If you’ve fired up the television lately or you’ve listened to that old thing called a radio or even read something on the internet that’s market-related, you’ve likely heard the word “recession” thrown around.
Before we go any further, lets define what a “recession” actually is…
According to the National Bureau of Economic Research (NBER), a recession “involves a significant decline in economic activity that is spread across the economy and lasts more than a few months.”
Now, there are a lot of “talking heads” on the tube and radio and internet that have all developed their own opinion of what a recession is.
But the NBER is the organization that officially declares recessions, so we’ll stick with its definition.
The Bad News
I’m sure most of you have opened your 401K statements, retirement account statements or even your actively managed brokerage accounts and have noticed a fall-off.
But let’s take a minute to analyze what we’ve fallen off of… We’ve essentially fallen from an over-inflated, money-printed, fastest-debt-creation period in American history.
If that in itself isn’t concerning to you, you may need to take a moment to back up and look at the bigger picture. None of this is sustainable.
If you’ve made good money in the past several years, as you should have, that’s wonderful. Don’t be afraid to realize some of those gains!
We could be approaching a recession or even a worse “winter season.” Whatever it is, we’re approaching something important.
The fact of the matter is that other than a few brief pullbacks, the market hasn’t cycled since 2008-2009. And prior to that, the last time was in 2000.
So, we’re due. In fact, we’re overdue.
The Good News
The good news is that making money on the downside is so much faster than it is making on the upside.
The other factor that should excite you is the fact that once things have been beaten down, it’ll be time to put that working capital back in the market at much better prices.
As the old Warren Buffett theory goes… Buy the best companies when they’re on sale.
Now keep in mind, the Buffetts of the world will be averaging into their positions on the way down and out of them on the way up. Of course, that’s easier to do when your pockets don’t have a bottom.
But for you and me, when those great companies are beaten up, we’ll get to buy them and rebuild an incredible portfolio.
Imagine buying Apple (AAPL) at a split-adjusted price of about $1 per share in the year 2000.
How would you feel if you were still holding some right about now? Pretty darn good!
In the end, it doesn’t matter what happens if you’re disciplined, consistent and have a plan to execute.
And in my view, the bigger the downturn we end up seeing, the bigger the opportunities will be going forward.
Join Me This Afternoon
Please get ready to join me for a special session this afternoon for the unveiling of my latest project!
You see, I’ve been able to make over $100,000 in trading profits for six straight years in a row without using any indicators.
That’s why I highly recommend you click right here to register your email address for the groundbreaking reveal of Project 6×6…
It’s going live TODAY, June 21, at 1 p.m. EST. You don’t want to miss this!
Rules to Live By
“Three grand essentials to happiness in this life are something to do, something to love, and something to hope for. Joseph Addison
Until next time, I wish you a beautiful and blessed day!
Yours In Trading Success,
Anthony Speciale Jr.