1/16/2015 – An up day with the Dow Jones up 190 points (+1.10%) and the Nasdaq up 63 points (+1.39%).
The stock market continues to perform exactly as forecasted. If you would like to find our what happens next, please Click Here. In the meantime, a number of things to consider over the weekend.
Marc’s fundamental view of our current economic environment is right on the mark. I couldn’t agree more. Unfortunately, his timing has been terrible over the last few years. As a result of predicting a massive bear market since about 2011. Has he thrown in the towel?
Not by a long shot, but his timing and his ultimate S&P target might backfire…..once again. In terms of timing and missing a large down move. When perma bears such as Marc Faber suggest that the market is about to surge higher, the maximum bearish pain threshold is hit and the time might be right to go short. That is too say, don’t wait for 2,500.
- Swiss franc’s ‘unprecedented’ surge causes 2 brokerage firms to become insolvent
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Largest Retail FX Broker Stock Crashes 90% As Swiss Contagion Spreads
By now everyone should be familiar with what the Swiss did with their Swiss Franc, its impact on currency/financial markets and complete devastation they have caused throughout FX industry. As a result, everyone from Goldman Sachs to a typical day trading grandmother suffered massive losses.
There are two simple lessons here.
First, don’t try to be on the same side of the trade as everybody else. It rarely pays. On the contrary, the probability of it blowing up in your face is typically high. Just as we saw. Second, don’t use leverage. Countless speculators, including 2-5 large FX brokers were literally wiped out. I am sure we haven’t yet heard about all the damage the move caused. In many cases capital that took years and even decades to accumulate, was destroyed in a matter of minutes. In other words, don’t leverage up 1:100 and expect good things to happen. Sooner or later you will get destroyed.
A good overall look at why smart investors should anticipate a bear market sooner rather than later. An article definitely worth your time. Think about it in the following fashion. Those who outright dismiss even the slightest possibility of a bear market, despite a 5.5 year bull market cycle, might soon find themselves with large losses. Just as they did in 2008. Yet, those who a smart enough to prepare will be able to avoid losses and even profit.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014/15-2017. 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 2014/15-2017 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. January 16th, 2015 InvestWithAlex.com
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Weekly Update: Marc Faber, FX Bloodbath & Upcoming Bear Market Google