Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Time to take the RED Pill - 28th May 24
US Economy Slowing Slipping into Recession, But Not There Yet - 28th May 24
Gold vs. Silver – Very Important Medium-term Signal - 28th May 24
Is Gold Price Heading to $2,275 - 2,280? - 28th May 24
Stocks Bull Market Smoking Gun - 25th May 24
Congress Moves against Totalitarian Central Bank Digital Currency Schemes - 25th May 24
Government Tinkering With Prices Is Like Hiding All of the Street Signs - 25th May 24
Gold Mid Tier Mining Stocks Fundamentals - 25th May 24
Why US Interest Rates are a Nothing Burger - 24th May 24
Big Banks Are Pressuring The Fed To Losen Protection For Depositors - 24th May 24
Another Bank Failure: How to Tell if Your Bank is At Risk - 24th May 24
AI Stocks Portfolio and Tesla - 23rd May 24
All That Glitters Isn't Gold: Silver Has Outperformed Gold During This Gold Bull Run - 23rd May 24
Gold and Silver Expose Stock Market’s Phony Gains - 23rd May 24
S&P 500 Cyclical Relative Performance: Stocks Nearing Fully Valued - 23rd May 24
Nvidia NVDA Stock Earnings Rumble After Hours - 22nd May 24
Stock Market Trend Forecasts for 2024 and 2025 - 21st May 24
Silver Price Forecast: Trumpeting the Jubilee | Sovereign Debt Defaults - 21st May 24
Bitcoin Bull Market Bubble MANIA Rug Pulls 2024! - 19th May 24
Important Economic And Geopolitical Questions And Their Answers! - 19th May 24
Pakistan UN Ambassador Grows Some Balls Accuses Israel of Being Like Nazi Germany - 19th May 24
Could We See $27,000 Gold? - 19th May 24
Gold Mining Stocks Fundamentals - 19th May 24
The Gold and Silver Ship Will Set Sail! - 19th May 24
Micro Strategy Bubble Mania - 10th May 24
Biden's Bureau of Labor Statistics is Cooking Jobs Reports - 10th May 24
Bitcoin Price Swings Analysis - 9th May 24
Could Chinese Gold Be the Straw That Breaks the Dollar's Back? - 9th May 24
The Federal Reserve Is Broke! - 9th May 24
The Elliott Wave Crash Course - 9th May 24
Psychologically Prepared for Bitcoin Bull Market Bubble MANIA Rug Pull Corrections 2024 - 8th May 24
Why You Should Pay Attention to This Time-Tested Stock Market Indicator Now - 8th May 24
Copper: The India Factor - 8th May 24
Gold 2008 and 2022 All Over Again? Stocks, USDX - 8th May 24
Holocaust Survivor States Israel is Like Nazi Germany, The Fourth Reich - 8th May 24
Fourth Reich Invades Rafah Concentration Camp To Kill Palestinian Children - 8th May 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

U.S. Federal Deficit is the Biggest Threat to Investor Wealth! EVER!

Stock-Markets / US Debt Feb 07, 2010 - 04:27 AM GMT

By: Martin_D_Weiss

Stock-Markets

Best Financial Markets Analysis ArticleWhile our federal deficit explodes and U.S. stocks sink, I’ve been actively meeting our readers on my personal blog to share ideas on how to build the optimal growth portfolio in trying times like these.

We’ve examined all five of the major asset classes — stocks, bonds, currencies, precious metals and commodities — to sort out which ones we believe will sink and which will surge going forward.


We’ve seen how Wall Street analysts, whether using fundamental or technical analysis, utterly failed to warn investors of the two most devastating crashes of our lifetime — the Tech Wreck of the early 2000s and the Housing Bust of the late 2000s.

And on Friday, I asked,

Can you EVER trust Wall Street to anticipate major market turns? If so, when? Are they now leading investors into a brand NEW trap?

I admit: I knew the question would get a rise out of our readers — and I was right. The consensus …

“Trust Wall Street? ARE YOU PULLING MY LEG, Martin???”

Our readers are 100% correct, of course.

According to the Federal Reserve, trusting Wall Street’s recommendations to buy tech stocks at 500 to 1,000 times earnings cost investors $6.6 trillion when the tech bubble burst in 2000.

And according to the Fed’s latest figures, trusting the housing boom that Wall Street and Washington created cost investors another $15.5 trillion in 2007-2009. In sum …

So far in the 21st century alone, Washington and Wall Street have caused combined losses of a staggering $22.1 TRILLION of investors’ money!

Worse, it looks like an even greater threat to investor wealth could now be emerging.

Remember what I wrote here this past Monday morning: That the next big contagion was about to strike Wall Street.

Sure enough, it struck this past Thursday. Not only did the Dow and Nasdaq plunge … but the very country where the contagion first began — Greece —sank into an even deeper abyss in the wake of a strike that paralyzed its ports.

Meanwhile, we reported that Moody’s has effectively announced that our nation’s future credit rating is in danger of being slashed, barring one of two miracles:

MIRACLE #1: This tepid — and possibly failing — economic recovery miraculously catches fire, exploding corporate profits, personal income and federal tax revenues, or …

MIRACLE #2: The Obama administration and Congress suddenly make an about face and embark on a dramatic budget-slashing campaign.

My view: Anyone who holds their breath waiting for either miracle is going to be severely disappointed.

The bond market bubble — third great bubble of the 21st Century — is going to burst. Trillions more dollars are about to vanish into thin air when the bond market collapses into a heap of rubble.

So what’s an investor to do?

Is there a practical way to build a growth portfolio that not only diversifies your money across the asset classes most likely to surge in this environment but also protects your money like a junkyard dog?

Watch your inbox tomorrow for my answer.

Good luck and God bless!

Martin

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 http://www.moneyandmarkets.com.


© 2005-2022 http://www.MarketOracle.co.uk - 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