Nearly everybody we’ve spoken to for the last week has been talking about how scared they are (or pissed off) when they look at their 401k’s. The market has been acting like shit and nobody seems to know who to blame first. The truth is, there are a few catalysts (as always) including the government shutdown, Apple (AAPL) slashing orders on the iPhone, Mattis resigning, the trade war, etc. It doesn’t matter though, not in the long run.
The fact that everybody is freaking the f*ck out is EXACTLY the kind of reason we’re not worried about a dot com or 2008 crash. Several things, tend to happen preceding the major crashes. A recession begins, the yield spreads have already inverted, the leading economic indicator is down, etc etc technobabble. For the layperson though, what you really want to know is this: when NOBODY is worried about their stocks going down, they crash. Bull markets end with a period of euphoria. Nobody in their damn right mind would call 2018 euphoric before stocks dumped off. This is what’s referred to as a sentiment indicator and how the big money makers bet against the crowd. You have to remember that in the beginning of learning, you are the crowd. So rest assured, this is just a correction. It may take a while to bottom out and it won’t feel good, but there is no reason to panic.
Please bear with us when news updates are few and far between. Alottt of research is being done at the moment to help in consulting clients and plan future lessons. We will be covering the real crash warning signs in-depth in the future.