The Markets Are Crying (December 21, 2018)

Holy Toledo, this market sell-off/hysteria/nightmare is getting real UGLY, fast! Outside of cash, almost nothing is safe these days… Now, I realize that general equities and investors/speculators have been beyond blessed in recent memory, staging an almost unbelievable bull market (lasting ~decade), but as the saying goes:


It’s like taking the stairs up and the elevator down.


It’s tough to build something up (say a house, for example), but give someone 5 minutes with a sledgehammer… and look out!


Now, nobody knows for certain what the future holds, but this time around, at least to me, this smackdown doesn’t look to be a joke but the start of something much more significant…


Definitely not trying to scare anyone, but as someone who in the last year has witnessed first-hand the devastation experienced in other asset classes like: cryptos, lithium, cobalt, etc., I have been humbled greatly by the markets and know full well that yes, things can absolutely get a whole lot worse…


But believe me, this post ain’t all about doom and gloom…


What I’m trying to say is this — It’s important to be well positioned for whatever happens… You wanna put yourself in the right spot so that if a bear market in equities and perhaps even real estate (down the line) take flight, you stand to benefit and prosper… Not investment advice at all (I don’t offer that ever), but there’s a good reason why you never want to be fully 100% invested in the markets…


Cash is king right now.


But have no fear…


If early FI is your endgame, seriously, a market crash (e.g. 2008-2009) can be a blessing in disguise, offering you an express bullet train ticket to the promise land…


Definitely, “buying low” is never an easy task and I really don’t know too many peeps who can execute this strategy on the regular, but damn is it potent… When people are shitting bricks left and right and you have a big ol’ smile on your face and the cash in hand to execute your strategy/plan, you’ll most likely do very well for yourself once the dust is settled…


I have no crystal ball, but from experience I’d offer this biased opinion — Now is definitely NOT the time to play hero ball. Let the markets come to you. Don’t be in a mad rush to just buy whatever… For sectors that have already been totally bombed out (e.g. cryptos, lithium, cobalt, etc.) I could argue that the bear is already in full control so the downside (while still there, of course) isn’t quite as scary… For general equities, though, fudgers do we have a looooooong way to fall (potentially)…


Again, we are talking about a 10 year bull rally, for crying out loud… that needs to be “corrected”.


Equity investors who have prospered most brilliantly over the last decade should really be thanking the high heavens for these spectacular gains, more than anything else… Sure, December has been brutal, but c’mon, put things in perspective, and you’re still probably many miles ahead of where you were a decade ago!


Anyway, my focus is very simple and straight-forward: Cash, Gold, Gold Miners, Lithium Miners.


That’s pretty much freekin it.


You may agree (probably disagree), but I think this type of strategy offers me a good blend/combo of playing both offense and defense.


  • Cash in case shit really hits the fan and this is just the start of a bloody massacre sell-off event.
  • Gold in case the fan breaks into pieces and the world loses confidence in the Fed and USD.
  • Gold Miners in case gold is actually allowed to shine and somehow miraculously does enter into a much anticipated/overdue bull market (in a proper gold bull market these junior miners will be like gold on super steroids).
  • Lithium Miners for that hyper-growth electric vehicle (EV) story (which should still hopefully be intact even if markets wobble wobble, but may of course be delayed for a few years if the bears slaughter all the bulls).


I don’t know jack shit guys… But I do know this — 10 years ago I was an intern engineer who had a net worth of near $0. Thanks to a raging bull market, my net worth eclipsed $1 million and then $2 million… To make BIG GAINZ, you really need “a buying opportunity of a lifetime” to present itself.


Don’t be scared.

Luck is when opportunity meets preparation.

It’s time to knuckle up!


Happy Hunting!

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1 year ago

Great post as always! Your strategy is spot on, now it’s time to let the market come to you. Looking forward to your next newsletter. Keep up the great work Jay!