Thursday, April 2, 2020
Take a look at this chart…
As you’ll learn today, this chart is helping us create an investment roadmap for the future.
You see, the market still hasn’t hit a bottom yet…
So if you dive back into stocks too soon, you could lose a bundle.
Our job is to help ensure that doesn’t happen to you…
Take a Closer Look
Let’s start by taking a closer look at that image again:
What you’re seeing here are actually two charts…
To begin, let’s look at the one with the blue line.
The blue line tracks the 2008 bear market from its start, until its bottom about 120 days later.
In the first 40 days of the crash, stocks cratered by 40%.
But then, at the first sign of a rebound, many investors jumped back in — they assumed things were heading up again.
But as it turns out, that wasn’t the case…
The TRUE Bottom
After the short rebound, stocks fell again…
And this time, they fell even lower than before.
It was only after this second bottom, about 3 months after the first, that the true rebound began.
The thing is, this chart isn’t just a way to look at the past…
It also reflects a pattern that happens during any crisis…
And that’s why it can help us understand what will happen this time around.
Let me explain…
The 2020 Bottom
The second chart in this image represents the current stock market downturn.
That’s the one with the red line.
And as you can see, it’s tracking what happened in 2008 almost perfectly.
Meaning, even though we’ve seen an initial bounce off the lows recently…
Based on this chart, we haven’t even seen the first bottom yet, never mind the true bottom.
And by the time the true bottom happens, stocks could have fallen by 50%.
To get back to breakeven at that point, stock prices would need to double.
And keep in mind, after the 2008 crash, it took 3 years for that to happen.
Don’t Wait, Make Money Now
That’s why we’re creating an investment roadmap not just to survive this storm…
But to thrive during it.
Our team has been hard at work looking for bright spots in the market:
Sure, specific sectors and stocks that should outperform during this time…
But also, other types of investments — for example:
Investments like these can get you through tough times — and help you come out stronger on the other end.
We’ll explain more next week…
So stay tuned!