Phoenix Capital Research

The market is being ramped higher by traders who believe:

1)   The US’s delay in entering Syria is bullish

2)   That the PMI data out of Europe indicates all is well over there.

The primary concern with these beliefs is that they overlook at tremendous amount of problems brewing in the financial system.

1)   The 10-year bond is yielding 3%. Contrary to what a Central Banker will tell you, higher interest rates are not good for stocks, particularly in an over-leveraged financial system.

2)   The European Crisis is not over in any way. Things were swept under the rug for Merkel’s re-election, but Portugal, Greece, Ireland and even France are on the verge of economic implosion. And as Cyprus’s “bail-in” and Poland’s recent nationalization of pension funds indicate, the next time stuff hits the fan, citizens will be literally picking up the tab with their savings.

3)   The world continues to believe China has “rebalanced its economy” when in fact China is simply pumping massive liquidity into its shadow banking system. What could go wrong with this? After all, China put an amount of liquidity equal to over 20% of its economy into the shadow banking system from 4Q12-1Q13 and GDP slowed.

The markets seem to sense that all of this. In the US we’re putting in what looks like a lower high. The market appears to be forming a Head and Shoulders pattern.

If you’re looking for actionable investment strategies on playing the markets, take a look at my bi-weekly investment newsletter, Private Wealth Advisory.

Published every other Wednesday after the market closes, Private Wealth Advisory, shows individual investors how to beat the market with well-timed unique investments.

To whit Private Wealth Advisory is the only newsletter to have shown investors 72 straight winning trades and no losers during a 12-month period.

Indeed, in the last month alone we’ve locked in gains of 8%, 12%, 21% and even 28%… with an average holding period of 3-4 weeks.

To find out more about Private Wealth Advisory and how it can help you beat the market with your investments…

Click Here Now!

Best Regards

Graham Summers

 

 

 

 

 

 

The US economy continues to be a disaster.

Last week’s jobs report was just plain awful. The media is trumpeting the fact that the unemployment percentage fell, but they forgot to mention that this is because over 500,000 people left the labor force.

Indeed, the actual number of folks who left the labor force (516,000) was a RECORD. And the number of people not in the labor force is another record at 90.47 million.

This is not because these people found jobs, nor is it because the economy is improving. It’s because the Feds don’t count you as “unemployed” if you stop looking for work.

On top of this, the labor participation rate (total number of those employed divided by those of working age) fell to 63.2%. This is the lowest level since the late ‘70s. As a segment, men have an employment ratio of 69.5%. This is the single lowest reading in the history of this metric (going back to 1948).

So that’s three economic records. None of them good.

Add to this the new record of people on food stamps and you have an economic disaster.

This is an economic disaster. It shows us point blank that the economy has not recovered and that all talk of recovery is based on either phony data or outright fraud.

The fact of the matter is that we are on the cusp of a market correction if not something more.

On that note, I’ve already prepared readers of my Private Wealth Advisory newsletter with a number of targeted investment strategies designed to help them not only manage risk, but produce outsized profits during the economic slowdown.

Already we’ve locked in 14 straight winners over the last two months including gains of 11%, 14% and 25%. More are coming.

Indeed, during the first round of the Euro Crisis we locked in 73 straight winning trades and not one single closed loser. That was during a time when the market went nowhere.

So we’re getting ready for another similar winning streak during this next round of economic contraction. You can make money during times of slow growth, but you need the right investment strategies.

If these sound like the kind of investment strategies you could use for your portfolio, I suggest taking out a trial subscription to Private Wealth Advisory. You’ll immediately begin receiving my bi-weekly investment reports outlining the most important developments in the market.

You’ll also receive my real-time trade alerts, telling you the minute it’s time to open or sell a trade.

All just for $299 a year.

You get:

• 26 bi-weekly investment reports (ranging from 15-30 pages in length)
• Six Special Reports outlining unique opportunities and risks in the markets that 99% of investors don’t know about.
• 30-50 trades per year provided to you in real time
• The sense of calm in knowing that you’ve got your financial house in order.

To sign up for Private Wealth Advisory…

Click Here Now!!!

Yours in Profits,

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

 

 

 

 

The facts are now becoming abundantly clear, that the forecast we’ve maintained for well over two years has been validated: the US is in a DE-pression and both Washington and the Federal Reserve have wasted trillions of Dollars.

The reality is that what’s happening in the US today is not a cyclical recession, but a one in 100 year, secular economic shift.

See for yourself. Here’s duration of unemployment. Official recessions are marked with gray columns. Bear in mind that the Feds measure unemployment based on people looking for work, so if you stop looking, you no longer count as unemployed and this number will fall.

Even with this accounting gimmick, the average duration is still at 35 weeks.

Here’s the labor participation rate with recessions again market by gray columns:

Another way to look at this chart is to say that since the Tech Crash, a smaller and smaller percentage of the US population has been working. Today, the same percentage of the US population are working as in 1978.

Here’s industrial production. I want to point out that during EVERY recovery since 1919 industrial production has quickly topped its former peak. Not this time. We’ve spent literally trillions of US Dollars on Stimulus and bailouts and production is well below the pre-Crisis highs.

Here’s a close up of the last 10 years.

Again, what’s happening in the US is NOT a garden-variety cyclical recession. It is a STRUCTURAL SECULAR DEPRESSION.

And those who claim we’ve turned a corner are going by “adjusted” AKA “massaged” data. The actual data (which is provided by the Federal Reserve and Federal Government by the way) does not support these claims at all. In fact, if anything they prove we’ve wasted money by not permitted the proper debt restructuring/ cleaning of house needed in the financial system.

Which is why smart investors are already preparing for a market meltdown.

On that note, I’ve already prepared readers of my Private Wealth Advisory newsletter with a number of targeted investment strategies designed to help them not only manage risk, but produce outsized profits during the coming economic slowdown.

Already we’ve locked in 14 straight winners over the last two months. More are coming.

Indeed, during the first round of the Euro Crisis we locked in 73 straight winning trades and not one single closed loser. That was during a time when the market went nowhere.

So we’re getting ready for another similar winning streak during this next round of economic contraction. You can make money during times of slow growth, but you need the right investment strategies.

If these sound like the kind of investment strategies you could use for your portfolio, I suggest taking out a trial subscription to Private Wealth Advisory. You’ll immediately begin receiving my bi-weekly investment reports outlining the most important developments in the market.

You’ll also receive my real-time trade alerts, telling you the minute it’s time to open or sell a trade.

All just for $299 a year.

