Friends, I’ll always tell you how it is.
When things are looking bad, I won’t hide under a desk to avoid you… Or block your emails. Or ignore your questions.
No matter what the market throws at us, I’ll always give you straight talk.
And right now, I have some bad news about the stock market.
Based on the numbers I’m looking at… it’s likely the broader market will head lower.
The Federal Reserve is raising rates. Inflation is running hot at 8.5% – the highest it’s been since 1981.
Those negatives are already priced into the market. So it’s no surprise the S&P 500 is down 8% since the start of the year.
But I don’t believe the market has yet to price in the next round of corporate earnings. If they guide lower than last year… we could see equities dive even further.
Here’s why…
Even with the current pullback, the S&P 500 is wildly overvalued at 25 times earnings. And the Nasdaq is nearly the same, at 24 times earnings.
That’s their highest valuations in 10 years.
So the slightest bit of bad news could cause the S&P 500 and Nasdaq to revisit their 2022 lows… And probably break below them.
This confirms my February prediction that we’re in a “cyclical” bear market.
Now, I don’t want you to fear a cyclical bear market. It’s much different than a “secular” bear market.
Secular markets are long-term “one-way” directional moves that generally last between 12 and 20 years.
Cyclical markets are shorter periods within secular markets. They generally last 6–18 months.
Right now, we’re experiencing a cyclical bear market within a long-term secular bull market.
During the 1982–2000 secular bull market, we experienced three cyclical bear markets that lasted an average of 11 months. The average peak-to-valley drop during those cyclical bear markets was 25%.
However, the average recovery time to new highs was just 11 months. So I’m not worried.
We need cyclical moves lower to reset the market for its next massive move higher.
If you have the right perspective, cyclical bear markets offer the opportunity to make boatloads of money.
Is History Repeating Itself?
In 1994, I saw a market bloodbath similar to what we’re seeing today.
Just like in 2021, we saw a huge rally in stocks and bonds in 1993. They were up 17% and 34%, respectively.
And then bang… The market just puked all over itself the following year.
Surging inflation spooked the Fed. And they started jawboning the market lower.
It was a nightmare.
In those days, brokers like myself got stock data from a Quotron. It’s a machine that displayed up-to-the-second securities prices.
I had several hundred stocks listed on my Quotron. And the screen was just a sea of red.
Amazing companies – from Microsoft to Oracle, Walmart, and Cisco – got slammed. They were down 27%, 30%, 38%, and 53% respectively.
I was 22 at the time, and it felt like the end of the world.
But nearly 30 years later, my market experience has given me some perspective.
I realize what happened from 1994–95 was not the beginning of a secular bear market. Instead, it was a short-term change in market sentiment from positive to negative.
You see, there was no issue with the quality of the companies. There wasn’t an issue with the quality of the earnings. It wasn’t even a slowdown.
People were afraid the Fed would get too aggressive with raising rates and put us in recession.
Of course, that didn’t happen. But market sentiment soured. And we entered a cyclical bear market back then.
In my opinion, that 1-year period was the single-best buying opportunity of the entire decade. It was when the risk was lowest, and the reward was highest.
We weren’t headed to a recession… we were on the cusp of massive technological adoption.
The internet took off. And we saw companies like Oracle, Microsoft, and Cisco rise 100%, 2,600%, and 7,788% from 1994–2000.
It was a spectacular run.
So today, I’m giving you the benefit of my three decades of market experience.
From managing money as a broker to running a hedge fund… This has been my world since I was 18.
And I’m telling you… what we’re seeing now is 1994 all over again.
Painful? Yes. Difficult? Yes.
But the end of the world? NO.
Those who kept their wits and made the right moves between 1994–1995 were positioned to play a truly epic 5-year rally.
So much wealth was created coming out of that pullback…. it was mind-boggling.
Make the Right Move Now
The year between 1994 and 1995 was full of gloom and doom.
Then all of a sudden, the clouds parted. We had five wonderful years from 1995–2000.
Of course, inflation is a problem today…
Much of that is due to supply chain issues. But those will eventually be resolved.
We’ll also eventually see a resolution to the geopolitical uncertainty created by Russia’s invasion of Ukraine.
When those things happen, the negative sentiment will shift… And you’ll see American companies produce at a prodigious rate. They will flood the market with goods and bring down inflation.
So how do we play this coming upheaval?
If you’re looking to take advantage of this volatility now, there’s an opportunity opening up in the crypto space.
It’s a one-time event coming to crypto that’s never happened before… and when it does, I believe it will trigger a “crypto panic” like we’ve never seen before.
To be clear, this event will happen. It’s not dependent on current market conditions or a best-case scenario.
And those who prepare now will have a chance to secure a lifetime of wealth and income… an opportunity to change the course of your entire generational line.
So on Wednesday, April 20 at 8 p.m. ET, I’m hosting a special event to help you get positioned right now.
It’s called The Coming Crypto Panic: Teeka Tiwari’s Most Important Warning of His Career.
I’ll explain exactly what’s behind this event… and what it means for you.
I’ll even give you the name of one of my top picks for profiting when the panic hits.
(My free picks have averaged a gain of over 1,500%… so it’ll definitely be worth your time to attend.)
Friends, back in February, I warned you this would be a tough year. I said it’d be like 1994 all over again.
But this isn’t the beginning of a long-term recession… It’s a cyclical bear market within a long-term bull market.
It’s important you know the difference.
Just as in 1994, I believe the current pullback will create a rally for the ages. But you must make the right moves now.
So take the first step and join me Wednesday, April 20, at 8 p.m. for my special briefing.
Let the Game Come to You!
Big T