This is the man who alerted me 5 years ago of the coming reccession and banks collapse and was the reason for me selling Barclays at 734p. He also warned of the collapse in the debt bubble. What hurts the US hurts all of us, there is much much worse to come we are nowhere near the bottom yet.
Our lying corrupt politicians such as jack Straw are cynically suggesting that we have reached the bottom, and the green shoots have sprouted, as a last deperate effort to help his rotten PM.
They could not find their arse with both hands.
The government has just told us that the official U.S. unemployment rate surged to 9.4%, the worst in a quarter century!
Now, here’s what the government has NOT told us:
- This official number is grossly understated: It doesn’t even begin to count the millions who suddenly find themselves trying to live on a part-time income ... or the millions more who have given up looking for a job altogether.
- The worst layoffs are yet to come: Not only from giants like Chrysler and General Motors ... not only from thousands of auto dealerships and part suppliers ... but also from millions of small businesses all across America.
- The government’s recent bank "stress" tests were flat out wrong. They assumed an average employment rate of 8.9% this year. With today’s announcement, it is now clear, beyond a shadow of a doubt, that the actual rate will be far higher.
- The unemployment rate is CLOSELY correlated with the delinquency rate on mortgages. That means it’s now virtually INEVITABLE that mortgage defaults and foreclosures will surge FAR more.
And all this is why ...
The Message You’ve Been Giving Me
On My Personal Blog Is RIGHT ON!
You’re enthusiastic about using contrarian investments to stake your claim to huge profit potential in the next phase of this bear market.
PLUS, you ALSO want a better way to profit in short-term rallies.
In short, you’re saying you need more accurate ways to TIME your entry and exit points to grab shorter-term opportunities.
So yesterday’s question was,
“What tools do YOU use to spot short-term rallies in time to profit from them?”
Carl spoke for many of you by answering our question with a question: “It seems as though the market does not know that the “iceberg for the Titanic is already here and things are going to get worse. How do we explain buyers paying high prices for bank stocks that are fundamentally broke? Is there any hope for the market to ‘get smart’ and turn down any time soon? Your insights have been invaluable to me. Your thoughts?”
My answer: Yes, Carl, if history teaches us anything, it’s that these kinds of rallies and lulls occur in every bear market. I count no fewer than nine of them in the stock market crash of 1929-33 alone!
And history also teaches us that, despite the hype and happy talk coming from Washington and Wall Street, the fundamental trend will always prevail.
The lesson is clear: Investors who ignore the fundamentals, such as the surge we just saw in unemployment, are too easily seduced by Washington and Wall Street spin.
They fall victim to the lullaby that “the worst is over” and jump back into stocks just before the next major leg down. The result: A whole new round of stinging losses.
Now, it doesn’t take a rocket scientist to figure out what’s coming next for the U.S. economy in the weeks and months ahead. Just connect the dots ...
- Consumer spending is 70% of the U.S. economy.
- Those consumers are now either out of work or are terrified that they could be the next to lose their jobs.
- So consumers are avoiding unnecessary purchases like the plague.
- And that means corporate earnings will continue to plunge and inevitably, so will stock prices.
This message couldn’t be clearer: The long-term bearish trend in stocks is firmly intact. Our contrarian investments — things that rise in value when stocks fall — should deliver substantial profits for those who keep the faith.
Thanks for the great question, Carl!
Other readers were crystal clear about what they need to ramp up their profits: Expert help in timing your buy and sell decisions. Or as Doris J. put it, “Someone has to help me to tell me, when to buy, and when to sell.”
James S., an options investor, clearly understands the need for pinpoint timing. “If I miss the option date,” he says, “I will lose all I have.”
Ron H. says that the advice brokers give you is “dumb.” “Their response to taking profits,” he says, “is usually ‘NO DEAL.’ Or, when losses pile up they utter the mantra, ‘we are in for the long term.’ ”
Ron also points out the importance of knowing when to take your profits: “Baron Rothschild when asked how he amassed his fortune, said, ‘Well, I took my profits!’ ”
You’re painting a very clear picture of what you need to increase your profit potential — and all of us here at Weiss Research are already working behind the scenes to give you something you’re going to love.
In the meantime, I need one more answer from you — an answer that will go a long way towards helping us help you go for significant profits in the lulls and rallies between major plunges in stocks:
How do YOU think governments, central banks, huge corporations and super-rich investors know when to buy and when to sell?
Do they have a secret weapon — perhaps a timing tool that most everyday investors simply don’t have access to?
And, if there was a way for you to get access to the same timing signals they use, would you want to use them, too?
Just click this link to visit my personal blog and let me know what you think!
And be sure to watch your inbox next week for our major announcement — a FREE gift to help you sharpen your timing skills and to confidently go for substantial profits no matter which way the overall market moves.
Good luck and God bless!
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