Good corporate fundamentals (meaning rising revenues), margins, and profits drove big capitalization technology stocks higher. Those factors drove their respective indexes higher, which attracted millions of passive investors into indexed mutual funds and ETF products.
Now, the virtuous cycle that caused markets to spiral upwards could be morphing into a negative feedback loop. But, markets in the U.S. aren’t going down because fundamentals are deteriorating.
They’re going down because market-moving tech darlings stalled out – then rolled over.
I have good news, and I have bad news. The bad news is the selling’s probably not over and could get worse.
The good news is, if we fall far enough and fast enough, this selloff could be a generational buying opportunity.
Here’s what’s really going on and why this selloff (if it’s big enough), will be the time to go all in, and what you can do to shield yourself from any market disaster…
People have been saying that the end of the world is coming, and they’re not kidding.
The truth is, we’re facing a crumbling country. Our streets have been rocked by violent race riots, and entire city blocks are being burned to the ground. Thinkers are being locked out of academia, simply because their ideas may hurt students’ “feelings.” Conservatives like Ben Shapiro are being attacked for their views – when he went to speak at UC Berkely, security costs totaled a whopping $600,000 and nine arrests were made.
And that’s just scraping the surface of the rapid decline of the country’s state of being. If you were paying attention to the news yesterday, you would have seen that this desolation has moved onto the financial world – with the Dow plummeting 800 points yesterday.
Even the elites of the investing world are feeling the consequences of this reckoning; Warren Buffett shed approximately $4.5 billion on paper over the course of 24 hours.
And if even the wealthiest people in the world are being affected by this crisis… Where does it leave the little guys, the investors trying to save up for retirement, the men and women who put their hard-earned money into the stock market?
The picture isn’t pretty.
We’re staring down the barrel of a very familiar gun. It’s the same gun that faced us in 2008, right before the financial crisis.
The signals are all there. And the truth of the matter is, we never fully recovered from the Great Recession.
And that means the next crash – one that is rapidly approaching -could be an economic event of such magnitude that it will irreparably fracture America as we know it.
But, there is a way to prepare and protect yourself from what’s to come…