We all do what we're comfortable with if we can (this is the secret)
Fortunately there's usually warning signs well before crashes and one is an over cooked market. The 3 years lead up to the years mentioned was nuts and the year before 87 & 08 we saw 40% + gains.
Imagine holding CBA @ $60 and selling call options and buying puts as insurance. Took CBA 1 year to recover thanks to govt backing. You sit there with a guilty smug on your face thinking how far can it go hoping they get torched as your puts are worth almost the same as the stock while feeling conflicted because you know mates leveraged to their eyeballs are going through hell.
200 contracts short on the XJO at 5850 (2008) and American markets crashing and CMC trading platform decides to crap itself and you have no idea of your position. Fun and games then govts come out and ban shorts.
Current market holding above 200ma, long term trend line around 6000 so while we may see a correction i don't think it will be that bad in the short term due to lower A$ and interest rates imo (no investment advice)
Go back through history and you will see an amazing correlation between major crashes with the dates below. Shmita years have been 1958–59 (5719), 1965–66 (5726), 1972–73 (5733), 1979–80 (5740), 1986–87 (5747), 1993–94 (5754), 2000–01 (5761), 2007–08 (5768), and 2014-15 (5775). The last Shmita year began on Rosh Hashanah in September 2014, corresponding to the Hebrew calendar year 5775.
Shalom
DEG Price at posting:
18.0¢ Sentiment: Buy Disclosure: Held
(20min delay)