Earn 270% Gains Even as the Market Crashes

by Andrew Zatlin

270% gains?

Even as the market CRASHES?

For some of my readers, that’s exactly what I’ve been handing them.

Here’s why it’s not too late to join them.

For a transcript of this video, see below. This transcript has been lightly edited for length and clarity.

Earn 270% Gains Even as the Market Crashes

I’ve spent the past few months advising you how to navigate — and profit from — the crashing market.

But if you haven’t been paying attention, it’s not too late…

You see, I’m convinced this market is headed further south.

I’ve got three big reasons why.

So today, I’ll explain each of them — and I’ll tell you how to take action on them.

Reason #1: What To Do with Higher Costs?

Last month, inflation rose 8.6%, the highest jump since 1981.

To combat this inflation, the Fed might raise rates more frequently and more dramatically than the market is expecting.

The market doesn’t like rate hikes. But the Fed doesn’t care. It’s willing to cause chaos to get a grip on inflation.

Companies are getting beat up and battered by all this inflation. In fact, in the most recent quarter, a whopping 85% of S&P 500 companies mentioned “inflation” on their earnings calls.

As you can see, that number vastly exceeds what’s “normal.”

Well, now they’ve got to figure out what to do with these higher costs.

If they pass them onto consumers, they might lose business.

But if they absorb them, their margins get squeezed.

And that brings us to the second reason I believe the market will continue to fall…

Reason #2: The Market’s Too Damn High!

Simply put, the market’s current valuation is too high. Let me show you what I mean:

The way the S&P 500 is measured is simple:

It’s these companies’ stock prices today divided by their expected earnings per share over the next 12 months. That’s the 12-month P/E Ratio.

As you can see by the blue dotted line, historically, the ratio is around 17x.

But with inflation going up, the costs for these companies are going up. And if they absorb these costs, their earnings will go down.

And if their earnings go down, all of a sudden, these companies are overvalued!

To get back to that historical 17x multiple, their prices would have to crash by another 10% to 15%.

And a particular upcoming event might be enough to trigger this next crash…

Reason #3: Quad Witching

That event is known as “quad witching.”

This refers to a once-in-a-quarter event where four derivatives contracts expire at the same time: stock index futures, stock index options, stock options, and single stock futures.

And it signals bad, bad news — for some investors, anyway. Let me explain:

Most investors have lost so much money recently. They’re in pain.

But for everyone who lost money betting on stocks to rise, someone else made money by betting on stocks to fall. They took the opposite side of the trade.

In other words, some people are making money even as the market goes down.

Want to become one of them?

Here’s What You Can Do About It Today

First of all, you could invest in an ETF that goes up when the market goes down — the SQQQ ProShares ETF, for example, just hit a 52-week high.

But that’s a pretty blunt investment instrument.

For a more exact strategy, one based on real-time data, consider my Moneyball Crash Alert.

As I mentioned a moment ago, some of my readers are killing it.

Want to join them? There’s still time. It’s up to you.

You could watch in fear as the market continues to dive…

Or you could join me and my other readers and get positioned to make a fortune.

In the meantime, Zatlin out. Talk to you soon.

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In it to win it,
Andrew Zatlin
Andrew Zatlin
Moneyball Economics