Bear Territory

Dear Flip users

 Sadly my accurate prognosticating has continued to be reinforced by the markets. All of last year’s gains for most people have been given away. This is the S&P :

image004 2

The covid lows were approximately 240 on the SPY (~2400 in the S&P500 Index) in March of 2020. The massive stimulus injected into the economy moved the SPY to about 400, an increase of 66% in less than 2 years. The chicken apparently has come home to roost, and the S&P as of this writing Monday morning is down 20% – calling this “BEAR” market territory. However,  this doesn’t tell the true carnage: the average stock in the Nasdaq is down 60%, yet the Nasdaq is only down 33%. The average stock in the S&P is down 40%, but the index is down only 20%. 

Why? Simply because a few huge stocks like Apple, AMZN, GOOG etc. are weighted higher causing the index to “hold up”. This is the deception of Wall Street.

Clearly the market has further to go because, again, for reasons explained since the beginning of the year, interest rates have yet to be raised by the FED. They are deeply behind the curve. This will cause deeper destruction even if they ramp up interest rates quickly. The damage has been done by the Fed. However, it doesn’t stop there. I will re-iterate — the current government represents no leadership. There is nothing being done from a fiscal standpoint to stop this issue. This applies to Energy in particular.

So what to do now ?

The systems have remained in cash successfully. Finally, some TV pundits are telling people to raise cash. This is not a contrarian call – YET. The market has very little to hold it up. We saw the fools rally at the end of May to be completely destroyed in these last 3 days. My expectation is to remain in cash until the S&P is down ~ 33% before another good look can be taken. In our case, driven by science, and my knowledge of how the science computes is that it will take several months of price stability at lower levels before a buy signal can be generated. The M2 money supply may in the end be the trigger but this remains to be seen. Currently it remains relatively high (bullish), but if the stock market goes down, this number will decline and possibly create a counter trade trigger over the summer.

As for Crypto,

I am a believer of this space — however, for now, as the stock market goes, so does Crypto currencies. Bitcoin is off today by a whopping 13%. Don’t be tempted to buy it just yet. However – technically, expressing my opinion, I felt the 24000 area is a place to take a chance however we are through that now. BTC is sitting at 23800 as of this writing. I expect these to move a little lower and no position should be taken until stocks stabilize – perhaps at the end of summer.

In the end, in January, very few people predicted this. However, a small few and our science did. I have seen the TV pundits who speak their book – to be in long, cant time the market, etc., etc. – for years – always proving to be wrong during times like this because they fear their clients leaving. I feel many are incented to not speak their mind – just their book. This is why you can’t trust them. They are NOT risk managers. They are old-fashioned, they hold to axioms that no longer exist. It’s a brave new world. Use the science!

Until next time.

Like this article?

The Case For Cash

The Case for Cash   Many people associated investment accounts with being “invested’. After all,...

kelly sikkema zcAgxLryKe4 unsplash

Bear Territory

Dear Flip users  Sadly my accurate prognosticating has continued to be reinforced by the markets....

2 Replies to “Bear Territory”

  1. This article is reassuring. The AI is doing what it does. I am in a great position as other people are struggling.

Leave a Reply

Your email address will not be published. Required fields are marked *

You were referred by

Zero-dollar ($0) commissions are available for self-directed Individual cash or margin brokerage accounts that trade U.S. listed securities via mobile devices and via web interface. To obtain the commission and fee schedule, please see our website at Note that certain Flip Investor Inc. Product features listed are currently in development and will be available in the near future. System execution price, speed, response time, liquidity, market information, and account access times are affected by many factors, including market volatility, size and type of order, market conditions, system performance, and other factors. Some of the information provided show hypothetical results which may or may not represent live performance. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns.  Keep in mind that while diversification and the use of algorithms may help manage risk it does not assure a profit, or protect completely against losses, in a down market. There is always the potential of losing money when you invest in securities, or other financial products.  Investors should consider their investment objectives and risks carefully prior to investing.

Past performance is not indicative of future performance. iFlip data results assembled using various Flip algorithms applied to the equities listed on this webpage (if any). Results compiled for each equity and each algorithm assume a 10,000 initial investment beginning on Jan 1st 2005. All iFlip price assumptions are based on the opening price of each day as found in Yahoo finance. Yearly NAV data points compiled by compounding annual returns using standard year over year accounting. S&P500 results are derived using the SPY as a proxy. The data on this webpage is not intended as a solicitation. Always seek professional advice for suitability.


iFlip Ultimate

iFlip Ultimate is a concierge service product designed for high net worth client or institutions ($1m+ Net Worth). It as not been released yet

Download our new FREE mobile app!

Floating Mobile App
Free AI Circle 6

Upgrade Plan

Free AI Circle 6

Upgrade Plan

Breakout Coming Soon!

Get notified when it's available.

iFlip Spinner


Successfully on waitlist. You will be notified as soon as the breakouts are available.

A.I. Smart Folios Automated Stock Trading

Download our app mobile app to create a free trading account.

