We Had a Sell-Off, Now What?

 

Last week we had a sell-off in the markets and most people still do not know why.

 

In Plain English…the reasons we are given for the carnage last Monday:

 

• The implosion of the Japanese yen carry trade *
• Fears about a possible US recession

 

(Note * In simple terms, many traders borrowed yen for cheap to fund their trades. Then the Bank of Japan hiked interest rates, causing traders to lose a lot of money. And then they proceeded to liquidate their stock and crypto holdings to cover potential losses.)

 

Notice we said the “Reasons we are given.”

 

That’s because the public is always given reasons that the Boyz in the “Club” want you to hear.

But it rarely tells the true story.

And that’s because the 99% need to be wrong for the 1% to make fortunes at YOUR EXPENSE.

 

Yes, the Yen carry trade created havoc.

And Yes, fears about a possible recession are legit.

 

But common sense should tell you that we are already in a recession.

Politically (especially in an election year) it is not a good idea to announce a recession until AFTER the election.

 

And this “blip in the market” was a way for the Boyz to warm everyone up to the reality that the economy is nowhere near as strong as they want you to believe.

 

Let us remind you…historically you’re only “supposed” to get 8%–10% a year from stocks.

And, so far, we were up about double that halfway through the year.

So, a correction is no surprise at all.

 

A Sell-Off is Expected

 

Additionally, stocks typically go up in election years.

 

FACT:  Since 1928, US stocks were positive 90% of the time in election years.

So, we’ll likely be able to add 2024 to that list.

Because, even with the recent selloff, stocks are still up over 10% year-to-date.

 

So, what is next?

 

In our monthly newsletter, we have been saying that volatility will raise its ugly head especially as we get closer to the election.

 

Why?

 

Because the markets HATE uncertainty.

 

And now that the Gaslighting Presstitutes are claiming that Kamalama Dingdong is running neck to neck in the polls with Trump, investors seem to feel the US’s political future hinges on a coin flip.

 

Unfortunately, that fog of uncertainty probably won’t lift until after the election is decided.

 

And as we’ve repeatedly said, regardless of the election outcome you should expect chaos because neither side will accept the outcome.

 

One more thing…while the recent market dip has created some decent buying opportunities, there’s no need to “rush in” to buy the dip.

 

We expect there will be another big dip as early as September.

 

And in our August “Short and Sweet Tips” column we reveal several strategies to take advantage of it (HERE).

 

So, if you’re not already a member, take advantage of our three-tier pricing for our monthly “…In Plain English” newsletter (HERE).

 

Share this with a friend…especially if they believe what the gaslighting Presstitutes are selling.  They’ll thank YOU later.

And tell them:

 

We’re Not Just About Finance

But we use finance to give you hope.

 

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