A sense of panic has taken hold of the market this week as the coronavirus (COVID-19) continues to spread.
On Monday, the Dow Jones Industrial Average dropped 1,031 points (3.6%). Today, the Dow dipped another 650 points (2.4%) in afternoon trading.
But remember, in times like this, panicking is the absolute worst thing you can do.
Here are three steps for weathering this type of market...
The Dow plunged nearly 1,000 points this morning, making today's 3% loss the worst day for stocks in 2020. That could just be a small hiccup in the longest running bull market of all time, but many fear it could be the start of the next stock market crash...
While we can't predict the future, we do know now isn't the time to panic. And if you're worried about what the coronavirus means for your money, you're in the right place.
We'll show you how to turn this into an opportunity, even if it's the start of a market crash...
It may not seem like it, but a recession in 2020 is a serious possibility.
n fact, researchers at MIT have developed a new recession prediction model that says the chances are at 76% right now.
And it's turned into one of the most reliable recession indicators we have...
If you're spooked the coronavirus could cause a stock market crash, you aren't alone.
The Dow Jones started this week 400 points in the red as the outbreak continues to spread.
But a jittery few days doesn't mean a stock market crash is coming.
It also doesn't mean there's no danger either.
Uncertainty is one of the biggest portfolio risks you'll face as an investor, and there's no bigger cause of uncertainty than a war.
It's no surprise Wall Street is paying as much attention to the brewing conflict between the United States and Iran as anyone besides the soldiers involved.
Because we don't want our readers to be caught by surprise, we want to talk about the worst-case scenario for your money: a stock market crash in 2020.
Investors keep staying on the sidelines due to one very popular - or rather, unpopular -narrative: The global debt bomb is finally exploding.
For years now, fearmongering headlines on the subject have continued to stoke investor anxiety.
When debt levels skyrocketed in 2019, so did headlines like "Titanic Iceberg of World Debt Could Sink a Slowing Global Economy."
As the last decade of the 2010s wound down, year-end predictions and warnings multiplied, with December 2019 registering several doom-and-gloom debt bomb headlines.
On Dec. 1, Bloomberg postulated, "The Way Out for a World Economy Hooked on Debt? More Debt."
On Dec. 20, ABC News' top story was, "The World Bank Warns a 'Wave of Debt' Could Swamp Global Economy."
And in Britain, The Guardian on Jan. 4 fretted, "Debt Will Kill the Global Economy. But It Seems No One Cares."
The media loves bad news.
It's no wonder why making recession predictions is big business.
It seems like you're always seeing someone on TV predicting a market crash or recession.
So how do you know when to take the risk of recession seriously?
We've got you covered.
Last Friday, I told you that timing markets isn't only possible, but it's very, very profitable, and I ticked off lots of household names who've proven it works by making billions of dollars timing markets successfully.
But there's a trick to it.
Today, I'm going to reveal what it is.
Why now?
Because a lot of people think this bull market's going to end, maybe very soon, maybe spectacularly, and they either haven't gotten fully invested out of fear, or they're going to sell early, maybe very early, because they're afraid they won't see the end coming.
Even worse, investors who don't see the end coming could ride the market all the way down and lose, maybe everything.
Good timing allows you to load up in the right direction and gets you out of the way when things turn.
The kind of timing that I'm talking about that's going to make you a lot of money, in bull markets and bear markets, isn't the kind of clockwork timing that traders employ.
It's timing based on two things: investment horizons and trends.
If you were only to watch financial television, you would think that the U.S. economy is doing quite well.
But that’s not exactly true.
In fact, an essential sector of the economy is already in recession…
Nobody wants to think about it, but bull markets don’t last forever.
It’s the natural ebb and flow of investing, and as long as you are prepared, you can ride out a downturn or correction in style.
Despite a few brief rallies this year, stocks can’t seem to catch fire the way they did back in 2017.
That could be a sign that the bull market is winding down.
And stocks aren’t the only source for pessimism.
You see, the bond market is sending a clear signal that a recession is on its way.
Stocks are down over 6% in just a month as the trade war with China escalates. In fact, the Nasdaq has officially entered correction territory.
That has investors on edge about the possibility the next stock market crash could be coming soon.
Here's why - and what you can do to protect yourself...
We're currently in the longest-running bull market in history.
But the longer it goes, the more leery investors seem about a potential stock market crash.
Some investors see a major stock market crash in our near future.
But we think it could be a buying opportunity.
The bears came out of woodwork recently because we saw a partially inverted yield curve - a sign, many think, of a pending recession.
The financial press is rife with warnings that the yield curve inversion is about to bring on a recession.
That's only partially true, at best.
