9/30/2015 – A positive day with the Dow Jones up 236 points (+1.47%) and the Nasdaq up 103 points (+2.28%).
As we end 3rd Quarter, the Dow finds itself down -8.6% , Nasdaq -2.5% and S&P -6.8% for the year . And considering where the market is today, the bottom is either in or this bear market is just getting warmed up. If you would like to find out what happens next, please Click Here.
What I find interesting is the fact that some of the top money managers in the world agree on one thing. The same advice I gave to my parents and immediate family over a year ago.
Bill Gross:
Global fiscal (and monetary) policy is not now constructive nor growth enhancing, nor is it likely to be. If that be the case, then equity market capital gains and future returns are likely to be limited if not downward sloping. High quality global bond markets offer little reward relative to durational risk. Private equity and hedge related returns cannot long prosper if global growth remains anemic. Cash or better yet “near cash” such as 1-2 year corporate bonds are my best idea of appropriate risks/reward investments. The reward is not much, but as Will Rogers once said during the Great Depression – “I’m not so much concerned about the return on my money as the return of my money.”
Carl Icahn:
“What is better…..making 1-2% or losing 30% as people did in 2008? Right now is extremely dangerous.”
Warren Buffett:
And while Warren Buffett is too mainstream to state the same, his own indicators are flashing a red light. WSJ ‘Buffett Indicator’ Flashes Warning for Stocks
I will be a little bit more blunt. If you don’t short and/or hedge, get the hell out of this stock market. And even if I am wrong short-term, historical data points to negative returns over the next few years. Considering today’s overvaluation levels, the FED imbalances and the overall macro picture, there were only two other times when we have been this overpriced. At 1929 and 2000 tops.
So, I will tell you what I told my parents. Get out and go into cash (they don’t short). Preserve capital and get ready to buy when blood is flowing through the streets. And I assure you, given today’s imbalances, this river of blood is coming. Perhaps in a flash flood fashion.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2015-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning when the bear market of 2015-2017 will start (to the day) and its internal composition, please CLICK HERE.
(***Please Note: A bear market might have started already, I am simply not disclosing this information. Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. September 30th, 2015 InvestWithAlex.com
Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!
