This is One of the Most Dangerous Things an Investor Can Face

How I'm Letting the Markets TELL Me What's Coming March 31, 2020 UNSUBSCRIBE | ARCHIVES URGENT UPDATE FROM JAMES ALTUCHER… (Only good till 9:30 TOMORROW MORNING!) This isn't the first time James has traded in an extremely volatile market, but what he's accidentally discovered changes everything.   It's crucial you catch his latest update about life and making money in a post-coronavirus world.   James reveals exactly what readers should be doing to help protect their money and how they can even profit from his latest discovery.   This video is only online till 9:30 TOMORROW MORNING. Click here to watch his update now. This is One of the Most Dangerous Things an Investor Can Face Dear Money & Crisis Reader, Today, I want to talk to you about a very dangerous thing. Confirmation bias. Confirmation bias is when we tend to look for and interpret things in a way that supports our personal beliefs. Whether we want to admit it or not, most people make up their minds before they absorb any new information. They then look for facts and ideas that support their views and tend to ignore or dismiss ideas that don't. For many things in life, confirmation bias simply leads to arguments with others. But in investing, confirmation bias can mean LOSING MONEY. And whereas an argument can be resolved relatively quickly by considering the other person's points (or by saying "I'm sorry"), lost money from bad investing can take a LONG time to recoup. With that in mind, it's important to have some kind of objective measure for determining what the market is telling us.  This is especially true during times like the one in which we find ourselves – in which we are attempting to determine if the crisis is over or if another leg down is coming. "I'M SO SURE TRUMP WILL WIN IN 2020 — I'M STAKING MY REPUTATION ON IT" In the room were four of the most powerful men in the country. There were no official cameras… No official minutes were taken… No official record was made of the meeting at all. But I've uncovered what I believe was discussed at this meeting and how it could have a HUGE impact on your financial success… Click here to find out how why I'm so convinced Trump will in 2020. Three Charts That Are Telling Me to Watch & Wait Personally, I like to use credit markets to keep myself objective.  The credit markets are many multiples larger than the stock market. And credit investors tend to be far more sophisticated than their stock counterparts. And most importantly of all, credit typically leads stocks. So it provides a sounder basis for getting your head around what's coming. I note this morning that high yield credit spreads have rallied strongly but are struggling to close the gap from the limit down open on Monday, March 16 (red box below). Personally, I want to see this gap closed before moving aggressively back into the markets. The same is true for investment grade credit spreads. Here, spreads have actually entered the gap but have yet to break above it.  Considering the Fed has broadcasted it would be buying investment grade credit with "unlimited QE," I am surprised credit is struggling here. If both credit spreads break above their gaps, I'd issue an "all clear" on stocks. But right now, they're struggling to move higher. And until they do, I'm not going to be putting my money to work, no matter what my natural confirmation bias might be. This, combined with the fact that breadth is struggling to break above resistance (red line in the chart below), has me concerned we are going to see another significant drop. If these three charts manage to break above the levels I'm watching, I'd look to move more capital back into the markets. But until they do, I'm in "watch and wait" mode.  Yes, I might miss out on some gains… but more importantly, I'm keeping my confirmation bias in check and letting the markets SHOW me what is real. Best Regards, Graham Summers Editor, Money & Crisis Even if You Don't Read Dirty Magazines… Here's one time you should've…  In 1981, a dirty magazine published an article that had the potential to make its readers filthy rich. They interviewed the author of Microcosm in 1990, Life After Television in 1994, and Telecosm in 2002. Each one of these books issued predictions of new tech that took the world by storm and would gotten you ahead of the millions of people investing in them. Today this same author has a new book and wrote: "The next paradigm could impact over $16.8 trillion in the world economy. And you could get very rich as it does." Click here to learn how to get a copy of this book showing you the companies that could make you fortunes. 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