In this two-parter from Tim Melvin, you'll get his guide for surviving the market apocalypse and current rising interest rates.
- Stocks Are Sky-High – Here's How to Profit from the Big Fall
- A New Global Stock Market Crash Warning Sign Just Appeared Today
- The Worse Banks Get, the More This Easy Trade Pays You
- How to Profit from the Mother of All Black Swans
- Here's How Much Cash You Should Hold Right Now
- The Brexit Handed Europe Its "Bear Stearns Moment"
- The Single Best High-Yield Play Is Paying More Than 5% Right Now
- 3 Reasons We Could See a Stock Market Crash in 2016
- Why the Rally Really Stopped This Week
- This Looks Like the 2008 Stock Market Crash All Over Again
- Why I Don't Trust This Rally
- This Will Make the Next Stock Market Crash as Bad as 2008
- Bear Market 2016 Will Get Worse for One Major Reason
- A Major New Stock Market Crash Warning Sign Was Just Revealed Today
- This Credit Market Barometer Shows Heavy Storms Ahead
- Here's What Makes the Derivatives "Monster" So Dangerous (for You)
So far in 2018, the stock market has sent investors on a wild ride.
The market is down almost a full point for the year, and things could get even worse.
The legendary Jack Bogle, founder of Vanguard Investments, gave an interview to CNBC last week in which he said, "I have never seen a market this volatile to this extent in my career... I've seen two 50-percent declines, I've seen a 25-percent decline in one day, and I've never seen anything like this before."
The "father" of passive index investing is, of course, talking about the powerful whipsawing on the Dow Jones Industrial Average and the much broader S&P 500; sharp, triple-digit declines followed by sharp, triple-digit rallies what seems like every other day or so.
It makes sense that an investor like Bogle - a passive investor - is less than thrilled by all the action lately. And as we'll see, he's off-base in his comments.
But even nimble, active players are watching this and asking, "What's going on?"
Money Morning Capital Wave Strategist Shah Gilani is here to let us know precisely that and, even better, what needs to happen for us to go higher from here.
The current bull market is the second-longest in U.S. history, notching its ninth consecutive year of stock market growth since the recovery began in March 2009.
And we are nearing a new, record-long bull market.
Tim Melvin watches private equity players like a hawk - they always get the best prices and the highest return.
What he sees now, though, is worrying - an equity crash lurks in the wings.
As history will have us believe, each of the last seven recessions was preceded by a flattening yield curve.
As a writer, a Baltimore guy, and someone who loves horror fiction, I have a special affinity for Edgar Allan Poe, the master of macabre horror tales who wrote some of his best stuff here in Charm City. And one of my absolute favorites was an off-the-radar story called "A Descent into the Maelström."
Turns out, I'm not the only fan of this spine-tingler: D.R. Barton, Jr., a good friend and colleague who's also one of the top technical trading experts in the market today, also loves this tale.
But of course, we're not here for a Gothic fiction reading circle. We're out to make money - serious money.
And we mention "Maelström" because it turns out that this Poe short story is an almost perfect metaphor for the brand-new market "call" that D.R. is making.
Thanks to an array of converging "triggers," D.R. sees an abrupt and dramatic shift away from the largely "correction-free" bull market run that's allowed U.S. stocks to grind their way up to current stratospheric, record highs.
That shift, he says, will be followed by a period of whipsawing volatility unlike anything we've seen in years.
With downside market risk seeming to have taken a vacation in recent years, D.R. says investors have been lulled to sleep and are unprepared for what's to come.
That leaves them open to big losses - even ruinous ones. The unwary will be "treated" to a whipsaw market scarier than anything Poe ever dreamed up.
But, as was the case with the Poe short story, there's a strategy - a "secret" - for surviving the threat.
The most important governmental advisory committee you've never heard of just issued a stunning forecast and warning that every investor needs to hear.
This warning was not reported in the mainstream media, even though it came from the most elite level of Wall Street.
Nor did this crowd release its forecast through its captive media, like CNBC or The Wall Street Journal.
When it comes to the stock market, everything's always all good... until it isn't.
And it's been all good: U.S. stocks have been rallying for nine years, making successive all-time highs, with only sporadic bouts of profit-taking by the Nervous Nellies along the way.
But now, some huge investors - marquee names - are getting nervous.
And they're letting people know about it, too...
Between them, these giants are pushing around close to $1.7 trillion in capital - more than enough for them to be able to make waves wherever they go.
The Dow, S&P 500, and Nasdaq each opened at all-time highs as the eight-year bull market rages on.
But the record-breaking highs have investors wondering when the next stock market crash could come.
While in London recently at an exchange with British Academy President Lord Nicholas Stern, Federal Reserve Chair Janet Yellen really let the cat out of the bag.
She told Stern that banks are now "very much stronger," with another financial crisis like the one in 2008 unlikely to happen anytime soon, and not likely "in our lifetime."
According to Yellen, the Fed has "learned" from the Great Recession of 2008 and is now more watchful over underlying risks in the financial system. She's comfortable saying, "I think the system is much safer and much sounder."
Well, isn't that reassuring...
Really, it's just more of the hubris that got us into the last financial crisis - the one that dragged the global economy to the edge of a precipice and vaporized trillions in wealth. I'm sure you remember it well, even if Yellen seems a little foggy on the details.
On the one hand, central banks periodically warn us against overpriced assets, interest rates at or near extreme lows, and excessive borrowing.
And on the other hand, it's their freewheeling, easy-money policies, ostensibly put in place to stimulate the post-crisis economy, that have just coaxed global debt levels to new records.
That, in my view, has only pushed us further along toward the next crisis. With debt completely out of control all over the world, it won't take much to tip the cart over.
Student debt, subprime auto loans, credit cards, name it: Any one of a number of debt bubbles could be the last straw.
The 5,300 Wells Fargo employees who set up 2 million bogus accounts to bring in a measly $5 million in extra fees are being fobbed off as "a few bad apples."
They're not. They're the product of a global corporate culture of entitlement and corruption. The proverbial tip of the iceberg.
Don't get me wrong - Wells' misdeeds are bad, but there's much, much worse going on in the banking sector right now.
The moral hazard and casino banking underway at this very moment are putting the entire global financial system at risk - again - when we've barely recovered from the last crisis.
This August of 2016 was one of the most placid in market memory, a stark contrast to the record high volatility of August 2015, to say nothing of August's traditional volatility. But last month's markets traded in the tightest range ever, a trend we're still seeing in September.
But... as sure as your summer tan will fade to pale, the coming market volatility will turn you white with fear if you're not prepared.
Now, when most investors think about volatility they think about the VIX, the Chicago Board Options Exchange (CBOE) Volatility Index. Often referred to as the "Fear Index," the VIX represents one measure of the market's expectations of volatility over the next 30 days.
And this upcoming 30 days - critical days for the market - could get extraordinarily rough.
The Hazelden Betty Ford Foundation, which ought to know a thing or two about behavioral disorders, once defined insanity as "doing the same thing over and over again and expecting a different result."
By that definition, the world's central bankers - "hopium" pushers to the global markets - are all barking mad.
They've continuously inflated assets to stratospheric heights in a doomed quest for growth and inflation that never, ever comes.
And what's really insane is that they have absolutely no idea how to stop what they're doing... without sending those "hopium"-addicted markets into a lethal tailspin.
They'll get the tailspin anyway. Or should I say, we will - central bankers never lose.
The U.S. is a perfect example of what central bankers have wrought on the markets.
A new global stock market crash warning sign just flashed today with news Australia cut its interest rate to the lowest level ever.
Australia wasn't the only nation taking steps today to prop up its sputtering economy.