What you’re looking at is exactly why you should be rethinking your investment strategy, especially if you’re a stock market investor.
It’s also why billions of dollars are moving out of the market, and into stock market alternatives like the 500 Account.
Over the last year the stock market has been practically reliving, shot for shot, the growth pattern that preceded one of the most tragic occurrences in our short history, “The Great Depression.”
And while this simple graph has been gaining traction across the country, what’s probably even more disturbing are the word’s of the analyst who discovered the pattern.
When Tom Demark, the analyst that stumbled on the crazy parallel over a year ago, was asked about it, he said “Originally, I drew it for entertainment purposes only,” but no longer: “Now it’s evolved into something more serious.”
What The Nations #1 Fund Manager Knows That You’re Financial Advisor Doesn’t
I’m sure you’ve heard the phrase “put your money where you’re mouth is.”
Well it’s certainly one think to speculate, make predictions, and offer up your opinion. But if you’re George Soros, you’re not really “saying” anything. More like betting 1.3 billion dollars that you’re right.
This dude is awesome. He makes crazy bets, based on tons of research, and has made himself billions of dollars in the market. As of right now, he’s increased his put position (fancy way of saying he makes money when the market goes down) to 1.3 billion dollars.
No doubt he is expecting it, and will stand to gain a ton when it crashes.
Now I’m not saying you should go out and bet against the market, or put some obscene amount of money at risk. The greatest investor of all time could end up being dead wrong.
But you should be thinking if it’s worth reliving 2008, or maybe something far worse. Can you really afford to be set back another 5, 10, 15 years?
If you’re relying on the stock market for retirement, you might be in for some (scary) surprises.
I Guarantee The Stock Market Will Crash
Now I rarely speculate. Speculation and guessing can mean big losses if you’re wrong, and most usually are. That’s why when we predicted that gold would have a major drop a few years ago, we were 90% confident it would. It had too, and the stock market is no different.
But I’m not saying it will happen immediately. In fact it could be another year, two, ten years (not likely), but it will happen.
It happened in 1987, 1992, 1996, 2000, 2002, 2008 and is scheduled for another crash “coming soon to a market near you.”
You see most people never plan for losses. Wall Street has done a superb job of perpetuating one of the greatest lies ever sold to the American public:
More risk equals more reward.
As an expert in finance, I can tell with 100% certainty, risk does not equal reward.
It equals “higher chance for major losses.” I’d crawl through shards of sharp glass to escape risk, and so should you.
I mean, look at where we are.
Less than 2% Stock Market Growth in 13 years.
Two drops of over 50%!
And that doesn’t include the fees to have your money in the markets.
You’re likely in the negative all said and done.
“So What’s The Alternative?”
Unfortunately even a mattress seems like a better alternative, and when the market crashes again, investors will be even further behind.
That’s why floods of money are being transitioned into 500 accounts.
Check out this image I snapped from FDIC.gov
Bank of America has close to 20 billion dollars in these accounts, the most they’ve ever had since inception.
And it makes perfect sense. Why take massive stock market risk when you can earn over 300% more than the stock market, and take zero risk to do it.
Even Fortune 500 companies are using these accounts as a “bunker” for the tough times that lie ahead.
More important than anything else, however, is this. In today’s economy, ignorance is death.
I guarantee you will take an active role in your investments, it’s just a matter of if it will be before or after you’re hit with massive losses.
No one will ever care about your money more than you.
So what do you think?
Is the stock market going to crash? What are you doing (if anything) to prepare?
