Why Nobody Is Safe from The Looming Market Crash

The comments below are an edited and abridged synopsis of an article by David Morgan

A stock market pullback: Is it coming, and who will it affect?

Why Nobody Is Safe from The Looming Market Crash - BullionBuzz - Nick's Top Six
A street sign against dark storm clouds warning about a bear market coming soon and warning of a stock market crash.

Morgan has been forecasting a distribution cycle in the US stock market for some time, which means the insiders are selling to less sophisticated investors, pension funds, money managers and people who are almost required to buy stocks no matter what. Since we’ve seen such major declines in some of the big names like the FANG stocks, it’s a huge indicator that the overall stock market may have hit its peak.

Then there’s the advance decline line. The overall market can be manipulated by buying some of the most heavily weighted stocks in the S&P 500/Dow and making it look good even when most stocks are declining.

So will it be a waterfall decline or a crash? There’s no way to know, but it is doubtful that the Plunge Protection Team can ensure that everyone in the stock market is protected. And, while the average individual may not be a stock market investor, they have a vested interest in its stability.

Here’s why: Much of the economy rests on what the stock market does. Pension plans tied to the stock market or money market accounts using commercial paper tied to a corporate bond; it’s pervasive within the financial system to be tied to the overall financial markets. Even when you don’t think you have a direct connection, you likely do.

With the ongoing supply chain breakdown, trouble in the energy markets, and the overarching theme of uncertainty, it’s time to prepare. All markets are affected by uncertainty, and we are all affected when these markets are turbulent.

For those who aren’t in the stock market, live within your means and downsize if possible. It’s a matter of stepping back, realigning and budgeting to prepare for the future. That would be step one for most people.

Step two would be to own the best asset class on a long-term basis, one that remains valuable even in times of uncertainty: Precious metals. For millennia, gold and silver have represented true, indisputable value.

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