Special “Pre-Event Primer” Report #2
How every great bull market in history has ended
Today, I’m going to reveal to you what is perhaps the best kept secret in investing.
A secret that has made a small group of people “generational wealth” over the years.
Amazon CEO Jeff Bezos… PayPal founder Peter Thiel… and Elon Musk all have this secret to thank for a significant portion of their wealth.
In December 2017 a former Google employee used this secret to generate an estimated $200 million.
These people were all able to create insane amounts of wealth because they understood this one simple secret.
So, are you ready to hear what this wealth generating secret is?
Every great bull market in history has ended the same way.
It’s that simple.
Understanding how bull markets end has led to the creation of obscene amounts of wealth. Regardless of whether you’re investing in stocks, gold, cryptocurrency or even tulips…
This is immutable economic natural law.
I’m going to go into deep detail during our event – The Bull Market Climax Summit – on Wednesday at 2pm sharp. But for now, let me give you a “top down” explanation…
As I showed you yesterday, the mainstream financial media have a habit of ignoring history…
Well, not me.
Take a look at the following chart:
Past performance is not a reliable indicator of future results
This chart depicts one of the greatest bull runs in history. The Japanese Nikkei during the 1980s.
What do you notice happened right at the end of the uptrend?
Before the peak, there was one final – brutal – acceleration…
A climax.
In the final four years of the bull market, the Nikkei – as a whole – made a 204% gain. That’s more than it did during the previous nine years combined.
This isn’t an anomaly…
Here it is again, with the Dow in 1929. Immediately before the end of the Roaring Twenties.
Past performance is not a reliable indicator of future results
Before it was superseded by today’s bull market, the bull market of the 1920s was the longest in history.
And how did it end?
From 1920 to 1924 it gained 30%. A nice return.
But it was from 1925 to its peak in August 1929 when the most money was made. In the final phase – the climax phase circled above – it surged… more than doubling itself.
This climax phase isn’t limited to stocks.
It cuts through time… space and asset type…
Look at bitcoin…
Past performance is not a reliable indicator of future results
From April to November 2017, bitcoin soared from $1,000 to $10,000.
But that was nothing compared to the climax.
In the month before the peak, the price went vertical. It made the same gain in a month – $10,000 – that it had done in the entire seven months preceding it.
That’s what this climax is…
A final acceleration that puts all the gains that have come before it to shame
I want you to join us on Wednesday at 2pm so we can properly go over with you why this climax stage tends to happen.
But let me briefly run through the mechanics behind the climax phase.
In fact, once you understand this facet of investing, you’re well on your way to understanding markets as a whole.
I’m talking about people.
You see, while people are rational on an individual basis, in a crowd their rationality goes out of the window…
And their emotions take over.
That’s what makes people predictable. They always exhibit the same response to certain stimuli. It’s repeated over and over.
This manifests itself in patterns we can use to predict the future.
And in bull markets, people follow a predictable three-phase pattern.
- Phase 1 is the “Disbelief” phase.
The first phase of a bull market is characterised by investor caution. They’ve just spent a good period of time looking at a stockmarket that’s done almost nothing but drop. So, they’re wary that any signs of a turnaround may be false positives. Because of this, they’re reluctant to start jumping into the market again, unless they have a very good reason too. This manifests itself in a sluggish, stop start, but marginally positive trend.
- Phase 2 is the “Acceptance” phase.
That’s when everyone gets the message… the signs that the downturn is over come good… people start to believe a bull market is taking hold… and it’s characterised by consistent high after high.
- Phase 3 is the “Climax” phase.
Investors are consistently making money. More and more investors move in. But they wonder: “How long can this period of prosperity last?” Investors still waiting on the sidelines do not want to miss out. And eventually they pile into the market. At once. In a mad, manic dash to make the most out of the bull market. What follows is a near vertical acceleration.
Now here’s the thing.
What happens when we look at the current bull market – the longest in history…
How does it compare?
Notice something is missing?
All I see is a long steady advance.
It’s missing the final climax phase. The market explosion is yet to happen.
Now of course, I don’t have a crystal ball…
I can’t guarantee that this is going to happen. Nothing in life, especially markets, is guaranteed.
But would you bet against history? I wouldn’t.
Tomorrow, I’ll show you how making some very specific but simple investments could amplify the gains to be made from a Bull Market Climax.
So keep an eye out for part 3 tomorrow.
Then, this Wednesday at 2pm, during the Bull Market Climax Summit, I want to show you irrefutable evidence for why this climax is about to happen.
Including:
- How as we speak I believe an $80 trillion financial tsunami is racing towards the S&P 500…
- And a further $70 trillion is waiting to mobilise…
- PLUS – I’ll introduce you to the most reliable indicator for predicting these climaxes in stocks. An indicator that’s predicted the last three down to a tee. And it’s perilously close to signalling this event as we speak.
And most importantly, we’ll show you the steps you need to take to potentially walk away with a lot of money when this bull market climax kicks into action.
We have some truly exciting times ahead.
Get ready for the biggest ramp-up in stocks ever witnessed.
Until then…
All the best,
Eoin Treacy
Southbank Investment Research
