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Avoid losing everything in a stock market crash by using this one weird trick

When bad things happen to good stock markets

Even a single year ago, this sort of euphoric piling on would not have occurred. The investors driving the bull market from 2011 to 2016 were a generally disciplined bunch. They were also, if you recall, fearful about the effect Donald Trump would have on the market. Even if it seems plausible to you that a large number of money managers would lie about their real intentions, that clearly isn’t what happened in this case. Following Trump’s win, there was a huge wave of selling, seemingly from the market’s usual suspects, followed by a huge wave of buying from… whom? Some of the money must have come out of the bond market, but more seems to have come out cash. Who’s cash? Well, I have a hunch, though it might be considered a tautology: the money came from people with lots of money.

America has lots of rich people. It even has a great many wealthy people. In my experience, it is a relatively small number of investment managers who handle the money of wealthy families. These operations, whether independent or under the umbrella of large investment houses, tend to be handled through what are called single family offices, or SFOs.

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Julian Close

Julian Close became a stockbroker in 1995. In his 20 years of market experience, he has seen all market conditions and written about every aspect of investing. Julian has also written extensively on corporate best practices and even written reports for the United Nations. He graduated from Davidson College in 1993 and received a Master of Arts in Teaching from Mary Baldwin College in 2011. You can see closing trades for all Julian's long and short positions and track his long term performance via twitter: @JulianClose_MIC.