It'll Be Like Throwing a Match in a FULL Tank of GAS....

in #trending7 years ago

“At some point, that reversion process will take hold. It is then investor ‘psychology’ will collide with ‘margin debt’ and ETF liquidity. It will be the equivalent of striking a match, lighting a stick of dynamite and throwing it into a tanker full of gasoline.

When the ‘herding’ into ETF’s begins to reverse, it will not be a slow and methodical process but rather a stampede with little regard to price, valuation or fundamental measures.

Importantly, as prices decline it will trigger margin calls which will induce more indiscriminate selling. The forced redemption cycle will cause catastrophic spreads between the current bid and ask pricing for ETF’s. As investors are forced to dump positions to meet margin calls, the lack of buyers will form a vacuum causing rapid price declines which leave investors helpless on the sidelines watching years of capital appreciation vanish in moments.

Don’t believe me?
It happened in 2008 as the ‘Lehman Moment’ left investors helpless watching the crash.”

Fiat - Global Collapse.jpg

Do You REALLY THINK that "you'll be ABLE to do ANYTHING about it" - THEN???

LOOK AT WHAT HAPPENED, LAST WEEK....
“The websites of two of the country’s biggest robo-advisers — Wealthfront Inc. and Betterment LLC — crashed on Monday as the S&P 500 Index sank. Complaints quickly spread across Reddit and other internet sites from people who had trouble logging onto their accounts.”

Do what you need to now, to PREPARE - there may be "interruptions" during this process.
No FEAR - its ALL 'good' ...forests have to burn

@gloryb

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My house is in order. God, guns and gold.

Much BIGGER picture in play here - and, you might prefer to look at SILVER?

Gold will be the new denominator of the ASSET-BACKED currency....NOT "gold" (which will be going DOWN)

I have been collecting junk silver for quite awhile. Gotta hedge your bets. I also have a pretty nice stock pile of whiskeys for barter and trade. I just have to keep my wife outta of it.

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