Best of the Week
Most Popular
1. Will Gold Price Breakout? 3 Things to Watch… - Jordan_Roy_Byrne
2.China Invades Saudi Oil Realm: PetroDollar Kill - Jim_Willie_CB
3.Bitcoin Price Trend Forecast, Paypal FUD Fake Cryptocurrency Warning - Nadeem_Walayat
4.The Stock Market Trend is Your Friend ’til the Very End - Rambus_Chartology
5.This Isn’t Your Grandfather’s (1960s) Inflation Scare - F_F_Wiley
6.GDX Gold Mining Stocks Fundamentals - Zeal_LLC
7.US Housing Real Estate Market and Banking Pressures Are Building - Chris_Vermeulen
8.Return of Stock Market Volatility Amidst Political Chaos and Uncertain Economy - Buildadv
9.Can Bitcoin Price Rally Continue After Paypal Fake FUD Attack? - Nadeem_Walayat
10.Warning Economic Implosion on the Horizon - Chris_Vermeulen
Last 7 days
The Hottest Commodity Play In 2018 - 23rd Apr 18
Stock Market Correction Turns Consolidation - 23rd Apr 18
Silver Squeeze, Gold Fails & GDX Breadth - 23rd Apr 18
US Economy Is Cooked, the Growth Cycle has Peaked - 23rd Apr 18
Inflation, With a Shelf Life - 23rd Apr 18 - Gary_Tanashian
Stock Market Predictive Modeling Is Calling For A Continued Rally - 22nd Apr 18
SWEATCOIN - Get PAID to WALK! Incentive to Burn Fat and Lose Weight - Review - 22nd Apr 18
Sheffield Local Elections 2018 Forecast Results - 22nd Apr 18
How Long Does it take for a 10%+ Stock Market Correction to Make New Highs - 21st Apr 18
Sheffield Ruling Labour Party Could Lose 10 Council Seats at May Local Elections - 21st Apr 18
Crude Oil Price Trend Forecast - Saudi Arabia $80 ARAMCO Stock IPO Target - 21st Apr 18
Gold Price Nearing Bull Market Breakout, Stocks to Follow - 20th Apr 18
What’s Bitcoin Really Worth? - 20th Apr 18
Stock Market May "Let Go" - 20th Apr 18
Overwhelming Evidence Against Near Stock Market Grand Supercycle Top - 20th Apr 18
Crude Oil Price Trend Forecast - Saudi's Want $100 for ARAMCO Stock IPO - 20th Apr 18
The Incredible Silver Trade – What You Need to Know - 20th Apr 18
Is War "Hell" for the Stock Market? - 19th Apr 18
Palladium Bullion Surges 17% In 9 Days On Russian Supply Concerns - 19th Apr 18
Breadth Study Suggests that Stock Market Bottom is Already In - 19th Apr 18
Allegory Regarding Investment Decisions Made On Basis Of Government’s Income Statement, Balance Sheet - 19th Apr 18
Gold – A Unique Repeat of the 2007 and How to Profit - 19th Apr 18
Abbeydale Park Rise Cherry Tree's in Blossom - Sheffield Street Tree Protests - 19th Apr 18
The Stock Market “Turn of the Month Effect” Exists in 11 of 11 Countries - 18th Apr 18
Winter is Coming - Coming Storms Will Bring Out the Best and Worst in Humanity - 18th Apr 18
What Does it Take to Create Living Wage Jobs? - 18th Apr 18
Gold and Silver Buy Signals - 18th Apr 18
WINTER IS COMING - The Ongoing Fourth Turning Crisis Part2 - 18th Apr 18
A Stock Market Rally on Low Volume is NOT Bearish - 17th Apr 18
Three Gold Charts, One Big Gold Stocks Opportunity - 17th Apr 18
Crude Oil Price As Bullish as it Seems? - 17th Apr 18
A Good Time to Buy Facebook? - 17th Apr 18
THE Financial Crisis Acronym of 2008 is Sounding Another Alarm - 16th Apr 18
Bombs, Missiles and War – What to Expect Next from the Stock Market - 16th Apr 18
Global Debt Bubble Hits New All Time High – One Quadrillion Reasons To Buy Gold - 16th Apr 18
Will Bitcoin Ever Recover? - 16th Apr 18
Stock Market Futures Bounce, But Stopped at Trendline - 16th Apr 18
How To Profit As Oil Prices Explode - 16th Apr 18
Junior Mining Stocks are Close to Breaking Downtrend - 16th Apr 18
Look Inside a Caravan at UK Holiday Park for Summer 2018 - Hoseasons Cayton Bay Sea Side - 16th Apr 18
Stock Market More Weakness? How Much? - 15th Apr 18
Time for the Gold Bulls to Show their Mettle - 15th Apr 18
Trading Markets Amid Sound of Wars - 15th Apr 18
Sugar Commodity Buying Levels Analysis - 14th Apr 18
The Oil Trade May Be Coming Alive - 14th Apr 18

Market Oracle FREE Newsletter

Trading Lessons

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.


© 2005-2018 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