Investment guru Marc Chaikin just issued a “severe stock warning” in a presentation on the Chaikin Analytics website, and it centers around what he’s calling a “rolling crash.”
According to Marc Chaikin, he has developed an “industry monitor” designed to pinpoint when specific industries are about to rise or fall in advance. And he claims that everyday investors can use it to potentially avoid losses and profit from “rolling runups.”
During the presentation, he discussed how his system works, outlined his predictions for the year ahead, and revealed specific stocks he’s both bearish and bullish on.
In this post, I’ll show what I learned about Marc Chaikin’s predictions and give you an overview of the service he’s pitching, The Chaikin Power Gauge Investor.
What’s Marc Chaikin Predicting for 2022? (Rolling Crash)
The video presentation where Marc Chaikin shared his 2022 prediction is located on the Chaikin Analytics website and features host Amy Gamper.
Marc Chaikin began by stating that “the actions you take in the next 90 days could either save or doom your wealth” and that it all comes down to a “massive market shakeup.”
“It all comes down to a massive market shakeup, that is already sending shockwaves through U.S. stocks.”
According to Marc, on a “fundamental and technical level,” the U.S. stock market is a “wildly different animal” than it was a few months ago, and investors are more scared now than in 2020, which he suggests is for “good reason.”
“Investors haven’t been this scared about stocks since the early months of the pandemic. And they have good reason to be scared.”
Some of the main reasons investors are scared, according to Marc, relate to the uncertainty in the market, recent selloffs, headlines in the mainstream press, and basically… all the crazy stuff going on. And he points out that many experts are predicting a market crash.
What’s about Marc Chaikin?
As it turns out, he’s NOT predicting a market crash. Instead, he says a market crash is “already here.” Just not in the way most of us might expect.
“Because the next great market crash isn’t just around the corner. It isn’t starting today or tomorrow.
It’s already here.”
“While a full-blown stock market crash is already playing out, it’s NOT what you may typically expect when you hear the term ‘stock market crash.'”
What’s he talking about?
At the center of Marc Chaikin’s 2022 prediction is the idea that the market isn’t “one big entity that’s either up or down.” Instead, it’s made up of 11 sectors and 21 industry groups. And he suggests that knowing this can make a big difference.
“But I, along with the thousands of financial advisors and high net-worth investors who have followed my work for the past decade, know the stock market isn’t just one big thing.
It’s actually 11 different, smaller things.
11 different sectors that are all connected – and unconnected – in specific ways.
Within those 11 sectors… there are things called industry groups.
There’s 21 of them in total that we monitor. You can see them listed on your screen now… things like Banks… Biotech and Telecom…”
So, he isn’t focused on what the “market” is doing.
Instead, he’s looking at the individual sectors and industries. Because according to Marc Chaikin, “50% of a stock’s performance comes from picking the right industry.”
And this is what his “industry monitor” software does: it scans the market to predict what sectors and industry groups are poised to perform and which ones will tank.
Of course, there’s no guarantee it will be right. But according to Marc, it has predicted countless declines and rallies in sectors, industries, and individual stocks.
And right now, he says we are already in a “market crash” because over half of the industries he monitors have dropped by 20% to 50% since February 2021.
“Again, overall the market’s been down around 10%…
But zoom in – and over 60% of industries that we monitor have plummeted 20%-50% since February 2021.
That’s a market crash, my friends. It just doesn’t look like the ones you may be used to.”
What is a “rolling crash?” And what does it have to do with any of this?
According to Marc Chaikin, a “rolling crash” is where the crash spreads across the market over time, like a wave, hitting specific industries progressively.
“Yes. It’s called a ‘Rolling Crash.’
A rolling market crash spreads across the market over time, like a wave.
It sends specific industries crashing, before spilling over into the next.”
So, instead of predicting one big market crash, Marc Chaikin is essentially predicting that certain industries will crash while others will thrive in the future.
