How much money would I have had now if I would have known in the year 2000 what I know now? Sometimes I think back to that period 10 years ago when I did not have a system yet to warn me for when stock markets are starting to fall and continue to fall.

Did you invest already in the stock market in the years 1999 and 2000? If you started to invest in the market after that period, you have probably experienced only one market meltdown: the one in 2008. When you started to invest in the stock market before the year 2000, you have seen two meltdowns.

Between 2001 and 2003, I lost 40% of my savings that were invested in the stock market. In 2008, I didn’t lose anything since I sold most of my index funds and mutual funds end 2007… before the meltdown. During the next meltdown I plan to make a lot of money by buying put options or short-index funds.

These short-index funds are funds that show the reversed movements of the actual index. Thus when the S&P 500 index increases with 1%, the S&P 500-Short index fund declines with 1%.

What Is Your Systematic System

What made the difference for me? Between 2003 and 2008, I developed the Stock Trend Investing system. We all know, nobody can predict the future. But with a proven, systematic system that recognizes patterns in price developments of major stock market indices, your assumptions can be more often right than wrong.

I don’t really care if the trend analysis and assumptions for the direction of the market are right or wrong at a specific moment. Markets that go up do not make me happier than markets that go down. Both are opportunities to make money.

When I assumed a market would go up, but it actually isn’t, that is just a fact. I may lose a little money. But in the long run, my assumptions based on the Stock Trend investing system are more often turning out right than not and that makes me money. Essential here is that when the reality turns out different than the assumptions, you accept that reality, sell your holdings, take your little loss and be prepared for the next opportunity.

Now I must say that the assumptions are much more often proven to be correct than incorrect. Thus I do not have to correct and take some losses to many times. But you never know of course.

When Is The Next Meltdown

OK, when is the next market meltdown? I don’t know. What I do know is that there will be a next market meltdown. What I do not know is when that meltdown will take place. This could start next month (not so likely), next year (little more likely) or within a few years (very likely). The thing is, you do not want to miss it, be unprepared and lose 40% of your savings.

At this moment the markets seem more likely to continue to go up than down. End of this moment I will make our monthly evaluation again and decide if I increase my investments in the US, European and Asian markets or if I hold off for clearer trend signals. But when we get the signals out of the Stock Trend Investing system that markets are taking the turn down, I am prepared and you can be as well.

You can get now a risk-free trial membership to the Stock Trend Investing system.

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