We all remember how painful the 2000 and 2008 crashes were. But in both cases, high-earning boomers kept right on pouring their paychecks into the stock market. This fuelled recoveries, and markets clawed back their big losses to achieve new highs.
In the coming crash, there will be no rich baby boomers to step in and “buy the dip.”
Instead, they’ll be retiring by the millions… selling stocks instead of buying.
If you’re “holding the bag” when it all hits the fan, you’re likely looking at what traders call permanent loss of capital. That means you’ll suffer massive losses that you may never make back.
The math is clear. Total retirement assets in the U.S. are about $28.2 trillion. The vast majority is owned by boomers who’ll soon be permanently retired.
Do you know how much the entire U.S. stock market is worth?
Just under $30 trillion.
I hope the danger is clear to you.
A freight train is speeding toward us at 200 miles per hour.
And right now is our chance to step off the train tracks.
Ask yourself: can your wealth endure a 60% permanent loss?
Say you have $200,000 invested in stocks. Will your retirement be OK if the value plummets to $80,000 and takes years and years to recover?
I think that for a lot of us, the answer is “absolutely not.”
Look, the coming crash will cause financial hardship for those who don’t see it coming.
But that doesn’t have to be you.
A trend-focused trader reflecting on market strategies and personal performance enhancement.
trading
Sunday, 24 June 2018
Friday, 15 June 2018
While US stocks look unstoppable, the biggest investment bank in Europe looks to be headed for a crisis.
Deutsche Bank
(DB), which has failed to make a profit for the past three years, has dropped to new
all-time lows. Everything about DB screams
disaster. It has lost a stunning 93% of its value since 2008. It’s laying off staff. And US
authorities have put it on a list of troubled lenders. As recently as 2007, DB was the
second largest bank in the world by assets. Today it ranks nowhere near the top ten. In
fact, its market cap has shrunk to a tiny $20 billion.
Monday, 4 June 2018
'The tug-o-war continues.'
The market is faced with three major headwinds: 1) quantitative tightening by
the US Federal Reserve, 2) the potential devaluation of fiat within next couple
of years, and 3) the potential break up of the EU. This is countered by the
near record levels of quantitative easing that continue to flow into US stocks.
The tug-o-war continues.
Saturday, 2 June 2018
"The gifted are the lucky few who have found something that they’re passionate about. So passionate in fact, that they’re compelled to investigate it whether anyone else is interested or not. Their temperament allows them to spend countless hours and years refining their craft by practicing the things they can’t do simply because that process is the thing they find most enjoyable in life. That’s the gift."
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