In today’s Money Weekend…where things could be heading now…it’s a serious situation…we’re entering a period of heightened volatility…and more…
I hope you’ve been listening to my warnings about the possibility of a sharp sell-off in these updates and have taken appropriate action to lower your exposure to the market.
If you’ve managed to avoid major losses due to these updates, please leave a comment below the video on YouTube. I’d love to hear from you. Also, be sure to click that ‘like’ button if you enjoy this type of content. It will help us out a lot.
In today’s update, I show you where things could be heading now that markets have cracked wide open after that shocking US CPI figure released last week.
The US Fed raised rates 75bps which shows you they’re now officially panicking. And stock markets around the world are nosediving as a result.
It’s a serious situation and I think there could be some more sharp selling to come.
There will be some great opportunities on offer down the track…but for now, the name of the game is capital preservation.
There’s nowhere to hide with stocks and bonds selling off at the same time. Gold has started to catch a bid but isn’t taking off to the upside just yet.
When markets sell-off sharply there’s usually a phase of margin call selling, where people sell anything and everything to raise cash levels to cover margin calls. Gold can get caught up in that selling but often bounces back after the worst of it is over.
There’s no need to be a hero trying to pick the twists and turns of this market. We’re entering a period of heightened volatility which often shakes out both the bulls and the bears from their positions.
If you did lower your exposure prior to the most recent bout of selling, you should be happily watching from the sidelines and waiting for concrete signs that a low is in place before allocating capital again.
Until next week,
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Murray Dawes,
Editor, Money Weekend
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