You get:

• 26 bi-weekly investment reports (ranging from 15-30 pages in length)
• Six Special Reports outlining unique opportunities and risks in the markets that 99% of investors don’t know about.
• 30-50 trades per year provided to you in real time
• The sense of calm in knowing that you’ve got your financial house in order.

To sign up for Private Wealth Advisory…

Click Here Now!!!

Yours in Profits,

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

 

 

 

 

 

 

 

Value investing is often too narrow-minded.

What I mean by this is that value investors will often focus on a company’s “value” using a number of metrics and ignore all other aspects of its business.

For example, let’s say you find a company trading at 50% of its value. This in of itself would qualify this company as a “deep value” investment.

However, the question has to be asked, “why is this company trading at a 50% discount to its ‘value’?”

Put another way, what do you see in this company that the market does not?

The market misprices investments about as often as it accurately prices investments. It’s up to the value investor to determine when a company’s true “value” is and how it compares to the value at which the market is currently prices it.

My point with this is that companies’ stock prices do not trade in a vacuum. Earnings come from the economy (whether it be the public or private sector). In this aspect consumer trends, incomes, supply shocks and other external forces meet a company’s internal strengths (competitive advantages, competent management and the like).

I raise this issue because I regularly hear the media talking about how stocks are “cheap” and that it’s time to buy. But if the economy is contracting sharply (which it currently is) then even “undervalued” stocks will be affected.

With that in mind I want to draw you to the acceleration of economic deterioration in the US.

Those of you who regularly read us know that we prefer to use nominal GDP as a measurement of GDP growth in the US.

The reason for this is that all “adjusted” GDP data involves a “deflator” metric that is meant to adjust for inflation. The Feds often use an inflation adjustment that is even lower than their official Consumer Price Index metric (which is already massaged to downplay inflation) in order to make GDP growth look greater.

Consider this simple example. Let’s say that the US GDP grew by 10% last year. Now let’s say that inflation also grew by 10%. In this scenario, real inflation adjusted GDP growth was ZERO.

However, announcing ZERO GDP growth is a major problem politically. So what do the Feds do? They claim that inflation was just 8%, and BOOM you’ve got 2% GDP growth announced for a year in which real GDP growth was actually zero.

Using nominal GDP, it’s clear the US is back in recession as the year over year change has brought us to a reading of sub-4. Every time this has happened in the last thirty years the US economy has been in recession.

Investing in this environment requires careful stock selection, which is why we’ve created our new long-term value investing newsletter Cigar Butts and Moats which utilizes precisely the same techniques that Benjamin Graham and Warren Buffett used to amass their fortunes.

Already one of our picks is up 7% in just a month. And our others are on the verge of breakouts as well.

To sign up for Cigar Butts and Moats at a special entry level offer of $79.99.

Click Here Now!

Graham Summers

 

The market is erupting higher on the usual start of the month buying and some gimmicked economic data out of Europe.

In this case, the specific data point in question is Europe’s Performance of Manufacturing Index or PMI, which rose to a 26 month high. This, combined with claims that Europe’s recession is “over” has convinced traders that the European crisis has officially been put to rest.

I’ve written at length about how politics drives everything in Europe (particularly the media). German Chancellor Angela Merkel, the woman with her finger on the “bailout” button for Europe, is up for re-election at the end of September. It is not coincidence that we’ve seen a sudden improvement in Europe’s economic data in the last two months going into this event.

After all, the alternative to Merkel’s re-election is politically unsavory for Europe: Merkel’s primary opposition wants an end to the bailouts and Germany out of the Euro.

If you were a totally bankrupt European Government relying on the promise of additional funds from Germany to stay in power and your options were A) start cranking out better data now with the promise of future bailouts from Germany or B) having to deal with a German Chancellor who wants out of the Euro… which would you choose?

Indeed, if the European Crisis is over, why did Germany’s Finance Minister just admit that Greece needs another bailout? It’s been nearly four years since Greece’s debt woes first surfaced officially. Four years and three bailouts later and Greece is still not fixed… but the European recession is over as is the European debt Crisis?

Right.

This move today feels like a dead cat bounce. Spain’s stock market, the Ibex, which remains the canary in the coalmine for Europe, is rallying to retest former support:

If we cannot break back above this line and stay there, then the market has called BS on the media’s campaign to convince the world that Europe is fine.

On that note, I’ve already prepared readers of my Private Wealth Advisory newsletter with a number of targeted investment strategies designed to help them not only manage risk, but produce outsized profits during the coming economic slowdown.

Already we’ve locked in 14 straight winners over the last two months. More are coming.

Indeed, during the first round of the Euro Crisis we locked in 73 straight winning trades and not one single closed loser. That was during a time when the market went nowhere.

So we’re getting ready for another similar winning streak during this next round of economic contraction. You can make money during times of slow growth, but you need the right investment strategies.

If these sound like the kind of investment strategies you could use for your portfolio, I suggest taking out a trial subscription to Private Wealth Advisory. You’ll immediately begin receiving my bi-weekly investment reports outlining the most important developments in the market.

You’ll also receive my real-time trade alerts, telling you the minute it’s time to open or sell a trade.

All just for $299 a year.

You get:

• 26 bi-weekly investment reports (ranging from 15-30 pages in length)
• Six Special Reports outlining unique opportunities and risks in the markets that 99% of investors don’t know about.
• 30-50 trades per year provided to you in real time
• The sense of calm in knowing that you’ve got your financial house in order.

To sign up for Private Wealth Advisory…

Click Here Now!!!

Yours in Profits,

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

 

The stock market is on the line for the whole QE forever rally.

This is an extremely dangerous situation. We are heading into a holiday weekend when any number of the current geopolitical situations could get very ugly.

Moreover, it’s not as though rally was driven by fundamentals. Ignore the ridiculous “official” data coming out of the Federal Government and have a look at what corporations are telling us.

Indeed, last quarter we saw revenue misses at:

1)   Merck (big pharma)

2)   Molson Coors (alcohol)

3)   Clorox (cleaning materials)

4)   US Steel (steel)

5)   McDonald’s (fast food)

6)   3M (conglomerate)

7)   GE (conglomerate)

Earnings can be massaged via accounting gimmicks. Revenues cannot. When revenues fall economic growth is falling.

And the market is on the verge of taking out its trendline.

On that note, I’ve already prepared readers of my Private Wealth Advisory newsletter with a number of targeted investment strategies designed to help them not only manage risk, but produce outsized profits during the coming economic slowdown.