Certified Partner Signup

Doug Adams copy

Doug Adams - COO

Doug Adams has more than 30 years of experience as an executive in the IT industry. He has demonstrated success helping companies grow profitably with high degrees of customer satisfaction. 

He has a passion for developing talent and building high performing teams. Most recently as a Senior VP at FusionStorm, he helped grow the company from $440mm to over $1bb in sales and improve profitability 1500% (15x) over 7 years. Prior to that he was at Oracle for 14 years where he served as a Vice President in their North America Consulting Division. 

He had responsibility for a variety of software and technology practices with a team of over 400 consultants. He has also held leadership positions at IBM and Andersen Consulting (Accenture), and holds a BS degree from Cal Poly, San Luis Obispo in Industrial Engineering.

Ed Sweeney

Ed Sweeny - Board Member

Ed Sweeney is a partner and a founder of RCM Alternatives. Previously, he was a Managing Director of Trading at TD Options, LLC, a subsidiary of TD Securities until 2006. 

He is also a founder of Starboard Specialty Funds, LLC. which is an active fund specializing in private and publicly traded bank equities.
He was also a co-founder of a trading technology firm, Ragnarok Systems, and also worked for O’Connor & Associates and at Swiss Bank Corporation as a director of fixed income trading.
Mr. Sweeney graduated with an M.S. and B.S. in Mechanical Engineering from MIT, has a J.D. from John Marshall Law School and holds a Series 7, 24 and 63 licenses.

Karla Dennis

Karla Dennis - Board Member

As seen in Forbes Magazine, Karla Dennis is an expert tax and business strategist. As an enrolled agent, Karla is licensed to represent taxpayers in all 50 states. She holds a Masters in Taxation and Business Development and is the author of two books, Tax Storm and Against the Odds. 

She has been featured in various media outlets such as, KTLA, Forbes, MSNBC, Yahoo! Finance, and SmartMoney marking her the ultimate tax and business expert.

Thomas Shippee Bio

Thomas Shippee - Consulting Board Member

Thomas P. Shippee is a financial services investor and industry expert. His early years he earned a Bachelor’s degree in Economics at Bates College and an MBA at Pepperdine University.   

For the last 35 years he has served in various positions including CEO of Wells Fargo Financial whereupon he oversaw all US and Canadian consumer and commercial business finance operations from Des Moines, IA.  He currently spends his efforts in the consumer financial services industry counseling and working for small privately held businesses.  

David Bay Bio

David Bay - Consulting Board Member

David is a Kentucky native graduating with a degree in Music Education at University of Kentucky and a Masters degree in Education from Xavier University. His early years were spent excelling as band director leading his group to breaking records, honors and 3 straight years of placing in state wide competitions. 

In 1988 David started a new life of entrepreneurship. Since then his natural ability to lead and passion for growing people has stretched him to employ over a hundred employees and operating several businesses over several industries including real estate, heating oil, farm gas, commercial lubricant, consulting, skilled nursing care, convenience store and restaurant business.  

Marc C

Marc Chesley - Consulting Board Member

Marc Chesley is a software industry pioneer with a passion for growing people and companies. He is a recognized innovator and operational leader. As former CTO at Infusionsoft, Marc helped grow the company from startup to over $100mm in revenue. He has led as CEO and President of many fast-growth software companies. 

Marc was recognized as Arizona CIO of the Year by the Phoenix Business Journal and the Arizona Technology Council.  The Society for Information Management awarded him Arizona IT Leader of the Year. He currently works as the COO at Paradox (fast-growing software firm) managing product teams, engineering teams, business development teams and serving as general counsel.


Kelly Korshak - CTO

Kelly attended Stanford and subsequently the University of Chicago and has a graduate degree in mathematics.  He spent 25+ years on Wall Street, investing over $4 Billion assets for institutional banks and funds including Deutsche Bank, Morgan Stanley, Diamondback Capital, Brevan Howard and Tudor Group. 

His strategy to investing is built around the approach that Artificial Intelligence (A.I.) and machine learning algorithms produce superior risk / reward in the stock market.  This A.I. approach led him to retire from Wall Street with his family in Arizona to start up his own company “Flip Investor”.  

His dream is to empower all individuals to grow their wealth through the power of A.I. SmartFolio technology.

Randy Tate

Randy Tate - CEO

Randy spent his earlier years as a successful collegiate athlete and then self-made entrepreneur.  He grew an athletic apparel company to over $5M+ in revenue, then sold it to a publicly traded sporting conglomerate, Sports Chalet. 

For the last 10+ years he has trained thousands of employees and business owners on how to market effectively, grow sales and build sustainable growth in their companies.

His passion for technology led him to one of the fastest growing software companies called Infusionsoft, which peaked with over 150,000 software users.  As the VP of Business Training for customers, he developed and oversaw the expansion of the Elite Business Education curriculum program.

Since then he has led as the co-founder and CEO of iFlip, SAAS Financial Technology Company.  His passion is to empower all individuals to grow their wealth for the future through the use of AI investing technology.