The 1929 Stock Market Crash vs the Current BAM Model Prediction

The 1929 market crash was key in building the BAM Model but what’s it telling us about today’s stock market?

We depend 100% on our proprietary BAM model but we also try to keep our head up with regard to other interesting ideas.  After all, our model makes some of the most outrageous predictions from time to time–like telling us that crude oil would crash from 147 dollars to 36 dollars over a 12-18 months period back in 2008.

Well…here we are again. 

We’re standing out on a limb here with our call for a 50% crash in the stock market over the coming 2-5 months and although we could have held that forecast to ourselves, we’d rather walk the talk by putting ourselves and our money on the line here.

These are interesting times and although I’d love to be bullish and I’d love to be the guy bringing great news to the table, the model is the most bearish I have ever seen it.  This includes the readings at the all-time high in 2007 and it also includes the 2008 pre-crash readings we were seeing.

I’ll leave the fundamentals up to those who follow that discipline, but the BAM Model, as we saw so many times during 2007 and 2008, is predicting something that most seem unprepared for– and we’re going to follow its predictions.

-Bearish stocks
-Bullish Bonds
-Bearish Crude Oil
-Bullish USD
-Bearish Gold

Disclosure: we have current positions reflecting all of these predictions

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