Most investors focus on how much money they can make…
It’s natural to compare your performance to the market… to the high-flying winners… or even to hedge funds or your neighbor next door.
We think that’s a mistake.
The important question that most investors fail to ask is “How much money could I lose?” And in the stock market, the answer is almost always “all of it.”
That is… unless you have a plan.
We suspect that many of your portfolios were up midway through the year. The S&P 500 Index had gained about 7% by September, and other high-profile stocks like Amazon, Apple, and Netflix were up far more.
But then over the next few months, the market dropped nearly 20%. An entire year of gains disappeared, and most portfolios plunged into the red.
The last time that U.S. stocks performed so poorly in December was during the Great Depression. And many financial experts are warning there will be more volatility ahead.
The question now is: What happens next?
- Will we have a prolonged bear market? How far will stocks fall?
- Or will the “Melt Up” that we’ve talked about continue? And if so, how can you protect yourself from the eventual “Melt Down”?
We asked these questions in our October and November magazine issues. We admit that we’re biased, but we think our timing was excellent.
We hope that you read both those magazines, thought about your portfolio, and made sure that you could sleep well at night with the investments that you owned.
And to help us answer definitively how going forward you can prepare both yourself and your portfolio – no matter what happens next – American Consequences feature contributor Dr. Richard Smith is hosting a “Bull vs. Bear Stock Summit” on Wednesday, February 13.
He’s inviting some of the most recognized names in the investment world, including several former hedge-fund managers, who will share their take on recent market events and what you can expect in 2019.
No matter your opinion of stocks today – whether you’re sitting in cash or have used the recent dip to buy more shares – we think this event will give you a completely different outlook on the market.
It will be filmed in front of a live studio audience, and you can watch for free. But you must reserve your seat by clicking here.
Now here’s some of the latest news we’re reading…
If you haven’t read them already, our October and November magazine issues are right here…
October: Politics Can’t Mess Up the Melt Up
But be ready to ride the wild volatility…
November: Pushed Over the Edge
Do we see the next crash coming?We’ve been warning that politicians will make more and more expensive “free money” promises to get elected. Now, those promises (and their costs) are starting to come in.
We’re reminded of editor in chief P.J. O’Rourke’s classic quote: “If you think health care is expensive now, just wait ’til it’s free”…
A closer look at the “LIFT the Middle Class Act” reveals an expensive, needlessly complex piece of legislation that has much more to do with boosting the California senator’s presidential ambitions than with creating good policy.
Ocasio-Cortez wants to return to the confiscatory tax rates of the 1950s and early 1960s. Perhaps she doesn’t know that those were repealed by Democratic president John F. Kennedy, but it’s more clear that she doesn’t understand why. Not only did it fail to get the revenue derived, it actually held back economic growth and resulting tax revenue.
Even if the government could somehow efficiently control the means of drug production, Warren misdiagnoses the generic drug market, which for the most part functions well. Generics provide Americans with nine out of 10 of their prescriptions, yet make up only 23% of their total spending on drugs.
Another famed retailer bites the dust…
Sears Holdings Corp will ask a bankruptcy judge if it can proceed with liquidation after it could not reach an agreement on Chairman Edward Lampert’s $4.4 billion takeover bid, casting doubt on the survival of the 126-year-old U.S. department store chain.
Hope you’re not traveling this week. Will anyone miss the “security theater” TSA?
The mass call outs could inevitably mean air travel is less secure, especially as the shutdown enters its second week with no clear end to the political stalemate in sight.
And let us know what you’re reading at [email protected].
Publisher, American Consequences
With P.J. O’Rourke and the Editorial Staff
January 9, 2019