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We’ve been in a secular bear (but cyclical bull) market since March 2009. Secular markets span decades (the current secular bear market began in 2000 with the dot-com implosion). Cyclical markets exist inside secular ones.
They rise and fall inside the larger trend of the secular market. Think of a children’s circus slide… you rise and fall, but the ultimate trend is down.
In a secular bear market, there are only two ways to play it. You either learn how to spot and trade the rallies and sell-offs, or you simply wait for the massive drops and buy blue chips on the cheap for the long term.
But within the next few years, we will switch into secular bull mode. That will make our job much easier as investors.
In secular bull markets, you simply go long stocks… and then stay there throughout the entire bull run. Advanced traders can learn to use the options market to “juice” their returns.
Most importantly, we’ll always use our position sizing and trailing stop-loss discipline to safeguard our capital. That will keep us safe through any market fits along the way.
Bottom line: There will be plenty of volatility moving forward. But in the end, those who can tune out the noise—and invest according to the larger secular trends—will make a fortune.
Reeves’ Note: According to Teeka’s research, in 2015, we’ve crossed back into a secular bull market. It’s due to America’s demographic shift he mentions above. That means we’ve got 14 years of gains ahead of us… and a far easier strategy to follow to book big gains.
If you want to learn how to supercharge these returns, click here to sign up for Teeka’s training event at 8 p.m. ET tonight. Teeka will give away two free picks his system identified to explode higher in the new secular bull market.