I don't think you guys understand how bad shit is going to get...sell now
**This is NOT a drill, folks.**
We’re all hearing the news about COVID-19 spreading quickly, and now countries are starting to implement lockdowns. I’m not sure if everyone fully understands just how much this is going to affect the global economy, but we’re about to see a chain reaction that could send the stock market into freefall.
Here’s why I think the worst is still ahead of us:
1. **Lockdowns Are Going to Crush Businesses** Businesses everywhere are already starting to feel the strain. We’re talking about massive industries grinding to a halt, retail stores closing their doors, restaurants shuttering indefinitely, and airlines cutting flights. This isn’t just a temporary slowdown – lockdowns will stop economic activity for an indefinite amount of time. If this goes on for months, there’s no way the stock market can keep up. When companies start reporting losses, investors will panic, and the selling will begin. Expect major corrections, or worse.
2. **Unemployment Is About to Skyrocket** With businesses forced to close their doors, people are going to lose jobs. The service industry, retail, and entertainment sectors will be hit hardest. Once this happens, consumer confidence will plummet, and spending will slow to a crawl. People won’t be buying as much, and businesses won’t be able to recover. This is a recipe for disaster, and it’s hard to imagine the stock market staying afloat when millions of people are suddenly out of work.
3. **The Stock Market Is Overvalued and Fragile** Let’s face it – the stock market has been on an unsustainable upward trajectory for years. Investors have been riding high on the expectation of steady growth, but now reality is setting in. Once the full scope of the pandemic hits, markets will react. We could be looking at the worst crash since the 2008 financial crisis. The economy is about to go into a tailspin, and the stock market doesn’t stand a chance.
4. **Long-Term Economic Recession** It’s not just a temporary dip in the market. Once the dust settles, we’re looking at a long-term economic slowdown. The global economy relies on constant movement – constant production and consumption. If that stops, it’ll take years to recover. And let’s not forget, governments can’t just keep printing money forever without inflation catching up. We could see hyperinflation, followed by another round of economic pain for the average consumer.
**I don’t mean to be an alarmist, but now is the time to start preparing for a rough ride ahead.** If you’ve got money tied up in the stock market, I’d seriously consider whether you want to ride out this coming crash. The world is about to change in ways we can’t predict, but we know one thing for sure: the stock market is going to be hit HARD.
Please don’t ignore this. Be smart, plan ahead, and be ready for the worst.
Stay safe, everyone.