Wipe Out Retirements (Uncut) 03-11-2025

Markets Headed For ’50% Pullback’, ‘Wipe Out Retirements’ | Chris Vermeulen

So this is the one you do not want to be holding true. It’s better to miss out on gains than it is to lose half of your account when you don’t need to. We’re in a very unique situation in terms of the majority of people getting hurt right now that will ruin the rest of their lifestyle.

It’s huge and that’s why you have to be very aware of what’s happening. The Dow is down nearly 900 points today on Monday, March 10th. The Nasdaq is suffering its worst day since 2022.

Recession fears are picking up. People are panicking. Should you be panicking? Chris Vermeulen joins us today.

He is the chief market strategist at thetechnicaltraders.com. Welcome back, Chris. I spoke to you not too long ago today. It’s a very volatile day, so I wanted to get you updated or get you to help us be updated.

Welcome back to the show. Yeah, thanks for having me. Pleasure to talk markets.

Yeah, it’s definitely a volatile, emotional day for a lot of traders. My friend just texted me. He said, I panic sold.

I heard that too. I got emails from people saying, I panic sold. I couldn’t take it anymore.

Yeah, he was just like, what do we do? It was a string of texts he sent me throughout the day. First, it was like, should I buy the dip? Oh no, it’s getting worse. The last message was, I panic sold.

I shouldn’t be laughing, but people are really scared. What’s going on? Explain to me, please, what’s happening today and should people be panic selling? Is that the correct approach right now? Today is definitely a panic selling type of day. There’s all kinds of things that are screaming that.

Simply, you’re getting text messages. I’m getting emails. I’m seeing all kinds of people panicking out.

They don’t know what to do. The VIX is spiking up to levels we haven’t seen in a very long time. The VIX is a really good indicator of panic selling.

Of course, I also track the money flow on the New York Stock Exchange. We have a ratio. When you compare the up and the down volume, it creates a ratio.

We have a spike of seven. That’s telling us that more or less seven shares are hitting the bid, meaning people don’t care what price they get out. Just get me out at any price.

They’re marketing out to every one person buying on the ask. Anything over three, three to one is panic. Seven to one is usually a standout low, meaning if we look back from the charts a week or two from now, this should be a low.

Today is a panic washout. People are dumping their shares. We’ll probably see the market put a bottom in and have a bounce.

That’s the big question. Is it a bounce or the start of a new rally? That’s what you and I can dive into more once we get it going. Can we just pull up a chart of the VIX since you’re saying it? I just want to see what it’s doing.

If we take a look at the VIX up 19% today, you can see here, we haven’t seen this level since December when we had a big bout of selling. We’re right back at a high where the market’s had a previous resistance level. If we zoom way back in time, obviously, this is other than the spike that we saw back in 2024.

This is going way back into 2023, 2022 levels. There’s a lot of fear. If there’s too much fear, it means a downtrend is likely starting.

That’s what we’ve seen over the past couple of weeks. We have seen selling kick in, which wasn’t bad, but the pressure in this market to the downside is picking up speed. There’s a lot of damage being done.

There’s too much fear. The momentum, I believe, has shifted from an upward trend to a downtrend. The VIX is a good gauge of panic.

That’s for sure. Chris, can we take a look at the S&P 500 now? Today, you’re on the show a couple of weeks ago talking about short-term action. The market has broken down then.

It has even broken down more today and in the last couple of days. And I think the question is whether or not, going back to my friend’s text and perhaps some emails you’ve been getting, whether or not this is the bottom, a market bottom, or this is the beginning of a larger bear correction here. Yeah.

I think the way to look at this, you and I always talk about multiple different angles. I think from a short-term trader standpoint, looking at the daily chart, I believe we might see a bit more selling over a session or two. But I believe, overall, most of the downside here is done.

We have capitulation selling a big volume spike. Typically, when we see big volume spikes and fear, the market puts in this significant low. A good way to look at this also is if we look at just some basic cycle analysis.

This is a tool that I use whenever we have multiple cycles, which you can see the series of cycles at the bottom of the chart. When we have multiple cycles putting in a bottom and they come into favor, it generates these significant lows on the stock market. And we’re at one right now.

And it is pointing to, based on multiple different time cycles, we should have some type of bounce up into March 24th, March 25th area. So just based on sentiment alone, it’s telling us it’s primed and ready for an oversold bounce. Cycles are telling us we’re ready for a bounce.

And really, we just have to wait for the market to try and put in a bottom. I would not try to really buy a dip. I think, overall, I believe the play here is to let it bounce up and see what it does over the next couple of weeks.