Marc Chaikin says that these so-called “rolling crashes” have been happening since the 1960s. It’s just that most people aren’t aware of it because we tend to think of the market as a whole rather slicing it up into different sectors and industries.
Nevertheless, the flip side to this, according to Marc, is that when some industries are crashing, others are rising, creating a “rolling runup” or “wave of wealth.”
“Instead of a Rolling Crash, they are experiencing a Rolling Runup.
That’s a wave of wealth rolling over specific industries, one after the other…
Sending the top stocks in those industries soaring.”
How do you know which industries will tank and which ones will rally?
The short answer is, you don’t.
Nobody can predict the future of any market, sector, industry, or stock. No matter how good they are or what software they use – nobody has a crystal ball.
However, as the presentation continued, Marc Chaikin explained that he uses a software called the “Industry Monitor” to predict an industry’s performance over the next 90 days.
And he claims the software can benefit everyday investors.
Accessing that software isn’t free; it comes as part of a $2,500 subscription to the Power Gauge Investor. But this is the software Marc Chaikin has based his 2022 prediction on.
So, let’s take a closer look at how it works.
How Does the “Industry Monitor” Work?
The Industry Monitor is a software developed by Marc Chaikin that “detects big shifts in the stock market.” According to Marc, the software is based on the algorithm used in the Power Gauge, a stock screening tool designed to rate individual stocks.
But instead of analyzing specific stocks, the Industry Monitor is designed to predict the performance of an entire industry over the coming 90 days.
And it issues a bearish, bullish, or neutral rating for a given industry, which Marc says has helped him and his team “predict the path of the Rolling Crash thus far.”
“So, I took the algorithm we use in the Power Gauge to evaluate individual stocks…
And applied it to industries… to generate a Bullish, Neutral, or Bearish rating for entire groups of stocks.
In other words, instead of just predicting the performance of a single stock over the next 90 days…
We can predict the performance of an entire industry over the next 90 days…
Determine if it’s about to experience a crash… or is even poised for a big runup…
And issue a Bearish, Bullish, or Neutral Rating for the entire industry.”
“This Industry Monitor is how we’ve been able to predict the path of the Rolling Crash thus far.”
Marc also says that, within the Industry Monitor, the system ranks stocks that are poised to either outperform or underperform their respective industry.
Because as he points out, individual stocks tend to be more volatile than the broader industry, meaning they tend to perform better or worse.
And the idea is that, as a subscriber of his service, you can see what stocks the system recommends buying and selling.
Mar Chaikin sums up his description of the Industry Monitor by suggesting that regardless of what’s going on in the world or market, his system can help you choose stocks poised for “fantastic growth.”
“No matter what is happening in the markets…
Whether it’s a global pandemic… a catastrophe at the very foundation of our entire economy… a war brewing overseas…
Or a Rolling Crash spreading through the market….
When you zoom in on the sector and industry level, with the Industry Monitor on your side, you can see these big shifts coming.
You can avoid the worst of the worst stocks doomed for destruction…
And move your money into the best of the best stocks that are poised for fantastic growth.”
It all sounds good in theory… but is it legit?
And does the software actually work?
Marc Chaikin shares numerous examples in the presentation about accurate predictions the software has supposedly made over the past couple of years. But since he’s the one selling the software, it stands to reason that he’d say nice things about it.
So, let’s look at who Marc Chaikin is to figure out if he’s the real deal. Then, I’ll show you what his service, the Power Gauge Investor, is about to help you decide if it’s legit. I’ll also give you an overview of some specific predictions he’s made for the year ahead.
Recommended: Go here to see my #1 rated stock advisory of 2022
Who Is Marc Chaikin?
Marc Chaikin is the founder of Chaikin Analytics, a company that sells investment advisory services and software tools aimed at helping self-directed investors find good stocks.
According to chaikinanalytics.com, Marc is a former stockbroker, trader, and market analyst who spent over 40 years on Wall Street. Marc’s career began in the 1960s, and he retired in 2000, but he came out of retirement in 2011 to launch Chaikin Analytics.
