Most investors don’t get a warning before things go sideways.
That’s the big idea behind today’s Friday Digest takeover from Marc Chaikin – the Wall Street veteran behind the Chaikin Money Flow indicator, and one of the sharpest minds in our business when it comes to spotting risk before it shows up in the headlines.
Today, Marc shares a real-world example that hits hard: two hikers trapped by a sudden wildfire who survived because they had a small emergency beacon – something they hoped they’d never need, but were grateful to have when it mattered most.
Marc argues your portfolio needs the same kind of protection because markets don’t always crash in obvious fashion. Too often, those downturns take us by surprise. Today, you’ll get Marc’s thoughts about how to navigate that risk.
By the way, earlier this week, he held a live presentation that dove deeper into the red flags he’s seeing today. It also profiled the tool he’s using to identify the stocks with the most risk in this market. You can catch the free replay right here.
I’ll let Marc take it from here.
Have a good evening,
Jeff Remsburg
For the first three days, Brittany Farrish’s hiking trip was idyllic.
Farrish and a friend explored the Fryatt Valley of Jasper National Park in Alberta, Canada. And as nightfall approached on the third day, they relaxed on a glacial lake.
Some people spend a lifetime fantasizing about this type of trip.
But then… disaster struck.
As Farrish and her friend settled in for the night, they saw a flash of lightning in the distance. As experienced hikers, they knew the area was suffering from a drought.
Still, it was time for bed. And a storm in the distance wouldn’t ruin their adventure.
That all changed by morning, though…
Farrish awoke to several urgent messages on her emergency beacon. Friends and family members were desperately trying to contact her.
The lightning storm had ignited a wildfire. And officials were evacuating the park.
Farrish and her friend raced to the trailhead. They knew it was a life-or-death situation.
The two women got to their car and headed for the highway. But they weren’t in the clear yet. Fallen trees blocked their way out of the area. And the trees were too big to move.
I’m sure you can understand their anxiety…
Stories of wildfires regularly fill the news. Recall the terrifying, tragic images of people barely escaping the flames in Southern California a little more than a year ago.
Fortunately, this wildfire-escape story ended well…
When Preparation Turns Panic Into Survival
Remember, Farrish had her emergency beacon. I bet she never expected it to save her life. But serious hikers like Farrish buy these types of devices “just in case.”
These devices weigh just a few ounces. They’re the kinds of things you throw in your bag and hope you’ll never use. But if you do need one, it could save your life.
That’s what happened as Farrish’s just-in-case scenario unfolded that day…
A Garmin inReach Mini 2 satellite communicator costs a few hundred bucks. But that small investment likely saved the lives of Farrish and her friend.
The fallen trees made their escape impossible by car. And the park was on fire around them.
But because of Farrish’s device, the rescue team knew the exact location of the two women. They sent a helicopter. And in the end, Farrish and her friend escaped.
Folks, my point with this story is simple…
Your Portfolio Needs the Same Kind of Protection
You need to make sure you have an emergency beacon for the market.
Amid periods of elevated volatility, you need to know where the danger is. And you need to know when it’s time to step aside.
Now, I created the Power Gauge specifically for this purpose…
With custom alerts, you can get updates on your most important positions. And by following the ratings system, you can avoid the market’s most dangerous areas.
But no matter what tool you use, I implore you to have a plan in place…
A small investment – in time, tools, or both – can make a big difference. It can be the deciding factor between great returns or investing disaster.
Folks, markets don’t erupt all at once. Risk builds quietly. Valuations stretch. Earnings quality weakens. Liquidity shifts.
Then suddenly — what looked calm can turn chaotic.
That’s why you need an emergency beacon for your portfolio.
You need a system that helps identify where risk is building… which stocks are vulnerable… and when it’s time to step aside before the crowd realizes what’s happening.
In my new free broadcast, I explain why I believe a significant market event may be approaching in the coming weeks, why it won’t impact all stocks equally, and how a powerful new upgrade to my system is helping identify which companies have durable, repeatable earnings… and which could become trapdoors.
Preparation doesn’t eliminate volatility. But it can mean the difference between being rescued… or being stuck.
Good investing,
Marc Chaikin
Market Expert and Founder, Chaikin Analytics
