Best of the Week
Most Popular
1.North Korean Chinese Proxy vs US Military Empire Trending Towards Nuclear War! - Nadeem_Walayat
2.Researchers Find $10 Billion Hidden Treasure In A Dead Volcano - OilPrice_Com
3.Gold and Silver : The Battle for Control - Rambus_Chartology
4.Asda Sales Collapse and Profits Crash! UK Retailer Sector Crisis 2017 - Nadeem_Walayat
5.Deep State Conspiracy or Chaos - James_Quinn
6.The Stock Market Guns of August, Trade Set-Up & Removing your Rose Tinted Glasses - Plunger
7.Gold Stocks Coiled Spring - Zeal_LLC
8.Neil Howe: The Amazon-Walmart Rivalry Will Determine the Future of Retail - John_Mauldin
9.Crude Oil Price Precious Metals Link in August - Nadia_Simmons
10.Gold and Silver Precious Metals Nearing Breakout - Jordan_Roy_Byrne
Last 7 days
The Stock Market No Longer Cares About Trump - 21st Aug 17
The Coming Boom Of Productivity Will Get Our Economy Back On Track - 21st Aug 17
Buffett Sees Stock Market Crash Coming? His Cash Speaks Louder Than Words - 21st Aug 17
This Could Be The Biggest Gold Discovery In History - 21st Aug 17
Stock Market Correction in Full Swing - 21st Aug 17
Seeking Confirmations – US Stock Market - 21st Aug 17
The changing demographic of online gamblers - 21st Aug 17
Gold is a coiled spring… the breakout is here, fundamentals are in place, technicals are compelling - 20th Aug 17
A Midsummer Night's Dream: Buy Gold and Silver - 20th Aug 17
Gold Mining Stocks 2017 Fundamentals - 20th Aug 17
EIA Weekly Report and Crude Oil - 19th Aug 17
4 Insights for Adjusting Your Portfolio in a Rate-hike Environment - 19th Aug 17
Gold Direction Indicator - 19th Aug 17
Historical Inevitability and Gold and Silver Ownership - 19th Aug 17
You Are Being Lied To About “Low” Gold Demand - 19th Aug 17
This is Why Cocoa's Crash Was a Perfect Setup - 19th Aug 17
Gold, Silver Consolidate On Last Weeks Gains, Palladium Surges 36% YTD To 16 Year High - 19th Aug 17
North Korea Is Far From Being Irrational… It Has A Plan - 18th Aug 17
US Civil War - FUNCTIONAL ILLITERATES TRYING TO ERASE HISTORY - 18th Aug 17
Bitcoin Hits New All-Time High Over $4,400 As It Catches Paypal In Total Market Cap - 17th Aug 17
3 Psychological Ingredients behind Great Web Content - 17th Aug 17
The War on Cash - Rogoff, Orwell and Kafka - 17th Aug 17
The Stock Market Guns of August, Trade Set-Up & Removing your Rose Tinted Glasses - 16th Aug 17
Stocks, Bonds, Interest Rates, and Serbia, Camp Kotok 2017 - 16th Aug 17
U.S. Stock Market: Sunrise ... Sunset - 16th Aug 17
The Next Tech Crash Could Delay Your Retirement by a Decade - 15th Aug 17
Gold and Silver Precious Metals Nearing Breakout - 15th Aug 17
North Korea Showdown: Pivotal Market Turning Point - 15th Aug 17
Tech Stocks DOT COM Bubble Do-Over? - 14th Aug 17
Deep State Conspiracy or Chaos - 14th Aug 17
From the Trans-Atlantic Axis and the Trans-Asian Axis - 14th Aug 17
Stock Market Intermediate Correction Underway - 14th Aug 17
The Islamic State Jihadi Pivot to Asia - 13th Aug 17
Potential Pivots Upcoming for Stocks and Gold - 13th Aug 17
North Korean Chinese Proxy vs US Military Empire Trending Towards Nuclear War! - 12th Aug 17

Market Oracle FREE Newsletter

3 Videos + 8 Charts = Opportunities You Need to See - Free

Investors Profiting From Economic Schizophrenia

Stock-Markets / Financial Markets 2010 Jul 12, 2010 - 08:17 AM GMT

By: Martin_D_Weiss

Stock-Markets

Best Financial Markets Analysis ArticleIf last week’s massive price swings in the U.S. stock market proved anything, it’s that the world’s investors are massively confused.

They have every right to be. After all, even the world’s most respected authorities — the experts with access to every scrap of data an economist could ever want — are talking out of both sides of their mouths.


Take the International Monetary Fund (IMF) for instance. Last week, this august body released a report saying the global economy would grow in 2010 — but only if current conditions DON’T continue to persist!

Their exact words:

“Recent turbulence in financial markets — reflecting a drop in confidence about fiscal sustainability, policy responses, and future growth prospects — has cast a cloud over the outlook.”

The IMF goes on to cite the very same dangers for the United States we’ve been warning you about: High levels of public debt, unemployment, and a continuing credit crunch.

And IMF economists aren’t the only analysts giving mixed signals.

Last week, the market rallied sharply primarily because some Wall Street analysts said they expect this week’s retail sales report to show that consumers spent 3.2 percent more in June.

Sounds good, right? But at the same time …

  • Goldman Sachs and Citigroup to actually CUT their forecast for several retailers last Tuesday, including big names like Home Depot, Wal-Mart, Target and Macy’s. The reasons: High unemployment, weakening consumer confidence and record-low demand for new homes.
  • Plus, in another blow to the outlook for retail sales — and by extension, the entire U.S. economy — MasterCard Advisors’ SpendingPulse just reported that luxury spending actually dropped 3.9 percent last month!
  • And remember: Well-off households account for almost 40 percent of overall consumer spending and while consumer spending accounts for 70 percent of all U.S. economic activity. Or as a top analyst for the retail industry put it, “It isn’t a good omen for the consumer recovery, which cannot exist without the luxury spender.”

My view: The economic recovery is toast, and any additional or unexpected rallies in the stock market are a gift for investors — a final opportunity to sell your vulnerable stocks and shift to safer havens.

Precisely when and how far stocks fall remains, of course, uncertain. But one thing is virtually unavoidable:

The breath-taking swings in stocks, bonds, gold, and other markers are likely to grow even more extreme in the months ahead!

The next few months will bring a final showdown between the biggest economies of the world and the most powerful governments.

Will the governments prevent a double-dip recession and sovereign debt attacks at the same time? Or will they be overwhelmed by market forces that they cannot control?

I feel it ultimately MUST be the latter. I see possible delays and side trips in between, but I see no way that governments can win the final battles against sinking economies and stock markets.

The good news for investors is that these massive battles — between governments and natural market forces — bring great volatility … and the volatility, in turn can be harvested for equally great profit opportunities — all with unique investments that help you limit your risk.

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.


© 2005-2017 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

Catching a Falling Financial Knife