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How the Market Works

UK Votes Leave!!  I Hope You’re Out of Stocks: How the Market Works

Posted by kdadmin on June 24th, 2016.

UK Votes Leave!!  I Hope You’re Out of Stocks:  How the Market Works

Wow. Just Wow. The UK voted to leave the EU!

Here’s what you need to know …

I Hope You’re Out of Stocks

Just take a gander at the wreckage from Wall Street’s bet that the UK would vote to stay in the EU. Stocks finished strong on Thursday only to get absolutely pounded overnight. From near record highs to down 100+ points (4.7% in the S&P 500 futures) by 11pm central.

And you thought volatility in January was bad. Yikes.

This is why we don’t own any stocks. This is how the market works.

The Pound Sterling Got Pounded

And here we are. Just like I thought, we had a 10+% drop in the British Pound Sterling since close of business yesterday. Ouch!

THIS is why we don’t own any foreign holdings. This. Right here.

It’s Too Late to Run and Hide

I’ve said it before, and I’ll say it again. It’s these sort of events that catch the amateurs completely by surprise. This is how they lose big. In a hurry. So, what can you do if you didn’t heed my warnings and get the hell out of stocks? Talk to a pro. Maybe you can stop the next bit of hemorrhaging …

What Now?

Remember, having plenty of money in cash and other defensive investments can set you up for great opportunities when the market tanks and others are selling out at the bottom.

This is what we did in January, and it paid off handsomely. We’re probably going to do it again. You can learn about that here

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