Impending Crash. Warning Signs. Financial Crisis. Great Depression. Stock Market Crash. Recession. Global Crash. Market Meltdown.
Headlines are predicting a major crash is coming. It gives you the signs to watch for. You want to be prepared? You don’t want to lose the money you’ve invested. The reason you invested is so it could grow, not shrink!
Some of the articles say we’re in for a major crash, while others tell us to relax. One writer even said a good way to profit from the crash is to “boldly (predict) that there will be one and (charge) people for your insight.” This method was done almost 100 years ago by Roger Babson claiming his predictions were based on Newtonian physics.
The lady who predicted the 1987 crash now charges a non-refundable yearly fee of $495 for her newsletter. Her results appear spotty, at best.
In an article written by Spencer Jakab in the Wall Street Journal, he says, “Perhaps the starkest example comes from fund manager John Hussman, who anticipated the last two bear markets. His Hussman Strategic Growth Fund has given back all of its gains after prematurely bearish bets. A $10,000 investment in the fund made 19 years ago would be worth around $9,300 compared with $32,000 put in an S&P 500 index fund.”
Quoting Mr. Hussman, the article continues, “I hope readers will time-stamp this story and save it for their children as a cautionary reminder, not of the danger of anticipating market collapses, but of the danger of declaring victory at halftime.”
Some investors try to predict when the next crash is coming. You may be looking for signs. A drop in the major exchanges. A rise in the VIX. A change in interest rates. Closely monitoring your P/E ratios.
According to Mark Spitznagel, famous for “black swan” hedging, “It’s fundamentally a fool’s errand” to try to predict a crash.
The best way to prepare for a crash is to realize it could happen at any time. Even tomorrow. If you try to sit it out, you will miss some of the best trading days in the market. Those days happen during volatile times.
In the article, Jakab continues, “Putnam Investments calculates that missing just the US market’s 10 best days in the 15 years through 2018 would have cut your ending portfolio in half. Missing the 20 best days would leave you with two-thirds less. The price of admission to those heady long-run returns is making peace with temporarily losing half of your money.”
Think about iFlip and algorithmic intelligence (AI). iFlip’s AI automated trading software has been systematically created to mitigate the risk for crashes.
Instead of worrying about the upcoming crash, your investments at iFlip incorporate AI stock trading software. The best algorithmic software predicts stock market dips, which monitors all your invested positions and then executes trades to protect your investments from losses.
iFlip doesn’t guarantee your money will be in the market the best days of the year. The stock trading software works off a risk management system based on mathematics or AI. This algorithmic software is able to manage losses by decreasing the amount you lose. Then, it increases your profits when the market is going up.
Using this strategy over time is not a gamble or simply following the market. It is a way to truly manage risk when investing in the stock market.
Instead of wondering when the next crash will hit and if you will lose all your money, see how iFlip can help you avoid the crash. Protect your investments with iFlip.