So in threads like this
one we have all nature of fresh doom predicted for this
Everyone seems up in arms about September, from the 500 days left 'till climate chaos, to the God is returning.
I realize this was done in jest and i love a good laugh as much as the next guy. I have not paid much attention to the frequency shift, the alien
disclosure, climate melt-down, or the rapture which all seem to be due this month, but I have been watching the stock markets very closely and I
is the time to act
if you have money on the line you would like to preserve. Nothing was fixed in 2008, the can was merely
kicked down the road for seven years. Is it the Schemita? I don't know. But i am convinced that these markets are not safe. We have:
- The DOW opening down 1000 points a week ago.
- Student load debt that is completely unservicable.
- China, who's state controlled markets have been touted as the answer to our problems, beginning to falter.
- Middle class wages having been stagnant since 2008.
- A deflationary spiral despite trillions of dollars injected by central banks around the world.
There are plenty of threads here to inform yourself of the causes, but i am here to propose solutions.
In 2008 i sat and watched my savings get decimated in a market crash that i saw coming. From the very beginning i told all my friends how bad it would
get and yet i did nothing. Without the proper education (and with not all that much money in the game) i sat on the sidelines and watched it happen
without taking action
to protect my wealth. This year i will not make the same mistake. We have several options available to us as regular
investors that can not only preserve our savings, but indeed we can profit from it.
There are two options available to most of us that i would highly recommend people research and consider:
1. Move your savings into a cash or "stable value fund".
All 401(k) and IRA plans have a (low return) stable value fund of some sort. Some may even allow you to hold cash in a money market account. The
objective here is not to profit from the fall, but rather to profit after
it. If the market crashes you buy back in at the bottom in the
classic buy low, sell high trade. We are still at the high, it is not too late
, but it will be soon. Had i done this in 2008 i would be sitting
on almost twice what i am now.
The risks here? Missing out on a month or two of returns, and possibly some small commissions for the trade.
2. Short the market (with leverage).
****These moves are not for the faint of heart - educate yourself before listening to some fool on your favorite conspiracy site!!****
Short-selling is the process of selling a borrowed stock with the promise of paying back later a (hopefully) loser price:
Short selling is the selling of a stock that the seller doesn't own. More specifically, a short sale is the sale of a security that isn't owned by
the seller, but that is promised to be delivered...
...your broker will lend it to you. The stock will come from the brokerage's own inventory, from another one of the firm's customers, or from another
brokerage firm. The shares are sold and the proceeds are credited to your account. Sooner or later, you must "close" the short by buying back the same
number of shares (called covering) and returning them to your broker. If the price drops, you can buy back the stock at the lower price and make a
profit on the difference. If the price of the stock rises, you have to buy it back at the higher price, and you lose money.
For obvious reasons, short-selling is not permitted within a 401(k) or IRA account but the markets have found a way as they always do: the inverse
ETF, or exchange traded fund
. If you have singed up for a "self-directed brokerage account" as many employers offer you can make money the
whole way down.
An ETF, or exchange traded fund, is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund.
Unlike mutual funds, an ETF trades like a common stock on a stock exchange. ETFs experience price changes throughout the day as they are bought and
An inverse ETF is designed to return results of the inverse of an index like the DOW, S&P, or NASDAQ. Leveraged inverse ETF's will provide either two
or three times the inverse of the index being tracked. The idea being that if the DOW 30 loses 2.5% this morning
goes up 7.5%. It goes without saying that there is a lot
of downside risk here. EDUCATE
yourself before considering this option. Here is a list of inverse ETF's i found when i started this process:
This is getting long-winded, and i must be getting some sleep before work, if anyone has any questions please feel free to ask here or message me and
i will try to help in any way i can.
Disclosure (not alien): i am heavily invested in SDOW and SQQQ at the moment but these funds are not affected by supply and demand like a normal stock
is; if all of you sink your life savings into SDOW this morning my shares will not go up. This is not a "pump and dump"; i wouldn't do that to my
Cheers and happy investing!!
edit on 9/1/15 by soulshn because: (no reason given)