Reviews of Dan Ferris’ recent 10-Stock Portfolio for a 20-Year Go-Nowhere Market are making the rounds, and I want to see if it lives up to the hype. Check out my Dan Ferris Extreme Value review for a bird’s-eye view of this new package.
Nearly $50 trillion has already been wiped out of investors’ portfolios this year…
But Dan Ferris’ research indicates a MAJOR market crash is right around the corner. He predicts it will be WORSE than the Dot-Com crash and the 2008 meltdown – combined.
Contents
- 1 What exactly is Dan Ferris’ Prediction?
- 2 Dan Ferris Warning: The 60/40 Portfolio doesn’t work anymore
- 3 Dan Ferris: Stocks to Fall 75%… And That’s NOT the Worst Part!
- 4 Dan Ferris Meltdown – Is It Real?
- 5 Dan Ferris Advices – What To Do?
- 6 Dan Ferris Extreme Value Research – Strategy to Beat 20 Years of Zero Returns
- 7 Final Thoughts
What exactly is Dan Ferris’ Prediction?
Have you heard already about Dan Ferris’ scary prediction?
He believes the biggest stocks mega-bubble in history is about to burst.
His exact words are: “They should be scared! That’s usually what it takes to get people to wake up and pay attention!”
If you missed his interview, and want to learn more about his plan to survive and profit, check it out here.
His prediction is that it will be worse than the Dot-Com crash and the 2008 meltdown-combined. It will impact every asset you own.
Dan Ferris projection for today grows more frightening at that point. Dan warns that what occurs NEXT, following this devastating catastrophe, would surprise most Americans with money in the market and might risk the retirements of millions of people.
What happens after the crash will likely be even worse.
Because Dan predicts, even after stock crash, we are going to face 20 years, or more, of zero returns.
What is his explanation? Right before the stock market bubble burst, the Fed, America’s central bank, is raising rates.
But U.S. corporations have gotten used to cheap debt.
They were able to refinance repeatedly at historically low rates. and keep moving the issue along the chain.
But if interest rates climb further, which they are already doing… and which will almost certainly continue climbing up.
Fed Chairman Powell has said that he is “strongly committed” to fight inflation “until the job is done.”
Dan recalls an interesting principle called the Taylor Rule. Essentially, the theory is that to stop inflation, interest rates must rise one and a half times the actual inflation number.
If the rates double or triple from now on, there will be almost zero companies out there with a heavy debt load that would be able to afford to refinance.
These companies will go out of business. Dan is talking about some of the largest companies of America today, not the small family businesses.
Of course, it’s not just corporations that would be in big trouble if rates move that high.
But just think about how long it would take to recover from any one of these scenarios.
Which is why his prediction is DECADES of zero growth for stocks.
Most people probably don’t realize this… but decades of zero growth in stocks is way more common than you probably think. Look at this example:
Can you retire or stay retired if the value of your retirement portfolio goes down 75%, and then apply zero growth for the next 20 years?
Would that amount be enough to survive on for 20-30 years?
I can say – it wouldn’t be enough for me.
However, not all of it is bad news.
Dan claims that if you’re ready to act right away, he’ll show you the preparation steps you need to take.
He has developed a unique way to make sure his readers not only survive this catastrophe, but perhaps even come out of it in a better financial situation than they are now.
Dan Ferris Warning: The 60/40 Portfolio doesn’t work anymore
The 60/40 portfolio is dead and gone forever.
Owning a portfolio with a 60/40 split of stocks and bonds is not a good idea right now. This approach will not provide reasonable growth and a steady stream of income to support you for the rest of your life.
Here are Dan’s exact words:
“The Fed is out of options, people!
If they lower rates or print money – MORE INFLATION!
If they raise rates or stop printing – THEY TANK THE ECONOMY!”
You can be in for a very shocking outcome if you haven’t already changed your investing approach to one that can survive these extreme market swings.
Dan Ferris: Stocks to Fall 75%… And That’s NOT the Worst Part!
Many of Dan’s colleagues have written that overall investor bearishness is now at the highest levels since 1987.
Prices of many major companies are so low that a lot of people in the mainstream financial media think that the market has bottomed, and it is good time to buy the dip.
In the video, Dan admits that there are some stocks on the market that it would be wise to buy at these levels. But as a whole, the bottom is not reached yet.
In fact, “despite the pullback in stocks we’ve seen this year – even with most of the major indices in bear markets… stocks STILL trade at historically record-high valuations!”
His statement is covered by using several metrics:
- Price to sales ratio – it compares the market capitalization of the entire stock market (the number of outstanding shares multiplied by the share price) to the revenue of all companies on the stock market over the past 12 months. In general, the lower the P/s ratio, the more attractive is the investment.
As you can see on the right side of the chart, stocks are slightly less expensive than its peak in early 2022.
- CAPE ratio (also known as the Cyclically Adjusted Price-Earnings ratio). It is calculated by using the S&P 500’s current price divided by the 10-year moving average of inflation-adjusted earnings. Which essentially means that this ratio smooths out typical economic cycle blips by looking at corporate earnings over a 10-year period.
As shown on the chart, the CAPE ratio reached an all-time high just before the Dot-Com crash. We’re not too far from that extreme high right now.
Many people probably forgot that almost ALL the losses that have occurred in all the bear markets dating back to the Great Depression have happened during the final third part of the crash.
Meaning if history is any indication, stocks are likely headed much lower, in the coming months.
Historically… 20% only gets us to the second-third of a bear market.
Therefore, the remaining downside for stocks might range from 36% at the low end to 96% at the high end.
- The Buffet Indicator – it compares the value of the U.S. stock market to U.S. GDP.
