Doom and gloom voices are a dime-a-dozen on the web and podcasts these days. My problem with most of them is not that I disagree, but that they don’t offer any analysis to back up their claims.
Just saying that stocks can decline 40% isn’t worth much if you can’t put that in an analytical or historical context that readers and listeners can understand and judge for themselves. At our flagship publication, Strategic Intelligence, and our other specialized newsletters, we always offer in-depth analysis, facts, figures and history to support our perspective.
Still, independent financial writers are in the minority. Most investors get their information from mainstream Wall Street financial analysts and research reports. Those sources are always upbeat and bullish, right? Well, not exactly.
This article quotes Dan Pinto, the Co-President of the world’s most powerful bank, J. P. Morgan, warning that stocks could plunge 40% in a new market correction that could come sooner than later.
It’s one thing when the independent analysts and Wall Street are on opposite sides. It’s another when both sides start to agree that a major correction is coming.
That’s the time to take precautions by reducing equity exposure and increasing your allocations to cash, gold and Treasury notes until this new financial storm passes.