For weeks now, we’ve been warning that the ongoing melt-up in the markets isn’t sustainable. The higher it shoots, the more painful the inevitable correction will be.
Well, yesterday (Thursday, June 11) was certainly painful:
This came as a rude awakening to the many new retail investors who have been piling into stocks (and much riskier call options!) in the later days of this melt-up, which is a classic indicator of a mania close to it zenith.
Driven by FOMO (“fear of missing out”), inexperienced investors enter the market, buying assets they don’t understand, taking risks they don’t sufficiently appreciate. And of course, these are the folks who can least afford the ensuing losses when the mania implodes.
So, is the melt-up over? Or was yesterday just a short-lived speed bump for the market party bus?
As we do each week, we’ve once again asked the lead partners at New Harbor Financial, Peak Prosperity’s endorsed financial advisor, to share their latest insights into the road ahead for investors.
In this weeks video we discuss the many classic asset bubble-in-process-of-bursting indicators we’re seeing, the impact of Wednesday’s Federal Reserve announcement, whether yesterday’s drop was sufficient to break the manic market sentiment, and the immediate important decisions investors must make as a result today:
Anyone interested in scheduling a free consultation and portfolio review with Mike and John can do so by clicking here.
by mki-2-2 