Already we’ve locked in 14 straight winners over the last two months. More are coming.

Indeed, during the first round of the Euro Crisis we locked in 73 straight winning trades and not one single closed loser. That was during a time when the market went nowhere.

So we’re getting ready for another similar winning streak during this next round of economic contraction. You can make money during times of slow growth, but you need the right investment strategies.

If these sound like the kind of investment strategies you could use for your portfolio, I suggest taking out a trial subscription to Private Wealth Advisory. You’ll immediately begin receiving my bi-weekly investment reports outlining the most important developments in the market.

You’ll also receive my real-time trade alerts, telling you the minute it’s time to open or sell a trade.

All just for $299 a year.

You get:

• 26 bi-weekly investment reports (ranging from 15-30 pages in length)
• Six Special Reports outlining unique opportunities and risks in the markets that 99% of investors don’t know about.
• 30-50 trades per year provided to you in real time
• The sense of calm in knowing that you’ve got your financial house in order.

To sign up for Private Wealth Advisory…

Click Here Now!!!

Yours in Profits,

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

 

 

 

 

 

 

The market is rallying today on August performance gaming. The talking heads will claim this move has something to do with fundamentals, but the reality is that the move up yesterday and today consists of fund managers doing whatever they can to end this month with their holdings as high as possible. Nothing else.

This is obvious in that volume is too low (the lowest since 1997) and there are simply too many awful things happening in the world to warrant any kind of bullishness. Indeed, if you believe war is good for the markets, consider the recent moves in Northrup Grumman and Raytheon: both of them weapons manufacturers.

Shouldn’t these companies be spiking higher now that the war drums are beating?

Behind this backdrop of things getting “better,” things are in fact getting worse for the markets. The primary driver or stock prices since 2009 has been liquidity from the world’s Central Banks.

That era is now ending.

China has said it sees no need for future Government stimulus. Japan’s Abenomics is failing miserably with July retail sales dropping -0.3% (compared to the 0.1% growth that was expected). Angela Merkel of Germany has said that Greece shouldn’t have been allowed in the Euro. The latest GDP print in the US further bolsters arguments that the Fed should taper its QE programs.

None of these are positive for the markets which are back in bubble mode.

The liquidity faucet for the markets is closing. Few investors have taken note but the Central banks are already moving to take them system off of life support.

We’ll see how that goes.

On that note, I’ve already prepared readers of my Private Wealth Advisory newsletter with a number of targeted investment strategies designed to help them not only manage risk, but produce outsized profits during the coming economic slowdown.

Already we’ve locked in 14 straight winners over the last two months. More are coming.

Indeed, during the first round of the Euro Crisis we locked in 73 straight winning trades and not one single closed loser. That was during a time when the market went nowhere.

So we’re getting ready for another similar winning streak during this next round of economic contraction. You can make money during times of slow growth, but you need the right investment strategies.

If these sound like the kind of investment strategies you could use for your portfolio, I suggest taking out a trial subscription to Private Wealth Advisory. You’ll immediately begin receiving my bi-weekly investment reports outlining the most important developments in the market.

You’ll also receive my real-time trade alerts, telling you the minute it’s time to open or sell a trade.

All just for $299 a year.

You get:

• 26 bi-weekly investment reports (ranging from 15-30 pages in length)
• Six Special Reports outlining unique opportunities and risks in the markets that 99% of investors don’t know about.
• 30-50 trades per year provided to you in real time
• The sense of calm in knowing that you’ve got your financial house in order.

To sign up for Private Wealth Advisory…

Click Here Now!!!

Yours in Profits,

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

 

 

 

 

Based simply on CAPE (cyclical adjusted price to earnings) the market is significantly overvalued with a reading of 23.

However, even this measurement understates the true nature of the bubble because one of the biggest drivers of corporate earnings in the post-2009 era is financials (they account for 16.8% of the S&P 500, second only to IT). And financials’ earnings are a complete fantasy derived via accounting gimmicks.

I’ll give you an example. One of the classic accounting gimmicks is to write off loan loss reserves.

Banks and other financial institutions are required by law to maintain a certain amount of capital to make up for loans that borrowers default on. No matter how hard a bank works to only lend to those who won’t default, inevitably a certain number of loans go bad.

Loan loss reserves are expensed against earnings. So when you raise loan loss reserves, your profits fall (profits= sales-expenses). And in contrast, when loan loss reserves fall earnings are higher even though the bank hasn’t technically made more money.

JP Morgan used this tactic to juice its first quarter earnings for 2013 by a whopping $1.2 billion. Without this gimmick, earnings were only 8% higher than those of first quarter 2012, not the incredible 33% JP Morgan claimed by lowering loan loss reserves.

This is just one of a numerous accounting gimmicks financial companies use to juice earnings higher. But it’s a very safe assumption to state that financials’ earnings are imaginary in nature.

So, let’s take financials out of the mix. Unfortunately for the bulls, financials are the largest contributors to earnings growth for the S&P 500 in 2Q13. If you remove this sector, then earnings for the S&P 500 in the second quarter so far are DOWN 2.9%

This is the most critical issue for the US stock market, not who will be the next Fed Chairman. Earnings are the primary drivers of markets.

On that note, I’ve already prepared readers of my Private Wealth Advisory newsletter with a number of targeted investment strategies designed to help them not only manage risk, but produce outsized profits during the coming economic slowdown.

Already we’ve locked in 14 straight winners over the last two months. More are coming.

Indeed, during the first round of the Euro Crisis we locked in 73 straight winning trades and not one single closed loser. That was during a time when the market went nowhere.

So we’re getting ready for another similar winning streak during this next round of economic contraction. You can make money during times of slow growth, but you need the right investment strategies.

If these sound like the kind of investment strategies you could use for your portfolio, I suggest taking out a trial subscription to Private Wealth Advisory. You’ll immediately begin receiving my bi-weekly investment reports outlining the most important developments in the market.

You’ll also receive my real-time trade alerts, telling you the minute it’s time to open or sell a trade.

All just for $299 a year.

You get:

• 26 bi-weekly investment reports (ranging from 15-30 pages in length)
• Six Special Reports outlining unique opportunities and risks in the markets that 99% of investors don’t know about.
• 30-50 trades per year provided to you in real time
• The sense of calm in knowing that you’ve got your financial house in order.

To sign up for Private Wealth Advisory…

Click Here Now!!!

Yours in Profits,

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

 

 

 

 

After this weekend, the summer session for the markets will be winding down.

August historically is a listless time for the markets. In the US, Congress is closed so there are fewer major announcements regarding public policy.

