Most Popular
1. THE INFLATION MONSTER is Forecasting RECESSION - Nadeem_Walayat
2.Why APPLE Could CRASH the Stock Market! - Nadeem_Walayat
3.The Stocks Stealth BEAR Market - Nadeem_Walayat
4.Inflation, Commodities and Interest Rates : Paradigm Shifts in Macrotrends - Rambus_Chartology
5.Stock Market in the Eye of the Storm, Visualising AI Tech Stocks Buying Levels - Nadeem_Walayat
6.AI Tech Stocks Earnings BloodBath Buying Opportunity - Nadeem_Walayat
7.PPT HALTS STOCK MARKET CRASH ahead of Fed May Interest Rate Hike Meeting - Nadeem_Walayat
8.50 Small Cap Growth Stocks Analysis to CAPITALISE on the Stock Market Inflation -Nadeem_Walayat
9.WE HAVE NO CHOICE BUT TO INVEST IN STOCKS AND HOUSING MARKET - Nadeem_Walayat
10.Apple and Microsoft Nuts Are About to CRACK and Send Stock Market Sharply Lower - Nadeem_Walayat
Last 7 days
Why PEAK INFLATION is a RED HERRING! Prepare for a Decade Long Cost of Living Crisis - 9th Aug 22
FREETRADE Want to LEND My Shares to Short Sellers! - 8th Aug 22
Stock Market Unclosed Gap - 8th Aug 22
The End Game for Silver Shenanigans... - 8th Aug 22er
WARNING Corsair MP600 NVME2 M2 SSD Are Prone to Failure Can Prevent Systems From Booting - 8th Aug 22
Elliott Waves: Your "Rhyme & Reason" to Mainstream Stock Market Opinions - 6th Aug 22
COST OF LIVING CRISIS NIGHTMARE - Expect High INFLATION for whole of this DECADE! - 6th Aug 22
WHY PEAK INFLATION RED HERRING - 5th Aug 22
Recession Is Good for Gold, but a Crisis Would Be Even Better - 5th Aug 22
Stock Market Rallying On Slowly Thinning Air - 5th Aug 22
SILVER’S BAD BREAK - 5th Aug 22
Stock Market Trend Pattren 2022 Forecast Current State - 4th Aug 22
Should We Be Prepared For An Aggressive U.S. Fed In The Future? - 4th Aug 22
Will the S&P 500 Stock Market Index Go the Way of Meme Stocks? - 4th Aug 22
Stock Market Another Upswing Attempt - 4th Aug 22
What is our Real Economic and Financial Prognosis? - 4th Aug 22
The REAL Stocks Bear Market of 2022 - 3rd Aug 22
The ‘Wishful Thinking’ Fed Is Anything But ‘Neutral’ - 3rd Aug 22
Don’t Be Misled by Gold’s Recent Upswing - 3rd Aug 22
Aluminum, Copper, Zinc: The 3 Horsemen of the Upcoming "Econocalypse" - 31st July 22
Gold Stocks’ Rally Autumn 2022 - 31st July 22
US Fed Is Battling Excess Global Capital – Which Is Creating Inflation - 31st July 22
What it's like at a Stocks Bear Market Bottom - 29th July 22
How to lock in a Guaranteed 9.6% return from Uncle Sam With I Bonds - 29th July 22
All You Need to Know About the Increase in Building Insurance Premiums for Flats - 29th July 22
The Challenges on the Horizon for UK Landlords - 29th July 22
The Psychology of Investing in a Stocks Bear Market - 26th July 22
Claiming and Calculating The Research and Development Tax Credit - 26th July 22
Stock Market Bearish Test - 26th July 22
Social Media Tips and Writing an Effective Call to Action - 26th July 22
Has Rishi Sunak Succeeded in Buying His Way Into No 10 - Fake Tory Leadership Contest - 26th July 22
The Psychology of Investing in a Stocks Bear Market - 26th July 22
Claiming and Calculating The Research and Development Tax Credit - 26th July 22
Stock Market Bearish Test - 26th July 22
Social Media Tips and Writing an Effective Call to Action - 26th July 22
Has Rishi Sunak Succeeded in Buying His Way Into No 10 - Fake Tory Leadership Contest - 26th July 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

US Recession and Mega Profit Opportunities

Economics / Recession Feb 24, 2008 - 02:13 PM GMT

By: Money_and_Markets

Economics

Best Financial Markets Analysis ArticleThe Big Picture - Martin Weiss writes: With so much happening so quickly, I know it's sometimes hard to set aside a quiet time to think.

But this weekend I want the two of us to focus on the big picture ... find some clarity in these confusing times ... and chat about where we're headed from here.


Because when the history books are written, I believe the period we're living through today will be remembered as a critical turning point in this crisis.

US Recession and StagflationFor many months now, my team and I have been warning that the United States was embarking on the path of

  • severe recession

plus, at the same time ...

  • severe inflation.

We warned you about a collision between a sinking economy and — as Washington fought the crisis tooth and nail — accelerating price increases .

Until now, though,

The So-Called "Experts" Scoffed at Our Warnings

Just a few months ago, for example, Wall Street analysts assured investors that the downturn would be isolated to subprime mortgages. Fed Chairman Ben Bernanke did the same.