At one point, Buffett called this: “The best single measure of where valuations stand at any given moment.”
This chart shows that the indicator is a one-third higher than the long-term trend line. As you can see, it is well above the record high during the Dot-Com bubble.
Using history as an indicator, Dan is predicting that the stocks must go down to get back in line with its long-term trend.
Dan Ferris Meltdown – Is It Real?
Few words about housing
During his interview, Dan spoke about housing. And the news is definitely not good.
As you know, the Fed’s recent rate hikes have sent mortgage rates up to 7%. This is a new 14-year high.
As per the National Association of Realtors, more than 9 million potential homebuyers are priced out of market.
This is the reason why adjustable-rate mortgages are now offered to the buyers.
You probably remember that this financial invention was one of the causes of the last housing meltdown.
Home prices are now falling at the fastest rate since the last crash. Stocks are likely to follow.
Dan Ferris Advices – What To Do?
Big Index Funds Can’t Save Your Retirement
Actually, this is the first step you should take as per Dan Ferris: get out of most of your Index funds and ETFs.
Now is the time to shrink your risk profile. Carefully select your positions thinking about how you can lose money before you plan how to make money.
Another advice from Dan Ferris – DON’T buy blue chips! He thinks even more blue chips will suffer massive single day drops in the coming months.
Specifically, he is warning it could soon happen to Apple and Tesla. They are his two must-sell popular stocks in his presentation.
Apple and Tesla are among five largest stocks by market cap in the S&P Index, the Nasdaq Composite Index, the Russell 3000 Index, and probably many other U.S. stock indexes.
Second, they haven’t performed as poorly as Microsoft, Alphabet, and Amazon so far this year.
In 2022, each of those three further mega-cap leaders has had a 30% decline.
So far Apple has decreased by around 16%, and Tesla has decreased by about 23%.
Mark his words: Before this crash is over, Apple and Tesla will likely crack like the rest.
Dan Ferris Extreme Value Research – Strategy to Beat 20 Years of Zero Returns
Dan is already sharing the exact strategy he believes investors should be using with readers of his Extreme Value Newsletter – click here for full review.
Your Meltdown Survivor Guide: Everything You Need To Know to Survive the Coming Crash and 20 Years of Zero Return
If you are interested in his prediction, he has written a full research report detailing his strategy you should be following. It is called “ Your Meltdown Survivor Guide: Everything You Need To Know to Survive the Coming Crash and 20 Years of Zero Return.”
This is a great report if you want to learn what does it mean to invest in a period of higher interest rates, or lower equity valuations. It will give you the answer to the question “How do you manage a portfolio when stocks and bonds are more corelated than ever before?”
In this report Dan lines out the exact hedges that make the most sense right now. And he doesn’t care what anybody says about gold not soaring since inflation started rising.
Gold has crushed stocks, bonds, bitcoin, and most financial assets since the bear market started.
Gold is a 50-bagger since the U.S. dollar went off the gold standard in 1971. It has outperformed stocks in the 21st century. And it has a 5,000-year history of preserving wealth.
And the reason for it is that it provides a level of protection unavailable in any asset that may be altered or diluted, such as most stocks… or in something newer, like 10-year-old cryptocurrency Bitcoin.
From this report you will get more information than 99.9% of Americans have at this time.
To build a portfolio that can survive a 75% drop and 20 years or more of no growth requires a lot more than just this report.
10-stock Portfolio for a 20-Year Go-Nowhere Market
Dan has been managing Extreme Value research service. This is the place where he shares his best research, market predictions and recommendations. There, you’ll also find an entire model portfolio of his 10 best investment ideas. He calls it “10-stock Portfolio for a 20-Year Go-Nowhere Market.”
He put together this portfolio exclusively for Extreme Value readers. For short time, the door to Extreme Value will be opened with the most generous offer he has ever made in the 22 years he’s been working at Stansberry Research.
The reason is because he believes that the moves you make in the coming weeks will determine what happens to your money for the next 20 years.
This is the time where you do not want to try to find the right way all alone.
Stansberry’s Financial Survival Program
As a new member of Extreme Value research, you will receive a special bonus: 7 rare opportunities to profit during the upcoming chaos.
Stansberry’s publisher, Brett Aitken recently asked all the firm’s analysts and editors to create an easy-to-follow plan for the volatile market we are in today. Because moments like current one also provides rare opportunities to profit.
In Stansberry’s Financial Survival Program, you can find seven opportunities. Each one can deliver up to hundreds of percent upside.
Equipped with this program, you will learn:
- How to see the possibilities in gold and silver. How to own it, how to store it, including specific gold and silver rocks to buy, which ones to avoid.
- Two specific tactics with potential to 6X your money with low risk in the market crash.
- A group of undervalued stocks you can buy at a discount today. You can hold them for the next 10 years, and then wake up to a generous retirement nest egg.
- And so much more valuable information.
Normally, Stansberry’s Financial Survival Program would cost you $3,000. If you sign up for Extreme Value here, you’ll get access to everything for FREE.
Final Thoughts
Of course, nobody knows how long the stocks will continue to fall.
What we know so far is that Dan’s 10-stock Portfolio is perfect for any age, whether you are working, about to retire, or you’ve already retired. Paying subscribers are the first to find out in case things change and a move is needed. Most importantly, this portfolio is designed for a wide range of scenarios, including a very strong dollar, a very weak dollar and lots of other things in between.
Dan Ferris has many years of research and experience behind him. He knows how to handle this kind of situations. His promise is that at Stansberry, they are going to make you happy. So, it is a win-win situation. You are not going to lose.