Is the End of the Bull Run and Market Chaos Next?
Has the current bull market overstayed its welcome? A growing wealth of information says it has. Now one of the biggest signs the market is ready for a fall is significant weakness in a select group of iconic tech stocks that have been responsible for practically all of the market’s gains so far this year.
• The once-unstoppable FAANG stocks – Facebook, Amazon, Apple, Netflix, and Google (through parent Alphabet) – suddenly look very unreliable. As a matter of fact, Facebook recently suffered the worst one-day loss by a company in the history of the stock market. FAANG stocks are single-handedly responsible for the growth of the S&P 500 in the first half of 2018. Now that they seem vulnerable, is market-wide trouble about to ensue? For insight, check out this article by Adam Taggart of Peak Prosperity.
• Those who remember last decade’s epic global recession also will recall the housing bubble that led up to it. Is a new real estate bubble getting ready to burst? CNBC reports that sales of both new and existing homes in Southern California dropped nearly 12% year-over-year in June. Significance? California is one of the nation’s largest housing markets, and sales activity there is seen as a bellwether for the rest of the nation.
• It used to be said that individuals with bachelor’s degrees could expect to earn at least $1 million more over their working lives than people without the degree. According to a recent survey by the Federal Reserve, however, the so-called “wealth advantage” of a college degree is beginning to disappear from an economy plagued by great uncertainty. The post at the website of the Federal Reserve Bank of St. Louis has the details.
• The current bull market is more than nine years old and has its sights set on an all-time record. However, the history of our cyclical economy informs us that, when long-running bulls finally keel over, they hit the ground not with a thud…but with a crash. Is your retirement savings ready to withstand a significant correction, or even a bear market that could wreak the havoc of portfolio losses of as much as 40%? For essential reading on the topic, refer to the latest blog article from Augusta Precious Metals.
For your long-term investing journey to be successful, you must be as prepared for the end of bull markets as you are for their beginning. Are you ready for the end of this one? To learn more about how an allocation to physical gold and silver can potentially keep your retirement portfolio trotting long after the bull has died, call Augusta Precious Metals at 855-242-4121 or visit Augustapreciousmetals.com.