The site says he designed and built a stock-ranking system during his Wall Street days and rebuilt it in the form of the Chaikin Power Gauge™ Rating tool.
This is Marc Chaikin’s flagship stock-rating tool that analyzes stocks based on 20 factors that can determine price, such as technicals, financials, earnings, and what the “experts” are saying and doing regarding the stock.
To use it, you just type in the ticker and the tool spits out a rating of very bullish, bullish, neutral, bearish, or very bearish to give users an idea of what a given stock could do based on those metrics.
No indicator is perfect, so it’s not like it will magically tell you what every stock will do in the future. But Marc Chaikin is a genuine expert, and he has built indicators that are used by real professionals outside of his Chaikin Analytics services.
For instance, he built the Chaikin money flow oscillator, a commonly used momentum indicator that is similar to the MACD indicator.
He also collaborated with Nasdaq to develop “Nasdaq-Chaikin indexes” and has run his own institutional brokerage firm, serving billion-dollar clients.
What’s he selling?
The bare-bones version of the “Chaikin Power Gauge™ Rating” tool is free to use on the Chaikin Analytics website, but there are more advanced versions of it made available as part of the company’s paid services.
The main service Marc Chaikin runs is called the Power Gauge Report, Chaikin Analytics’ flagship stock advisory. And as of writing, this comes with access to the “Power Pulse” system, which appears to be a more advanced version of the Power Gauge tool.
This service costs between $49 to $199 depending on where you join, and it gives you monthly recommendations on mid to large-cap stocks.
I’ve reviewed this service not long ago, so if you want to learn more about it, I recommend checking out my complete analysis of the Power Gauge Report.
In any case, that’s not what Marc Chaikin is selling as part of his 2022 “Rolling Crash” presentation. Instead, he’s pitching a higher-tier service called the Chaikin Power Gauge Investor. So let’s see what this service is all about.
Is the Chaikin Power Gauge Investor Legit?
The Chaikin Power Gauge Investor is an investment newsletter service where Marc Chaikin recommends his top small-cap stock picks and monthly analysis.
The service costs $2,500 if you join through the presentation, so it’s not exactly cheap. But according to Marc Chaikin, it’s a “level up” from the less expensive Power Gauge Report.
“Look, the Power Gauge Report is great for folks who mainly want the peace-of-mind that comes with bigger stocks that I’ve vetted in the Power Gauge.
But if you’re looking for smaller, lesser-known stocks with the highest possible potential upside, then it’s time to ‘level up’ to Power Gauge Investor.”
What do you get if you join?
The core benefit of the service is accessing Marc Chaikin’s monthly market updates and stock picks. Each month, he shows you what industries he and his team are targeting, which ones they’re avoiding, and shares his “best of the best” small-cap stock idea.
The other main feature is the “Industry Monitor Portfolio,” a portfolio of stocks Marc has put together using the Industry Monitor we discussed earlier.
According to Marc Chaikin, he starts by pinpointing the most promising industries, and then he selects the small-caps he believes are positioned for “incredible growth.”
“Using the Industry Monitor, I’ve pinpointed the most promising Industries in the stock market right now – focusing on those with strong Bullish ratings.
And from those Industries, I selected a shortlist of stocks that are positioned for incredible growth.
I’ll say that most of these stocks are ones you probably haven’t heard of. I specifically screen for smaller stocks at the beginning of a Rolling Runup.”
So, the Power Gauge Investor is the service you’ll need to join if you want to access Marc Chaikin’s recommendations on what’s happening with his “Rolling Crash” prediction and where the Industry Monitor says it’s “rolling next.”
There are several bonuses that come with the service, too.
For instance, one bonus is a year’s access to “Power Gauge Analytics,” which appears to be the most advanced version of Chaikin’s stock screening tool the company has.
And another is a year’s access to the Power Gauge Report, which, as I mentioned, gives you monthly mid and large-cap stock picks.
