Stansberry Research’s Greg Diamond recently released a presentation where he predicted that in 2022 we could see the start of a massive stock market crash.
According to Diamond, this “could lead to the longest bear market since the 2008 financial crisis” OR “help you realistically double your money 10 different times,” depending on how you play it.
However, as you might expect, if you want to avoid the “crash” Diamond sees coming and potentially profit from it, you’ll need to join his paid advisory service. In this case, he’s pitching a trading service called Ten Stock Trader, which costs $2,000 for 12 months’ access.
Who is Greg Diamond? Why is he so bearish on 2022? And is Ten Stock Trader legit?
I wanted to know the answers to these questions, and more, so I did my homework, and in this post, I’ll show you everything I found to help you make a more informed choice.
Who Is Greg Diamond?
Greg Diamond is a trading expert with over 16 years of experience, and he heads up Stansberry Research’s Ten Stock Trader advisory service.
He’s also a Chartered Market Technician (CMT), a designation given to technical trading experts proficient in technical analysis by the CMT Association.
That doesn’t necessarily mean his service will outperform those run by non-CMT traders. However, I’ve only come across a handful of CMTs in the financial education space over the years, so it is a point of difference between Diamond and other gurus.
In any case, according to his bio on the Stansberry Research website, Diamond has traded billions of dollars for hedge funds and pension funds, has spoken about trading at business schools, and has experience across every asset class.
His specialty appears to be short-term options trading based on technical analysis. However, Diamond also analyzes longer-term global macro trends according to his profile, and, as I’ll explain shortly, he uses a somewhat controversial approach to predicting market cycles.
As far as his picks go, the “crash 2022” presentation points out that Greg Diamond “could have helped you double your money 26 different times” since he joined Stansberry Research.
He also claims to have called the March 2020 market top before the pandemic and numerous other tops and bottoms we’ve seen since.
All in all, Greg Diamond seems like a real expert with a proven track record based on what I’ve seen. Of course, that doesn’t mean he’s right about a market crash in 2022, but I was curious to learn more about his prediction.
So I kept on digging, and in the next section, I’ll show you what I found.
What’s Greg Diamond’s 2022 Prediction?
Greg Diamond discussed his 2022 prediction in a Stansberry Research presentation with Scott Garliss recently, which centers around how he believes the market will see a massive crash this year and devastate some market participants while benefiting others.
“Because the reality is, if you know what to do… what’s coming to America could soon hand you the biggest payout of your life, faster than you can imagine. Or set back your retirement by years.”
In particular, based on the presentation, Diamond believes that the crash will impact the “guys behind the GameStop mania” and the “mom-and-pop investors who think the Federal Reserve can keep the bull market running indefinitely” the hardest.
Why does he believe the market will crash?
To answer that, we first need to look at Greg Diamond’s method for analyzing trends, which centers around how certain areas of the market “rhyme” throughout time.
“If you know where to look… and how to interpret the data… the stock market “rhymes.” It repeats itself across predictable units of time, which you can take advantage of for huge potential gains, faster than you can imagine… without ever touching stocks.”
According to Greg Diamond, his strategy is based on the work of William Delbert Gann, a 19th-century trader who, as he points out, “used geometry, astrology, and ancient mathematics to make financial predictions” based on 60 and 90-year cycles.
According to Investopedia, Gann’s trading strategies are still widely used today, although there is a mix of supporters and doubters, given some of his ideas are unusual.
Greg Diamond, it seems, fits into the former group. He states that, while “many of his ideas were a little bit crazy,” the Gann strategy he uses, which he refers to as “my Gann strategy,” has helped him and his subscribers see many triple-digit gains.
Diamond provides numerous examples throughout the presentation of how different cycles have “rhymed” over 7, 60, and 90-year cycles. He calls these “Gann dates” and says that the reason these dates are so reliable is that price action is based on human emotion.
“But like I keep saying… while the investments and the times may change, price action has a way of repeating itself… because it’s based on human emotion, which never changes.”
So, what is Greg Diamond predicting will happen in 2022? According to the presentation, he believes the market will top on February 11, 2022.
“February 11, 2022”
“In short, I’m looking at the first two weeks of February, specifically, February 11th. Around this date is when I expect to see a major top in the market.”
How did he arrive at that specific date?
Greg Diamond is basing his February 11, 2022 “market crash” prediction on the 7-year and 90-year cycles based on what he states in the presentation.
Regarding the 7-year cycle, he points out that the market topped in 2001 (dot-com bubble), 2008 (financial crisis), and 2015 (top of the Dow) and believes the trend will continue in 2022.
With the 90-year cycle, Diamond states that “2022 will be an UPSIDE-DOWN reflection of 1932,” the year the market bottomed during the Great Depression.
In other words, he believes the 90-year cycle will play out in reverse. So, instead of the market bottoming as it did in1932, he believes it will top.
What’s his recommendation?
“Buy SPY220617P440 on February 11.”
“In other words, buy a six-month put on the SPDR S&P fund, which is the ticker SPY, and right now you can do that in the June expiration. And that is something that will give you enough time to take advantage of the volatility I’m expecting come February.”
