Stock Market crashes – again!

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The S&P 500 plunged nearly 3% again today.

S&P 500 index chart showing recent market decline, with annotations indicating potential trend reversal and key support levels, useful for investors analyzing market fluctuations and investment strategies.

Today’s selling was driven primarily by the news that the ‘yield curve’ has inverted.  As long-term subscribers are well aware, we have been watching the yield curve for over a year now, and had posted a number of blogs on it such as here and here.

2. Dynamic line chart showing the spread between 2-year and 10-year note yields from 2002 to 2019, highlighting the inversion point in 2007 for economic trend analysis.

For a quick summary, whenever the yield curve becomes ‘inverted’ (meaning whenever short-term interest rates are higher than long-term rates) bear markets and recessions inevitably follow. Today, the 2-year Treasury note did rise above the 10-year Treasury note.

If you read the previous blogs we wrote on the yield curve you will understand that a recession usually happens 12-24 months AFTER the yield curve inverts, suggesting that this is not necessarily the end of the bull market. But it is a very important warning that a recession is coming and every investor needs to have a plan for that inevitability.

A couple of weeks ago, Martin was on the Money Talks investment radio show and in the interview he warned that we are in the “final innings of this 10-year bull market” and said that “it is time to get prepared for the melt-down”.  Here are some of the key points from the interview.

  • Bull markets tend to climb gradually, which we have witnessed since 2009, & then they typically end in a melt-up & ‘blow off top”
  • When that melt-up ends & the ‘blow off top’ hits, we will enter a new bear market
  • Bear markets happen much quicker, typically lasting about ¼ of the duration of bull markets
  • These declines can be melt-downs which are steep & vicious
  • When the melt-down comes it will likely be the biggest market crash EVER, it will be global
  • It will have an affect on every type of investment… bonds, stocks, currencies, commodities, & precious metals
  • The message is “it is time to get prepared for the melt-down”

In the interview Martin offered listeners a special rate for each of the Trend services and he especially encouraged listeners to seriously consider subscribing to Trend Technical Trader,  a premier hedging service designed to profit in a declining market. Includes our proprietary Gold Technical Indicator (GTI).  We are re-opening that offer to all readers, meaning you can subscribe now and save $250 off the regular price and pay only $399.95

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