Tag: 2020 Melt Up Event Review

By Dr. Steve Sjuggerud

---

The Asian financial crisis was exceptional. Not just because it was my first financial crisis… and not just because I experienced it firsthand, as I explained in yesterday’s essay.

It was exceptional because of the way things played out.

It started as a country-specific problem, then quickly engulfed an entire region. What seemed like a strong economy was quickly turned on its head… And then more dominoes fell. The devastation was immense.

In many ways, the market “contagion” we experienced back then reminds me of what’s happening in stocks today.

Fortunately for us as investors, those similarities mean we can learn a lot from what happened back then. We can use the past to build a blueprint for today’s crisis.

Let me explain…

---

— RECOMMENDED —

Disturbing Message About President Trump

The following message about President Trump will be disturbing to some audiences.

Viewer discretion is advised!

---

This chart of Asian stocks (excluding Japan) during the Asian crisis gives a decent summary of what we can expect today…

It’s not a perfect example. Things will certainly be different this time. But overall, it’s a powerful guide.

Asian stocks fell from about 400 points in 1997 to about 150 points in 1998. Said another way, if you had $400,000 invested at the peak in 1997, you were left with just $150,000 at the bottom in 1998. Take a look…

I see two things here…

1. The downturn can take longer than you can imagine, with stocks falling farther than you can imagine.

2. Recovery is not only possible – it can be relatively large, and relatively swift.

This is the kind of pattern I believe we’ll see this time around. One important point here, though…

I don’t want you to start expecting the recovery yet.

We are more likely in the start of the downtrend now, for the reasons I outlined yesterday. The crisis is still the only thing on investors’ minds… And as long as that’s true, the selling can continue.

I am not predicting a fall as severe as what Asia experienced, or for it to last as long. But the reality is that I don’t know how it’ll play out this time. No one can know for sure. We are truly living in unprecedented times. Chances are, things will get worse before they get better.

What we do know is that the crisis won’t last forever. And if we combine this with the script I laid out yesterday for finding market bottoms, we know where to look for signs of the turnaround.

---

— RECOMMENDED —

2 Nobel Prize Economists Predicted This Once-in-a-Generation Wealth Shift…

A terrifying new trend is creating thousands of new millionaires (Barron’s estimates 20,000 to 200,000 so far) while at the same time destroying the financial future for many others…

Will You Be Left Behind?

---

So, our blueprint is this…

First it’s in the news. Then it isn’t. Then people give up. Then it bottoms… And then it roars back.

In the case of the Asian crisis, the bust lasted more than a year. That’s not long in the grand scheme of things. But when you’re living it, day by day, it’s an eternity.

Consider that the coronavirus worries only began dominating the news in the U.S. about a month ago… And the U.S. stock market peaked just six weeks ago. Six weeks!

I don’t know about you, but it feels like much longer than that to me. And in the last two weeks, there have been no other news stories. Everything is framed around the virus and its disastrous impact… on people, the economy, and the markets.

So, if you look at our blueprint, we’re clearly in the first stage, where investors can’t stop talking about what’s happening on Wall Street. That’s not how bottoms form.

It could take a few weeks – or a few months – for people to stop talking about Wall Street. Only then can the market finally bottom.

By Dr. Steve Sjuggerud

---

“If I died today, nobody would even know,” I thought to myself.

Thirty yards below me, outside my hotel window, cars were on fire as an angry mob of rioters started hurling whatever they could find at the hotel.

I was alone in Jakarta, Indonesia. It was 1998… during the worst stretch of the Asian financial crisis.

I was there to meet with the head of Indonesia’s central bank. I was surprised that a 20-something nobody (me!) could get a meeting with him – the most powerful “money man” in the country.

I asked him what he was going to do to save the financial markets. “Got any ideas?” he replied. He wasn’t joking. Times were terrible, and he was desperate.

Indonesia’s stock market fell more than 90% in U.S.-dollar terms, peak to trough – as brutal as a stock market wipeout gets.

I flew straight into the heart of the financial crisis. From Indonesia, I made my way to Thailand… Singapore… the Philippines… and Malaysia. It was crazy.

I experienced it all firsthand. And I saw something you need to understand in today’s volatile market – the key to knowing when the pain will end…

---

— RECOMMENDED —

2 Nobel Prize Economists Predicted This Once-in-a-Generation Wealth Shift…

A terrifying new trend is creating thousands of new millionaires (Barron’s estimates 20,000 to 200,000 so far) while at the same time destroying the financial future for many others…

Will You Be Left Behind?

---

When the Asian crisis really kicked in – and markets and currencies really started falling – it was all over the financial news. Day after day. You couldn’t get away from it.

It started as a small problem with Thailand’s currency… Then it spread, engulfing each Asian country one by one. Eventually, Russia collapsed as well – the entire Russian market also fell 90%.

