Financials Matter

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Why the Markets Won’t Crash…Yet

It’s October 19th, the world’s a mess, and the markets are supposed to crash, right?

Plus, it’s the 30th anniversary of the 1987 crash.

At least that’s what all the pundits, pressitutes, and the “Club” want you to think.

Every day you’re hearing or reading why “this market is overvalued,” or you should sell everything and “go to cash.”

Before you believe all the crap the financial media throws at you, let me remind you of an old Wall Street saying: “The Market Moves in the Direction that Frustrates the Most People.”

All you have to do is look at the market performance for last nine years and you’ll see what I mean.

This has been the most HATED Bull Market in history and everyone and their brother WANTS it to crash.

That’s precisely why it won’t crash…Yet.

Don’t get me wrong.  Eventually ALL markets (stocks, bonds, currencies, commodities, etc.) will crash.  But it won’t happen when everyone is expecting them to.

The reason is simple.

The majority wants the markets to crash.  However, the majority must always be wrong for the markets to move in either direction.

So, until that sentiment changes, you can expect the frustration to continue among most investors.

Here’s the irony as it relates to the 1987 crash.  When it comes time to get out, most investors won’t be able to sell.  Wall Street will blame it on “computer failure” or Russians hacking our system (or some other goofy excuse to deflect attention from the real culprits).

So, if you want to avoid another 1987 style crash read “Size Matters When You’re Running for the Exits” in our archives (HERE).

 

 

 

 

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