In Europe entire companies and Governments will close down for a month as the continent goes on vacation.

Traders take advantage of the lull in action to hit the Hamptons. The end result is a quiet time for the markets with low volume.

Adding to the doldrums this year is the fact that Bernanke didn’t attend the Fed’s Jackson Hole meeting, so there were no new major announcements from the Fed this month. On top of this, Angela Merkel is seeking real election in Germany in September, so there has been a concentrated effort to keep things “quiet” over there.

But none of this means that everything has been resolved. Indeed, over the last week we’ve seen a number of major issues resurfacing. Investors need to be aware of the following:

• Germany’s finance minister Wolfgang Schauble has state that Greece would need yet another bailout.
• Italy’s bonds have plunged again as the Italian Government is beginning to fall to pieces.
• Brazil officially entered the currency wars launching a new $60 billion currency intervention, its largest in history.
• The NASDAQ was shut down for several hours last week due to a “glitch.”
• China’s economy is lurching towards deflation with even the Government admitting that its recently published great data were bogus.

These issues did not simply go away based on the fact that people were on vacation. So expect volatility to increase going forward.

This is not to say that there will not be ample opportunities for investors to make money. There is always a trade or investment to be made. And provided you follow the right strategies, even volatile times can pay out wonderfully.

Case in point, over the last two months, Private Wealth Advisory subscribers have locked in 14 straight winner trades. During this period, we haven’t closed a single loser.

See for yourself:

 

On that note, I’ve already prepared readers of my Private Wealth Advisory newsletter with a number of targeted investment strategies designed to help them not only manage risk, but produce outsized profits during the coming market volatility.

Already we’ve locked in 13 straight winners over the last two months. More are coming.

Indeed, during the first round of the Euro Crisis we locked in 73 straight winning trades and not one single closed loser. That was during a time when the market went nowhere.

So we’re getting ready for another similar winning streak during this next round of economic contraction. You can make money during times of slow growth, but you need the right investment strategies.

If these sound like the kind of investment strategies you could use for your portfolio, I suggest taking out a trial subscription to Private Wealth Advisory. You’ll immediately begin receiving my bi-weekly investment reports outlining the most important developments in the market.

You’ll also receive my real-time trade alerts, telling you the minute it’s time to open or sell a trade.

All just for $299 a year.

You get:

• 26 bi-weekly investment reports (ranging from 15-30 pages in length)
• Six Special Reports outlining unique opportunities and risks in the markets that 99% of investors don’t know about.
• 30-50 trades per year provided to you in real time
• The sense of calm in knowing that you’ve got your financial house in order.

To sign up for Private Wealth Advisory…

Click Here Now!!!

Yours in Profits,

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

 

 

 

Our new value focused investing newsletter is officially live.

Why did we create this newsletter?

First and foremost, you need to know that few if any investors actually beat the market in the long-term. The reason for this is that most of the investment strategies employed by investors (professional or amateur) simply do not make money in the long run.

I know this runs counter to the claims of the entire financial services industry. But it is factually correct.

 In 2012, the S&P 500 roared up 16% including dividends. During that period, less than 40% of fund managers beat the market. Most investors could have simply invested in an index fund, paid less in fees, and done better.

If you spread out performance over the last two years (2011 and 2012) the results are even worsen with only 10% of funds beating the market.

If we stretch back even further, the results are even more dismal. For the ten years ended 1Q 2013, a mere 0.4% of mutual funds have beaten the market.

0.4%, as in less than half of one percent of funds.

These are investment “professionals,” folks whose jobs depend on producing gains, who cannot beat the market for any significant period.

The reason this fact is not better known is because the mutual fund industry usually closes its losing funds or merges them with other, better performing funds.

As a result, the mutual fund industry in general experiences a tremendous survivor bias. But the cold hard fact what I told you earlier: less than half of one percent of fund managers outperform the market over a ten-year period.

So how does one beat the market?

Cigar Butts and Moats.

“Cigar butts” was a term used by the father of value investing, Benjamin Graham, to describe investing in companies that trade at significant discounts to their underlying values. Graham likened these companies to old, used cigar butts that had been discarded, but which had just one more puff left in them.

Like discarded cigar butts, these investments were essentially “free”: investors had discarded them based on the perception that they had no value. 

However, many of these cigar butts do in fact have on last puff in them. And for a shrewd investor like Benjamin Graham, that last puff was the profit potential obtained by acquiring these companies at prices below their intrinsic value (below the value of the companies assets plus cash, minus its liabilities).

Graham used a lot of diversification, investing in hundreds of “cigar butts” to produce average annual gains of 20%, far outpacing the S&P 500’s 12.2% per year over the same time period.

So when I say that you can amass a fortune by investing in Cigar Butts, I’m not being facetious. For this reason, cigar butts, or deeply undervalued companies, will be a focus of this newsletter. And like Benjamin Graham, we’ll only be holding these companies in the short-term: until they reach their intrinsic value.

The other term, “moats” is in reference to the investments Warren Buffett, a student of Ben Graham and arguably the greatest living investor, seeks out…

Buffett amassed his enormous fortune through a systematic investment philosophy consisting of a few key ideas. However, the single most important one was buying companies with “moats” around them meaning that they have a competitive advantage that stops competitors from breaking into their market share.

Our new newsletter Cigar Butts & Moats focuses exclusively on these two types of investments. We only invest in deeply undervalued “cigar butts” or companies with economic “moats” around them.

Of our two most recommendations, one is a classic “cigar butt” an asset rich company trading at a 16% discount to its book value.

Even better it currently yields an amazing 10%+ per year.

Our other recent recommendation is a classic “moat” company. This company’s IP is so valuable that one of its biggest competitors is paying it nearly $1 billion just to get access to some of its patents.

Even better, based on its current valuation, this company is so cheap that it could easily take itself private. This is a classic Buffett investment setup. We’re already up 7% here in one month and I expect this company to generate some serious returns over the long-term.

To find out what these companies are all you need to do is take out an annual subscription to Cigar Butts & Moats.

The price of an annual subscription is just $79.99.

For that price you get:

    * 12 monthly issues of Cigar Butts & Moats

    * All of our Special Investment Reports outlining special investment opportunities you won’t hear about anywhere else.                                              

    * Real time investment updates as needed

All of this for just $79.99

To take out an annual subscription to Cigar Butts & Moats…

Click Here Now!

Yours in Profits,

 

Graham Summers

Editor

Cigar Butts and Moats

 

 

 

 

The latest policy being implemented by Governments around the world consists of simply making data points up when reality doesn’t conform to their wishes.

