Today Peloton is a household name. It has more than one million subscribers to its online fitness classes. Its stock is up 456% in the past year. And the company’s greatest problem is a great problem to have.
That’s what a Motley Fool headline blared this week as the markets ticked up to new highs. It’s typical of the mainstream financial media and it couldn’t be more worthless. Fundamentally, it’s just wrong. Crashes don’t come because stocks are overvalued. Bubbles and busts always run far higher and deeper than most ever expect. This time will not be any different. Worse yet, it’s distracting you from the real indicator that will signal a crash is coming and to get out of everything. That’s where we’re going to look at today. Because it will really determine how your portfolio performs for the rest of the year and how well your set up for 2021.
You will become a much better investor in the next 13 minutes. Your gains will be bigger. Your losses will be fewer. And you’ll make much better returns with less stress than you ever thought possible. It’s all because of the rules. Dear Retail Investors has compiled three basic, yet unconventional rules that will make you a better, more successful investor. Without them, the odds are stacked against you because most investors are terrible investors.
That’s how mining magnate Robert Friedland sized up the coming copper boom. He’s not alone either. Goldman Sachs recently said copper is its “favorite” commodity. Copper is already moving too. Copper posted its best quarterly price move in over a decade. Odds of a downturn are low. As Bloomberg recently noted, “[copper] supply worries mount.”
Worried a crash is coming? Most investors sure are. They see an untenable disconnect between stocks and the economy. And to be honest, they’re not wrong in what they see. Major stock indices are almost back to their pre-pandemic highs. And this week we got official economic data that shows the economy is well below 2008 levels of awful. So worries of a stock market crash do make sense. However, that’s not the case at all.