Why The Next Stock Market Crash Could Happen Any Day Now

A "follow-up" market crash could be coming.

I don't mean to scare you, but it's only a matter of time...

The past two happened like clockwork -- seven years apart. One happened just before 2001, after the dot-com burst. The other came with a vengeance in 2008, right after the housing collapse.

It's getting close to another seven years... so what about this time?

Are we headed for a "follow-up" market crash?

 

The very idea of losing more than half of your invested wealth in a market downturn is daunting.

Market analysts claim to know exactly where the market is going, and act like they know exactly when to buy or sell stocks. But how many analysts do you remember saying months before the 2008 financial crisis that the market was going to go down by 57%? Can you name one?

And look at mutual fund managers' records. According to Standard and Poor's, just 14% of actively managed mutual funds have beaten the market over the past three years. The other 86% of them fail at beating the market, yet we pay them millions in fees every year and trust them to protect and grow our hard-earned money. Did even one mutual fund help its investors avoid the crash?

We all wish we had a crystal ball to tell us when the next crash will happen so we could prepare. And while no such thing exists, I've stumbled upon something that comes close...

To see what I mean, let's go back to six years ago. We all remember that 2008 was a horrible year for the market.

The SP 500 lost one-third of its value... $16.4 trillion washed away... and several big banks needed a bailout just to survive.

But that wasn't the story for one company.

Not only did it not need a bailout, as The Economist says, it "was something of an antidote."

It was so well-prepared for the crash that J.P. Morgan Chase, Morgan Stanley, AIG, and many more all came asking for help. So did the U.S. Treasury, Greece, and Great Britain.

As reporter Suzanna Andrews wrote at the time:

This company "did more than merely survive the wreckage unscathed. Indeed, it is hard to argue that anyone, or any firm on Wall Street, gained as much stature from the economic crisis."

How was it so well-prepared for the market crash? Believe it or not, it can "predict" what's going to happen in the economy with amazing accuracy.

Everything from what will happen if a big bank collapses, how a worldwide flu pandemic will affect the market, or even what will happen if interest rates skyrocket.

So when the 2008 market crisis came, it was better-prepared than anyone else.

And because this company can "see opportunities" before others -- as it claims -- it's become the most trusted firm in the world.

That's why within 48 hours of the Bear Stearns collapse, New York Fed President Timothy Geithner was on the phone with this company's CEO asking for help.

I first mentioned this company a few months ago in a previous issue of Dividend Opportunities.

It's an investment firm that controls $4 trillion in assets (or an estimated 7% of the entire world's investments). It accurately anticipated the 2008 crisis months before it hit, protecting its clients from huge losses. And yet, very few individual investors even know it exists.

I want to emphasize that while this company seems similar to perhaps every other large financial firm, it carries one major technological advantage.

It uses "predictive analysis" software.

This software is revolutionary. It's the exact same technology that Google and a handful of other companies use to "see into the future" -- and they're making a truckload of money because of it.

For example, using what it calls "up-selling," Amazon's system is able to recognize from your purchase the next item you will likely buy and "up-sell" you that product on the spot. This predictive analytics tool brings in an estimated $20 billion a year.

Another company named Farecast can predict whether the price of an airline ticket will go up or down. This service is accurate 75% of the time and is saving travelers $50 per ticket, on average.

And I'm sure you're well aware that Google's shares have skyrocketed over 800% in the past 10 years, in part due to predictive analytics. And Amazon has beaten the market by a factor of nine, as you can see in this chart...

 

Beyond these, there are several other "under the radar" companies performing predictive analysis that most folks have never heard of.

I've known about them long before they were on anyone's radar. I've walked their halls, spoken with their executives, and had one-on-one meetings with key personnel.

They're also posting some stellar returns. One is up 92% since 2012. Another soared 131% in 2013. And one early, early pioneer is up 21,300% since 1988.

Imagine what could happen if you applied this same technology to the stock market.

Imagine knowing how to respond to a 2008-level market crash, seeing the early warning signs of a recession before everyone else, or even foreseeing which sectors are likely to soar the highest over the next year...

These are the sorts of events that the little-known, $4-trillion financial firm I told you about earlier is predicting as we speak -- with amazing accuracy.

The company's technology helped prevent huge losses for its clients since 2008, which helped shares return over 500% in the past decade. Meanwhile, the firm has also used its large cash hoard to grow its dividend an incredible 800% in just 10 years.

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