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Why Volatile Markets Are a Trader’s Dream

Chris’ note: After warning his readers about the crashes of 2008, 2020, and 2022… master trader Jeff Clark is back with one of the most urgent predictions of his 38-year career.

Starting today, a federal law will trigger a market event that happens every year around this time. And Jeff says it will lead to 44 days of extreme stock market volatility.

If you aren’t prepared, you could be left holding stocks that may fall 20%, 30%, even 50%. That’s why Jeff is sharing a crash-proof trading strategy that harnesses what’s been called the stock market’s law of gravity.

Jeff will go over everything you need to know tonight at 8 p.m. ET during a special briefing he’s put together. Time is running out to secure your spot. So, save your seat now with one click here.

Then read on for a Q&A I put together with Jeff. He passes on his top advice for dealing with bear markets. And he shows why today’s volatile conditions make it “harvest time” for traders.


Q&A With Jeff Clark, Editor, Market Minute

Chris Lowe: You’ve traded through the 1987 Black Monday crash… the dot-com crash… the 2008 crash… and every bear market in between. What advice do you have for Legacy Research readers about getting through the current downturn?

Jeff Clark: The most important thing for your readers to grasp is that it will pass. Just like every bear market before it, this one will end. And the stock market will go on to make new all-time highs.

Markets are turbulent right now. But that shouldn’t be a surprise. Since the pandemic hit in 2020, we’ve been in an extreme era of funny money. In response to the lockdowns, the Fed and Congress set the stimulus spigots to maximum.

In 2021, no matter what you put money in, it went up. You had people buying digital images of rocks for millions of dollars. It became very silly. And when you have a time of silly money like that, inevitably you go through a hangover period. We’re in that hangover period now.

We had silly money in the lead-up to the housing bust that began in 2007. This led to the 2008 financial crisis and a bear market. In the 1990s, silly money fueled the dot-com bubble. Then, in 2000, we had the blow-up of that bubble. It’s just the way markets behave when they’re overstimulated.

Chris: You’re one of the few people I know who looks forward to bear markets. That’s hard for newer investors to wrap their heads around. The media teaches them that all you can do in a bear market is duck and cover. Why is that mainstream narrative wrong?

Jeff: I don’t want to minimize the pain your readers have been through over the last year. If you’re a buy-and-hold investor, your nest egg almost certainly took a hit.

But that’s only half the story…

If you have the cash and the courage to buy stocks when they’re selling at the bargain counter, you can do very well. That’s because the lower the price you pay to own a stock, the higher your expected returns.

Bear markets are also “harvest time” for traders. One of the characteristics of bear markets is that they come with a lot of turbulence, or volatility spikes. And that allows traders like me to harness these big moves in markets for profits.

And it’s not just the magnitude of these moves that work in your favor as a trader. You also have a lot more opportunities to trade.

As some of your readers will be aware, 2008 was one of my best years as a trader. I was working alongside newsletter industry legend Porter Stansberry at the time at my S&A Short Report advisory.

In a year where most everyone was fighting just to stay afloat… I made money on 42 of my 52 trade recommendations – an 80% win rate.

The years following the dot-com crash were also good for me. My trades in the 2001 tech wreck saw a seven-figure windfall for me and my clients at my former brokerage firm.

It’s not because I saw the ball more clearly. I wasn’t hitting it any better. I just had many more opportunities thanks to all the turbulence during those times.

Everybody can make money during a bull market. But it’s during bear markets that you can become phenomenally wealthy.

Chris: So, do you mainly “short” stocks and profit when they fall in price?

Jeff: It’s possible to make money shorting stocks in a bear market. But it may surprise your readers that I typically bet on short-term rallies in stocks at times like these.

I’m a reversion-to-the-mean trader. So, imagine you have a rubber band. You stretch it out… Then you let it go. And it snaps back quickly. The same thing happens in stocks. They get extremely overbought or oversold. The rubber band stretches. Then it snaps back.

I look for extreme conditions that provide opportunities to trade. These tend to be high-probability, low-risk setups. I wait for the rubber band to stretch. Then I profit when it snaps back.

That doesn’t mean all my trades are automatic winners. I wish! But I’ve been doing this for almost 40 years. That rubber band sometimes stretched further than I thought it would, but it almost always snapped back.

Chris: You said you had one of your best years as a trader in 2008. While buy-and-holders were losing their shirts, you gave your subscribers the chance to double their money – or more – on 18 of your recommended trades.

Jeff: Yes, 2008 was a horrible bear market for stocks. But like I said before, it was one of the best years ever in my career. And about 70% of my trades were on the long side. I was betting on higher, not lower, stock prices… albeit over short time frames.

You see, with investors in full-blown panic mode, we got these brutal plunges. Stocks got so extremely oversold that the next move was most likely a rally. Again, it goes back to the rubber band. When it gets stretched too far in one direction, you want to be on the snapback.

Traders who had swooped in and bought stocks after they had become oversold – when the rubber band was stretched, in other words – made almost instant profits when it snapped back.

Chris: You’re out with a warning about a 44-day window of extreme volatility that begins today. Tell me more about that.

Jeff: That’s right. Because of a legally mandated event that happens every year around this time, there’s a strong chance we’ll see hundreds of stocks crashing in the next 44 days.

And going by what happened last year when this event struck, they could crash 20%, 30%, or even 50% in a single day. It will be chaos for unsuspecting folks blindly holding onto those stocks.

But for traders like me and my subscribers, it’s shaping up to be a wonderful opportunity to profit.

You see, I’ve created a strategy that works best in volatile times like these. It’s the opposite of buying and holding. It allows my subscribers to capture short-term moves in the market without sticking around for catastrophic losses.

In fact, my team and I have even created a proprietary calendar that lets us know exactly when these next events are set to occur.

It’s one of the most predictable ways you could make money in the markets. And it can work in any market environment.

Chris: What kind of gains are we talking about?

Jeff: During our testing, there was an opportunity nearly every day to double your money. The average gain was 162%. Some gains were as high as 500% in just 24 hours.

Normally, it takes years to see those kinds of gains. But, with this strategy, it can happen in just days.

That’s why tonight, at 8 p.m. ET, I’m hosting an urgent session with all the details. I’ll be sharing my strategy to play this 44-day window. You’ll learn exactly what to do to profit on the swings… and avoid any ruinous losses…

Plus, I’ll even share three stocks I’m targeting that could see massive gains in the crash.

Chris: Thanks, Jeff. It sounds like it’s going to be an exciting event. Here’s that automatic sign-up link again. And we’ll see you tonight.

Jeff: Thanks, Chris. I look forward to seeing Daily Cut folks there.