Stocks have now begun to confirm what the credit and bond markets have been telling us for weeks: that we are in a full-scale Crisis and going to new lows.
This process will not happen all at once. Remember, the S&P 500 didn’t hit its low for the first round of the Crisis until almost six months after Lehman Brothers went under.
So the markets are not going to suddenly go to 500 on the S&P 500 in one day. Instead it’s going to be similar action to what we’ve already seen: sharp violent sell-offs followed by snap-back rallies.
However, the fact that leverage levels prior to this round of the Crisis were even higher than those from the Tech Bubble… combined with the $600+ TRILLION in derivatives floating around in the financial system… should give you a sense of how serious the market declines can and will be as this whole thing breaks apart.
Indeed, this is the very problem with leverage: once things go against you, the selling pressure can create a death spiral as the drop in asset prices result in margin calls and redemptions which in turn beget more selling/ drops in asset prices and on and on.
However, this doesn’t mean that things will go straight down. Just as we’ve seen in the last month, there are going to see sharp snap-back rallies during the process of deleveraging and default.
Indeed, during the 2008 Collapse we saw rallies of 11%, 17%, and 20% respectively. Every time the market rolled over hard soon afterwards.
Indeed, the likelihood of a Crash is high as we recently got a confirmed SELL on my proprietary Crash indicator. This is the SAME indicator that registered before the 1987 Crash, the Tech Crash, and the 2008 collapse.
It’s just triggered again… which means that last week’s sell off is JUST the beginning of what’s coming.
Yes, the GREAT COLLAPSE has begun. The markets will be going to new lows (below the March 2009 lows) in the coming months.
We’re also going to be seeing major banks go under, market crashes, food shortages, government shutdowns, and SYSTEMIC FAILURE.
Yes, I believe that before this mess ends, the financial system as a whole will have collapsed. What’s coming is going to make 2008 look like a joke.
Many people will lose everything in this mess. Yes, everything. The US is going to be defaulting on its debt, paper currencies around the world will fail. It’s going to be a dark dark time.
I’ve recently published three reports devoted to helping my clients get through this mess in one piece. They’re titled Protect Your Family, Protect Your Savings, and Protect Your Portfolio.
All in all these reports cover everything from how much food to store to which banks will go under, when the US will default on its debts, which investments will pay out the biggest gains as the system collapses and more.
Regarding that last point, no one on the planet can match my ability to return a profit during times of Crisis.
To wit, my clients MADE money in 2008, outperforming every mutual fund on the planet as well as 99% of investment legends.
We also outperformed the market by 15% during the Euro Crisis of 2010. And in the last month and a half, while every one else lost their shirts, we’ve locked in 13 winners.
So if you’re looking for a guide to get you through the coming disaster, I’m your man.
I’ve been helping investors, including executives at many of the Fortune 500 companies, navigate their personal portfolios through the markets for years.
I can do the same for you with my Private Wealth Advisory newsletter.
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We just opened these trades late last week. Already all four of them are up. And we’re going to be seeing MAJOR gains from them in the coming weeks.
The time for dilly dallying is over. The market’s have already taken out critical support and my Crash indicator is on a confirmed SELL. Failing to take action now means risking HUGE losses as the Great Collapse snowballs.
To take action to protect yourself… and insure that the coming weeks and months are a time of profit and safety, NOT losses and pain…