You Must Prep for the Melt Down Today

I'm starting to feel like a broken record...

I've been talking about the Melt Up for years. I first gave a speech on the topic at our annual Stansberry Conference and Alliance Meeting way back in 2015.

It hadn't yet started back then, of course... But I saw the underlying pieces moving into place.

In my mind, an eventual Melt Up was a certainty. And I've done everything possible to tell the world about it since then...

There have been plenty of starts and stops of Melt Up behavior in recent years. And for the most part, stocks were on a one-way cruise higher as we headed into 2020.

It even looked like the final swing of the Melt Up was upon us at the start of the year. But then, COVID-19 crashed the party...

Make no mistake – that bust was painful and record-breaking. However, the recovery since then has been just as impressive. And to me, it's proven a crucial fact.

The final leg of the Melt Up is here. That means you've got to be on board the ride now. But just as important, it means you've got to be ready for the Melt Down.

Let me explain...

A lot has happened since the market bottomed in March. The Federal Reserve has pumped trillions of dollars into the financial system... The government has spent trillions on fiscal stimulus... And investors have bid stocks up to dramatic new highs.

Seven months ago, investors wondered when the market would find a bottom. Now they're wondering how much higher things could run.

My answer is that they could run far higher than most would believe. This is a Melt Up, after all. The hallmarks are here. And that means prices can, and likely will, soar to stratospheric heights.

Simply put, you ain't seen nothing yet.

That reality creates its own set of the problems, though. Because as longtime readers know, a Melt Down typically follows a Melt Up. And all the gains of the Melt Up go away. I am not kidding. The market gives back everything it gained during the Melt Up. All of it.

I just want you to realize that we are playing with fire here – 100%.

Based on history, once the general public buys in like it has over the summer, our time is short. Typically, it means we're down to the last 12 months. That means we could see a major market top and the start of a Melt Down by next summer – or sooner.

I don't mean we'll see a market top like we saw in February. That decline could look like nothing in comparison to a true Melt Down.

When the tech bubble burst, the S&P 500 fell by more than 50%. But what was even worse was that the decline lasted nearly three years.

There was no quick fall and rebound like we saw this year. And in a true Melt Down, the market will take everyone down over what could be years, not weeks.

Worst of all, the Nasdaq – the real heart of the dot-com era Melt Up – fell nearly 80% over a similar time frame. It took 15 years to recover those losses.

I don't tell you this to scare you. I tell you this to make you aware of what's happening today... so you are aware of what's possible in the not-so-distant future.

You want to own stocks today to profit from the Melt Up. But you also need a plan to protect yourself in the coming Melt Down... to know exactly when you'll sell.

The best way to do that is to have and follow your trailing stops. I need you to trust your trailing stops deep down in your toes. (For more details about how to use trailing stops, read here.)

You can't have any reservations about selling anything you own. It only takes a sliver of doubt when times get tough for you to blow it.

You'll know the companies you own. You'll know their prospects. And you'll come up with reasons why you shouldn't sell... even though you hit a stop.

If you do this, it'll absolutely crush your portfolio. You will risk losing everything – which is what happens to most people in a Melt Down.

Simply put, if you make the mistake of not following your stops when this all unwinds, you might never recover that money.

Times are good. You want to ride the Melt Up as high as you can. But now is also the time to prep yourself for the Melt Down. Have your stop losses in place... And be ready to follow them.

Good investing,

Steve

P.S. The Melt Down isn't here yet... So while you need to be prepared, you can't sit on the sidelines. If you do, this Melt Up will pass you by. That's why I recently hosted an event detailing what I see happening, and how to position yourself to profit. You've only got a short time left to view it. Then it'll go offline for good. To check it out, click here.

Further Reading

If you've looked at the markets lately, you might be wondering how Steve could call this a Melt Up. But that train of thought is missing something important. If you want to ride this Melt Up to incredible gains, you have to know what to expect along the way... Get the full story here: A Melt Up Is Never a Smooth Run Higher.

If you want to make sure your gains don't evaporate in a down market, you need to plan for a worst-case scenario. That's why Ben Morris put together these three steps to help you prepare for the risk of market volatility... Read Ben's advice right here: Take Care of Your Risk to Reap Investment Rewards.

Market Notes
THE ART OF DELIVERING PRIORITY GOODS AROUND THE WORLD

Today, we’re highlighting a company that’s benefiting as businesses continue shipping goods…

The shift to online shopping has accelerated during the pandemic. In recent months, we’ve covered how this trend has boosted shares of e-commerce giants like Alibaba (BABA) and Amazon (AMZN). But it’s not just e-commerce companies that are benefiting…

Expeditors International of Washington (EXPD) is a $16 billion logistics company. It helps move goods all over the world and handles all the challenges of shipping internationally. And with shipping more crucial now than ever before, Expeditors International is thriving… In its most recent quarter, sales jumped 27%, driven by a surge in demand for shipping of technology-related equipment, medical supplies, and other priority goods.

As you can see in today’s chart, shares of EXPD have soared from their March lows. The stock has nearly doubled over that time frame, and it recently hit a fresh all-time high. As long as businesses and people need to ship their goods, this stock should continue higher…