The following video is sure to be controversial, but I feel like the underlying message is important enough that I need to share it with readers on this blog.
For starters, I’m NOT into conspiracy theories. I’m not a tin foil hat guy. And I don’t like to run around screaming like the world is coming to an end. If anything, I’ve been nothing short of a permabull riding the market wave up since the start of 2012. Until recently, I’ve been all about: BUY, BUY, BUY.
However, I would like to believe that I’m an open-minded kind of guy. I don’t pick and choose sides exclusively. Heads or tails… Bull or bear. As an investor, I believe that it’s in my absolute best interest to be able to rationalize both sides before making any decisions; there’s a time to be bullish and there’s a time to be bearish. Again, it comes down to market cycles. What goes up ultimately comes back down again.
As F. Scott Fitzgerald once famously stated: “The test of a first-rate intelligence is the ability to hold two opposed ideas in mind at the same time and still retain the ability to function.”
With that said… here comes the bad news:
The dot-com crash was one of the largest in the history of the stock market. The events of 9/11 occurred in 2001. When the stock market re-opened on September 17, 2001, the Dow Jones was down 684 points, or 7.13%.
7 years later…
We had the subprime mortgage bust. On September 29, 2008, the opening bell on Wall Street wouldn’t ring. That was an ominous sign of things to come later that day… To date, September 29 ranks as the day of the largest stock market crash in points dropped in U.S. history. The Dow Jones fell 777 points, down 6.98%.
Ever heard of the Shemitah? In the bible, this refers to the Sabbath year, observed in ancient Israel where the people are instructed to let the land lie fallow every 7 years. On the last day, all debts are supposed to be repaid and forgiven.
The last day is known as Elul 29 in the Hebrew calendar. The 2001 and 2008 crashes both occurred on the final day of Shemita.
7 years later…
September 13 will be the last day this year of the current Shemita year, which began last fall… September 13 happens fall on a Sunday, meaning the markets will be closed.
Nevertheless… the fall season (September in particular) has historically been an “exciting” and active time in the markets. This year is no different. There is a whirlwind of world activities that are scheduled to take place this upcoming September (described in details in the video below). Now that we are on the cusp of entering into August, we’ll know very shortly what lies in store for all of us this upcoming season!
If all this sounds too absurd and outlandish to you, well, perhaps you can take it for nothing more than entertainment… 🙂
I will have to say that my efforts to take a more defensive stance as it comes to my own investing strategy is influenced by a combination of: markets being at all-time highs, Greece and China problems, being overleveraged in my own investments, etc. I didn’t stumble upon Shemita until recently, but coincidentally, here are some more signs to be on extra alert this upcoming fall.
Without further ado, here’s the video. Enjoy!
So, if the number 7 is racing in your mind now… you might also want to check out this cryptic speech given by IMF managing director, Christine Lagarde (who does what she is told…) in 2014. She wants to test your numerology skills:
Don’t worry, we will resume regularly scheduled programming soon enough… 😉 But wouldn’t you agree that this summer alone has been tremendously and INTENSELY interesting in the world, political, and investing spheres? So much has been going on…
Bring on Q3! I’ve got my popcorn ready!