What a week, huh?
We watched more volatility in the markets over the past week or so than we have in almost 2 years.
I’m here to tell you that you’ve made it… you survived.
While many people out there weren’t prepared for or even expecting this frightening market event – the truth of the matter is – this was something that has been brewing for a while.
In fact, we’ve been expecting it to happen at any time over the past year – yet we just continually watched as stocks kept creeping higher and higher.
We knew it was going to happen…
Our only question was when.
One of the biggest factors behind the market correction was one of the best things to come out of the Trump presidency – the 2017 Tax plan.
The tax cuts caused the economy to kick into overdrive – the number of stories about companies increasing wages and handing out bonuses were too numerous to count…
And that may have been a big part of the problem, because wages increased much larger and much faster than economists had expected –which caused a domino effect.
The domino effect in this case happens like this: when companies pay workers more, a product price raise tends to follow, in order for the company to afford the higher labor costs…
When prices across the board rise too fast, the Fed is forced to raise interest rates.
When interest rates jump, these same companies who are paying their workers more – end up having to pay higher interest rates on the money they have to borrow.
This makes them look less profitable, and hence, we see their stock value fall.
Which, in this case, was a VERY good thing…
There were many stocks that had just become a little too pricey for their own good.
A lot of retail investors – you know, the every day Joes that may dabble in a little trading – were staying away.
A lot of the stocks being bought were big block purchases from giant investment firms – many of the day traders were sort of stuck between a rock and a hard place.
They wanted to invest in the booming market – but many of the stocks were just way too rich for their blood – so they sat on the sidelines for the most part, buying a little here and there.
This correction could make things settle down to a place where everybody can play.
Of course, there are those out there saying this is bad – you’ve heard the pundits saying that it’s the worst drop in 20 years.
Well, I’m here to tell you – it’s not. It’s not even close!
In fact, the past few BIG drops in the market – don’t even rank on the top 20 of worst drops in the history of the market!
Yes, while The Dow lost more than 1,000 points on two separate days last week (something that’s never happened twice in the same week) it’s important to remember this: The Dow is still UP 32% since the election. And…
Corrections are totally normal events.
They’re supposed to happen and even more – they NEED to happen.
That said, the timing to get into the market hasn’t been better for the every day investor…
Stock prices are dropping and yet the markets are still surging – regardless of what some mainstream media outlets would have you believe.
Which is why the net I normally cast looking for prospective recommendations just got a bit wider – I’ve come across some stocks that could possible change our year if we get the timing right.
I’m keeping a close eye on them, and as soon as they get to the point where they hit all the markers on the GorillaTrades matrix – I’ll be pushing them out to my subscribers.
I’m really excited about what the next few months will have in store for GT subscribers – and I hope you’re thinking about joining GorillaTradesyourself – because the amount of money you could make over the next few recommendations is crazy.
However, I understand that it may not be your thing…
Either way, I think it’s important for you to know that this isn’t the start of a market collapse – or a financial Armageddon. It’s just a correction…
And I have to say I’m glad it happened – and you’ll find over the next few weeks and months – you’ll be happy it happened too.
“The lessons of history would suggest that civilizations move in cycles. You can track that back quite far – the Babylonians, the Sumerians, followed by the Egyptians, the Romans, China. We’re obviously in a very upward cycle right now, and hopefully that remains the case. But it may not.” – Elon Musk