We are currently in the 2nd longest bull market run in the history of the US stock markets. And although anything that you might have purchased might have gone up and made good profits so far, its time to be cautious as we go forward. Lets look at how it ended the last time the markets were riding a great bull up, specifically the last 7 times.
Considering we have seen at least an average of a 50% drop after, this time might not be very different from that figure considering we saw a 57% crash in the most recent episode in the 2008 financial crisis. Although the numbers are scary, it does not have to be panicky as long as you know how to prepare and be positioned right for this once in a lifetime wealth transfer. Remember stock markets are a zero-some game meaning your profits are someone else’s losses and vice versa. Its only a matter of the $$ changing hands and a great opportunity for us. Even when you look at the charts below of the precious metals ( gold and silver ) futures – we notice that the volume has gone up considerably in the last couple of years where people are trying to hedge for the impending correction.
And during the same time, the S&P 500 futures contract has been losing volume and been on a unexpected, unsustainable run up. This is hanging by a thread and the slightest of the triggers could lead to the start of the crash. Although its hard to predict when the crash will happen, we can be prepared for what is to come.
For those who have attended my coaching or training, you know I always talk about buying precious metals especially more SILVER than GOLD for various reasons that will make this post way too long. I am not a big fan of holding the FIAT currency but I constantly use it to generate more $$ and buy ASSETS with real value using it. Because only these will stand the test of time, and now that we are in a precarious time, would you not want to buy insurance for your stocks? Yes its possible through the purchase of put options and it will help mitigate the risk in case there is a crash TOMORROW. You or I can’t predict when exactly its going to happen, but we can certainly PREPARE for it.
If you are new to the world of OPTIONS and do not understand how they work – I highly suggest that you start spending some time towards learning it – as the returns from it are far grateful than what you can imagine. In fact I have broken down the basics of options into small understandable modules that is easy for anyone to consume, and I highly suggest you start with it. Click here to get access to this course right away! You don’t want to wait on this – See you there!