Does it build a little bull flag pattern pointing to higher pricing? Or does it roll over and stall out and start to go down and continue to go much deeper of a pullback? This would just be like the first wave down of many waves, I think, for the stock market. Trump says a transition period for the economy is likely per headlines. You can’t really watch the stock market, he said.

I think this comment shook markets even more, because that’s basically him admitting that there’s going to be more volatility, but just ignore it for now. He said there was a grander scheme of the American economy. He said this in a speech a couple days ago.

I agree. I think we need a great big correction in the market. I think things are frothy.

You look at the weekly chart of the S&P 500, this goes back to the 2007 market top. We had a big, obviously, a big 50-plus percent sell-off. I think we’re primed and ready for another 50-plus percent sell-off, breaking the 2022 lows on the S&P 500.

These are actually very good things. These reset the market, they cleanse it, and they allow longer-term cycles to stay in play. If we don’t have these, we tend to see the market eventually get even uglier.

The markets have had a very big move to the upside. I do believe we need a big reset to reset all kinds of assets and really expectations and pricing on all kinds of stuff. What kind of a reset are we talking about? Going back to what you said earlier about this being one of several corrections along the way in a larger bear market.

We could see a bounce here, but expect more corrections. What are you referring to? What does this larger correction or larger bear trend look like? There’s a bigger correction. I believe the markets could pull back 40-50 or so percent.

If the markets were to pull back the same as they did back in 2008, we would see the SPY, which is currently at about $560. It would be around $260-$270. That would break the 2002 lows.

That to me would be a full financial reset. Maybe we don’t go quite that deep, but it’s not out of the picture. If we go back and look at the tech bubble, we saw the SPY 500 pull back 50% back then.

When we zoom in on the price action here, we really only had a couple of weeks of downwards selling and people are panicking. There is a lot of potential downside for where this market could go. This is what a lot of people don’t understand.

This is what I’m trying to warn people of. Eventually, one of these pullbacks is going to turn into something really ugly and ruin a lot of retirements and all of that. That’s what we just need to be aware of.

The markets, where they are right here, this whole topping pattern is very similar to what happened over here. When you look at a bunch of different asset classes, momentum of stocks and sectors, we are setting up here for, I think this market is going to lose its momentum. Just like we saw in 2022, it lost its momentum and then it goes into a bear market phase.

You don’t really want to be holding stocks there. Right now, we’re still in a bullish phase, but things are starting to break down. What’s happening here is a lot of momentum is actually being given up.

We didn’t see it here. We didn’t even see it over here with this bigger pullback. What’s happening right here behind the scenes is simply a lot of things breaking down, money flows to different asset classes.

It’s not a good sign. The Magnificent Seven are the biggest thing to be aware of. If we look at the Magnificent Seven, we pull up the ETF that groups them all together.

Let’s just go look at the monthly chart of this. Whatever these seven stocks do is going very much so dictate what happens with the rest of the market. This ETF doesn’t go back very far, but what I want to show here is simply when something rockets higher and then has a huge sharp correction, it’s usually going to have some type of pause and bounce.

Then eventually, it’ll roll over and go into a bear market type of move. As you and I have talked about this, David, you’re pretty familiar with this four stages that I always talk about, which usually we have this blow off phase in something that drives the markets higher. Then eventually, they break down.

I believe the Magnificent Seven are finally having that blow off capitulation move, and then they’re going to have a bit of a pause. Then they’re going to go into a big stage four decline and reset the entire market. Another good bellwether is Nvidia.

Look at the monthly chart of Nvidia. It is a ugly looking chart in terms of it has a shoulder, a head. It’s sold down to this level here.

I believe it could bounce or pause for maybe a month or so, but overall, it is pointing to a dramatic pullback and sell off that a lot of people aren’t anticipating. When you look at Nvidia, it’s flatlining, and then suddenly, it goes explosive. Something this big really controls a lot of the market.

I think a lot of the focus needs to be on what are the Magnificent Seven doing as a whole, and what are some of the big leaders like this? They’re not looking good. Tesla just put in a massive, massive double top, down 15% today. The tide is changing from a bull market to a bear market.

It’s not going to happen right overnight this week, but over the next month or three, this sideways and selling price action is going to become normal, and then it’s a matter of just when is that next leg to the downside for the overall markets. Are you surprised that pretty much all asset classes are taking a hit? We’re looking at stocks. Bitcoin is down 3.7%. Bitcoin following the NASDAQ, of course.

