Your Money Manager Is Not Prepared for This

April 1, 2020

Mish's Daily

By Mish Schneider

blankWill Dubby Fuqua-Friend and Artist

The market has fallen over 30% from the highs.

Maybe you have already called your fund or 401(k) manager and asked to liquidate your losers or the entire account.

Here is what you probably heard.

“I don’t recommend it.”

That is typically followed by, “If you do pull out now, you will miss the opportunity when the market turns.”

I say to that GREAT, you did such a fine job doing nothing for the last 30% downturn, I will see you in the next 20% downturn.

These managers are only paid to buy.

They have very little idea about bear markets.

And, they lose their jobs anyway when clients lose too much money or pull out in mass.

Then, like in 2008, they suffer post traumatic stress and do not buy when the market finally bottoms.

Of course, the public sells the lows and buys the highs.

But this is not the low.

On another note, rumors are circulating that there is a potential for an Iran-backed attack against the U.S. in Iraq.

One way to get oil prices up quickly is to start a war or blow up a few oil fields like what happened in 1990.

Ask you fund manager what they would do in that case?

Well, one thing I can tell you is, if you mention the term stagflation, they will have to look that up.

Here, I have warned you over and over that once the FED’s offering U.S. dollars in exchange for treasury debt cools down, the pandora’s box for stagflation is huge.

And so it goes.

Your fund manager is not your friend.

Heck, you are probably smarter than they are. (Especially if you read my Daily!)

Finally, regardless whether those rumors turn out to become facts, you’ll still be so glad you took control over your money!

Here again are the signs to watch-

A debasing dollar and more of a sell-off in high yield bonds.

Gold futures to hold around 1580 and clear 1620, 1680, and then 1700.

Food commodities to start to rise.

And now, oil futures to return over $24 a barrel.

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S&P 500 (SPY) 228 support and 253 resistance

Russell 2000 (IWM) Inside week so far. 101.60 support and 112.56 resistance

Dow (DIA) Inside week. Support 190 resistance 216.35

Nasdaq (QQQ) 175 support 192.35 resistance

KRE (Regional Banks) Inside week-31.65 resistance 30.00 support

SMH (Semiconductors) Inside week. 105 support 115 resistance

IYT (Transportation) Inside week 123 support 137.70 resistance

IBB (Biotechnology) 1-5.22 pivotal

XRT (Retail) Inside week 27.70 support 30.00 resistance

Volatility Index (VXX) Inside week-50.00 pivotal

Junk Bonds (JNK) Inside week. 94 resistance 87 support

LQD (iShs iBoxx High yield Bonds) 120 pivotal support

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