The best example of this is China where the PMI measure erupted from the lowest level in 12 months (47.7) to 50.1. This represents the single largest month over month change for the data point in three years.

This means China’s economy is now expanding rapidly after facing a liquidity crisis, systemic unrest, and economic contraction over the last six months.

The only problem is that this data point is totally bogus.

The fact of the matter is that Chinese economic data is absurdly gimmicked. Indeed, back in 2007, no less than current First Vice Premiere of China, Li Keqiang, admitted to the US ambassador to China that ALL Chinese data, outside of electricity consumption, railroad cargo, and bank lending is for “reference only.”

So what is China’s electricity consumption signaling? That the Chinese economy is growing at best by 2.9%… nowhere near the 7.5% the Chinese Government claims.

This same issue is playing out in the US today.

We continue to hear that the US economy is in recovery and that sharp economic growth is just around the corner. The problem with these claims is that:

• The US’s GDP growth number is gimmicked to make growth look better than reality (the BLS deflates our GDP by an amount that is even lower that the Fed’s ridiculous CPI measure). Real GDP growth is negative 2%.

• Unemployment simply ignores people who stopped looking for a job (thereby lowering the percentage of people “unemployed”). Real unemployment is north of 20%.

• Our inflation measures don’t count the actual cost of living in the US by any stretch of the imagination (somehow the rise in home prices, rents, food, and energy costs don’t affect CPI). Real inflation is 8%.

China and the US are the two largest economies in the world. If both of them are in fact growing at much lower rates than is commonly known, the odds of the world economy growing significantly are minimal.

Indeed consider the latest round of numbers from corporations with business in these countries.

China:

• Apple just reported a 14% drop in Net Sales for operations in China.

• Yum! Brands (owns Taco Bell, KFC, etc.) saw a 7% drop in sales in China.

• Cosco Shipping (China’s largest shipping group) saw its first half net loss triple.

• Anglo American, a mining group producing coal, iron ore and precious metals with large exposure to China, saw a 34% in pre-tax profits in the first half of 2013.

The US:

• Wal-Mart saw same store sale in the US decline 0.3%. This is the second quarterly same store sales decline at a time when aalysts expected them to rise 1.0%

• Target just posted a 13% drop in profits based on a slowdown in consumer spending.

• Consumer spending, adjusted for inflation, was up just 0.1% in June.

On that note, I’ve already prepared readers of my Private Wealth Advisory newsletter with a number of targeted investment strategies designed to help them not only manage risk, but produce outsized profits during the coming economic slowdown.

Already we’ve locked in 13 straight winners over the last two months. More are coming.

Indeed, during the first round of the Euro Crisis we locked in 73 straight winning trades and not one single closed loser. That was during a time when the market went nowhere.

So we’re getting ready for another similar winning streak during this next round of economic contraction. You can make money during times of slow growth, but you need the right investment strategies.

If these sound like the kind of investment strategies you could use for your portfolio, I suggest taking out a trial subscription to Private Wealth Advisory. You’ll immediately begin receiving my bi-weekly investment reports outlining the most important developments in the market.

You’ll also receive my real-time trade alerts, telling you the minute it’s time to open or sell a trade.

All just for $299 a year.

You get:

• 26 bi-weekly investment reports (ranging from 15-30 pages in length)
• Six Special Reports outlining unique opportunities and risks in the markets that 99% of investors don’t know about.
• 30-50 trades per year provided to you in real time
• The sense of calm in knowing that you’ve got your financial house in order.

To sign up for Private Wealth Advisory…

Click Here Now!!!

Yours in Profits,

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

 

 

The single dominant belief for investors since 2008 has been that the world’s Central banks will not permit the markets to fall to pieces.

There are primary two primary reasons for this:

1)   The Fed and other Central Banks managed to hold the system together in 2008-2009.

2)   Central Banks have stepped in time and again to prop up the markets every time they staged a significant correction since 2008.

The most obvious culprit here is the Fed, which has stepped in following every market correction in the last four year, either with the promise of a new round of QE or outright announcement of a new round of QE.

Other Central Banks have mirrored these moves. Indeed, since 2007, Central Banks have cut interest rates over 512 times. They’ve also expanded their collective balance sheets by over $10 trillion.

The problem with this is that all of these strategies were not fully thought through.

Consider the following. The Fed has only $50 billion or so in capital. With the Fed now owning over 30% of the ten-year market, every time bonds drop and yields rise, the Fed will erase ALL of this capital. Indeed, Mark Hussman of Hussman Funds notes that even a 100 basis point increase in yields will wipe out the Fed’s capital six times over.

And therein lies the core problem: by expanding its balance sheet so dramatically, the Fed has in effect spread the financial crisis from a private banking level to a public/ sovereign level. Put another way, when the next Crisis hits, it will not be Wall Street banks that go bust but the Fed itself.

Anyone who believes the Fed can “exit” this position is delusional. The single biggest trade for the last four years has been frontrunning the Fed’s asset purchases. When the Fed reverses course and begins selling assets, everyone will dump Treasuries in anticipation.

Indeed, we are already witnessing this with foreign nations selling Treasuries in record amounts in June when the Fed first hinted at tapering its QE programs. Japan and China alone dumped $40 billion that month (of a total $66 billion sold by foreigners that month).

By the way, this was the single largest Treasury dump by foreigners since August 2007. We all remember what followed that (the first round of this Crisis).

Sure, the Fed could print money to deal with this. But if Treasuries begin to collapse while the Fed is already buying them… and it can only buy more by money printing, then it’s GAME SET MATCH for Bernanke’s QE, the Fed, and the US economy.

On that note, I’ve already prepared readers of my Private Wealth Advisory newsletter with a number of targeted investment strategies designed to help them not only manage risk, but produce outsized profits during the coming Crash.

My clients saw a 7% portfolio return in 2008, at a time when the market fell 35%.

We also locked in 73 straight winning trades during the Euro Crisis, producing a total portfolio return of 34% at a time when the market was falling rapidly.

And today, we’re taking action to prepare for another round of intense volatility. In fact, we’ve already started another winning streak, having locked in 13 straight winners since May. And by the look of things, we’re about to close our 14th and 15th shortly (one is already up 12% in just two weeks already.

If these sound like the kind of investment strategies you could use for your portfolio, I suggest taking out a trial subscription to Private Wealth Advisory. You’ll immediately begin receiving my bi-weekly investment reports outlining the most important developments in the market.

