To those of you who wiped your brow and breathed a sigh of relief after this month's market somersault, I wouldn't be so quick to get out your good Scotch just yet.
We are now in the second-longest bull market of modern history, the previous one lasting from 1987 until the dot-com collapse in 2000.
This bull market, which kicked off in 2009, has seen the Dow jump more than 250%, from a decade low of around 7,000 in early 2009 to highs exceeding 26,000 earlier this month.
There are other less happy extremes associated with this era in modern economics.
U.S. national debt, during this period of manic, swing-for-the-fences investing, has skyrocketed, putting added pressure on the dollar's stability, as well as its status as the world reserve currency.
Couple that with entire sectors like consumer tech, led by famous promotional juggernauts like Tesla (NASDAQ: TSLA); the rapidly emerging cannabis industry; and the most recent arrival, cryptocurrencies, marching perpetually deeper into overbought territory, and the sense of instability grows more profound.
No High Can Last Forever
With the nine years of uninterrupted growth and now an entire generation of traders out there who have only read about bear markets in their textbooks, there are plenty of veterans who are waiting for the other shoe to drop.
What we saw earlier this month wasn't just a heart-flutter for an otherwise healthy system (what denial-prone investors like to call "corrections"); it was a break in momentum substantial enough to cast fear across trillions of dollars of invested wealth.
Fear which, if allowed to run rampant, will cause the very market collapse everyone dreads.
Any sane, sober investor knows that downturns come. It's cyclical, and it's actually quite healthy.
Overly bullish markets tend to get crowded with latecomers and imitators trying to enter already popular spaces with unremarkable or even substandard products.
These need to be swept away to allow the strong and innovative to really prosper. That's why the internet industry, though ravaged by the dot-com bust, came back stronger than ever and continues to grow to this day.
But I don't want to go over the events of this past month.
What I want to do is explain that, recession or not, there is something out there today that is on the verge of a true golden era, no matter what happens with the broader economy.
You may have heard of recession-proof investments... Well, this is one that, in the next several years, is going to be returning no matter what happens.
Whether the bull market rages or we enter recession territory for the next two years, this class of stocks will rise regardless.
How is this possible?
Simple. Like everything else these days, the class of stocks I'm alluding to is going to be powered by federal spending.
A lot of it... almost $720 billion in 2019 alone.
This isn't infrastructure, either, where the recipients of these funds would be spread out across tens of thousands of projects and places around the country.You'll Never Be On The Inside!
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Source : https://www.wealthdaily.com/articles/trumps-insured-these-stocks-against-recession/9121