What Happens When the Mania Reverses?

DOW near $50,000. S&P near $7,000.

It’s 3:00 a.m., and the party’s still going. QUESTION:

What happens when the mania reverses?

When confidence is high, markets go up.
When complacency is widespread, look out for a reversal.

In 1929, stocks were considered unstoppable — until the Dow collapsed nearly 90% and the Great Depression followed.

In 2007, housing and equities seemed unbreakable — until the Global Financial Crisis wiped out years of savings, retirement plans, house values and family security.

Each time, the majority was caught off guard.
Each time, investors who relied on perpetual growth suffered the most.

Today, with the Dow kissing 50,000, investors face a familiar crossroads.

This is not the time to sit back and assume the trend will last forever.

Major market tops don’t announce themselves with sirens. They arrive when confidence is highest and preparation is lowest.

Whether the next major turn comes tomorrow or years from now, the consequences of being unprepared are always the same:

• Sudden losses
• Vanishing liquidity
• Emotional decision-making at the worst possible time

Preparation changes everything.

Understanding how deflationary bear markets unfold — and how social mood drives them — can mean the difference between panic and clarity, damage and durability.

That’s why Robert Prechter wrote Last Chance to Conquer the Crash.

You don’t need to know when the next crash will happen.
You just need to know how to be ready when it does — and how to act before emotion takes over.

History is clear: Markets don’t rise forever.

Those who prepare can avoid being victims. So far, so good.

Now, don’t you want to get up-to-the-minute updates on where markets are in their cycles, so you can decide when to act?

Our readers stay connected to current markets through Elliott Wave International’s flagship services.

Think of it this way:

• Conquer the Crash prepares you to prosper in bear markets and recessions
• Our flagship publications help you monitor where we are in that process right now

You may not know whether the next major turn comes years from now or just days from now. But staying aligned with the waves as they unfold can help you get ready before conditions change. Get prepared now:

Because when the crowd finally realizes the trend has changed, preparation is no longer an option — it’s already too late. Those who know what to do ahead of time can act instantly when the time comes. Learn what to do NOW so you will be ready.