Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
AI Tech Stocks State Going into the CRASH and Capitalising on the Metaverse - 25th Jan 22
Stock Market Relief Rally, Maybe? - 25th Jan 22
Why Gold’s Latest Rally Is Nothing to Get Excited About - 25th Jan 22
Gold Slides and Rebounds in 2022 - 25th Jan 22
Gold; a stellar picture - 25th Jan 22
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Flash Alert: Wall Street Financial Meltdown!

Stock-Markets / Financial Crash Jul 27, 2007 - 11:22 AM GMT

By: Money_and_Markets


Martin Weiss writes: Wall Street is suffering a meltdown, and in a moment I'll tell you what to do about it.

The big picture: Anyone who thinks the meltdown is limited to a decline in stock prices should wake up and smell the coffee:

  • The big money that Wall Street was pouring into mortgages is drying up …
  • The big equity deals that were pouring still more money into the economy are bombing …
  • The U.S. economy, hooked on all that Wall Street money like a dope addict, is about to suffer one heck of a hangover …
  • The dollar is continuing to plunge virtually nonstop, and …
  • The worst is yet to come! But …

Absolutely None of This Should Come as a Surprise to Readers!

Over two years ago, the headline of our June 2005 Safe Money Report said it all: "Final Stage of the Real Estate Bubble! When it pops, stocks of big banks, construction companies, and mortgage lenders will be shattered."

And the headline of our March 2006 issue — "Housing Slump Begins! Housing Bust on the Way!" — accurately marked the precise peak in the entire housing market:

We've stepped up the tempo of these early warnings in nearly every Safe Money issue since; while Mike Larson has been shouting them from the rooftops in Money and Markets almost weekly. (See " Subprime lending sector spiraling south ," or " Subprime debacle unfolding as expected ," or " The next wave of the housing bust ," or " When smart money does dumb things ," just to mention a few.)

Three weeks ago, he told you about " The Consequences of Reckless Lending ."

Two weeks ago, he warned you about " Chaos Breaking out in the Mortgage Bond Market ."

And just in case you weren't listening, we published Mike's 66-page white paper on the housing crisis … sent you an urgent press release eight days ago … and held a press conference with reporters to make sure they didn't miss it either. ( Click here to listen to the recording, and wait a few minutes for it to load.)

This past Monday, just as the market was peaking, we sent Safe Money subscribers an urgent flash to take profits.

If you're a subscriber, and you missed it for some reason, check your inbox for the subject "Flash Alert: Time to bag more gains!" sent by Safe Money Report on July 23, 2:50 PM.

It's still not too late to act on most of the sell recommendations.

Meanwhile …

Larry Edelson Nailed the Dow's Peak On the Head! With a Sledge Hammer!

Exactly one month ago, in his Money and Markets of June 28 , Larry warned …

"the U.S. economy's second breath is ending" …

expect "a series of shocks in U.S. financial markets that will catch most investors with their pants down," and …

"the Dow is getting ready to plunge 2,000 points! "

At the same time, he told subscribers to his Real Wealth Report to take profits on 12 different investments.

And one week later, on July 5 , he told Money and Markets readers to take profits on a list of 20 more. (His subject line: "Take Profits Now!")

Missed that one?

No problem, because you surely must have seen his next warning (two weeks ago), headlined " Warnings! " In it, he wrote:

"The next five to six months will harbor nightmares for the U.S. economy so profound that they will impact each and every one of us" leading to

"a sharp, unexpected drop in most U.S. stocks."

And just in case you missed THAT one too , as the U.S. stock market was hitting its peak last week , Larry absolutely clinched it with this now-famous red-arrow chart, pointing straight down to 11,000 on the Dow.

How far is that from here?

Answer: In yesterday's rout, the Dow hit an intraday low of 13,335 and closed at nearly 13,474. So to reach Larry's target, it still has about another 2,500 points to go . If he's right, that means …

Investors Who Take Profits at Today's Levels Are Still Pretty Close to Catching the Peak!

That's what we recommend you do. And if you're not sure how much to sell or when, consider these six guidelines:

1. You don't own the market; you own stocks. So you can start by selectively shedding the sectors we've been warning you about all along — home builders, mortgage lenders, and financial stocks in general.

2. To take some profits on the strong stocks, you don't have to choose strictly between "sell" and "hold." If you're unsure, sell half and hold the balance.

3. You shouldn't wait. Nor do you have to undertake your profit-taking all at once. Sell some right now. Sell some more on the next one-day bounce.

4. Take better advantage of the handy hedging vehicles available today — such as ETFs that are designed to go UP when a stock index is going down. For example …

  • Short Dow30 ProShares (DOG), designed to rise as the Dow falls, jumped over 2% yesterday. Or …
  • UltraShort Financials ProShares (SKF), designed to go up 2% for every 1% decline in financial stocks, jumped nearly 4% yesterday.

If you feel you're overexposed to the U.S. market's decline, these kinds of ETFs can give you some insurance. Or, you can use them to go for a pure profit: The more the market falls, the more money you stand to make.

5. Make sure you have plenty of money outside of the stock market. Remember: Even while most stocks are falling, foreign currencies continue to soar. Gold, oil and other resources should do the same.

6. Most important, don't paint all stock sectors and foreign countries with the same brush. For many U.S. sectors, this looks like the beginning of a drawn-out decline. But for our favorite foreign markets, everything tells us it's merely another correction — a major buying opportunity coming up very soon.

Last week, one subscriber asked:

"You say China's stock market is surging, and its economy is exploding. But you say you're waiting before issuing your next major buy signal. Why don't you jump in today?"

Well, now you have the answer: We wanted to see a correction, and here it is. So stand by for our next signals.

Good luck and God bless!

By Martin Weiss

This investment news is brought to you by Money and Markets . Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit .

Money and Markets Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in