Start Preparing
Stocks are ultimately going lower. SP500 will probably re-test their lows. The economic data is now showing the consumer is in some really bad places. This negativity will spread, ultimately to corporate profits causing market weakness. We are already seeing it, and we are probably going to see more of it. The 1300 target bear market rally still may happen, but ultimately the reward is to the downside. (To me that means to keep a short position on until the VIX hits around mid 40s.)
No need to stress, just prepare. A lot of great stocks selling for a discount, below their enterprise value. When I notice a market bottom (I will indicate when I do as I feel we have started the final leg of the bear market… ‘the consumer washout’) I will heavily purchase Call options in MA, GOOG, AAPL and other quality names experiencing severe multiple contraction due to nothing more than macro economic negativity.