You’ll also receive my real-time trade alerts, telling you the minute it’s time to open or sell a trade.

All just for $299 a year.

You get:

• 26 bi-weekly investment reports (ranging from 15-30 pages in length)
• Six Special Reports outlining unique opportunities and risks in the markets that 99% of investors don’t know about.
• 30-50 trades per year provided to you in real time
• The sense of calm in knowing that you’ve got your financial house in order.

To sign up for Private Wealth Advisory…

Click Here Now!!!

Yours in Profits,

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

 

The QE party is ending. And the following hangover is going to be brutal.

Since 2007 the Central Bankers of the world have operated under the belief that they can hold the financial system together by engaging in round after round of Quantitative Easing (QE) without losing control of the bond markets/ interest rates.

They believed this because:

1)   We haven’t had a bear market in bonds in 30+ years

2)   They believe that they (Central Banks) will never lose credibility with the markets.

This entire theory crashed into the wall in April 2013 when the Bank of Japan announced its “shock and awe” QE program.

The yield on the ten-year Japanese Government bond has since violated its trendline and is now retesting former resistance. This is a classic breakout that typically precedes sharp moves higher. In the case of Japanese Government bonds, this would mean the bonds losing value.

Why does this matter?

This matters because bond markets have a nasty tendency of spinning out of control very quickly once things begin to unravel. A great example of this is Italy, which was considered a rock solid pillar of the EU for the better part of the last 15 years… and then, it lost all credibility in a matter of weeks and began to collapse.

As you can see, Italy’s ten-year bond yield broke its trendline in the autumn of 2011 when the EU crisis first began to spread outside of Greece. It hovered around 5% for a few months and then skyrocketed above 6%. Later it spiked again above 7%.

Both of these spikes occurred in just a few weeks’ time. What was thought to be “rock solid” for over a decade became bankrupt in a matter of months.

On that note, Ben Bernanke is praying to the Market Gods that the ten-year Treasury doesn’t take out the line below:

“So what?” many will think. What’s one trendline for bonds?

As the long-term chart shows. This isn’t just any trendline. This is THE trendline. Take it out and the 10 year will likely be yielding 5-6% in no time… which by the way is where it was for most of the ‘90s and very early ‘00s.

The only difference is that a drop like this would literally render the Fed bankrupt. The Fed currently owns 30% of all the ten year Treasuries in existence. If yields were to return to 5-6% on the ten year Treasury then the Fed would have literally lost several hundred billion Dollars on its Treasury holdings.

Sure, the Fed could print money to deal with this. But if Treasuries begin to collapse while the Fed is already buying them… and it can only buy more by money printing, then it’s GAME SET MATCH for Bernanke’s QE, the Fed, and the US economy.

On that note, I’ve already prepared readers of my Private Wealth Advisory newsletter with a number of targeted investment strategies designed to help them not only manage risk, but produce outsized profits during the coming Crash.

My clients saw a 7% portfolio return in 2008, at a time when the market fell 35%.

We also locked in 73 straight winning trades during the Euro Crisis, producing a total portfolio return of 34% at a time when the market was falling rapidly.

And today, we’re taking action to prepare for another round of intense volatility. In fact, we’ve already started another winning streak, having locked in 13 straight winners since May. And by the look of things, we’re about to close our 14th and 15th shortly (one is already up 12% in just two weeks already.

If these sound like the kind of investment strategies you could use for your portfolio, I suggest taking out a trial subscription to Private Wealth Advisory. You’ll immediately begin receiving my bi-weekly investment reports outlining the most important developments in the market.

You’ll also receive my real-time trade alerts, telling you the minute it’s time to open or sell a trade.

All just for $299 a year.

You get:

• 26 bi-weekly investment reports (ranging from 15-30 pages in length)
• Six Special Reports outlining unique opportunities and risks in the markets that 99% of investors don’t know about.
• 30-50 trades per year provided to you in real time
• The sense of calm in knowing that you’ve got your financial house in order.

To sign up for Private Wealth Advisory…

Click Here Now!!!

Yours in Profits,

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

 

Asia has become the most important issue for the markets today. The Central Bankers’ dream of endless QE has become a nightmare for Japan while China’s “growth miracle” is rapidly falling to pieces.

Let’s start with Japan.

Japan launched its “shock and awe” mega-QE policy in April 2013. Having already launched eight QE programs over the last 20 years (equal to 20% of Japan’s GDP), Japan has only experienced two years in which GDP growth has exceeded 3%.

Despite this failure, Japan’s political leadership, lead by Shinzo Abe opted to increase its QE efforts, announcing a QE program equal to $1.4 trillion, roughly an additional 20%+ of Japan’s GDP.

The hope was that this massive stimulus would result in an uptick in GDP and employment.

Unfortunately, neither has picked up. Japan’s June industrial production fell 3.3% month over month in June. Household spending unexpectedly dropped 2% month over month for the same time period.

At the same time, inflation is beginning to rear its head.

Japan’s consumer price index registered its first increase in 14 months in June. The pace of increase was the fastest since 2008 when commodity prices were at record highs.

This is a huge problem. If the cost of living in Japan continues to rise without a commensurate rise in incomes or GDP, then Japan is finished as the benefits of monetary intervention will have been completely overcome by the negative consequences.

Another key development for the global economy that needs to be monitored is the collapse of China.

The mainstream financial media continues to proclaim that China’s liquidity crisis is solved and that the Chinese economy is growing at 7%.

However, we get confirmation of a slowdown in China via the latest round of corporate results there.

Consider that:

• Apple just reported a 14% drop in Net Sales for operations in China.

• Yum! Brands (owns Taco Bell, KFC, etc.) saw a 7% drop in sales in China.

• Cosco Shipping (China’s largest shipping group) saw its first half net loss triple.

• Anglo American, a mining group producing coal, iron ore and precious metals with large exposure to China, saw a 34% in pre-tax profits in the first half of 2013.

I also note the collapse in Copper (black line), which is closely mirroring the collapse of China’s stock market  (blue line) below.

Combined, China and Japan account for roughly 18% of Global GDP. They are the second and third largest countries in the world respectively. The fact that the former is definitively in a hard landing while the latter is facing systemic unrest will not be something the markets can ignore for long.

On that note, I’ve already prepared readers of my Private Wealth Advisory newsletter with a number of targeted investment strategies designed to help them not only manage risk, but produce outsized profits during the coming Crash.

My clients saw a 7% portfolio return in 2008, at a time when the market fell 35%.

