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Trouble Ahead? Why the Stock Market May Take a Major Dip in 2018. Why today's thriving, bullish market may not last long.

By Phil Town

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

Are we headed for a stock market crash in 2018? In this video, Entrepreneur Network partner Phil Town points out the market's consistent bull behavior in the last few years. Unfortunately, this pattern cannot persist forever. A noticeable amount of foreign money, Town points out, is being poured into the U.S. stock market. This may seem like a positive, but in reality, this can cause misrepresentations of the true value of stocks. Moreover, the U.S. market may be partially displaying promising bullish patterns due to foreign markets' weak performance.

Town also mentions the current expensive prices of real estate. He gives an example of how, in the 1980s, he bought a house at an interest rate of 14 percent -- a rate that drastically affected at what price he was able to sell the property. Now, the lower interest rates on real estate have driven up the prices of houses, in comparison.

With all this money coming in, the market continues to be pushed up and up and, Town warns, will eventually encounter a crash.

Click play on the video to learn more.

Related: Which Is Better, Day-Trading or Investing Long-Term?

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Phil Town is an Investment Advisor, Hedge Fund Manager, 2x New York Times Best-Selling Author of Rule #1 & Payback Time, and Ex-Grand Canyon River Rafting Guide. Rule #1 Investing is Warren Buffett style investing, teaching you how to buy businesses on sale, with little risk and 15 percent returns. In fact, Rule #1 investing is practically immune to the ups and downs of the stock market.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

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