That’s not Greg Diamond’s only prediction for 2022, but it is the one he gives away for free to those who view the presentation. All in all, Diamond says he follows about ten stocks at any given time that are “extremely susceptible to Gann strategy.”
“Like I said… in addition to looking for “Gann dates” on the calendar… there are about 10 stocks that are extremely susceptible to Gann strategy and point the way to those days.”
Based on the presentation, some of these appear to be (or at least have been at one point) Advanced Micro Devices (AMD), Caterpillar (CAT), iShares Treasury Bond ETF (TLT), Vectors Gold Miners (GDX), and the SPY index.
Either way, the only way to see all ten stocks Diamond currently follows, learn more about his strategy, and get his latest recommendations is to subscribe to Ten Stock Trader.
So, in the next section, I’ll give you an overview of what this service is about and how it works to help you decide if it’s worth the $2,000 price tag.
Recommended: Go here to see my #1 rated stock advisory of 2023
Overview of Ten Stock Trader
Ten Stock Trader is a trading service run by Greg Diamond of Stansberry Research grounded in technical analysis, options trading, and his version of Gann’s strategy.
The goal of the service is to share double or triple-digit trade opportunities with subscribers each week through the weekly trade alerts sent via email. And each email contains the details you need to follow Diamond’s recommendation, including the ticker and suggested entry and exit price.
Trading options is a more advanced approach to buying and selling regular shares, and they can be riskier given the leverage aspect, but there are advantages.
In this case, there appear to be two main reasons Diamond utilizes options with this service.
The first is that options allow you to “short” stocks (this is when you bet the price will go down). And based on the examples he provided in the presentation, Greg Diamond’s strategy uncovers opportunities to bet on the price rising and falling depending on the trend he spots.
The second reason Greg Diamond likely recommends options is that options can help traders make larger potential gains in less time, and his service is mostly focused on shorter-term price action rather than multi-year “buy and hold” opportunities.
The thought of options may understandably scare some people off, but this is what Greg Diamond specializes in, and he shares his knowledge on this topic within several resources subscribers receive after signing up to Ten Stock Trader.
For instance, subscribers receive a video course called Options Trading Master Class, a “multi-video blueprint on trading with Gann” called The Six-Figure Trader, and a research report titled “Gann Trading: How to Double Your Money on the Same 10 Stocks Over and Over Again.”
You also get weekly updates on Diamond’s picks and a video detailing his 2022 prediction called “The 2022 February Massacre (an inside look at how the crash will take shape).”
Another resource worth mentioning is a 24/7 live stream you can access through the member’s area. This is where Greg Diamond posts his hour-by-hour commentary and predictions, and it’s essentially a way to learn about his strategy and see what trends he’s following.
How much does it cost?
Ten Stock Trader costs $2,000 per year if you subscribe through the “Crash 2022” presentation and, unfortunately, it doesn’t come with a cash refund. Instead, if you’re not satisfied during your first 90 days, you can request a refund credit to use on another Stansberry Research advisory.
Is Crash 2022 and Ten Stock Trader Legit?
I don’t believe the Crash 2022 presentation (or Ten Stock Trader) is a scam.
Greg Diamond may not be correct with his prediction about markets topping in 2022, but he makes a strong case for why he believes this, and he has accurately predicted similar things before. So, at the very least, I don’t think the presentation is a scam.
Regarding Ten Stock Trader, I’m not a member of this trading service myself, but it does look like a comprehensive, high-value service. And Diamond’s track record looks solid.
He shared a list of 26 triple-digit opportunities he’s recommended with his followers during the presentation. And Stansberry Research is a legitimate financial publishing company with many popular advisories, so I doubt they’d allow Diamond to publish fake numbers.
That said, unless I missed it, there was no mention of the average gain of all of Greg Diamond’s recommendations since the service began. In other words, it’s unclear how well Ten Stock Trader has performed over time when you consider the losing trades as well.
And even if Ten Stock Trader’s average gain is excellent, which it might be, as with any service, there’s no guarantee it will continue performing well in the future.
My point is, speculating in the market is risky. Some trades work out as planned; others don’t. So, while I don’t consider the service a scam, there’s no guarantee you’ll make money following the Ten Stock Trader recommendations, let alone make triple-digit gains.
Greg Diamond’s Crash 2022 prediction centers around his approach to the Gann trading strategy, which is based on the idea that the market trades in various 7, 60, or 90-year cycles.
Some people believe in this strategy, others don’t, but Greg Diamond has used his own iteration of Gann’s work to predict that the market will begin to top on February 11th, 2022. Time will tell whether that happens or not, but it’ll be an interesting year nonetheless.
Greg Diamond uses his skillset to find other opportunities in the market, too. And he shares his top picks with subscribers of Ten Stock Trader through the weekly trade alerts.
At $2,000, the service isn’t cheap. And as I mentioned, there’s no cash refund on the offer. But if you’re interested in learning how to trade options, the service might be worth a look.
What do you think? Is 2022 going to be a stellar year for the market? Or will we see one of the worst market crashes in recent decades? Let me know in the comments!