One of my mentors just told me:
US stock market crash is coming.
Here are the signs:
1. I cannot find undervalued stocks for large cap and middle cap stocks in US stock market using my stock pick strategy. The last time I cannot find undervalued stock was during 2008, then stock market crashed big time.
2…. Investor funds start to flow into US small cap stocks. In a stock market, there are big cap, middle cap and small cap stocks. When the small cap stocks start to rally, that is a sign that the rally is at the last stage.
3. Oil price is at $106 now and still continue to rise. High oil stock is damaging to a lot of industries.
4. Middle east unrest is causing disrupting effect to companies that have offices there or has business dealings there. Nobody know when it will end. And it may spread to other parts of middle east.
My portfolio is 70% in cash now. Planning to sell my Bank of America to raise more cash.
So what can you do when the market is bearish? Trade stocks when you can find good stocks, and trade stocks options with my other mentor’s conservative option trading strategies to continue to make money in the stock market even when the market is moving downwards.




