A 10 Year Prediction on the Market

Which Way Are Markets Heading Over The Next 10 Years?

Up, Down, or Sideways? This is the big question for all investors. I want to make a prediction about the market that you can depend on to be true! Over the next 10 years, markets will do one of three things: 1. Go up 2. Go down or 3. Go sideways. Remember you heard it here first!

But I do have a point.....The vast majority of investment planning out there requires the market to trend upwards to be effective. If you are telling your clients to "stay the course", you are making the assumption that markets will go up over time. But what if you are wrong?

One investment group I receive information from is predicting a big big down in the market in 2010. We thought 2008 was bad…wait for this one…..

What if we are facing either a flat trending market, or even worse, a downward trending market. Harry Dent, in his new book, "The Great Depression Ahead", is forecasting downward trending markets similar to the Great Depression of the 1930's.

Even if he's a bit overboard, you are facing a pretty tough argument for a bull market environment. The combination of out of control Government spending along with increased taxation coming soon leads to a sideways trending environment at best.

So how are you going to consistently make money in either a downward or sideways environment?

Here's the key... Protect Principal--Take advantage of market swings both good and bad.
How do you do that? You need to protect the bulk of your principal using guaranteed accounts, like CD's, Government Bonds, and Fixed Annuities. Then, with your principal protected, you can use a portion of your money to take advantage of market swings, both good and bad.

It's not really that hard, but it is certainly different from what we are used to with traditional asset allocation modeling.