Are you ready for the next crisis? Do you even believe one is coming?
In the first quarter of 2019, central banks have pumped over $1 trillion into our financial system as well as continued the policy of historically low-interest rates to avoid extending the downturn from late 2018, but stocks still haven’t reclaimed the bull market trendline of the last decade.
Chart 1
Our inflated stock market is fueled by quantitative easing (money printing), corporate tax benefits, asset repatriation, and low-interest rates, which allow corporations to pile on debt and buy back shares to raise their prices and provide management with “success bonuses.”
Despite the Fed’s efforts, the trend line has been broken, and the central bank has run out of fuel to further prop up the market. Whenever that line was broken in the last 20 years, a crisis hit our country within six months. See for yourself in the next chart.
Chart 2
The inflated stock market crashed in 2000 and 2008. And look where we are now…
Here’s where it gets serious. Each successive crisis saw stocks drop to new lows. The market was much lower after the Great Recession than after the dot-com crash. See how inflated the market is today—if we continue that trend, imagine how much the market will drop when the next crisis hits.
Chart 3
If we follow the trend line, this is how much the markets will drop in the next crash.
There’s no doubt a stock market crash is on its way. When it hits, 99% of investors are going to panic.
But not me.
I’ve spent my professional career turning financial crises into huge gains for my clients by investing in precious metals.
When the crisis hits, I’m convinced we will see 3-digit and possibly even 4-digit gains.
Do you believe your retirement savings are safe from the ravages of the next crisis? Are you interested in getting an advantage most people don’t know about when most investors are panicking?
Then, schedule a free consultation with me, and I will show you how your portfolio can grow and be protected when our stock market implodes.
About Fred Abadi
In his over 14 years in the financial industry, Fred has focused on commodities and precious metals as investment assets. He has penned many articles on topics such as the commodities markets and investing in precious metals for retirement accounts. Fred has helped thousands of clients safeguard their investments with gold and other precious metals. He has been with Gold Alliance for over two years as a leading Sr. Portfolio Manager and a member of our trading department board. Fred is happy to advise anyone wanting to look into diversifying into precious metals.