Is the Smart Money Prepping for an S&P 500 Collapse to 450?

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Published : November 07th, 2014
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Category : Crisis Watch

The Fed and other Central Banks have done everything they can to convince investors to buy stocks.

They’ve cut interest rates over 500 times, with some region’s now actually charging depositors for the right to park their cash.

They’ve bought over $10 trillion worth of bonds in varying forms of QE, perverting the price of “risk” across the board with the hope investors would move into risk assets.

It worked for a time.  Those who had a lot of money to begin with (the top 0.1%) rode the rally that has seen stocks more than triple from their 2009 lows.

It’s not working anymore. The wealthy and superwealthy are now actively dumping stocks and moving into just about anything else.

To whit:

  1. Gold bars ($300K+ per unit kind) are selling at a record pace, having risen over 200% from the year before.
  2. The contemporary art market broke above annual sales of $2 billion for the first time in history, rising over 40% from last year.
  3. Luxury real estate sales are hitting new records globally with some projects selling for over $5,000 per sq. foot in London and other cities.
  4. Billionaires are sitting on record amounts of cash. They’d rather earn nothing or even be charged than own stocks.

What does this tell us about the stock market today? If the people who have benefitted the most from this raging bull market are moving OUT of stocks and into literally ANYTHING ELSE including cash, which is currently yielding next to nothing?

Bear in mind, institutional investors have also been net sellers of stocks for all of 2014. And the individuals who know about their companies than anyone (corporate insiders) are unloading shares at a pace not seen since the height of the Tech Bubble?

These people know the gravy train is about to run off the rails and they’re looking for safety. They don’t care if they miss out on another 5% gain in the stock market, they want to get out of stocks NOW.

Wonder why?

If you’ve yet to take action to prepare for the second round of the financial crisis, we offer a FREE investment report Financial Crisis "Round Two" Survival Guide that outlines easy, simple to follow strategies you can use to not only protect your portfolio from a market downturn, but actually produce profits.

You can pick up a FREE copy at:

http://www.phoenixcapitalmarketing.com/roundtwo.html

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