Is 2019 the Year of the Big Stock Market Crash?

2018’s Stock Market Gains Are Completely Gone

The stock market gains for the entire fiscal year of 2018 were erased early this December of 2018, led by the collapse in the price of tech giants like Apple, Amazon, Google, and Facebook. Bearish sentiment has not been localized to just the United States, which is home to the biggest stock market in the world, as Asian equity markets are also seeing large declines.

The Dow Jones has lost over 4.5% in just a week while the S&P has also shed 2% of its total market capitalization, as institutional investors are unloading stocks as fast as they can find buyers for them. As both GM and Ford begin a major round of layoffs and corporate restructuring, American workers are looking for President Trump to do something to spur the economy and keep good on his promise to have manufacturing come back to America.

The mainstream American controlled media has chosen to carry on with petty attacks and criticisms of President Trump for continuing to threaten increased tariffs on a China that has gotten away with free trade exports while putting tariffs on imports at home, and yet the media refuses to acknowledge that the average US consumer is tapped out and drowning in debt, along with corporations and even local governments. Let’s not even talk about the level of US federal debt, I don’t feel like crying right now.

China’s economy has slowed down significantly and their stock market has seen a total loss of 20% this year. China is largely dependent on the outside world for achieving a high rate of GDP growth, and with the Western world suffering from massive debt and increased austerity measures, the willingness of China to quickly resolve the trade war with America reveals just how bad the Chinese domestic situation has become.

Computer and Algorithmic Trading Also Contributing to Massive Mini Crashes

JP Morgan has reported that as much as 50 – 60% of the daily trading volume in markets is actually robots trading against each other, with as much as 90% of trading being due to algorithmic trading on the busiest, high volume days.

Add in the secretive “Plunge protection team” of the federal government, and you’ll quickly see how the stock market drops 500 points in the morning, and then by mid afternoon it’s up 100 points on the day. The Security and Exchange Commission still has no safeguards or regulations against algorithmic trading, which continues to muddy the waters for those attempting to make sense of an irrational-appearing stock market.

The Federal Reserve continues to raise rates by very small increments, and each time they do the markets get shaken to their core. And yet, if the Federal Reserve does not raise rates, it could be far worse for the overall economy. Obviously keeping interest rates at 0% has worked wonders for loaning out money to large entities who then purchase stocks wholesale and drive up the price of shares, to the glee of investors but to the irrelevance of the average worker and consumer.

What’s Really Going On With This Stock Market?

It’s clear that any little event in the news is being used as the scapegoat for massive stock price moves downward. And yet, it makes no sense at all that any financial market should be so flimsy and reactive that the Fed chairman’s saying he’s thinking about waiting to see what is developing in the economy before deciding whether or not to continue to raise rates should rattle markets or cause them to surge 700 points.

And this is why we believe the market has a lot further to drop, because not only is the volatility an issue, but it’s indicative of the incredibly weak fundamentals keeping the market this high to begin with. Fang stocks dropping 10% recently is just one more canary in the coal mine. Investors are running out of blue chips to invest in, and the blue chips aren’t exactly showing much promise.

get your retirement saving gold ira investment book

Protect Your Investments with a Gold IRA

Like Kenny Rogers, you really do have to know when to hold ’em and know when to fold ’em. If you’ve enjoyed this massive run-up in stocks for the last 10 years, maybe it’s time you took a step back and collected some money off the table. Realize those unrealized gains. Turn those on-paper gains into real money, and then convert that into gold.

A gold IRA can provide a way for you to lock in your winnings from the stock market and then have a vehicle for rapid upward expansion once the markets drop, housing crashes as it continues to do so currently, debt keeps growing, and eventually the US dollar index begins dropping.

Don’t wait until it’s too late. Protect your nest egg while you still can. Visit learn more about how you can roll over a portion of your money into a money-making safehaven.