Press the play button below to watch Austin Root explain our 8th Bear Market Signal:
Hi, I’m Austin Root with Stansberry Research. Thanks again for joining us.
We hope you’ve enjoyed looking through some of these risk factors with us ahead of the Bear Market Survival event on May 15th.
We want to talk to you about another risk today, the risk of complacency.
Legendary investor Warren Buffett is famous for saying, “Be fearful when others are greedy and greedy when others are fearful.”
Well, we’re having one of those moments when most investors are greedy right now.
Another way we like to classify it is complacency.
Complacency is when investors stop worrying about risks in the market and start pushing into stocks in a big, big way.
Here at Stansberry Research, we have our own proprietary measure of greed and complacency. It’s called the Stansberry's Investment Advisory Complacency Indicator, and it measures just how complacent investors are in the market. It’s scored from a high of 100, to a low of zero.
And if you look at the chart below, nine other times when the complacency score has dipped below 30 — meaning that most investors are complacent and not worried about some of the risk factors in the market — it has predicted corrections in the market.
Most recently in September, our complacency indicator clicked below 30.
And as you can see at the bottom right of the chart, the complacency indicator is flashing as low as it’s ever flashed... meaning that currently — based on this metric — we see investors as more complacent than they’ve ever been since 1990.
Now of course, this is just one indicator we’re tracking. But it’s yet another reason that we want you to be prepared for a bear market before it happens.
And it’s why we’re excited for you to join us on this Wednesday, May 15th, at 8pm ET for the Bear Market Survival Event.
Be sure to check out our 9th Bear Market Signal, where I'll show you a chart that’s peaked right before the last two major crashes — in 2000 and 2008... and it appears that it has just peaked again. Click the "Bear Market Signal #9" button below to learn more.
Jim Rogers is an American businessman, investor, traveler, financial commentator and author based in Singapore. Rogers is the Chairman of Rogers Holdings and Beeland Interests, Inc. He was the co-founder of the Quantum Fund and creator of the Rogers International Commodities Index.
Porter Stansberry founded Stansberry Research in 1999 with the firm's flagship publication, Stansberry's Investment Advisory. He is also the host of Stansberry Investor Hour, a weekly broadcast that has quickly become one of the most popular online financial radio shows. At Stansberry Research, Porter oversees more than twenty of the best editors and analysts in the business, who do an exhaustive amount of real-world, independent research.
Austin Root is editor and portfolio manager for the Stansberry Portfolio Solutions products and American Moonshots. He is also director of corporate development at Stansberry Research and a senior analyst for Stansberry's Investment Advisory.