Dow to Drop 80% Soon? · There Is a Magic Formula for Timing the Market

**Proceeds from this book go towards the fight against breast cancer*

A respected economist predicts 80% drop in the Dow in 2016

In his book “The Age of Deception”, James Dale Davidson predicts a “Black Swan” event with the stock market plunging more than 50% and with the Dow

Jones Industrial Averages (DJIA or DOW) dropping 80% in 2016. He promises to tell you what to do to protect your investments and how to “survive and prosper” through the stock market crash that he is certain is coming in 2016. A drop in the Dow of 80% can only mean that he is predicting a severe recession or worse, a depression in 2016. I disagree. This book will show the reader how to predict the next recession.

My 401k retirement savings was fully invested in the stock market. Sometime around the middle of August 2007, I got out of stocks and I put my balance into a money market fund. I stayed out of equities until December 1, 2008. On December 2, 2008, I reinvested my money back into the same funds they were in before I exited the market. By the end of 2009, the balance of my portfolio increased by more than 50%. This is after backing out new contributions and their earnings. See the charts in chapter, "How I Earned 50% Return on My Money in Just One Year".

Managing My Investment Portfolio –

My personal investment strategy can be described as “wealth preservation on auto-pilot” so I do not spend much time analyzing and worrying about current events that affect the market. Investing is not rocket science. I know that business, financial, political and economic news are market movers and will cause volatility in the market. So what’s the point of worrying? What is the point of watching the market go up and down and stressing over paper losses of 10% to 20%? I am not going to take my money out if my portfolio goes down 20%. I am not going to take my money out if my portfolio goes up 20%.

If you succeed in following the strategy in this book, you will never lose money in the stock market. In fact you could make a killing when the next recession hits just by following my simple stress-free KISS strategy which is explained further under the chapter, “How I Earned More Than 50% in Just One Year”.

I believe the “KISS Principle” of investing and my stress-free “Auto-Pilot” investment strategy are the best and simplest strategies to follow. Investing should be simple and stress-free. Investing should not keep you awake at night worrying about how your investments will do tomorrow. See the Chapter, "The Kiss Principle Auto-Pilot Strategy".

I can honestly tell you that I have never lost money in the stock market. At the time of writing, the total of my 401k account is all 100% invested in equities. I can proudly say that I have never lost a penny of principal. The reason is I know the behavior of the stock market----it goes up, it goes down. Historically, in a period of expansion there is a correction of 10% or more every 6 to 12 months. There is a correction of 20% or more every 12 to 18 months. I only check my account when the market is up. I am in for the long term and don’t need my money now so why will I stress myself out checking my balance after the Dow goes down 500 points? I know my balance went down.