Jeff Yastine warns that there are some serious warning signs about the future of the economy, and that investors should not let their guard down. According to Jeff Yastine, investors thought everything was all nice and cozy in 2000 and in 2007. During those times, the dotcom boom and the stock market were booming, respectively. However, that quickly changed. The dotcom boom was followed by a crash, and the 2007 stock market boom was followed by the great crash afterward. Some investors are starting to get comfortable and cozy now too, but Jeff warns that not everything is as it seems to be. Check more on talkmarkets.com to know more about Jeff Yastine.
According to Jeff, this can be seen in the headlines of newspapers and websites in the financial market. Headlines on CNBC and other financial news sites are going on and on about how the economy is becoming better, how investors are making great investments, and how there is nothing to fear about.
When it comes to smart money, people are saying that there is a great excitement about it, but already, newspapers and analysts are saying that perhaps this excitement is over the top and that there is a good chance that there is something to be concerned about.
Jeff notes that he saw a pop and drop in the stock market on December 4th. A pop and drop is when the stock market starts out the day with good news with an all-time high, but soon drops dramatically not long after the opening bell. Jeff notes that he has not seen this kind of thing for a long time.
In other words, you should be prepared to be able to make money when the party ends. This means that perhaps you should start taking some money off the table so that you can cash in when the stock market is still high. This way, you will not have as many regrets if the stock market and the economy starts seeing a great decline and a great crash. If you have any experience with the stock market, you may feel that our current situation is not new, and that you are familiar with it based on your experience in the dotcom crash and the crash of 2007.
Jeff Yastine is the editor of Total Wealth Insider. He has been with Banyan Hill Publishing since 2015.