Best of the Week
Most Popular
1. Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - P_Radomski_CFA
2.Fed Balance Sheet QE4EVER - Stock Market Trend Forecast Analysis - Nadeem_Walayat
3.UK House Prices, Immigration, and Population Growth Mega Trend Forecast - Part1 - Nadeem_Walayat
4.Gold and Silver Precious Metals Pot Pourri - Rambus_Chartology
5.The Exponential Stocks Bull Market - Nadeem_Walayat
6.Yield Curve Inversion and the Stock Market 2019 - Nadeem_Walayat
7.America's 30 Blocks of Holes - James_Quinn
8.US Presidential Cycle and Stock Market Trend 2019 - Nadeem_Walayat
9.Dear Stocks Bull Market: Happy 10 Year Anniversary! - Troy_Bombardia
10.Britain's Demographic Time Bomb Has Gone Off! - Nadeem_Walayat
Last 7 days
Can We Lock Up Rachel Maddow Now? - 25th Mar 19
Real US National Debt Might Be $230 Trillion - 25th Mar 19
Friday's Stock Market Sell-Off - New Downtrend or Just Correction? - 25th Mar 19
20 Days Left to Find Buying Opportunities In Gold - 25th Mar 19
Will the Historic Imbalance in Gold Stocks to Gold Price Resolve ? - 25th Mar 19
EasySMX Wireless Games Controllers Review - 25th Mar 19
Stock Market Short-term Top - 25th Mar 19
UK Population Growth - Latest ONS Immigration Statistics and Consequences - 24th Mar 19
The Fed Follows Trump's Tweets, And Does The Right Thing - 24th Mar 19
Yield Curves, 2yr Yield, SPX Stocks and a Crack Up Boom? - 24th Mar 19
Risk/Reward in Silver Favors Buying Now, Not Waiting for Big Moves - 23rd Mar 19
Similarities Between Stock Market Today and Previous Bull Market Tops - 23rd Mar 19
Stock Market DOW Seasonal Trend Analysis - 23rd Mar 19
US Dollar Breakdown on Fed Was Much Worse Than It Looks - 23rd Mar 19
Gold Mid-Tier GDXJ Stocks Fundamentals - 23rd Mar 19
Which Currency Pairs Stand to Benefit from Prevailing Risk Aversion? - 23rd Mar 19
If You Get These 3 Things Right, You’ll Never Have to Worry About Money - 22nd Mar 19
March 2019 Cryptocurrency Technical Analysis - 22nd Mar 19
Turkey Tourist Fakes Market Bargains Haggling Top Tips - 22nd Mar 19
Next Recession: Finding A 48% Yield Amid The Ruins - 22nd Mar 19
Your Future Stock Returns Might Unpleasantly Surprise You - 22nd Mar 19
Fed Acknowledges “Recession Risks”. Run for the Hills! - 22nd Mar 19
Will Bridging Loans Grow in Demand and Usage in 2019? - 22nd Mar 19
Does Fed Know Something Gold Investors Do Not Know? - 21st Mar 19
Gold …Some Confirmations to Watch For - 21st Mar 19
UKIP No Longer About BrExit, Becomes BNP 2.0, Muslim Hate Party - 21st Mar 19
A Message to the Gold Bulls: Relying on the CoT Gives You A False Sense of Security - 20th Mar 19
The Secret to Funding a Green New Deal - 20th Mar 19
Vietnam, Part I: Colonialism and National Liberation - 20th Mar 19
Will the Fed Cut its Interest Rate Forecast, Pushing Gold Higher? - 20th Mar 19
Dow Jones Stock Market Topping Pattern - 20th Mar 19
Gold Stocks Outperform Gold but Not Stocks - 20th Mar 19
Here’s What You’re Not Hearing About the US - China Trade War - 20th Mar 19
US Overdosing on Debt - 19th Mar 19
Looking at the Economic Winter Season Ahead - 19th Mar 19
Will the Stock Market Crash Like 1937? - 19th Mar 19
Stock Market VIX Volaility Analysis - 19th Mar 19
FREE Access to Stock and Finanacial Markets Trading Analysis Worth $1229! - 19th Mar 19
US Stock Markets Price Anomaly Setup Continues - 19th Mar 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast March to September 2019

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.


© 2005-2019 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

6 Critical Money Making Rules