In this installment of Daily Market Insights, Patrick Brunson discusses the possible future of the stock market, how the fear of inflation influences the market, and how you can protect your assets with gold.
Continued Correction or Stock Market Crash, What Comes Next?- Video Transcription
Patrick Brunson: 00:00
Hello and thank you for tuning in to daily market insights. Last week on Wednesday, I had a video where I came out and talked about the stock market. We talked about how the market was hitting all time highs and the fact that we had never at any point in history seen the stock market increase by more than eight thousand points inside of a year. I've talked to a lot of people over the last week since that's happened and there have been a lot of questions as to what's happening in the markets now, because since then we've seen more than a two thousand point swing in the stock market. In addition to that we also had on Monday of this week the stock market dropped more, points wise, in one day than any other trading day in the history of the stock market. But here's what's interesting about this entire situation. Typically the market has to come back by more than 10 percent in order for it to be defined as a correction.
Patrick Brunson: 00:58
Well we hit correction territory. But what's interesting is immediately after we hit correction territory the market bounces back and goes to 100 or 200 or even 300 points into the positive. When I spoke last week on Wednesday, the market was at twenty six thousand three hundred points. Since then it's dropped down to the low twenty four thousand and almost into the twenty three thousand point range. Since then, it's also increased back up into the twenty five thousand point range. The biggest question we have to ask ourselves is in a market this volatile, do we really want our money tied to these areas? Especially areas of retirement savings like 401k's, annuities, or even just your stock portfolio. I can't seem to really put my finger on it because we've never seen anything like this in history. We've never seen these types of swings, especially more than 2000 points in less than a week.
Patrick Brunson: 02:01
So there's a lot of questions as to what's going to happen next. But the million dollar question, is this just a correction or is this the beginning of the next major stock market crash? I don't have a crystal ball but one thing I can tell you is that the main reason, according to the mainstream media, that we're seeing this type of correction in this volatility in the market is because of the big fears of inflation. Inflation caused by the new tax cuts. Well inflation is a big big scare for a lot of people especially those who are retired because it means that the value of our dollar is dropping and the cost of our goods and services to live day to day life are increasing dramatically. There's only one way to really protect your money and your retirement from inflation and that's precious metals. Traditionally that's been the area where we've been able to protect ourselves the most. So the other question we have to ask ourselves, is now the time to start making that transition? Are you really really willing to risk more money and more profit that you've already received just to see if the market goes up anymore than it already has? What's the risk? Do we really think we're going to see another year where the stock market increases 8000 points?
Patrick Brunson: 03:28
With that being said, in the weeks to come, we're also going to have our 2018 annual report. It's going to give us the projections on what we expect to see and the things that have happened already just up to February here in the year of 2018. we've seen more things take place from an economic standpoint than we'd probably saw the entire year of 2017. So we have to have an understanding of what that's going to do to our portfolio and our retirement savings. Until that report comes out, you can also click on the link below or call the phone number to get the new report, Fiscal States of America. Until that report or annual report comes out, this has been one of the best reports you can use to see what's going on in your states locally. If you have any questions in regards to some of the things that's happening right now you can leave them in the comments section below. There's a lot of big question marks out there and there's a lot of uncertainty and we're going to do everything we can here at daily market insights to get those answers for you. That's all for today. So until next time. Thank you for tuning in to daily market insights.