As we continue to scour the internet for the biggest investment-related news stories, I can’t help notice the amount of articles I’m seeing these days which address a future crash occurring some time in the near future. Although this one is fairly complex, they do summarize the meaning behind these major indicators which are screaming… “Danger Ahead”. I recommend those who are managing their own investments to begin selling off your holdings which are NOT gold-related and keep that money on the sidelines and ready to jump on the market when stock prices drop.
If your more of a moderate-level investor, you may want to short the up-coming decline in the markets using inverse ETFs such as SKF (2x the opposite performance of the S&P 500), HXD.TO (1x the inverse of the TSX) or VXX (which “attempts” to mimic the huge moves in the Volatility Index). SKF and VXX are highly volatile ETFs which can give you huge gains when the markets are in disarray. For example, if the markets start crashing or go into what they call a “correction”… while VXX is doing 15% gains, SKF will be doing somewhere around 8% and HXD.TO would probably be pulling in around a 4-5% gains. That just gives you an idea of how high a range each preforms during bad times. Since VXX and SKF are more volatile, you’ll need to monitor those more carefully to keep your gains. Enough of that, lets get into the article shall we…
Heads up people. Something very big is happening in the global credit markets — something you darn well better pay attention to.
The very same “Credit Crisis” indicators that were flashing red before the stock market meltdown of 2007-2008 — the ones Martin and I used to get our subscribers out of almost all stocks, and “short” the market via inverse ETFs — are flashing red again.
Pay attention and you might save your portfolio. Ignore them and you could get slaughtered.
What the heck is happening? Why is the market in so much peril? Because governments worldwide did exactly what we warned them not to do!
By bailing out, backstopping, and propping up countless lousy institutions and assets during the private credit crisis … rather than allowing a quicker, more painful, but ultimately cleansing collapse … they turned a Wall Street debt crisis into a sovereign debt crisis.
They temporarily postponed the day of reckoning, while failing to solve the underlying problems.
They tried to paper over a private credit crisis brought on by too much bad debt by creating a huge new pile of public sovereign debt.
And now, the markets have had enough. They’re rebelling around the world.
Here Are the Warning Signs — Please Heed Them!
– Mike Larson, Money and Markets
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