There are four letters that every investor hates to hear or even see, when it comes to the markets…
B-E-A-R.
It’s the kind of term that will cause nervous nellys to bite their fingernails and pull on their ears…
And they have every right to be nervous, as most people have no idea how to succeed and thrive when the market pulls back and pickings become slim.
But are we there yet? That’s the million-dollar question, right?
Are we about to enter into a Bear? Or worse?
To tell the truth – it’s not easy to predict whether or not a Bear is prowling near the tree line or if he’s just making noise from deeper in the woods…
So we have to go off what we DO know in order give us a rough or at least MORE probably view than just hazarding a guess.
So… what do we know?
Well, we know that the stock market has been on a steady climb for months…
Since the lockdown started and the markets went haywire when Wall Street figured out how to trade without having people on the floor – since mid-March, both the Dow and S&P 500 are both up 43%.
That’s HUGE…
Now, stocks also DROPPED big in March as well – but for a steady and almost uninterrupted climb like we’ve experienced – it seems a little TOO good to be true.
The markets RARELY move that steady for that long…
And it seems to some experts out there that our markets may be on edge of a steep drop…
And that goes for some individual stocks as well – not just the indices.
Tech stocks have been on a tear recently – as it seems they’re the only industry that has the ability to churn out profits for investors…
And that’s dangerous, as a well-diversified success in the markets allows for people to diversify their own portfolio.
Right now, it seems that everybody’s portfolios are chock full of tech stocks – and when your portfolio is so heavily weighted in one industry – it puts your entire financial future at risk.
Why?
Because it’s one industry and it’s all connected – if the bottom drops out – and all you have are tech stocks in a failing industry…
Guess who will be left holding the bag?
Last week we talked about Tesla (TSLA), and how overvalued this stock seems to be…
Well, like the Dow and the S&P, it was ALSO up a massive 43% – do you think that’s a coincidence?
How long can it go before the stock market crumbles under its own weight when there’s really only ONE pillar holding it up?
What’s worse is the fact that the lockdowns and the effects of a quasi-opened economy could be the bullet that killed it AND the nail in the coffin of one of the LONGEST bull market of all time…
And everyday the economy keeps it’s doors and windows shuttered – the more the damage spreads.
Local economies are once again being forced to close up as the COVID numbers climb – signaling that we’re a long way from returning to some semblance of “normal”…
But it’s the rampant speculation of tech stocks truly drives that point home – as it seems like our opportunities are drying up – one by one.
The market can’t survive on speculation alone…
Anymore than the economy can survive on stimulus alone.
The talking heads on TV can talk all they want about how markets have a “forward-looking” view in order to explain their rising valuation…
But the fact remains – if we don’t find some REAL opportunities in other markets – we could find ourselves on the verge of breaking.
However, if a Bear does show it’s ugly head on Wall Street…
Are you prepared?
Do you know how to survive when the markets aren’t baring much fruit?
If you want to not only survive, but THRIVE, during a harsh economic climate – you have to have a strategy that gives you options.
GorillaTrades’ trading system isn’t just something that works when things are going good and the Bull is running…
It’s something that works regardless of economic conditions.
In fact, you could almost say that GorillaTrades works BETTER in a Bear – simply because the system only uses hard data of individual companies to determine whether or not it’s a profit opportunity.
No speculation…
No emotion…
Simply numbers.
If you’d like to see how it works, please consider joining today – it’s something that could help you survive any coming market calamity.
However, if you’d rather sojourn on alone – we totally understand…
Just do yourself a favor and be prepared for the worst – it can’t hurt!
“I learned to embrace risk, as long as it was well thought out and, in a worst-case scenario, I’d still land on my feet.” – Eli Broad
