FROM THE DESK OF PORTER STANSBERRY
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Did your readers all receive the same alert you did? KEITH: Oh yes, absolutely. On February 27, 2020 we issued an official “Bear Market Warning” from our system. We took the same VQ algorithm that can help you determine when to buy and sell a stock like Franco-Nevada, Advanced Micro Devices, or Johnson & Johnson...
So on February 27, 2020, our system performed its daily scan... and found that nearly half of the stocks on the S&P 500 were showing early signs of a crash. It automatically sounded the bear market alarm. What happened next?
Stocks plunged 30% in two weeks. And on March 11, the first bear market in a decade officially began.
Made a few important tweaks... And applied it to the entire market .
It was the fastest bear market in history. But our readers had the chance to get out before the worst of it. In fact, we had a big spike in user feedback after the crash, just folks writing in about how grateful they were to get the Bear Market Alert: Eric D. told us... “ “I weathered the 2020 storm very, very well. I have the confidence to navigate just about anything at this point, even a 50% drop.” And another subscriber, Michael said... “ “The stops saved me a few hundred thousand dollars on the way down.” AMY: That’s an impressive result. How have your systems nailed the timing of other big market shifts like this in the past? KEITH: Now TradeStops didn’t exist yet back in 2000. But our backtests show it would have been shockingly accurate. When we look back at the major bear markets and corrections of the past 24 years... The Bear Market Indicator would have gotten you out and helped you avoid double digit losses.
This tool scans the entire market – every single day – to determine whether the majority of stocks are safe and in an uptrend... Or on the brink of disaster. PORTER: Hang on, hang on. You’re saying that you analyze practically every single individual stock in the market. ou’re not looking at just the S&P 500? KEITH: Correct. Once we really understood the stocks that were breaking down within the S&P 500, within the NASDAQ, the Dow – we do it for 12 different indexes across the market – once we understood that, we realized that market cap wasn’t the right way to weight an index and that the index could be falsely held up and really be in a scary territory and people don’t know. PORTER: Well, that’s exactly what’s going on today. There’re five or six stocks that have actually provided all of the lift to the S&P where there are many, many stocks that are already in a bear market today. KEITH: Yep. And once we see the majority of them trending to a breakdown, we go ahead and we issue a bear market signal. PORTER: Oh, that’s incredible. KEITH: It’s great.
If you were in the markets in 2000 when the dot-com bubble burst, our indicators could have saved you from a near -40% loss.
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