Gold is down 0.7%. And the surprise to me, at least, is that if gold is an anti-volatility play, meaning if recession fears are picking up, people should be piling into gold, like you mentioned, capital rotation, but it’s not going into hard assets or safe haven assets like gold. Well, money’s already been moving into gold. Gold’s up huge.

It’s already had the majority of its run. When there’s a big, massive panic sell-off like we’re seeing this week and today, specifically as we’re recording this, almost everything goes down. People literally don’t know what to do, and they sell everything.

They throw the baby out with the bath water. So that’s the problem with a bear market in a stage four, is when the stock market and everything is falling, people don’t know what to do, and they just liquidate everything. And that’s why you need to sell assets when the markets are going down and go find something else to go into that is going up.

And sometimes, during windows of market stages, there really isn’t anything to go into. Sometimes you need to sit in cash and just wait for an opportunity. So that’s what a lot of people don’t understand, is gold will collapse with the stock market when there’s mass fear.

And we saw that today. Gold miners were down like 4%. I think the junior miners.

You know, there isn’t a safe haven when it’s full-on panic. Okay. Chris, which of these asset classes you talked about with me so far today have been oversold the most? Gold, Bitcoin, or stocks? Just from a technical perspective.

We haven’t looked at interest rates and bonds yet. We’ll do that next. Yeah, which one’s the most oversold? I feel as though the NASDAQ is kind of getting the most oversold.

The NASDAQ, the Magnificent Seven, I think they’re getting a little long in the tooth, ready for a rebound. The type of price action we’re seeing in terms of the panic selling in the tech sector, the Magnificent Seven, huge volume, a gap down and it continued to sell off. That’s a sign that we’re getting very close to a major bottom.

I mean, I think there’s still going to be a ton of people that as soon as price starts to bounce, everybody’s going to go from freaking out and panic selling to like, oh my god, let’s put a bottom in. Everybody’s going to just buy it back. And they’re going to do the buy the dip mentality.

And I think we could see the Magnificent Seven actually have a fairly strong bounce, which will pull the NASDAQ and the rest of the markets up for that into potentially March 25th is kind of where that next cycle high is going to be. So we still have 15 days of potential bounce. So I think the tech sector is overdone because it’s crowded with emotional traders.

They’re all panicking out. And as soon as that reversal of emotions turn around, it goes from panic to FOMO. And then suddenly they drive and buy all this stuff up and they’re like, oh, NVIDIA is a great buy now and all these stocks.

So I think the tech space is still the one to watch. It’s the most beat up, but it’s probably the one that’s going to have the strongest bounce. Are you seeing any signs of this repeating 2018? I’m using 2018 and 2019 as an example because Trump during his first term also implemented tariffs.

Markets really did not like any escalation of the trade war in 2019 was quite a dramatic and volatile year for the markets. As you’re recalling, we can pull up that chart. This is when China and the U.S. really escalated the trade war.

I remember the news and markets really didn’t like that. I think the S&P was down. I’ll let you comment on the exact drop here.

Yeah. I mean, when you look at 2018, 2019, it was a couple of years of really volatile price action. The markets don’t like crazy uncertainty.

I feel like as soon as Trump stepped in, we’ve got a lot of uncertainty. We’ve got all that coming back. And here the market is starting to kind of dump and sell off.

It’s kind of losing momentum. So I think it’s going to be a really rough 2025. I think eventually this year is the year we see a massive breakdown.

Like when we look at the QQQ daily chart here, I do think we’re going to have some knee jerk reaction bounce. It’s going to move up. But I do feel eventually it is going to sell off and have a much bigger move to the downside.

I think there’s a lot of things building in terms of the economy slowing and all that. In fact, if you look at some of what’s going on here in terms of we look at job openings, job openings have been fading. So there’s fewer and fewer jobs available because businesses are slowing a little bit.

Entrepreneurs are cutting back. They’re not looking for as many jobs. If we take a look at average hourly earnings, it’s slowly fading down.

So the huge surge is losing some of that momentum. So fewer jobs, people are getting less paid. Unemployment rate, when we look at in millions of unemployed, we’ve got a nice bull flag here that happened in 2024.

We’ve had another shoot up in unemployment. We’ve got another bull flag. This overall larger bull flag is pointing to another big move in unemployment.

And this is kind of like a leading indicator. This is zoomed in very, very close just on the millions. But when you look at unemployment from a big perspective, that bull flag, we’re still at the bottom.

