It’s Time to Sell!
The market is headed for a crash.
The same indicators that told us gold was an extreme buy this summer and that a breakout to the upside was imminent are now telling us to get out of major indexes.
9 of the 10 traditional sectors in the S&P 500 are now more expensive than their historical 10-year average.
What is coming for U.S. stocks is probably going to be worse than anything we’ve seen in our lifetime.
I’m holding the core companies we suggest, most of which are in the natural resource space, cannabis, physical precious metals, and cryptocurrencies.
However, for general large-cap stocks, anything inside of the S&P 500, I’m selling all of it – even what’s held in my children’s accounts for their future savings.
A crash was led by the tech sector in 2000, and it was the banks in 2008. This time, we have nearly all the sectors in bubbles. This is truly going to be an epic bursting of a bubble that covers all assets.
This bubble is nearing its end. Don’t delay taking action.
Just 5 of the stocks in the S&P 500 have accounted for 1/3rd of the gains this year!
We are at a 70-year high for stocks purchased on margin.
This means that when the selling starts, it’s going to be an avalanche like nothing we’ve ever seen before.
The 10-year P/E ratio based on 10 years of averaged earnings is now higher than at any time in the past 130 years, with the exception of 1929 and 1999. Both years were followed by crashes.
Stocks are extremely expensive in general.
Right now, we have 3 opportunities to invest where the sectors are cheap or at the beginning of bull markets.
1. Natural resource shares (gold, silver, zinc, copper, uranium)
2. Cryptocurrency (Bitcoin/blockchain technology)
3. Cannabis (the end of a prohibition)
Don’t short the market unless you’re a professional.
If you want to short the market, just hold cash. After a major pullback in the S&P 500, the cash will give you the courage to buy great businesses at fair or cheap prices.
FutureMoneyTrends.com is forecasting that a crash in the Dow Jones and S&P 500 will be like steroids for gold and Bitcoin. Both will be making all-time highs together.
As to when this crash will occur… We see significant risk now, but we can’t time an event like this, nor will we try.
As value investors, we don’t need to time anything – we just need to buy cheap assets and sell expensive ones.
It’s that simple. Stocks in general are more expensive than ever, showing signs of an extreme bubble, so let’s get out.
The stocks we’ve suggested to you in this letter are cheap, in bull markets, and have enormous upside, so let’s own those assets.