Pain Is Inevitable; But Suffering Is Optional
The comments below are an edited and abridged synopsis of an article by Adam Taggart
It’s becoming increasingly clear that the end of the 10-year bull market has arrived. The fundamentals show a global economy sliding into recession. The technicals show a dangerously bearish triple top, with all of the major indices punching decisively below the (bearish) rising wedges they’ve been making for months.
The incessant cheerleading of the Fed and the Trump administration no longer works. The market wants results—progress on trade talks, real revenue and earnings growth. Words are no longer enough to boost prices.
Perhaps nobody understands the current dynamics in play better than David Stockman, former head of the Office for Management and Budget under President Reagan, former US Congressman, and former private equity investor.
Stockman not only knows how the power players run the game, he knows many of them personally and understands their motivations, capabilities and weaknesses. And he’s extremely concerned right now.
So concerned that he had a webinar produced in which he laid out where the biggest risks currently lie, why the markets are so vulnerable to a major correction and, most importantly, what steps concerned investors should be taking right now (i.e., before stocks fall).
Pain in the markets is inevitable at this point, given the extreme distortions and interventions over the past decade. But suffering is not. You can position yourself prudently today to minimize/avoid losses, and potentially even profit from a coming market downturn.