Tony Pow

Profit from Coming Market Crash Tony Pow

The stock market for 2021 is risky. That's why I write this book evaluating the possibility of the coming market crash. My book "Market Timing: Profitable, Preventive and Protective" provides the general guidelines and many selected articles are included free in this book. So is my book on Technical Analysis. Articles on related topics are included in the Bonus section.

It has been more than 10 years since the market recovered in 2009. It is overdue for a market plunge. We need about three market plunges to get back to our regular frequency ratio of about 2.5 in 10 years. The trade war with China and the pandemic could be the triggers. With the depreciation of our dollar, the market gain may not keep up with inflation.

If you follow my market timing, we have experienced some false signals. However, a corrective signal tells you to reenter the market and hence most of the time you do not lose anything except the tax consequences in taxable accounts. Besides exiting the market briefly, you are still fully invested most of the time. It is far better than a best seller that tells us to exit the market even in 2009.

Conservative investors should sell their riskiest investments and accumulate some cash today. Market crash could have more than 40% loss from the peak. My market timing techniques will not detect the peak but would reduce further losses. In addition, cash is king during market crash as they can reenter the market with cash. That's how big fortunes are made. Imagine the big bargains in buying houses in 2008 but not the 'bargains' in internet stocks in 2000.

This book explains why we may have a market crash coming and how to prepare it. It also includes simple techniques (no subscription and no tool to buy) to detect market plunges that have worked in the last two major market plunges. It will not identify the peaks and bottoms (and no one can). It may not give us ample time to prepare as the last two.

Our simple chart tells us to exit and reenter only two times from 2000 to 2010 and it has only one false alarm telling us to exit and return briefly (more false alarms from 2011 to 2016). The market before 2000 was quite different to today's market and that is why I did not use the older data. You should use this book as a reference and study market timing before you commit fully.

Size: 215 pages (6*9).
Update: 10/2021.