Did Anyone Warn You Before the Last Decision?
Most financial advisors have a similar doctrine: Invest for the long term, diversify, buy and hold, and do not try to time the market
The truth is that it works most of the time. It would have worked very well from 1942 to 1968, and again from 1982 to early 2000. Those were the best of the two demographic booms since the Great Depression.
However, in this last and “greatest bull market in history,” something fundamentally has changed. Stocks keep going to new highs, for now, but with touches of extreme volatility on the upside and downside.
Late 1982 started the Fall Bubble Boom Season that left millions struggling. The first mini-bubble from 1984 into 1987 crashed 40%, but so briefly that most could not even react. Then we saw the first great tech-stock-driven bubble, culminating with the extreme internet bubble into early 2000.
From late 1982 into early 2000, buy-and-hold investing and the traditional rules would have worked just fine – with the Baby Boom Generational Spending Wave and the Information Revolution as the wind driving pushing the sails.
Then the Dow crashed 39% in the 2000-2002 crash. The bubble-leading Nasdaq lost 93%!
Still, demographic trends continued into late 2007, as many of us predicted, inflating a mini-bubble. Then the Dow endured a 54% crash. Everyone asked: Is the great bull market over?
History proved it was not. It also proved that 2000 was the start of a new bubble phase where we would see higher highs and lower lows as breathtaking and stomach-churning as any good roller coaster worth the wait in line!
Moreover, at that point, buy-and-hold investing died.
This is why fewer everyday investors are participating in this unprecedented bull market. We have been scared out of the market by significant crashes, which would never have happened during demographic booms like the one from 1942 into 1968. However, bubble booms are an entirely different beast. One that average investors are ill-equipped to tame.
This is precisely why they miss much or all of the ever-increasing upside. Most are Driven away by fear of the increasingly terrifying downsides and a lack of understanding of the incredible investment strategies at their fingertips.
However, that trend will come to an end as well, and very, very likely in the next crash and rebound. After that, NO higher highs for a long time. Moreover, when that happens, investors will need to find a new investment strategy again.
For now, understand that, despite slowing demographic trends and rising debt levels, we have the greatest bubble in modern history. This is occurring in the Economic Winter Season similar to 1930-1942.
I will be considered crazy for stating this, but I believe the Dow could go as high as 33,000 before peaking. Moreover, then what? The biggest crash yet as much as 85% in the Dow and 89%-plus in the Nasdaq, similar to the unprecedented 1929-1932 crash.
All of this is to say that this environment is not one that everyday investors can handle alone, nor should they.
That is why here at Big Thicket, we have brought together some disciplined, systematic investment systems, from higher to lower risk for this era. We believe there is only one proven strategy to run to in a situation as dire as this one. d
Gold and Silver have both been in the spotlight in recent weeks as the Fed flirts with lowering interest rates once again weakening an already not so strong dollar , Bond yields aren’t looking very attractive as they’re becoming negative , A stock market that’s sitting within 100 points of its all-time high, Tensions with Iran that have escalated into a near military strike against the Russia friendly country, and in case those reasons don’t make investors nervous : The Central Banks are buying more gold than any other time in their history . It’s becoming increasingly easy to find Gold as being extremely bullish.
I can’t say that enthusiasm isn’t rightly justified. With the Fed giving the expectation that the borrowing cost could fall below zero, not to mention we’re sitting on a deficit of over 22 Trillion Dollars. There is another scenario that could also cause investors to flee from the marketplace. The financial institutions are expecting at least two rate cuts this year, and the market is factoring closer to three. What if these cuts don’t happen this year?
The old saying “Buy low and sell high “seems to be a thing of the past. We’re living in a time where the risk vs. the reward is highly leaning to team risk which is precisely why we’re seeing so many new investors and institutions begin to stockpile gold before the prices start to reflect the lack of faith the general public is beginning to have in our financial systems. Citi Group, along with numerous other banks have publicly stated they expect to see the gold rise as high as $ 1600 over the next several months.
As with anything that makes a dramatic increase suddenly, there is undoubtedly going to be some resistance and pullbacks, but the long-term trend seems to have a very bright future. When I was growing up, my father used to tell us, children, that “It’s better to be safe than sorry.” That Golden rule has never been more valid than in the coming months. Could the market continue to stay moving forward for some time longer? Sure. There is no map of exactly when the house of cards will come crumbling down, but it’s safe to say that when it does, you’ll be much better off by diversifying into the world’s most extended-lasting currency. Call 855-423-4653 NOW and talk to an account representative to discuss what’s the safest route for you and your family!