Chances are you’ve seen a lot of scary headlines in the last week about the current state of the stock market.
It’s true that the S&P 500 ($SPX) and the Dow Jones ($INDU) have gone down in the last week, and many stocks are feeling those hits themselves.
But before you start freaking out, take a deep breath, because you have no reason to worry and I’m going to talk you through everything.
Not only are you able to survive this market, you can actually profit from it.
When we see the market dipping down like the S&P 500 has been doing, the first thing we need to figure out is why, and if there even is a reason.
Determining this helps us in deciding what position to take and can also help us a make a whole lot of money while others are losing.
If there’s no obvious reason that would cause the market to start going down, chances are it won’t last, and is most likely just investors feeling a generalized fear.
That fear will pass, and the market should spring back up again.
So, is there any reason that would be causing this downward shift in the market?
Well, the global economy is in good shape, and the U. S. economy is in great shape.
Unemployment is the lowest it’s been in the U. S. in a whopping 17 years.
In the last month, average hourly wages increased to the highest they’ve been in 8 years.
So if it’s not the economy being in trouble, what else would cause this dip in the market?
The answer is fear, and that fear could be coming from a couple different places.
For starters, investors might be afraid of possible inflation.
People have also been expressing concern over the possibility of the Federal Reserve increasing interest rates, which could make people less likely to borrow money for investing purposes.
While these fears are not necessarily invalid on paper, they are not something you need to worry about.
Right now, the most damage is coming from people being afraid and freaking out.
Those fears are leading investors to pull out of the market before anything has actually happened.
So, the best thing you can do right now is take a deep breath and stay calm.
This is not a market crash.
This is just investors getting scared all at the same time and acting rashly.
You, on the other hand, have me to keep you calm, and actually help you to profit off others’ fear and losses.
Let’s take a look at the daily chart for the S&P 500.
We clearly see some significant drops.
However, those drops aren’t what concern us at the moment.
All you need to look for is that red line, which is the Simple Moving Average (SMA) of the last 200 days.
Unless the stock drops below that SMA, you have nothing to worry about it.
And even if it does look like the S&P 500 is getting dangerously close to that line, you know that we’ll warn you far ahead of time.
So again, YOU have no reason to worry.
Now on to why these drops in the market can spell BIG profits for you.
For starters, it means that a lot of stocks are at lower prices than they’ve been recently.
This obviously presents a potentially great buying opportunity for you.
Now of course, you still want to be careful, and pay attention to where the stock’s current price is in comparison to its SMA.
We’ll keep our premium subscribers updated on what stocks are in prime buying positions, but just be ready for a lot more stocks to be in those positions than you’ve been used to.
Additionally, you could consider short-selling. In short-selling, you’re basically betting that a stock will go down, and you then make money when that stock goes down.
With the market acting like it is currently, there is definitely potential for you to make some quick money through short-selling.
So, remember, regardless of what you may be reading in the headlines, I will continue to keep you informed on what is really happening in the stock market, and how you can be see huge profits.
