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How the Coming Bear Market Could Make You a Fortune

By Jeff Clark
Tuesday, September 16, 2014

Everyone loves a bull market.
 
Rising stock prices mean big portfolio gains, fatter wallets, and an improved outlook on the future.
 
But they can't last forever.
 
The current bull market is more than five years old... And there are probably only a few more months left before the bear comes out of hibernation. We're already starting to see the same sort of warning signs that flashed before the market collapsed in 2000 and 2008.
 
That means we're likely about to see falling stock prices, loss of capital, and many retirement plans getting destroyed.
 
But it's not time to panic.
 
You see, while this sounds like bad news, prepared investors are about to get a tremendous opportunity...
 
As the past few years have proven, investors can make a lot of money during bull markets... But it's the decisions you make during bear markets that can make you rich.
 
For example, the financial crisis of 2008 created the worst bear market in a generation. But at a time when most investors were suffering, I was cleaning up. And so were my subscribers. In January 2008, I told my S&A Short Report subscribers "The bear is on the hunt... And I couldn't be happier."
 
In my S&A Short Report, we had 13 trades earn 100% or more in 2008. And we did this at a time when the broad stock market was cut in half.
 
How did we do it?
 
We were prepared. We saw the crisis unfolding, and we had a game plan to profit from the situation.
 
You see, most investors don't see corrections coming... they stay fully invested and get wiped out when the crisis hits. So they don't have the cash to go bargain shopping after stocks fall. And if they do have the cash, they're often too paralyzed by fear to put the money to work.
 
These investors miss out on some amazing opportunities.
 
For example, following the stock market crash of 1987, you could have bought oil giant ExxonMobil for an adjusted price of just $4 per share. Shares are 2,300% higher today – not counting 27 years' worth of dividends.
 
When the dot-com bubble popped in 2001 and stock prices cratered, you could have purchased online-retail giant Amazon for just $7 per share. It has rallied more than 3,200% since then.
 
And in 2008, investors had the chance to buy big rental car company Hertz Rental Car for less than $1 per share. A $10,000 investment in Hertz back then would be worth more than $270,000 today.
 
You don't get those sorts of opportunities in bull markets.
 
That's why I'm looking forward to next year. As I said above, we're starting to see the warning signs – a correction is coming. And prepared investors will profit. 2008 was the best trading year of my career. And 2015 could be even better.
 
That's why this Thursday, at 8 p.m. EST, I'll be hosting a FREE live training session on how to prepare and profit during the next bear market. I'll explain why I think we're headed for a correction by showing you the three warning signs that typically precede a bear market. We've already seen two of them, and the third is starting to show itself.
 
I'll also show you the trading strategies I used to make 2008 the most profitable trading year in my career... And we'll look at the best ways to profit off extreme moves in the market.
 
Investors are going to have a tremendous opportunity to profit from the coming bear market. As a Growth Stock Wire reader, I'd like to help you get ready for it.
 
To learn more about this free training session, click here.
 
I hope you can join me.
 
Good trading,
 
Jeff Clark




Further Reading:

"If the Dow Industrials fell 20%, 99% of American investors would freak out," Dan Ferris writes. "They'd act like amateurs... which means they would sell all their stocks... and swear off investing forever." But Dan says "if you see stocks like rich people see stocks, you'd be very comfortable... and probably very excited." Find out what to do if the stock market falls 20% here.
 
One way to prepare yourself for a financial crisis is to spread your risk around – through asset allocation. This idea is 100 times more important than any stock pick... or what option to buy... or whether the economy is booming or busting. Dr. David Eifrig says he's seen "ignorance of this topic ruin more retirements than any other financial factor." Find out how to start using asset allocation in your own portfolio here.

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Market Notes
U.S. investment banks Goldman Sachs and Morgan Stanley top a short list of new 52-week highs.
 
"Basics" leader Altria continues its long-term uptrend... shares break out to a new all-time high.
 
Corn and soybeans are the two worst-performing commodities in the market over the past 12 months... both are down 25%-plus.
 
Uranium stocks are in danger of breaking down... uranium-producer fund URA is sitting just off a new multiyear low.
Market Watch
Symbol Price
Change
52-Wk
S&P 500 1980.67 -0.3% +17.3%
Oil (USO) 34.50 +0.4% -11.2%
Gold (GLD) 118.69 +0.3% -7.1%
Silver (SLV) 17.86 -0.2% -16.6%
U.S. Dollar 84.21 +0.1% +3.3%
Euro 1.29 -0.5% -3.0%
Volatility (^VIX) 13.91 +4.5% -1.8%
Gold Stocks (^HUI) 219.61 +0.3% -5.3%
10-Year Yield 2.59 -0.8% -10.7%

From The Crux
World ETFs
Symbol Price
Change
52-Wk
India (IFN) 27.22 -0.4% +47.3%
Israel (ISL) 17.33 -1.9% +16.9%
USA (SPY) 198.91 -0.1% +19.8%
Canada (EWC) 32.23 +0.2% +17.3%
Taiwan (EWT) 15.91 -0.5% +15.3%
S. Africa (EZA) 67.79 -0.6% +8.4%
Singapore (EWS) 13.60 -1.2% +8.2%
China (FXI) 40.34 -1.5% +7.6%
Lat.America (ILF) 39.71 +0.1% +7.6%
S. Korea (EWY) 63.44 -0.4% +4.7%
Japan (EWJ) 11.78 -0.1% +3.0%
Russia (TRF) 13.24 -1.1% -6.7%

Sector ETFs
Symbol Price
Change
52-Wk
Semis (PSI) 22.93 -1.4% +35.1%
Biotech (PBE) 45.24 -2.3% +29.7%
Transportation (IYT) 152.91 -0.4% +32.0%
Big Tech (QQQ) 98.46 -1.0% +28.1%
Health Care (IYH) 133.65 -0.6% +25.3%
Alt. Energy (PBW) 6.77 -3.4% +17.6%
Basic Mat (IYM) 87.23 +0.1% +19.8%
Defense (PPA) 32.75 -0.1% +19.5%
Utilities (XLU) 42.42 +0.4% +18.3%
Consumer Svcs (IYC) 126.19 -0.5% +16.7%
Financials (IYF) 84.74 -0.1% +16.3%
Industrials (IYJ) 103.07 -0.3% +16.0%
Real Estate (IYR) 71.04 -0.3% +15.2%
Telecom (IYZ) 30.41 -1.4% +12.8%
Insurance (IAK) 48.05 +0.2% +13.2%
Media (PBS) 25.24 -1.1% +10.9%
Software (PSJ) 36.00 -1.4% +9.3%
Water (PHO) 25.47 -0.3% +10.1%
Construction (PKB) 21.80 -0.1% +9.0%
Retail (PMR) 34.02 -0.4% +5.7%