More Signs A Global Recession Is Headed Our Way
The comments below are an edited and abridged synopsis of an article by Mark Nestman
On August 22, 2018, the US stock market reached a historic milestone as the longest bull market in history. While there was a brief but intense correction in the 4th quarter of 2018, that bull market remains intact, but it won’t last forever. The signs of an impending slowdown are everywhere. It’s time to get defensive.
China, Italy and the UK are all slowing down. The US economy appears to be healthy, but falling profits could put an end to the bull market. So how can investors protect themselves?
Nestman describes stop-loss strategies, stop-limit orders, and bear markets that turn into systemic financial collapses.
Economists call the risk of a collapse of an entire financial system systemic risk. The only way to defend from systemic risk is to make sure your assets are held by the safest and most liquid brokers or banks, and to use strategies that put you at the front of the creditor line if they do fail. Investors need to adopt strategies to protect their wealth from being grabbed by the government.
By minimizing the opportunities for creditors and governments to seize their assets, investors will be in a much stronger position to protect their portfolios from systemic risk. And they’ll weather the inevitable financial apocalypse.