And at almost every opportunity since, the "leading lights" of Wall Street and Washington have done their dead-level best to convince you that this crisis was limited both in scope and longevity.

But last week ...

A String of the Government's Own Reports Debunked the Government's Assurances

First , the government reports showed that the economy is not just slowing, it's contracting — unemployment claims at their highest levels since the tech wreck ... manufacturing at its lowest levels since early 2001 ... plus one indicator after another confirming and double-confirming this reality.

Second, the reports revealed that, even while the economy is going down, inflation is going up at an accelerated pace — import prices jumping at a double-digit rate ... consumer price indexes breaking out to the upside ... commodity prices zooming.

Where Is This Taking Us?
How Long Can It Last?
What Can You Do about It?

The immediate consequence is undeniable: Washington will continue throwing money at this crisis — slashing interest rates, passing stimulus packages and, alas, trashing the purchasing power of the U.S. dollar.

But, in my heart and soul, I am an optimist.

Don't laugh. I'm serious, and it's true.

I'm an optimist in that I believe that, with last week's government reports, we are closer than ever to a clear vision of the economic beast we're dealing with ... a vivid picture of what to expect in the months to come ... and a solid roadmap for action.

I'm an optimist because I believe that, ultimately, Washington will do the right thing. They will have no choice. The overwhelming selling power of millions of investors will force them to.

And I'm an optimist because I believe in you. By protecting yourself today, and by joining the growing minority of others who are doing the same, you are creating a reservoir of wealth that, at the right time, will be instrumental in turning our country back on a positive path.

But to do so you need to take the right steps today:

Step #1. Get to safety with short-term U.S. Treasury bills or a Treasury-only money fund. I know they are unexciting. I know they are in U.S. dollars. But for U.S. residents, there is no safer or more liquid investment.

Step #2. Protect yourself against inflation and the declining dollar. (More on this in a moment.)

Step #3. Go for mega-profits. Recognize that, often, the best defense is a strong offense. Then transform this crisis into a life-changing, wealth-building situation.

With that in mind, I see three promising and mega-profit opportunities that you should seriously consider as this crisis unfolds:

Mega-Profit Opportunity #1
The World's Strongest Currencies

It's almost inevitable that Washington will continue — even intensify — its attempts to fight this crisis with lower interest rates, more spending and bigger deficits.

And as we've shown you time and time again, every new dollar Washington creates ultimately decreases the value of every other dollar in circulation.

Plus, as foreign investors see the dark clouds hovering over our economy, they're likely to continue reducing their U.S. investments, trading their dollars for other currencies. Despite intermediate dollar rallies, those investors will drive the dollar lower and push most foreign currencies sharply higher.

Years ago it would have been difficult for you to profit from this situation. But not today. Today, new, revolutionary investment vehicles make it possible to invest in the world's strongest currencies through your regular brokerage account, much like investing in any common stock.

Our forecast: Investors who take advantage of these new currency vehicles will be among the few who escape the turmoil in other financial markets ... and even come out with potentially massive profits on the other side of this crisis.

Mega-Profit Opportunity #2
The World's Hottest Natural Resources

Since time immemorial, whenever inflation has reared its ugly head, investors have stampeded into tangible assets: Gold, silver, platinum, and more. And that's precisely what they're doing now.

Plus, people still have to eat no matter what — and since billions of new consumers in China and other developing nations are demanding ever-more food commodities, the value of those commodities is flying as well.

Our forecast: The companies that produce key natural resources and commodities will profit handsomely as these two titanic forces — inflation and exploding global demand — drive the value of nearly everything they make through the roof.

Mega-Profit Opportunity #3
Investments that Soar When U.S. Stock Sectors Fall

Picking the weakest sectors in this economy isn't rocket science. And picking the weakest stocks in the weakest sectors is also very straightforward.

So why not transform that foresight into another mega-profit opportunity?

The investment vehicles are handy and readily available. You can buy them low and sell them high — just like any other investment. Plus you can do so with great ease and low commissions, either online or offline.

Thanks to two limited-risk investment vehicles — designed to surge when weak stock sectors plunge — you have a great opportunity to grow your wealth even as other investors are losing theirs.

My forecast: Investors who use these new vehicles to profit as the most vulnerable sectors get hammered will pile up massive gains over the next 24 months.

To introduce you to all of these opportunities — and more — I have just posted a blockbuster report on our website,

" The Great Real Estate Bust and Credit Crunch of 2008:
What Washington and Wall Street Do Not Want You To Know.
How to Protect Yourself and Profit.
"

Click here to read it now.

One Last Word ...

Each of these mega-profit opportunities can put you on the right side of ultra-powerful, long-term, fundamental trends.

Use them wisely and they can be your friends.

But never lose sight of the big picture. Never let intermediate moves in the opposite direction divert you from your plan or take your eye off the ball.

Remember: As long as the big, long-term fundamental trends are still in place — and as long as your investment strategy is on the right side of that trend — the opportunity is limitless.

We saw this crisis coming miles away and we told you so, #field8#. And each step of the way, we've guided you to the investments that tend to do best at times like these.

You have my solemn word that we'll continue doing everything in our power to stay on this course.

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 .

Money and Markets Archive

© 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