If you remember the Great Depression…
- Come crashing down all at once …
- How can you say the markets are going to crash
- We can tell you that the markets will correct sharply…
- What to do? We would say …
People keep hearing that the present day situation and activity in the stock markets is exactly like it was before the Great Depression. Now, if you remember the Great Depression it will scare you. If you are too young to remember it then you don’t have a frame of reference. Therefore, you just let the news pass you by.
What this is all saying is that the markets are all built on highly leveraged assets that could come crashing down all at once destroying the market place. Now, this is scarier than saying the markets look like they did before the Great Depression.
How can you say the markets are going to crash when they keep going up and up? This forward momentum that’s controlled by programmed trading and manipulation of the news can only continue for as long as investors feel good about the markets.
We can tell you that the markets will correct sharply as soon as the first derivatives domino crashes. This reversal in the markets will come very quickly and the dominos will fall faster everyday. Investors will be blind-sided and in shock by how fast the reversal came. It will come too fast for many to get out and they will lose most of what they had. Even using trailing stops may fail as gravity takes over in the markets and the indexes free-fall.
What to do? We would say not to be so exuberant about what’s happening in the market place. Don’t believe it when you hear some major investor doubled down on his bet that the markets are going to continue to rise. Don’t follow the crowd. Do the opposite and have your wealth in hand.
QUESTION: What should readers take away from this message today?
ANSWER: That most investors will get blind-sided by how fast the markets reverse.
QUESTION: Why is this information timely?
ANSWER: This information is timely because people are still drunk on the fact that this rally isn’t over.
QUESTION: How can readers best apply this information to their lives right now?
ANSWER: If you have money in investments that you cannot afford to lose get it out immediately.
COMMENTARY: Stock market reversal will come quickly so, the question is can you afford to lose almost everything you presently have invested in the stock market? One way of justifying your risky investing practises is that the money you have invested is all profit from previous investments. Like the gambler in the casino, they never tell you about their losses, only their wins. They gamble because they love the game. If this is you stop calling yourself an investor only to lose everything and just go to the casino. The big “bad beat” is coming.