We’re just flirting with a recession starting. And when there is a trend reversal and you have a little pause, that’s a warning that we’re probably going to see it spike higher. Just like over here in 2027, it turned around.

There was a little bit of a pause. It shot up. And it’s the same when the trend turns down.

It sells off, reverses direction. There could be a little pause. And then it continues that trend.

So I believe we are like on the cusp of things getting really ugly. I think a lot of people will probably blame Trump and tariffs and all that stuff. I don’t know if that’s like the real cause of it all.

It’s just a lot of noise and a lot of moving the market short term back and forth. But the signs are kind of here that I think we’re seeing things stall out behind the scenes. And the same with the housing market.

We almost have the same level of homes on the market available as we saw just before the last financial reset for real estate. And home prices continue to go down, and they’re on the verge, I think, of a big drop. So there’s going to be a ton of pain this year in terms of when you look at kind of what’s going on with the overall markets.

And at this point, I believe the stock market has topped. I do. I really think it has topped out based on what’s going on.

And it’s going to come down to what the Magnificent Seven do, the tech sector, and how much of an unwinding event there is in that space. So given that you think it’s topped out for now, but perhaps we’re short term oversold, how are you playing the markets right now? Yeah. So depending on the time frame.

So for example, when we look at our long term chart here, we still have green bars. We’re still long this market. So as a long term investor, you shouldn’t be panicking out just yet.

We need to let the trend stall and reverse direction. And when that happens, we’ll get a red bar. We’ll have a yellow arrow telling us, OK, long term trend investors, the rising tide, the bull market is now over, move aside to cash until there’s a better opportunity.

Now, from a shorter standpoint, for traders, we’re in cash. We moved into cash about a week and a half, two weeks ago. Just before it started to break down, we moved out right over here because everything was saying looks like there’s going to be a very big pullback.

And of course, we’ve seen the market fall out, huge volume. And so right now, short term, we’re sitting on the side kind of just keeping our gunpowder dry. And we’re not I’m not looking to buy a bottom.

That’s not what I do. The trend is technically down. So I don’t want to buy something in a downtrend.

I will look for it to bounce up. And then from there, we’ll reanalyze, is it building a bull flag to go higher or is it actually rolling over and forming a pattern that is going to point to lower pricing? And we’ll have to just see if maybe bonds become a favorable play. Bonds are starting to come back to life.

The U.S. dollar index is oversold. It’s in a long term uptrend still, but it’s short term in a downtrend. So the dollar is not a safe place just yet.

And so right now it’s like a cash play waiting just to see where the next opportunity is for our capital. I think you told me a few weeks back, or actually earlier in 2025, rather, that potentially we could see like a 25, 30 percent drop from the market highs in late 2024. We’re not quite there yet, but can we just see exactly what level that would be? And perhaps that may give us a guideline for what the floor may be, unless you’re updating this floor.

Yes. So you’re saying if the market was to pull back 20 or 30 percent from its highs in 2024. Yeah.

Yeah. In 2025. Yeah.

Yeah. OK. Yeah.

So if we look at it like here, here’s a here’s a 30 percent pullback. You know, here’s a I honestly believe the market’s going to gun for a 50 percent pullback and try to break the 2022 lows. That is going to wreak, like have just huge havoc on people saying, oh, my God, it broke the 2022 lows.

You know, that’s when people are really good. I mean, they’re going to be beat up already at that point, but that’s when people lose their cool and totally give in. They’re like, I have to get out.

This is done. I cannot take it anymore. And the market loves to make lower lows or higher highs.

It loves to pierce previous previous lows that low on the chart, which is kind of hard to see here. This low here is going to be a level that when it’s broken, there is going to be a lot of big money just hitting the eject button saying, oh, my gosh, this you know, we have to get out that that was a support level and it just broke. But support levels, really, the market wants to break those and it usually always breaks a support level.

It’ll pierce it. And so I believe it’ll come down and pierce it and then shake everyone out and then have a rebound. So, yeah, I think there’s a lot of downside in the Nasdaq, in the S&P 500.

Both of them, I think, will break the 2022 lows. What do we do for safety? Cash? Something else? Well, eventually we’ll be playing inverse ETF. So as the market just keeps having these waves to the downside, when there’s a bounce and then the price starts to roll over and starts a new downtrend, we hop on an inverse ETF.

So as the market goes into freefall, the ETF goes up. So that’s the sweet spot with the bear market and with the stage four is the markets collapse and price falls four to seven times faster than it rises. So it makes for some very explosive, very quick trades.

