Chris’ note: Mason blew the doors off yesterday…
That’s Mason Sexton. He’s one of the world’s top market timers. For the past 30 years, he’s been selling trade alerts to some of the world’s wealthiest investors.
One is a Forbes top 40 billionaire. Two are among 2022’s best-performing hedge funds. They pay him as much as $10,000 a month for his insights. That’s due to Mason’s uncanny record of accurate calls.
These include predicting the Dow’s nearly 23% crash on Black Monday in 1987… the COVID market bottom in March 2020… and the top of the market in January 2022 before its 20% drawdown.
Yesterday, he went public with a prediction so ominous he calls it “The Prophecy.” More than 12,000 people joined him. And judging by their response, his message hit home.
So, today, I’m continuing my campaign to get you pay attention. Mason says the stock market could drop back to its COVID low. That’s down nearly 50% from today’s level. And he believes this will have “monstrous” implications that will go well beyond the market.
I know the world seems like a confusing place right now. Especially the world of investing. But as Mason showed yesterday, he’ll you help you see the world… and its apparent chaos… in a totally different way.
Catch the replay here while it’s still online. Then read on for more from Mason on what’s coming and why it’s so important you’re prepared.
In 2021, something strange happened…
Inflation – the scourge of the 1970s – began to climb.
For investors under a certain age, this was new. They’d never invested in a high-inflation environment before.
“Not to worry,” assured the men in charge. “Things will get better.”
But in the first two quarters of 2022, the U.S. GDP shrank. That’s one of the common definitions of a recession.
And the Fed, the media, and the president told you it wasn’t really a recession. “Besides, things will get better,” they said.
Then the stock market plunged. And 2022 was the worst year ever for Treasury bonds.
And then the banks began to fail…
We’re only five months into the year, and bank failures have surpassed 2008 in terms of total assets.
“Not to worry,” said Fed boss Jerome Powell. “The U.S. banking system is sound and resilient.”
Once again, the message was the same, “Please don’t worry. Things will get better.”
But today, I want you to consider a radical possibility: What if the worst is yet to come?
What if the stock market moves sideways (or down, after you account for inflation) for a decade or more? That’s what I saw during the first decade of my career in the 1970s and 1980s.
And what if the system – propped up by extraordinary amounts of debt, low rates, and magical thinking – has finally found its limit?
What would you do in that situation?
These are the questions I ask you to consider today.
My research shows me that an event is coming that few of us have seen before. And I predict it will arrive in the next eight weeks. Many investors will be lucky to break even. Many will be utterly wiped out.
But a lucky few will see this coming and position themselves for extraordinary returns.
What you do in the weeks ahead could determine the trajectory of your wealth – and your retirement – for years to come.
Let me show you what I mean…
My name is Mason Sexton. After graduating from Harvard Business School in 1972, I began a career on Wall Street.
I spent three years at Morgan Stanley… did a stint with storied investment bank Salomon Brothers… I also worked at brokerage firm Mabon, Nugent & Company.
Then, in 1984, I founded my own research firm Harmonic Research where we specialized in precise market timing.
And when I say precise, I mean down to the day or even hour.
Timer Digest – a publication that tracked analysts’ market timing – named me “Top 10 Timer” for 1987, 1988, 1989, 1990, 1992, 1993, and 1994, when I made the cover.
It was during my time with Harmonic Research that I experienced the crash of 1987. Most don’t remember, but 1987 was a great year for stocks… until it wasn’t.
In my “Long-Term Forecast 1985-1992,” which I published in early 1985, I predicted that “in 1987 the stock market will enjoy its biggest rally in history.”
The Dow opened the year at 1,908 points. At the peak, two months before the crash that October, it was at 2,722 points. That’s a 43% increase.
It’s hard for folks who didn’t live through that time to grasp the relief investors felt. After more than a decade of negative “real” (or inflation-adjusted) returns, here was a rally that would lift investors out of the doldrums of the “stagflationary” late 1970s and early 1980s. Things were finally better.
But the worst was yet to come.
On August 14, 1987, CNN interviewed me. As I told the network…
What we think will happen is that we’ll get an important top somewhere around August 24 or 25. […]
If I had to guess the final top, it would be the first or second week of October. When I say “the final top,” that would precede a correction of 15% to 20% “minimum” in the [Dow].
As it happens, the Dow topped at 2,722 on August 25. It was the high for 1987. And it was a level the index wouldn’t see for another two years.
You may recall what happened next…
“Sell All Stocks”
On Monday, October 19, the Dow plunged by 508 points, or 22.6%.
To this day, it’s the worst one-day drop for the index in percentage terms.
Black Monday had arrived…
Of course, it’s one thing to predict a crash. It’s another to tell investors what to do about it.
As it happens, I did that too.
On October 2, 1987, I advised clients of Harmonic Research “to sell all stocks.” Six days later, on FNN (the precursor to CNBC), I advised investors to, “Buy puts on the S&P index… Short IBM, GM, PA, XON, and CHV.”
(If you’re not up on trader jargon, don’t worry. A “put” is a bet that a stock or stock market index will fall. When you “short” a stock, you also betting on lower prices.)
Later, one of my clients told me that her traders had made a fortune following this forecast. They were able to turn $100,000 into more than $13 million.
Why should you care about this story today?
The Decision Is Yours
There are times when one decision has monstrous implications.
In 1987, the decision was to prepare for a crash… or be wiped out. Even legendary trader George Soros wound up on the wrong side of that plunge. He’s reported to have lost $800 million in a matter of days during the crash.
We face a similar situation today. Except the consequences of inaction could be even more severe than they were on Black Monday.
As I said, my research shows that the carnage will begin just eight weeks from now.
Washington officials assure you at every turn not to panic… that things will get better. But we humans have a natural intuition for danger.
Does it feel like things are okay? Does it feel like things are getting better? If you’re honest with yourself, you know the answer.
What precisely is coming? And how should you prepare?
I’ve laid out all the answers in my broadcast.
This “prophecy” could rival my 1987 call that gave my clients the chance to make fortunes.
So please, go here for the replay.
Editor, New Paradigm Research
P.S. This is the first forecast I’ve made public in 30 years. It’s simply too important that you know what’s coming and how to brace for it.
I want as many folks as possible to be ready when this event hits the markets… So my publisher has agreed to make the replay of my broadcast available to you. But don’t wait… There isn’t much time to prepare.