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Breaking News: October RAGE Gauge and Market Corrections

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OK, a major Wall Street firm came out recently and predicted a fifteen percent correction in the market. What should you do? Well, as Your Survival Guy, I continue to stick with my investing plan regardless of what Wall Street predicts. As you know, predictions are cheap. Why? Because more often than not, these predictions are reversed when their crystal balls turn out to be not so crystal clear. So what’s the point? The point of the predictions is to instill fear.

Nothing gets the phone ringing like the prediction of a market correction, especially one of this magnitude. Ring, ring, ring goes Bob the Broker’s phone. “Hi Bob, what’s this I hear about you guys calling for a correction? What do you think Bob? How are ‘we’ doing Bob?” asks the client.

“We” is not on Bob’s mind at that specific moment—especially when he’s planning his next trip to play golf at St. Andrews. But the prediction has served its purpose. It has the phones ringing, and gives Bob a chance to sell product. That’s what brokers do, you see, they sell clients product that’s sitting in their firm’s inventory. Like a car salesman selling you something off the lot. It might not be the model you’re looking for, but they’ve already got it on the lot, so it’s the one you’re getting. “I’ve got something you might be interested in,” Bob says. After all, he’s got business class airfare to pay for.

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Action Line: My RAGE Gauge is at full tilt and remains so until further notice. Don’t be fooled by cheap predictions. Even a blind squirrel finds a nut every now and then. Keep on task. If you need help let’s talk. But only if you’re serious. I’m not in the prediction business.

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West (RIP JB) and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.
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