You begin to have multiple waves to the downside, which multiple inverse ETFs, as everyone’s losing their accounts, our accounts are shooting higher on those days. It is the weirdest feeling to be making money when the market is falling. It’s a very weird feeling.

It feels amazing, but it’s different because everyone else has got an opposite point of view and there’s nothing but negativity and you’re riding it in a different direction. It’s a unique experience that I don’t think many people actually have experienced. Like these big financial resets, most people only live through, you know, two or three of them in their lifetime that they’re active and want to be an active investor.

Usually the first one or two they miss and they had to ride out and maybe they catch one like now, which is probably the most important one for most people because most people in the markets are 45 plus who have the majority of money in the markets. They’re close to retirement or retired. And so this is the one you do not want to be holding through.

It’s better to miss out on gains than it is to lose half of your account when you don’t need to. We’re in a very unique situation in terms of the majority of people getting hurt right now that will ruin the rest of their lifestyle is huge. And that’s why you have to be very aware of what’s happening.

You know, it’s interesting because if you, yeah, if it’s a retail investor, you can do whatever you like, but let’s say you have a mandate. Let’s say you’re a family office or an institutional fund and you can’t just, you know, dump everything and stay in cash. It becomes more tricky, right? Let’s say you have to be invested in equities or certain asset classes.

It sucks. It really sucks because mandates and once your money’s in like, you know, a family office or with a financial advisor, they have to keep your money invested. SEC has rules in place that if it’s not invested, they can’t, they shouldn’t be technically charging you an asset under management fee.

And they’re not going to go inverse. They’re not going to buck the trends. If you’re stuck in the financial system with like some type of advisory service, you’re pretty much screwed.

You are going to have to do the buy and hold. You’re going to have all kinds of diversification. You’re going to be, you know, told all kinds of fancy little songs saying, Hey, well, don’t worry.

We got diversification here in different country assets and all this stuff and commodities, but you really are stuck. Everyone goes down with the bear market. It’s a sinking ship.

And anybody more or less with advisors who use the buy and hold and diversification, you’re going down with the ship. And the only nice thing about that is you’re going down with everybody else. Misery, you know, you’re at least you’re not alone.

Company in misery, I guess. Yeah. Not a fun adventure.

Well, I mean, shouldn’t it be shorting in this particular case? I think you talked about that earlier. Inverse ETFs is a form of shorting, right? We don’t hear you talk about shorting often. Is that, for most people, shorting is difficult to do.

Is now the right time to do it? No, now is like the worst time to do it. Because as you and I just said, the markets, I think, just put in a bounce right here. So I mean, a bottom.

So I think they’re about to bounce. So you’re in a short and then the market’s going to scream higher for the next five or 10 days. And you’ll be like, holy, I couldn’t time that any worse.

But yes, inverse ETFs or shorting is great. Most people, I don’t think people should short. It’s a little different.

You do need a special trading account to short. You need special permissions. You do have unlimited downside risk, meaning if you short something, technically, it could be like a Tesla or any stock that keeps going up and hitting new all time highs.

Because it can go up as high as it wants to infinity, you have unlimited risk. So shorting is a pretty dangerous strategy. So the best thing to do is like an inverse ETF.

So for example, if this market has a bounce over the next two weeks and then it starts to roll over and go right here as it’s starting to roll over and go down, you buy an inverse ETF that will actually go up the same distance that the market has gone down. So you just buy it like a stock. You don’t have to actually sell short, which is people just don’t need to do.

There’s inverse ETFs that allow you to do this without the complexity. We pull up a 10-year yield chart. Let’s take a look at how bonds are behaving today.

Yeah, I don’t have a 10-year yield chart on. Yeah, we can take a look. But I can pull up TLT, which I think, let me just see.

I think there’s a 10-year. All right. So yeah, if we take a look at TLT, obviously it’s been out of favor since the COVID spike.

It has more or less put in a major top. It’s been in a stage four decline. And right now it is trying to put a bottom in, a stage one base.

And a stage one base is a very difficult time. They can drag out for years, which this one has. It’s really been trying to bottom for the last two and a half years or so.

I do believe we’re going to see bonds come to life and start to turn up. And bonds could become a good play over the next couple of months. But right now, the fact that it’s trading sideways and choppy in this pattern, again, if we look at the stage analysis, it’s a stage one.

It’s a sideways movement in the market. And I have those shaded as red and orange because they’re difficult to trade. You waste a lot of time because they don’t really have follow through on their moves.

