That’s the message from Jeremy Grantham, co-founder and chief investment strategist of GMO, a Boston-based firm with $117 billion in assets under management.
Grantham pulls no punches when he discusses who he holds responsible for the coming financial carnage. In a recent interview with The New York Times, he calls Federal Reserve Chair Janet Yellen “ignorant” and said the Federal Reserve all but killed the economic recovery.
He also says that he isn’t putting his clients’ money into the market right now.
“We invest our clients’ money based on our seven-year prediction. And over the next seven years, we think the market will have negative returns. The next bust will be unlike any other, because the Fed and other central banks around the world have taken on all this leverage that was out there and put it on their balance sheets. We have never had this before.”
Grimly, he adds, “It’s going to be very painful for investors.”
Grantham isn’t the only one worried about a market collapse.
“We have no right to be surprised by a severe and imminent stock market crash,” explains Mark Spitznagel, a hedge fund manager who is notorious for his hugely profitable billion-dollar bet on the 2008 crisis. “In fact, we must absolutely expect it.”
Billion-dollar investor Warren Buffett is rumored to be preparing for a crash as well. The “Warren Buffett Indicator,” also known as the “Total-Market-Cap to GDP Ratio,” is breaching sell-alert status and a collapse may happen at any moment.
So with an inevitable crash looming, what are Main Street investors to do?
According to Sean Hyman, founder of Absolute Profits, you can make a few strategic investments today that will allow you to profit as the market keeps rising, as long as you understand what to do when the bull market ends.
“There are specific sectors of the market that are all but guaranteed to perform well during the next few months,” Hyman explains. “But when the party’s over, you need to get out fast. That’s why I have a Crash Alert System that is designed to warn investors before a major correction as well.”
Those strategic investments that Main Street investors can make today come from a secret Wall Street calendar that has beat the overall market by 250% since 1968. This calendar simply lists 19 investments (based on sectors of the market) and 38 dates to buy and sell them, and by doing so, one could turn $1,000 into as much as $49,000 in a 10-year time frame.
“But this calendar is just one part of my investment system,” Hyman adds. “My Crash Alert System was actually programmed by one of the individuals who coded nuclear missile flight patterns during the Cold War so that it could be as close to 100% accurate as possible.”
Hyman explains that if the market starts to plunge, the Crash Alert System will signal a sell alert warning investors to go to cash.
“You would have been able to completely avoid the 2000 and 2008 collapses if you were using this system based on our back-testing,” Hyman explains. “Imagine how much more money you would have if you had avoided those horrific sell-offs.”
With more financial uncertainty that ever, thousands of people are flocking to Hyman for his guidance. He has over 114,000 subscribers to his monthly newsletter, and his investment videos have been seen millions of times. – Money News.