Categories: Stock Market
Topics: U.S. Dollar

Is The Stock Market Going to Crash?

The S&P is down 6% in a month. 

Talk of a “soft landing” has all but disappeared from the mainstream lexicon. 

Economic growth in the country has been revised down to 2.1% for Q2. And it will be a similarly anemic number when the data comes out for Q3 later this month. 

Rising oil prices are straining an already-stretched consumer at the pump. I saw $6.00 diesel near the Spokane airport last week. 

Each of the twelve recessions since 1946 have occurred simultaneously with an oil price increase. Oil is up more than 20% since early May. 

The cost of living is re-inflating at the same time the consumer has already fallen behind on credit card payments at levels not seen since the Great Financial Crisis, and rising. 

If they already can’t pay their credit card bills, I wonder how the 40 million Americans for whom student loan payments resume this month are going to make that payment. 

Just wait until the layoffs start. Non-farm payrolls have been retroactively revised lower every single month this year. The last time that happened was 2007.

There are strikes popping up everywhere, from Hollywood to Motown to hospital halls. 

Interest rates remain high. The 2-year yield is the highest since 2006, and indicates the Fed is going to keep rates higher for longer. 

The 30-year mortgage rate is now over 7.5% for the first time since the dot-com crash era of 2000.

Other major warning signs are flashing as well. 

Utility stocks, which are typically a “safe haven” or “defensive play” have been selling off at rates only seen during the dot-com crash, the Great Financial Crisis, and the Covid crash.

Recession is still highly likely in 2024.

Is your portfolio prepared? 

Have you sold enough stock to fund your family’s obligations in a pinch?

What can you buy to protect your hard-earned nest egg and potentially even grow it during these tumultuous times? 

In Foundational Profits, I show members exactly how I’m managing my long-term wealth — which stocks and funds I’m buying, when, and how much. 

In the most recent issue, I lay out all the buy recommendations in the portfolio that I'm personally allocating to right now. 

There are still plenty of things to own despite the bearishness of overall markets. 

When I say I’m “bearish” or “defensive” it doesn’t mean I’m timing the market… It means that I’m positioning defensively. 

We still own assets. We still own certain stocks. And we’re still long of certain sectors. 

You can check them all out in my new research here.

Nick Hodge
Publisher, Daily Profit Cycle