We really want to focus on stuff in a stage two bull market or a stage four bear market. And so bonds, they’re in a stage one. They are going to become, I think, a very good play.

The question is just when, in the next couple of months, or is it going to take six or eight months? We don’t know yet. But there will be an opportunity to play bonds, I think, this year. We just need them to build this base and start to move higher.

Are you more bullish bonds than stocks if you had to pick one this year? Yeah. If I had to pick one, I would probably pick TLT if I had to pick that. Okay.

What about Bitcoin? Let’s take a look at Bitcoin today, broken down as well. Is Bitcoin still just a leveraged play on the Nasdaq here? How would you interpret this as a trade? Yeah, I think so. It’s definitely gone into a downtrend.

It had this topping phase right through here, put in a double top. It has broken down. We had a bit of Trump talking about Bitcoin and created a huge pop this one day.

It was about a 12%, 13% pop. But overall, it’s bounced up into this resistance level and now it’s selling off. And I think $75,000 is the next downside target just based on this little move.

So it’s pretty much wiping out this whole breakout that we saw here. And the monthly chart was a very clear pattern for Bitcoin in terms of we had this beautiful market top right through here. It built this beautiful bull flag launchpad.

And then we had this nice measured move, literally hit it almost within $200, which is pretty phenomenal. And now it’s going to come back down. I think it’s going to fizzle out.

And we need to see how this is going to unfold. So Bitcoin, I would avoid. It is in a downtrend.

It has put in a short-term topping pattern. And to me, this is a bit more of a leading indicator on the market. People are very nervous dumping Bitcoin.

It’s hitting lower lows on the daily chart and has done some pretty good damage. So I think this is telling us the tech space, the NASDAQ, is going to have just a dead cat bounce, meaning it’s going to bounce up for a couple of weeks. And it’s just a bounce.

It’s not the start of a new rally. All right, Chris, anything you are bullish on at this particular moment? And we’ll close off here. I was thinking about that earlier today.

Not really. I am most bullish of cash. It sounds terrible.

But that’s where we are. The market is in a downtrend. If you try to pick this bottom, for all we know, it wants to keep falling even more.

You don’t want to buy something that’s falling, that’s in a downtrend. And bonds are kind of trendless. And gold, if you had to pick something, maybe gold.

But there’s not a whole lot of upside left in this market. So I think cash is king. That’s just for now.

At least for a couple of weeks, I think cash is king. Unless you were to jump to individual stocks, there might be some plays here and there. But when you look at the major asset classes, to me, everybody’s liquidating and cash is the place to be right now.

Okay. Asset revesting, how can that help an investor or trader right now? What is that first and foremost? Yeah, asset revesting, that is a strategy that I started or I wrote a book about last year. If you go to my website or go to Amazon, you can get a book on asset revesting.

What this is, is similar to what I was just talking about, we figure out what asset is going up. If equities are in a bull market, we want to hold equities. If they’re not going up, we want to reinvest our money into a different asset class.

So we could move to bonds. We could move to the US dollar index. We could move to a cash position.

So we’re just rotating through various assets. This strategy means we use technical analysis. If it’s not moving up, we don’t own it.

We don’t believe in diversification. We’re not going to hold stocks and bonds. If you do, you’re really just going to neutralize your returns.

We really just want to own the asset class that is moving, that shows significant strength. And that’s kind of our core focus. And I use an asset hierarchy.

So more or less, we’re always looking to hold equities, the stock indexes, because they’re the most volatile, that gives us the most potential. But if they’re not favorable, we go to look at holding bonds. If they’re not in a trend that’s favorable, we look at the dollar or an inverse dollar ETF.

Or we sit in cash and just collect daily interest in dividends. So that’s kind of how we rotate through this market. And a visual of the COVID crashes, this top chart is the SP500.

And the trend changes. We move out of stocks. We moved into bonds.

Bonds had like a 19% rally. And then we hit our targets on that, and we moved to cash. We just collected dividends until the stock market gave us a new signal.

So all we’re doing, asset reinvesting, is simply reinvesting our money in the asset class that is favorable at any given time. We’re not going to hold a shotgun approach of a bunch of stuff, because then you have a bunch of things going up, and you have a bunch going down, and the winners are killed by the losers, and you have a really poor, neutral kind of return there. Perfect.

All right. Thanks, Chris. Great talk.

Great update. We’ll put the link to your work down below, so make sure to follow Chris by clicking on the link down below. And we’ll speak again soon.

Crazy days up ahead, I’m sure. Thanks, David. Take care.

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