We also locked in 73 straight winning trades during the Euro Crisis, producing a total portfolio return of 34% at a time when the market was falling rapidly.

And today, we’re taking action to prepare for another round of intense volatility. In fact, we’ve already started another winning streak, having locked in 13 straight winners since May. And by the look of things, we’re about to close our 14th and 15th shortly.

If these sound like the kind of investment strategies you could use for your portfolio, I suggest taking out a trial subscription to Private Wealth Advisory. You’ll immediately begin receiving my bi-weekly investment reports outlining the most important developments in the market.

You’ll also receive my real-time trade alerts, telling you the minute it’s time to open or sell a trade.

All just for $299 a year.

You get:

• 26 bi-weekly investment reports (ranging from 15-30 pages in length)
• Six Special Reports outlining unique opportunities and risks in the markets that 99% of investors don’t know about.
• 30-50 trades per year provided to you in real time
• The sense of calm in knowing that you’ve got your financial house in order.

To sign up for Private Wealth Advisory…

Click Here Now!!!

Yours in Profits,

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Japan continues to dominate the economic news. The latest move concerns Prime Minister Abe’s new economic policies to cut corporate taxes. He also announced plans to run a shakeup at Japan’s political ministries.

This is “Plan B” for Abe who has found that his policy of “Abenomics” or pushing the Bank of Japan to print even more money has failed to stimulate Japan’s economy.

Abe won in a landslide last September on his platform of urging the Bank of Japan to do more. This platform ignored the failure of QE to stimulate growth in Japan in the previous 20 years (Japan had already engaged in QE programs equal to 25% of the country’s GDP). It also ignored the risks of unfettered money printing, namely higher inflation.

Sadly, Abe has discovered that ignoring both of these key issues, while good politically, has been disastrous economically. Abe won the election and the Bank of Japan announced a record $1.4 trillion QE effort in April 2013. To put this number into perspective, this would be the equivalent of Ben Bernanke announcing a $3.75 trillion QE plan in the US. Suffice to say it was a “shock and awe” move.

Unfortunately, it hasn’t worked. Japan’s industrial production fell 3.3% month over month in June. At the same time, Japan’s consumer price index registered its first increase in 14 months in June. The pace of increase was the fastest since 2008 when commodity prices were at record highs.

In plain terms, the Japanese economy is failing to respond to Abenomics. This is the single most important issue for the global financial system today.

The economy and financial markets have been moving in a zig-zag pattern ever since 2008 with drops in asset prices and GDP being met by intervention and stimulus by the world’s Central Banks.

However, thus far no Central Bank has gone “all in” with QE. The larger efforts have been focused on specific timelines (six months to a year) and the ongoing efforts have been tied to economic developments (the Fed claims it will taper QE when US employment falls to an acceptable level).

Never before has a Central Bank stated point blank that it’s firing a bazooka at the economy. Japan has done this. It has failed. And this failure has effectively been the “Emperor has no clothes” moment for Central Bank interventions.

And the markets are taking note.

Traders and investors do not respond to sea changes instantly. The smart ones take note and begin adjusting their portfolios and hedging their bets. This doesn’t result in massive market moves as these investors are sophisticated enough to move out of old positions and into new ones without drawing too much attention

It’s only when the investment herd en masse realizes that something has changed that you begin to see market Crashes.

This process has begun in the world. The smart money is leaving the market. And the market rally is being driven by fewer and fewer companies. This is classic Bubble Topping signals.

This is not to say that the market will crash tomorrow. But the sea change has hit and it’s now a matter of time. The likelihood of a full-scale market Crash similar to 1987 occurring in the coming months has increased dramatically.

So if you are not taking steps to prepare your portfolio for some major price movements, you need to start now. Pinpointing the exact date of a market Crash is darn near impossible. But one thing is clear: once it begins it’s far too late to save your hard earned capital.

On that note, I’ve already prepared readers of my Private Wealth Advisory newsletter with a number of targeted investment strategies designed to help them not only manage risk, but produce outsized profits during the coming Crash.

My clients saw a 7% portfolio return in 2008, at a time when the market fell 35%.

We also locked in 73 straight winning trades during the Euro Crisis, producing a total portfolio return of 34% at a time when the market was falling rapidly.

And today, we’re taking action to prepare for another round of intense volatility. In fact, we’ve already started another winning streak, having locked in 11 straight winners since May. Throughout that period we haven’t closed a single loser.

If these sound like the kind of investment strategies you could use for your portfolio, I suggest taking out a trial subscription to Private Wealth Advisory. You’ll immediately begin receiving my bi-weekly investment reports outlining the most important developments in the market.

You’ll also receive my real-time trade alerts, telling you the minute it’s time to open or sell a trade.

All just for $299 a year.

You get:

• 26 bi-weekly investment reports (ranging from 15-30 pages in length)
• Six Special Reports outlining unique opportunities and risks in the markets that 99% of investors don’t know about.
• 30-50 trades per year provided to you in real time
• The sense of calm in knowing that you’ve got your financial house in order.

To sign up for Private Wealth Advisory…

Click Here Now!!!

Yours in Profits,

Graham Summers

Chief Market Strategist

Phoenix Capital Research

In April 2013, Japan announced a QE program of $1.4 trillion, an amount equal to roughly 25% of the Japanese GDP. To put this into perspective, the US’s QE1, QE 2, QE 3, and QE 4 programs which were spaced out over four years are an amount equal to roughly 16% of US GDP.

Japan announced a larger program relative to its economy all at once. The idea was that by throwing around a big enough amount of money, Japan’s economy would finally waken from its 20-year slumber and take off.

This effort has been an abysmal failure. Japan’s second quarter GDP grew at just 0.6% quarter over quarter, registering the single biggest growth MISS in a year (economists were expecting 0.9% which, by the way had already been revised lower).

Put in plain terms, Japan announced the single largest QE effort in history, and not only did its economic growth projections have to be lowered, but it is failing to even meet these lowered growth projections.

The “QE generates economic growth” story is officially dead. This will have severe repercussions throughout the financial system.

Indeed, it is not coincidence that the Fed began talk of tapering QE shortly after Japan announces its own massive program. And it is not coincidence that the Fed began to speed up the “taper QE” timetable as the epic failure of Japan’s QE efforts become obvious to everyone.

The Fed now clearly realizes that QE no longer impacts the economy in any meaningful way. It also realizes that it has created yet another massive stock market bubble, arguably one that is even worse than that of 2007/2008.