And as the problem got worse, the news coverage grew exponentially.

The financial crisis ended eventually… but only long after it had disappeared from the mainstream media news cycle.

As I said, I experienced this firsthand. And over the next 20-plus years, I saw the same news cycle again and again.

The financial crisis (wherever it was) didn’t end just because it exited the headlines. It continued to inflict pain on investors.

The markets only bottomed once people forgot about them… once people stopped talking about the financial crisis with their friends… once regular folks stopped talking about getting back into stocks (or getting in for the first time).

In short, the bottom only happened once people gave up.

I tell you this today because the financial markets are all over the mainstream news. Everyone is talking about what’s happening on Wall Street – more so now than I can ever remember.

Unfortunately, my friend, that alone is a bad sign.

I have experienced a lot of major bear markets firsthand. I have seen many markets fall – dramatically. I have seen the cycle of fear you are experiencing now in the financial markets… many times.

I could talk to you today about interest rates, or economics, or other similar historical events. But to me, this is all you need to know…

The stock market will not bottom when it is all over the mainstream news.

It won’t. It can’t.

The bottom only arrives long after that – when the stock market falls out of the news completely… when most people have forgotten about Wall Street. Until that happens, stocks can continue to fall.

---

— RECOMMENDED —

An Urgent Message From One of the Most Respected Names In Precious Metals

The #1 Gold Play for 2020

It’s not a Mining Stock, ETF, or Bullion – but this virtually unknown $7 investment could hand you a small fortune as gold soars higher.

Click Here For More Details

---

Now, this sounds grim. But it isn’t all bad. The important thing is, past major crises around the globe give us an investing blueprint to follow. So while we can’t know exactly how things will play out, we can follow the signs to get a better idea.

Tomorrow, I’ll share the specific blueprint I’m following. I’ll explain exactly how we’ll know when this crisis is over… and when it’s time to act.

By Dr. Steve Sjuggerud

---

“There is no physical gold available today,” my good friend and legendary gold dealer Van Simmons told me yesterday.

What I assumed he meant was that there was a shortage of gold to buy. So I figured if you wanted to buy gold, you’d have to pay higher premiums over the quoted gold price online.

I was right. But there’s more to it than that. It’s a situation you never see in precious metals. And it could lead to huge upside from here…

---

— RECOMMENDED —

An Urgent Message From One of the Most Respected Names In Precious Metals

The #1 Gold Play for 2020

It’s not a Mining Stock, ETF, or Bullion – but this virtually unknown $7 investment could hand you a small fortune as gold soars higher.

Click Here For More Details

---

“I’ve never seen anything like it in decades,” Van said. “Gold refiners around the world are shutting down due to coronavirus. So the supply of physical gold is disappearing for now. That creates the risk that there won’t be enough gold available in New York to fulfill futures contracts. It’s crazy.”

Van is not one for hype. He has been at this for many decades. He has seen it all… But he hasn’t seen this.

“It’s not just gold,” Van explained. “The premiums for physical silver went crazy this week as well.” The premium to buy silver soared 10-fold in a couple days, he added.

Here’s what’s going on…

The physical silver exists… but nobody will deliver it. Due to coronavirus, not enough folks are willing to load it on the trucks or planes.

It’s all new territory.

What it adds up to is a perfect storm for higher precious metals prices…

• You have no supply, and plenty of demand. This is Economics 101 – when there’s more demand and less supply, prices go up.

• You have the government “printing” money and passing it out. (We can expect “$6 trillion in coronavirus stimulus,” Larry Kudlow of the Trump administration said this week.)

• You have interest rates at essentially zero. Precious metals pay no interest, so they have trouble competing with money in the bank. But when money in the bank pays zero interest, precious metals become attractive again.

These are three massive catalysts. And they all point to the same end result… higher prices for gold and silver.

Importantly, you haven’t missed it. Gold and silver haven’t soared yet… quite the opposite.

Gold fell 3% over the last month, and silver crashed by more than 20% in the same span. But it’s only a matter of time until the catalysts above catch up to current prices. And when they do… look out.

The simplest way to own gold is the SPDR Gold Shares Fund (GLD). For silver, you can own the iShares Silver Trust (SLV). These simple funds track the spot price of gold and silver. And while there are better ways to profit from what’s going on, they’re both solid options.

No matter how you do it, consider adding some precious metals to your portfolio – now.

---

— RECOMMENDED —

Learn How You Could DOUBLE or TRIPLE Your Account in One Week!

Find Out How With The #1 Selling Trading Guide: Now Yours For FREE!

---

In the latest issue of my True Wealth letter, I share my favorite precious metals pick at this crazy moment in history. It’s actually not a gold investment… but silver. And this unique opportunity has much higher upside than simply owning the metal. To learn more about how to access this recommendation with a subscription to True Wealth, click here..