The stock market surprised and shocked many this week as the Dow shaved off over 700 points in a single session, causing major damage to people who are invested in equities. The S & P 500 and Nasdaq did not fare much better, each losing over 3% apiece in the worst day for stocks in 2019, and the 3rd worst day in stock market history.
There may be no better time to move 401k to an IRA to save your retirement accounts, IRAs and pensions from a devastating market crash.
The bull market that many thought could last forever is now starting to turn bearish as many larger institutional investors and hedge funds have started moving massive amounts of capital out of the markets, with central banks around the world buying record amounts of gold.
I’m not going to wait around for the financial markets to go into a tailspin before getting prepared.
With European and US manufacturing as well as trucking, rail and freight companies like FedEX reporting serious declines, it seems a major correction is predicted for markets in addition to the drop in retail. Some people are wondering if the 10 years of stimulus from the Federal Reserve have even helped the little guy, much less the banker bailouts of 2008.
With record P/E ratios for stocks and dropping yields for US treasuries, the bond market is not safe even as stocks lose their luster. What is shining right now is gold and silver, hitting new highs this year and making precious metals IRA holders very happy.
China has devalued its currency to hope to circumvent the Trump tariffs being levied and threatened, even though it will ultimately weaken their monetary system and local economy.
The US dollar has been strong for the past few years even as emerging markets and developing countries have been dealing with relatively weak buying power, thus hurting US exports. New promises to lower interest rates by Fed Chair Jerome Powell will ultimately weaken the dollar, but there’s no indication of how long it will take for reality to set in.
One thing’s for sure, you’re not going to want to sleep on the market news that comes out by the day. Bull markets don’t last forever, and we’re learning in real-time that you can’t print your way out of an economic slump, no matter how opaque and willing the Federal Reserve continues to be.