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Back in October, JPMorgan Chase & Co. (NYSE: JPM) analysts Eduardo Lecubarri and Nishchay Dayal warned that the $7.4 trillion of global assets parked in passive funds could "exacerbate a rout" during the "next recession."
Well, they were half right: We're not in a recession.
But the escalating sell-off – especially in the highflying, index-leading big-cap stocks – is weighing heavily on passive investors.
"Weighing heavily," as in, passive investors are losing lots of money just about every day.
Active investors and traders, like us, have options. We can hedge, we can get short, trade puts, even go to cash – there are moves we can make.
Passive investors? Well, they could become active in a major way just about any day now. The panic would be legendary.
If that happens – and we are getting close to market levels that could turn passive investors into very active panic-sellers, a crash may not be far off.
The good news is, if you're ready for what could be coming, you stand to make a huge amount of money in a hurry…
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About the Author
Shah Gilani is the Event Trading Specialist for Money Map Press. In Zenith Trading Circle Shah reveals the worst companies in the markets - right from his coveted Bankruptcy Almanac - and how readers can trade them over and over again for huge gains.Shah is also the proud founding editor of The Money Zone, where after eight years of development and 11 years of backtesting he has found the edge over stocks, giving his members the opportunity to rake in potential double, triple, or even quadruple-digit profits weekly with just a few quick steps. He also writes our most talked-about publication, Wall Street Insights & Indictments, where he reveals how Wall Street's high-stakes game is really played.
Tags: market crash