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What a ride the market has been on… massive declines and massive rallies.
Liquidity evaporates and then comes roaring back. Options prices are all over the map. The changes happen so fast, sometimes it's hard to keep track of everything.
However, the current environment is signaling what we can expect from the market going forward.
Last year, I outlined the case for a “round trip” market which, over the course of a few years, would see large declines and large rallies.
I shelved this outlook at the beginning of 2020 largely due to the rally that unfolded in tech stocks to start the year. I was looking for a big blow-off top.
But then COVID-19 hit.
I noted during the crash that we might be entering “the shortest bear market.” And that's exactly what occurred…
From the top in February, the Dow Jones Industrial Average fell 37% in 27 trading days. The record before that was in 1987, when it fell 36% in 38 trading days.
Now that the market (and the Federal Reserve) have established a low earlier this year, I'm going to highlight what I believe comes next – and how to trade it…
The coronavirus is subsiding, the economy is opening back up, central banks are all-in on pumping massive liquidity into financial markets, and governments are writing stimulus checks for the millions who are now without jobs.
So, the big question becomes – is this the start of another bull market in stocks?
Over the past decade, investors have expected the Federal Reserve to step in any time volatility rises. While 2020 has been no different, the fact that 40 million people in the U.S. have filed for unemployment is a serious dent to the economy.
The stock market and the economy are in two very different positions.
This tells me that while a major low is likely in place, a new bull market is not yet in the cards. I expect the round-trip market will roll on.
However, this doesn't mean we won't see more double-digit gains in stocks this year. In fact, lately I've been quite bullish… And I am expecting new highs in most of the major U.S. indexes this year.
But what I'm highlighting today is a long-term look at the market. I'll illustrate this below…
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If you bought on the WORST day you made 400%
Something big is happening in America… and almost no one is paying attention.
A completely misunderstood asset is transforming our world… and making people rich (Barron's estimates at least 20,000 people).
And get this: If you bought and held this asset over any 4-year period, since 2010… the SMALLEST gains you would have potentially seen would have been a whopping 400%.
Even if you bought it on the worst day possible!
But that's only the beginning of the story… it's actually much bigger than all of that.
One of the smartest and richest men I've ever known has produced a simple analysis that explains the full story.
I promise you've never seen these ideas, concepts, facts, and figures, discussed anywhere else. That's because there's simply no one in the financial world who thinks like Porter Stansberry. He is truly one of a kind.
Take a few minutes to see Porter's latest incredible analysis, right here…