April 27, 2021
Hello America, it’s Trish Regan. You know that feeling when everything feels too good to be true? Admittedly it’s been a rare one in this pandemic, but there’s one place in the U.S. where everyone has that sense at the moment: Wall Street.
With the Biden administration spending trillions seemingly every day, the Fed claiming to keep interest rates low until 2024, a national debt that towers over our GDP, and inflation already here, America appears to be hemorrhaging money from every end… This over-spending zeal has consumed investing as well.
With stocks trading at 30 times earnings, you know we’re not in a sustainable place right now in the markets. 2021 has been defined by one speculative frenzy to the next, from GameStop to Dogecoin to NFTs. And I’m sorry to break it to you… the Melt Up party will end soon.
We’re in an asset bubble about to burst – so how can you avoid your savings being part of the collateral damage?
Thankfully, we have an expert on hand to help you mitigate the pain in your portfolio, Dr. Steve Sjuggerud, one of our Stansberry Research contributors. Steve’s experience runs the gamut from Global Mutual Fund VP to hedge-fund manager, with his sage advice landing him spots on Fox Business News, Bloomberg, and CNBC.
Steve says the looming stock Melt Down of 2021 is inevitable but shares how investors can best prepare before the crash…
He’s holding a free, special event at 8 p.m. this Thursday… one you won’t want to miss. Steve says on April 29, he’ll share what is likely the biggest prediction of his career. He’s even giving away the names and ticker symbols of two opportunities that could dramatically grow your wealth in the coming months.
The Stock Market Melt Up Will End in 2021
The Melt Down is coming, my friend… Unfortunately, it will arrive this year.
Before you get bent out of shape with me for urging caution at the precise moment when things seem like they’re getting really good, please keep this in mind…
I have been bullish – and right – on the stock market for nearly all of the last 12 years.
I am proud of that. But it’s also why it pains me to tell you that the last 12 years of (mostly) good times for investors will likely end this year. (Nobody can know the future of course, but that is my prediction.)
I don’t want to see that happen. But my years of experience tell me it’s coming – and I want you to be ready.
Let me explain…
A Perfect Storm on Wall Street
“Steve, why are you so sure the Melt Up will end in 2021?”
It’s a fair question. The markets have been going up for years (with the exception of the COVID-19 crash a year ago). So why now? What makes this year different?
Your arguments are good ones:
- Stocks have been expensive for years and it hasn’t mattered.
- The Federal Reserve has promised low interest rates for a while.
- The economy is recovering from COVID-19.
- The new Biden administration will most certainly spend a lot of money creating jobs and sending out stimulus checks.
You are right on those points, and more. Heck, they’re some of the reasons I’ve said the good times would continue – and for longer than anyone imagined.
My basic premise all along has been this: The Fed will keep interest rates lower than people can imagine, for longer than people can imagine. And that will cause asset prices like stocks and real estate to soar higher than people can imagine.
Times are good right now, based on those points. But this is also the exact situation you tend to encounter before markets peak.
Specifically… Markets peak when there is nobody left to buy. That is all you need to know.
Unfortunately, we’re getting close to that point right now. And that is exactly what makes this year different than previous years.
The Stock Market: Trending Toward Disaster
When music stars like Snoop Dogg and Gene Simmons (of the band KISS) are talking up cryptocurrency Dogecoin on their Twitter accounts, you know speculating is starting to get out of control.
I have personally gotten texts from rock stars… from pro surfers… and from my kids’ friends… all wanting to get in on the game. None of them were interested in the markets a year ago. Heck, none of them were interested in stocks or investing just two months ago, at the start of this year.
The reality is most of these folks are not looking to become students of the markets. Most aren’t looking to study the competitive position and profit margins of Target versus Walmart, to determine which stock could outperform the other over the next five to seven years.
Instead, most of these folks are looking to make a quick buck on the next speculation.
But for the majority of investors today, how you handle the Melt Down could be the most important event of your financial life…
Few people in America have Dr. Paul’s insight into the inner workings of the government, which is why you need to see his latest warning.
If you are 55 years old and you handle the Melt Down the wrong way, you might lose half of the money you have invested.
That might cause you to work an additional 10 years before retirement… all because of a few bad decisions made in 2021.
So… don’t be that guy.
Look, here are the basics: An investment “bubble” has kicked in recently. And it will certainly end. Unfortunately, most folks who just started “playing” in the markets this year will lose money. A good portion of them will lose a lot of money.
Here’s how it will go…
- New investors will make a good amount of money on the way up. They will gain confidence.
- With that confidence, they will add even more money to their accounts, as they will believe they know how to succeed.
- Then the market will turn against them… and they will start to lose money.
- At first, they will see it as a golden opportunity to invest even more money, because assets are “on sale.”
- Ultimately, they will lose even more money on the way down than they made on the way up.
- It will take tremendous personal and emotional strength to avoid that path… to not end up like everyone else.
Your instincts will tell you to buy more. But your instincts will be wrong. In fact, you will need to do the opposite – you will need to sell, just when you feel like you want to buy.
Importantly, you will need a plan – set in advance – for how you will get out with most of your gains still intact. If you don’t have that plan in advance, then you will sink with the ship. And even then, having the plan doesn’t guarantee that you will follow it.
If you want to keep most of your money, you will need to follow the plan.
That’s because – unlike the fall we saw in March last year – a true Melt Down doesn’t end quickly…
“As the market goes down, will people rotate out of speculative stocks into less speculative ones?” one of my colleagues asked me recently.
“No, they won’t,” I replied. These market newcomers will ultimately give up after big losses. They will throw in the towel. They will pull what little money they have left out of the markets – and vow to never return.
At least, that’s the way it went in the 1999 to 2000 Nasdaq Melt Up… which ended in an 80% fall in the Nasdaq between the March 2000 peak and the bottom in 2003.
There’s Still Time to Act…
The exodus you see during a Melt Down doesn’t happen overnight. People are stubborn. It takes a while. Therefore, the Melt Down could take a while. And it could be severe. This slow exodus gives you time to exit your positions before most everyone else.
But you still have to act – and sell – when the time comes.
Your goal from here should be to participate in all of the upside potential that is left in the Melt Up… and then get out with most of your gains when the Melt Down arrives.
It’s easier said than done. But you now know why the Melt Down will inflict maximum damage on anyone who isn’t ready for it.
Make sure you don’t fall into the trap — and sign up for my free event this Thursday to learn more.
Love us? Hate us? Let us know how we’re doing at [email protected].
Dr. Steve Sjuggerud
Contributing Editor, American Consequences
With Editorial Staff
April 27, 2021