Editor’s Note: Matt and Wayne have been busy this week getting ready for the special Investor Briefing they hosted yesterday. Which is why we’ve decided to republish this article we originally sent you in 2018. As you’ll see, we warned you two years ahead of time that 2020 would be the year the bull market finally came to an end. But one thing never changes: the right time to start preparing for a recession is now. To learn how to prepare, read on…
When it comes to making predictions, it seems like Ray Dalio never misses the mark.
For example, not only did he accurately predict the 2008 financial crisis…
But after forecasting an economic slowdown in Europe earlier this year, he made a big bet against companies in the EU — and made a fortune.
His predictive abilities have turned him into a multi-billionaire, and have turned his investment firm, Bridgewater Associates, into the largest hedge fund in the world.
So last week, when Dalio made a prediction about the next U.S. recession, we listened very carefully.
And now you should too…
Like the Depression of the 1930s
In an interview last Wednesday with Bloomberg Television, Dalio revealed bad news:
He’s predicting a major recession by the year 2020.
And according to his analysis, this could mean big trouble for stock investors.
In fact, he believes it could be as bad as the Depression of the 1930s, where stock prices dropped by 80%.
But Dalio isn’t the only one who thinks things could get bloody…
Going “Off the Cliff” in 2020
Ben Bernanke, the former Federal Reserve Chairman, recently warned that the U.S. economy could go “off the cliff” in 2020.
The Chief Economist at Moody’s Analytics agreed, calling 2020 a “real inflection point.”
Others sharing the same perspective about 2020 include investment banks J.P. Morgan and Society Generale, and world-famous economists like Nouriel Roubini.
Despite the variety of reasons for their prediction (e.g., tight labor market, sky-high asset valuations, impact of a trade war, rising interest rates, etc.), they all came to the same conclusion:
A 2020 recession is a virtual certainty.
What’s this mean for investors like you?
Simple. The time to get ready for the forthcoming recession is now.
The End of the Stock Market
If you’re retired — or if you’re getting close to retirement — you need to take action now. Specifically, you need to do two things:
- You need to preserve & protect the capital you have.
- You need to grow your capital so you have enough to pay your bills in the future.
To accomplish the first task, be sure to allocate a portion of your portfolio to conservative, income-producing assets like government bonds, high-quality preferred stocks, or hard assets like gold and silver.
But that’s the easy part... the hard part is figuring out how to grow your nest egg.
You see, for the last decade, the stock market has had an extraordinary run. In fact, this has been the greatest run in history. But now this cycle is coming to an end.
At this point, your upside from stocks is severely limited…
And with a recession looming, the risk of losing your stock market nest egg is very high.
How To Grow Your Capital
That’s why you need to identify other investment options — in other words, options outside of the stock market.
So tomorrow, Wayne will show you several of them. Whether you have $10,000 in your bank account or $10 million, you need to understand the various ways you can grow your capital.
In the meantime, we’d like to ask you for a favor…
Click the “Comment” button below (or click here now) and let us know how you’re thinking about growing your nest egg over the next few years.