What If?

“What if” is a normal question that people ask themselves and friends from time-to-time to have fun, and to be prepared.  “What would you do IF you won the lottery?” is clearly a fun question that is asked often.  Other questions, however, are no fun at all like “What would you do IF your bank account was hacked?” and such.

Along the lines of the second question and perhaps more practical would be a question like “What would you do IF the stock market crashes again?”  There are two problems with this question that should be obvious: one is that the market will crash again because the global central bank liquidity is driving markets to incredibly overbought levels, and two is that when it happens again, if you’re not prepared – you’re too late.

In our lifetimes we have witnessed three spectacular stock market crashes: 1987, 2000, and 2008.  With the current mega-rally occurring on less and less volume, many are wondering which day the market will crash again…not “if.”

The chart above overlays the current central-planning rally that is underway, orchestrated by every major central bank on the planet.  What’s interesting is how eerily close it tracks the 1987 market that led to a stunning drop on Black Monday.

Remember, most people believe that this is not an “if” scenario, but rather a “when” will it crash again scenario.  The question from above, however, is “What will you do when the stock market crashes again?”

Perhaps a few better questions are: Are you prepared — and — Do you own a large amount of GOLD for protection?