According to Investopedia, a Bear Trap is a technical pattern that occurs when the performance of a stock or an index incorrectly signals a reversal of a rising price trend.
“…In Plain English” it means, you get suckered into believing the markets are crashing.
And the tendency is to sell or short the market trying to cash in on what looks like a sure thing.
Then you lose your shirt when, suddenly, the markets start to climb again.
Are you having fun yet trying to outsmart this market?
Caught in a Bear Trap
When markets are crashing and everyone is running for the exits, historically one thing occurs.
It’s called a “flight to safety” in government bonds.
However, todays safe haven of gov’t bonds is the biggest bubble in history.
The most disastrous policies of lowering interest rates to 5,000-year lows (to stimulate the economy) has failed miserably.
Ironically (or NOT) real interest rates have been quietly rising since the end of 2015. And it’s not been pretty for the bond market.
Let’s do the math
If interest rates get back to their historical norms of 5% (for long term bonds) it’ll mean we’ve increased our annual interest expense of gov’t bonds to over $1 Trillion.
Yes, you read that right.
Meanwhile, the media miscreants continue their feeble attempt to bludgeon the Most Hated Bull Market in History which will likely lead to a humongous Bear Trap.
And the Wall Street “Club” will be laughing all the way to the bank as they cash in on the stock market panic.
Then, they’ll wait for everyone to move into bonds and pull the plug on that market as well.
By then you’ll surely hear them crying: “I’m Shocked, I Tell you…Shocked. Who could’ve foreseen this happening?”
Learn how to avoid this trap HERE.
You’ll thank us later.
And Share this with a friend.
They’ll thank YOU later.
It’s Not Just About Finance.
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