Senin, 05 Agustus 2024

Why Markets Say a Crash is Coming

You are receiving this email because you signed up to receive our free e-letter the Wealth Whisperer ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

Why Markets Say a Crash is Coming

08/05/2024

The day after Joe Biden dropped out of the presidential race and pushed Kamala Harris in his place, she raised over $100 million, which was just the start.

Liberals can't stop fawning over Kamala Harris, even though she has the lowest favorability rating of a vice president in history.

Now, the Fed has her back, hinting at a well-timed rate cut next month, just before elections get underway.

Here's what the CNBC cheerleaders won't tell you: This rally is more artificial than Harris's list of accomplishments.

People see the S&P 500 popping and assume all is well.

Yet, there are some obvious signs of concern if you look just one layer down.

We'll explain what those are, how to read them, and the best strategies for utilizing them.
SPONSORED CONTENT

Millionaires Will Be Minted OVERNIGHT

Legendary tech futurist who predicted the rise of Amazon, Netflix, and Apple YEARS in advance now says:

"The biggest, most profitable technological advances in the future will ALL stem from this single breakthrough. Millionaires will be minted overnight."

He's revealing EVERYTHING here.

A One Stock Market

Six stocks make up nearly a third of the entire S&P 500 index, as do technology stocks in general.

As the most valuable company in the world, Nvidia makes up a whopping 6.2%.

To give you a sense of how massive this company is, the +10% jump it had last Wednesday added $300 billion in market capitalization.

There are only 26 companies in the S&P 500 with market caps over $300 billion.

That one day move was the equivalent of creating the entire Coca-Cola company!

While it's always been touted as the best index, the S&P 500 no longer offers the diversification it once did.

That's great so long as Nvidia keeps running higher.

But we all know how that story will end.

You can see this concentrated risk by looking at the performance of the SPDR S&P 500 ETF Trust (NYSEARCA: SPY) exchange-traded fund (ETF) when compared to the Invesco S&P 500 Equal Weight ETF (NYSEARCA: RSP) ETF, the latter of which is an equal-weighted S&P 500 ETF.

From the top of the market in July to the bottom, the SPY fell 4.9%. The RSP fell just 3.2%.

That's why investing in the S&P 500 isn't as straightforward as it used to be.

However, as well explain a bit later, you can use this excess volatility to generate regular daily payouts with just one trade a day on the SPY.

Sponsored Content

Free 23-page book shares my #1 indicator to use

I've used this indicator since 1997. It's not a 10-day, 20-day, 200-day moving average. You would've successfully bought Apple in early May after it dropped. Then, as it topped out, the #1 indicator would alert you to stop buying. It's really incredible. Even better, it's 100% free to use. You won't believe how easy it is to know when to buy and sell with it.

Here's the 23-page free book.

Soaring Stocks and Sky-High VIX Don't Mix

Gravity always wins.

What goes up must come down.

Nvidia is an incredible story full of immense promise.

Yet, no company has EVER maintained growth at the indefinite rates implied by the company's share price.

And with the Fed set to cut rates, money is likely to flow into less profitable growth stories, rotating out of the current winners.

That's why we're seeing the S&P 500 volatility index (a.k.a. the VIX) sit at elevated levels.

The VIX is a measure of option demand on the S&P 500 index, which are expensive. Generally, institutions will buy puts on the index to hedge their stock portfolio.

This causes the VIX and the stock market to move in opposite directions.

It's also important to note that the VIX is mean-reverting. So, the further it moves away from the average, the more likely it is to snap back.

You can see what we mean in the weekly chart below:


Source: Stockcharts.com

When markets crashed back in 2020, the VIX shot up to 80, levels that hadn't been seen since the Great Recession.

It remained elevated, as did overall volatility for more than two years.

It's only been within the past year we've seen things calm down.

However, we're now at a point where the VIX is moving higher, but so is the market.


Source: Stockcharts.com

Naturally, one of these two is wrong.

We know for sure that the VIX is telling us loud and clear that we should expect volatility.

You only have to look at Thursday's massive drop to confirm this as fact.

Considering the market is being driven largely by a few tech companies, several of which got pummeled after their earnings releases, we're leaning on the VIX being correct.

Now, we're going to share a secret most folks don't know about.

You can use the VIX to locate market bottoms simply by looking at whether the VIX has made a top.

No, there isn't a clear definition of what a top or bottom will look like.

However, if you see large red candles in the VIX appear for a few days in a row, there's a good chance there's at least a temporary floor in place.

And once the VIX starts to move back into its previous range, around 12-14, then you know that big money players are confident enough in the market to remove their hedges.

Where are the record-setting stocks going?

Wondering if you should be bullish or bearish on Nvidia for the remainder of the week?

Don't worry about "buying the news" or getting scared into selling when the A.I. can guide your way.

In other words, be rational.

The same A.I. that predicted the banking crisis, housing market crash and Covid crash recently forecasted 2 massively bullish moves for Nvidia.

Join me LIVE to learn how we're trading this ticker and 3 more with this A.I. forecast.

Cashing In

Now, here's where things get interesting.

While most folks are scratching their heads trying to make sense of this market madness, we've discovered a way to turn this volatility into cold, hard cash.

Remember how we mentioned you can use the VIX to spot market bottoms? Well, that's just the tip of the iceberg.

Hugh Grossman's Daily Payout Plan takes advantage of these wild market swings, allowing you to potentially rake in gains whether stocks are soaring or plummeting.

We're not talking about some complex algorithm or artificial intelligence (AI) mumbo-jumbo. This is a straightforward strategy that even your tech-illiterate uncle could follow.

And the best part? You only need to make one trade a day on the SPY. That's right, one and done.

Now, I know what you're thinking. "Sounds too good to be true." And normally, I'd agree with you. But our track record speaks for itself.

We're talking a 94.3% win rate over the past 14 months. That's not a typo.

So, if you're tired of watching your portfolio bounce around like a ping pong ball in a hurricane, it's time to take control.

CLICK HERE  to learn more about Hugh Grossman's Daily Payout Plan.

But fair warning: spots are limited, and they're filling up fast.
To Your Wealth,
The Wealth Whisperer Team
About Us:
 
Eagle Financial Publications is located in Washington, D.C. – only a few blocks from the Capitol. Our products have been helping investors build their wealth for several decades. Whether you’re a long-term investor or short-term trader, you’ll find the right strategy for you, including how to earn more steady income to spend now, preserve and grow your capital to enjoy later, and whatever other investment goals you have.
Visit Our Websites:
 
To ensure future delivery of Eagle Financial Publications emails please add financial@info2.eaglefinancialpublications.com to your address book or contact list.

This email was sent to indra21poetra@gmail.com because you are subscribed to Wealth Whisperer. To unsubscribe from this list please click here. To stop receiving emails simply click here. If you have questions, please send them to Customer Service. View this email in your web browser.

Legal Disclaimer: Any and all communications from Eagle Products, LLC. employees should not be considered advice on finances. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized advice on finances.

Eagle Financial Publications - Eagle Products, LLC. - a Salem Communications Holding Company
122 C Street NW, Suite 515 | Washington, D.C. 20001
Link

Tidak ada komentar:

Posting Komentar