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OK, let’s get this straight: The S&P 500 has been in a bull market for almost 10 years.
March 9, 2009, marked the low for the S&P. Since those troubled times it has rallied roughly 250%. That’s right, 250%.
The debt ceiling showdown in 2011, the near-collapse of the euro, an economic slowdown in China, and more recently, tariffs all led to significant pullbacks. But each and every pullback has been met by the bulls.
The stock market hasn’t fallen by 20% for 3,609 days . . . an all-time record.
When will it end? It’s a question that’s often asked, but no one can give you a definitive answer. No one has a crystal ball.
So, if we know through all research that the market has randomly handed us a 10-year stretch of magnificent gains, why aren’t we protecting our profits? I mean, come on. We just experienced an 18% decline and the recent rally has allowed us to make over half of those losses back.
Be thankful you were handed this gift from Mr. Market.
But don’t waste it!
Use the recent sharp four-week rally as a reminder . . . a reminder that 250% profits don’t come easily. As a responsible investor, you need to protect those profits.
It starts with not relying only on bull markets. You do realize that your stock portfolio lost almost 20% of your capital in just a few weeks . . . 19.8% to be exact. What happens when the bull market ends? Are you prepared for the market turmoil? Are you willing to take on the risk of losing half of your capital?
The last three bear markets saw losses of 33.5%, 49.1% and 56.4%.
Now is the perfect time to use strategies that hedge your long portfolio. We now have the ability, as investors, to use strategies that make money in a flat to declining market.
So, get off your $%# and protect your profits! Seriously!
More importantly, allow yourself the opportunity to increase your overall capital during times of market turmoil by using the appropriate strategies.
Over the next few weeks I will be sending out a few videos on the strategies I use during market turmoil. Stay tuned!