Is it legit?
I am not a member of the Chaikin Power Gauge Investor, so I can’t say for sure how legit and worthwhile it is. However, I don’t believe it’s a scam.
I say this because Marc Chaikin is a genuine expert and his company, Chaikin Analytics, is a reputable Philadelphia-based company.
That said, the service doesn’t come with a money-back guarantee, so it’s not possible to get a refund if you’re not happy with it.
And no system is perfect. So no matter how good the so-called “Industry Monitor” or software is, you could still lose money following the recommendations.
What Is Marc Chaikin Bullish & Bearish on Right Now?
According to Marc Chaikin, “the Industry Monitor has issued Bearish warnings” for the biotech, innovative tech, and software industries. And he suggests being prepared for worse times ahead if you have any holdings in these industries.
“This tells me that the Rolling Crash is NOT over for these areas of the market.
If you have significant holdings in them right now, prepare for even worse times ahead.”
He also specifically mentioned two stocks…
One stock he’s bullish on and one he’s bearish on.
According to the presentation, the “worst of the worst” stock is DoorDash.
This surprised me not just because DoorDash is a great company, but as of writing (April 1, 2022), it’s trading at historical lows. And for reference, the presentation first aired on March 30. Nevertheless, DoorDash is apparently Marc Chaikin’s “#1 stock to avoid.”
Here’s what he says about it:
“But given all that’s happening right now, this is only one stock of many that the Industry Monitor has flagged for big losses in the next 90 days and beyond.”
What’s he bullish on?
Marc Chaikin points out that the energy industry is booming and that Kosmos Energy (ticker: KOS) is in a position to be a “winner over the next three years.”
“The energy industry is booming. And I think that’s going to continue. Kosmos Energy – symbol KOS – is shifting from offshore drilling to offshore liquid gas; in partnership with Bristish Petroleum, a giant in the industry. And they’ll be able to deliver natural gas to Europe, decreasing their dependency on Russian oil and natural gas.
KOS is a big potential winner over the next three years. I think this is a great company, in a great industry.”
Another interesting prediction Marc Chaikin made in the video is that the “rolling crash” will end in 2022 and that most industries will rally 30% to 50% before the end of the year.
“I predict the Rolling Crash WILL end before 2022 comes to a close.
And when it does, the majority of industries will shoot UP 30%-50% – and give you the chance to make a lot of money in the process.”
Why is he predicting this?
According to Marc Chaikin, he has analyzed the market since 1914, and 85% of the time, the market has ended the year higher in the midterm election years, with an average gain of almost 50%. And he suggests that a similar scenario could play out in 2022.
“I divided the entire stock market into four-year periods… all the way back to 1914.
And what I found blew me away.
23 out of 27 – that’s 85% – of the past midterm election years have ended the year higher.
And the average gain, around a year later, is nearly 50%.
In other words, if history is any guide, there is an 85% chance that stocks are going to soar from a market bottom this year – with the whole market going up between 40% and 50%.”
Nobody knows if Marc Chaikin’s thesis will play out or not, but these are his main predictions for 2022 based on what he states in the presentation. So at the very least, it will be interesting to see what unfolds in the months ahead.
Marc Chaikin’s 2022 prediction centers around a “rolling crash,” whereby he believes different industries will suffer, while others see a “rolling runup.”
And during the presentation, he mentioned several industries and one stock he’s bearish on, and one stock he’s bullish on.
Those are just the ones he shared for free, though. If you want to get all of Marc Chaikin’s recommendations on what industries and stocks he’s bullish and bearish on, you’d need to sign up for a subscription to the Chaikin Power Gauge Investor.
Because according to Marc Chaikin, that’s the only place he’ll be “specifically monitoring the Rolling Crash” and what the Industry Monitor software predicts will happen next.
Whatever you decide, I hope what I’ve shared in this post has helped shed some light on Marc Chaikin’s current outlook and 2022 forecast. Thanks for reading.