For weeks now, we've been warning that the ongoing melt-up in the markets isn't sustainable. The higher it shoots, the more painful the inevitable correction will be. Well, yesterday (Thursday, June 11) was certainly painful. This came as a rude awakening to the many new retail investors who have been piling into stocks (and much riskier call options!) in the later days of this melt-up, which is a classic indicator of a mania close to it zenith. Driven by FOMO ("fear of missing out"), inexperienced investors enter the market, buying assets they don't understand, taking risks they don't sufficiently appreciate. And of course, these are the folks who can least afford the ensuing losses when the mania implodes. So, is the melt-up over? Or was yesterday just a short-lived speed bump for the market party bus? As we do each week, we've once again asked the lead partners at New Harbor Financial, Peak Prosperity's endorsed financial advisor, to share their latest insights into the road ahead for investors. In this weeks video we discuss the many classic asset bubble-in-process-of-bursting indicators we're seeing, the impact of Wednesday's Federal Reserve announcement, whether yesterday's drop was sufficient to break the manic market sentiment, and the immediate important decisions investors must make as a result today.
Adam Taggart is the President and Co-Founder of Peak Prosperity. He wears many hats, but his basic job is to handle the business side of things so that his fellow co-founder, Chris Martenson, is free to think and write. Adam is an experienced Silicon Valley internet executive and Stanford MBA. Prior to partnering with Chris (Adam was General Manager of our earlier site, ChrisMartenson.com), he was a Vice President at Yahoo!, a company he served for nine years. Before that, he did the 'startup thing' (mySimon.com, sold to CNET in 2001). As a fresh-faced graduate from Brown University in the early 1990s, Adam got a first-hand look at all that was broken with Wall Street as an investment banking analyst for Merrill Lynch. Most importantly, he's a devoted husband and dad.