I must confess that I am getting a little worried about you
and everyone else that is reading this email. I believe the
stock market is going to continue to rally a bit more here.
It may go up another month or two or three in fact.
The S&P 500 closed at a new all-time high the other
day. Many of the fad momentum stocks that got hit hard in April
look like they want to bounce so that can help the market too.
Yes there is money to be made by making a trade here, but I
am very worried that very few people will take their profits and
will just end up getting smashed when the rally comes to an end.
I’ve been in this game for a long time. Back in 1999 I was trading
internet stocks and having fun in them. But in March of 2000 they
stopped going up.
They would breakout and go nowhere and I knew the market was
going to be in big trouble.
Internet stocks were things to trade and not things to buy and believe in.
Those that knew to take profits made a lot of money though, but
those that tried to hold believing they would go up forever got killed.
A few years after the market top one of the richest men in my county
came to me with his portfolio. He had millions of dollars of losses
in Internet stocks that he bought and held and wanted to know what
I told him these stocks were shit and were never going to go up again.
I told him he got fooled and tricked into believing in a
fantasy and needed to sell and start to invest in real things.
I don’t know what he did, but many of those stocks went
lower. A lot of them went to zero in fact.
They were garbage.
So if he didn’t listen he would have lost millions more –
everything in that account really.
Last I heard is in a nursing home holding on.
Now the stock market is going up and I fear that many people are going
to get sucked into another top. The time to buy and hold was five years
Bear markets come after bull markets. The best time to buy is in
the weeks and months following a bear market and not
five years later after everything has gone up and stocks are
priced at crazy valuations.
Everyone on TV is talking bullish again like things will go
up forever like they talked in 2000 and 2007 and it’s scary.
It worries me that there are many people reading this email who
are going to get fooled into believing such talk. They will
convince themselves that the stock market is going to go up
forever so they should just hold forever.
If they do that then next bear market when it comes will eat
But most have no one to help them navigate this situation.
TV won’t help.
CNBC talking heads will tell you to hold forever and just
believe just as they did in past times to sell.
You need to know to treat the market not as a golden goose,
but right now as a trading vehicle. It is a time of fast money
and not an investment buy point.
You need an antidote to the bullish talk on TV. I think it’s
going to cause a sickness amongst the masses that will kill them –
something like a brain rot.
It’s going to cause people to lose their heads.
You need a vaccine to protect yourself from this
disease. You need to know what is really going on.
Two days ago my friend David Skarica released a new investment
book warning of the dangers of this market that includes ideas for you
to protect yourself from market turmoil in it.
The titled of the book is Collapse! and it’s available right
now on Amazon.com:
My recommendation to you is not to go out and short the
market or bet against it right now or even to sell what you got –
because I do not think we are at a top YET, but I recommend that
you buy this book so you will understand what is really happening
in the stock market and have a healthy and open mind so you’ll be
able to make adjustments when it is time.
Few did that in 2000 and 2007. If more understood what
was happening at the time more would have been able to do much
better with their investments than they did.
This book can help you. Get it