Profit From The Future Direction Of The Stock Market
Which way is the stock market headed? This is an age-old question that many people have difficulty answering. The reason for this is quite simple. The majority of the population will often look at the direction of the stock market for a month, week, or even a day. What they fail to understand is that these short-term swings are not a true indication of what is really happening in the economy. There are many examples to prove this. One is the late 1990s. Technology was the world’s favorite sector. If you knew someone who dabbled in the stock market, you knew someone who invested in technology. The bull-run in the technology sector was so extraordinary that investors were complaining about 30% gains. Many people got rich during this time period, but many of these same people also went broke. The truth was that people were buying technology names based on future potential. Only a few companies like Microsoft, Cisco, and Oracle, were making real profits. The rest of them had a .com at the end of their name, which many people thought would equal profits. That sounds ridiculous now, but it was the truth at the time.
Is the same thing happening right now? Unfortunately, the answer is yes. What is so disturbing is that people don’t see it. The media constantly uses the word ‘recovery’, but a recovery never existed. It was nothing more than a sugar rush, which was provided by government stimulus around the world. Once the stimulus runs out and nations opt to pay off enormous debts, the most popular word in the world will be ‘deflation’. The scariest aspect of the current economic situation is that big banks have been hiding debt. They have been using tricky tactics in order to hide their loses — like basing present gains on potential future profits. These tactics are borderline illegal, but in their view, better than the alternative. If the public finds out that many of the biggest banks in the world have ten times more debt than originally advertised, people will get out of the stock market in droves. This would make the stock market crash of 2008 look like a preview. However, if you’re someone who likes to make money, there is a way to profit from this.
These days, there are ways to short the stock market without using leverage. These tools are called ETFs. If you want to profit from the deflation that is about to shock the world, consider using a short ETF to earn your fortune.
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