Should you worry about the death cross?

[RiskHedge Roundup] The “death cross”… It’s one of the most feared phrases in all of finance. In short: the death cross is a chart pattern that’s believed to indicate a major sell-off to come. But is it a true indicator of trouble ahead? Let’s look at the data, specifically for small-cap stocks. Earlier this year, the iShares Russell 2000 ETF (IWM)—which tracks an index of 2,000 small-cap stocks—entered the death cross (marked by the second small red circle). The death cross occurred when IWM’s 50-day moving average (purple line) dipped below the 200-day moving average (green line). Source: StockCharts Is it time to worry? Not according to history… The last time a death cross happened in small caps was on March 19, 2020—marked by the first small red circle. The Russell 2000 went on to soar 116% over the next year. What if we zoom out even more? Our tiny stock expert Chris Wood shared this with his Project 5X subscribers: The Russell 2000 has gone through a death cross 20 times since 1980. Following each death cross, the index went on to achieve an average one-year return of 15%. It posted a positive return in 13 out of 20 events. History shows that you shouldn’t fear the death cross. Instead, it’s a buying opportunity. During Chris’s 5X Phase Summit, he pulled back the curtain on today’s big opportunity in tiny stocks… including his unique approach to finding the best ones. If you missed it, we’ve made a transcript available [here](. But it’s only available until Monday at midnight. Chris Reilly Executive Editor, RiskHedge P.S. If you’ve read the transcript and are ready to join Chris’s elite circle of tiny stock investors, [we’ve laid out all your bonuses, including your special discount, here](. [Go here]( for all the details. This email was sent to {EMAIL} as part of your subscription to RiskHedge Report. To opt-out, please visit the [email preferences page](. [READ IMPORTANT DISCLOSURES HERE.]( YOUR USE OF THESE MATERIALS IS SUBJECT TO THE TERMS OF THESE DISCLOSURES. Copyright © 2022 RiskHedge. All Rights Reserved RiskHedge | PO Box 1423 | Stowe, VT 05672