October 19, 1987. 33 years ago. It was ugly.
It was one of the worst trading days in history
The Dow and the S&P both lost more than 20% in a single session.
It was tagged the Black Monday.
The graph is eerily similar to the one we have now.
No, this is not a prediction but it is hard to ignore how all the possible triggers are here again for a market disaster.
Yes, the coronavirus is one of them but it’s only one of them.
There’s the election, social unrest, bloating deficit, inflation, fragile international relations, and massive weather events.
It has already started. The Dow shed more than 11% back in march, the worst trading day since the Black Monday.
The biggest problem is not the coronavirus. We’ve said this once and we will say it again. We will beat the coronavirus. This is one of the worst pandemic we have ever experienced but we are bigger than it is.
Kent Engelke, chief market strategist at Capitol Securities Management, explained to MarketWatch that the real pressing problems are the ones we created that have resulted in a liquidity crisis.
These problems will only be solved by the same people who started them, us.
As of now, that’s not happening.
Our international relations are no better than it was pre-pandemic.
Political tensions are escalating and the elections, regardless of who wins, will not stop it. In fact, it will only escalate things.
We are not saying drop out of the market altogether. We are not trying to cause panic either but you do need to go back to your financial plan and reprioritize.
Invest in companies you are sure will transcend the pandemic and political tensions.
More importantly, include or add more gold and other precious metals in your portfolio. It’s the one investment that can protect you from this global financial volatility.