has begun -- and a fourth of the world's population will be killed early on.
On October 18, 2007, Bush warned of WWIII if Iran goes nuclear and here on SOS we've written extensively on the nuclear threat to America by Islamic terrorists, backed by allied nations.
In fact, I believe a nuclear attack on a handful of U.S. cities will likely happen sometime this year.
Tonight when you're sitting at the dinner table, and a report comes on evening news talking about oil prices and the housing slump, inflation, interest rates, rising unemployment, and the national debt which is in the trillions of dollars -- you might want to mention to your spouse that there's a great possibly that we're watching the Third Seal of Revelation unfold -- which means the Fourth Seal may be opened shortly.