The writing is clearly on the wall. We have numerous proprietary metrics that are screaming “collapse” as I write this. The likelihood of a full-scale market Crash similar to 1987 occurring in the coming months has increased dramatically.

So if you are not taking steps to prepare your portfolio for some major price movements, you need to start now. Pinpointing the exact date of a market Crash is darn near impossible. But one thing is clear: once it begins it’s far too late to save your hard earned capital.

On that note, I’ve already prepared readers of my Private Wealth Advisory newsletter with a number of targeted investment strategies designed to help them not only manage risk, but produce outsized profits during the coming Crash.

My clients saw a 7% portfolio return in 2008, at a time when the market fell 35%.

We also locked in 73 straight winning trades during the Euro Crisis, producing a total portfolio return of 34% at a time when the market was falling rapidly.

And today, we’re taking action to prepare for another round of intense volatility. In fact, we’ve already started another winning streak, having locked in 11 straight winners since May. Throughout that period we haven’t closed a single loser.

If these sound like the kind of investment strategies you could use for your portfolio, I suggest taking out a trial subscription to Private Wealth Advisory. You’ll immediately begin receiving my bi-weekly investment reports outlining the most important developments in the market.

You’ll also receive my real-time trade alerts, telling you the minute it’s time to open or sell a trade.

All just for $299 a year.

You get:

• 26 bi-weekly investment reports (ranging from 15-30 pages in length)
• Six Special Reports outlining unique opportunities and risks in the markets that 99% of investors don’t know about.
• 30-50 trades per year provided to you in real time
• The sense of calm in knowing that you’ve got your financial house in order.

To sign up for Private Wealth Advisory…

Click Here Now!!!

Yours in Profits,

Graham Summers

Chief Market Strategist

Phoenix Capital Research

The financial media continues to talk about how Europe is saved.

It’s odd that somehow everything is starting to look so much better now than Angela Merkel is up for re-election in Germany. Could it be coincidence that the worst Crisis in years suddenly went away right as the women with her finger on the “bailout” button needed to convince German voters that she’s doing a great job?

Remember, politics drive everything in Europe, including the markets (Spain’s political scandals had a bigger impact on the Spanish Ibex than a myriad of horrific economic data). Which is why everything is on hold until the German election ends next month.

Meanwhile, underneath this veneer of calm, things worsen. Recently…

• Italy’s non-performing bank loans rose 22% year over year in May (the most recent data)
• Spain’ real non-performing loans are at 17%.
• The IMF predicts Spain’s unemployment will be over 25% for five years.
• Total EU youth unemployment just hit a new all time high, almost 25%.
• Cyprus just OK’d the theft of 47.5% of all deposits over €100,000 at its troubled banks (yes, people just lost nearly half of their savings).

The European markets look equally ugly.

Spain’s Ibex has traded sideways since late 2012. It’s now coming up against major resistance. We’ll see how that turns out.

Germany’s Dax is forming a massive bearish rising wedge pattern.

This market needs to explode to the upside or we’re going to see a correction that erases all of the gains since mid-2011.

The same is true of France:

Again, we need a parabolic rise now or this is a false breakout and France’s shares are heading lower.

We’ve all seen how false hopes work out for the markets: BADLY. Given that Europe is beyond bankrupt at this point, I fully expect that that the EU Crisis will be back with a vengeance very shortly. When you consider that the entire EU banking system is leveraged at 26 to 1, it’s clear that there’s only one outcome possible here: implosion.

Folks, there is no other way to put this… the markets are in a massive bubble. And when it bursts, things will get ugly very FAST.

With that in mind, I’ve already urged my Private Wealth Advisory clients to start prepping. We’ve opened six targeted trades to profit from the stock bubble bursting.

We’ve also taken care to prepare our finances and our loved ones for what’s coming, by following simple easy to follow steps concerning our savings, portfolios, and personal security via my Protect Your Family, Protect Your Savings & Protect Your Portfolio reports.

I’ve helped thousands of investors manage their risk and profit from market collapses. During the EU Crisis we locked in 72 straight winning trades and not one loser, including gains of 18%, 28% and more.

In fact, we’re currently on another winning streak having locked in ELEVEN winning trades in the last two months, including gains of 21% and 25%.

All for the small price of $299: the annual cost of a Private Wealth Advisory subscription.

To take action to prepare for what’s coming… and start taking steps to insure that when this bubble bursts you don’t lose your shirt.

Click Here Now!

Yours in Profits,

Graham Summers

 

 

 

The primary myth being perpetuated by the Central Banks of the world is the belief that loose monetary policy and money printing will lead to economic growth.

This is the reason why Central banks have cut interest rates more than 511 times since June 2007. It’s also why they’ve expanded their balance sheets by over $10 trillion (this doesn’t count unofficial lending windows and off balance sheet programs).

It’s a strange idea, especially when you consider that there is literally no evidence that printing money creates jobs. Look at Japan, they have and continue to maintain QE efforts equal to 40+% of their GDP and unemployment hasn’t budged in 20 years. The UK has engaged in QE equal to over 20% of GDP with no success.

If you need further proof that money printing and inflation don’t create jobs take a look at the below chart from Bill King’s The King Report.  The blue line is CPI. The pink line is non-seasonally adjusted non-farm payroll (jobs). In the last 50 years, inflation has dramatically outperformed job creation.

Since Bernanke took over at the Fed, the US hasn’t experienced a single year of 3% GDP growth. All the talk of jobs coming back courtesy of the Fed is ridiculous. The employment population ratio peaked in 2000. Since that time jobs have not kept up with population growth, let alone grown.

Indeed, all that’s grown is inflation, the one thing the Fed is great at creating.

According to Harvard Professor Ken Rogoff in the 138 years leading up to the Fed’s founding in 2013, inflation rose a mere 20%.

Yes, you read that correctly, inflation rose just 20% over a period of 138 years. However, in the 100 years since the Fed came into existence, inflation has risen by 3,000%. The US dollar has lost between 96-98% of its value since 1913.

And yet despite the preponderance of evidence that money printing doesn’t create jobs, Bernanke and his Central Banker colleagues continue to perpetuate the myth that the recovery is just around the corner, as long as we continue to print money.

It’s complete and utter insanity. And all it will accomplish is bankrupting the US, resulting in higher costs of living (again inflation has risen 3,000% since the Fed’s creation in 1913) and lower quality of life for all of us.

Folks, there is no other way to put this… the markets are in a massive bubble. And when it bursts, things will get ugly very FAST.

With that in mind, I’ve already urged my Private Wealth Advisory clients to start prepping. We’ve opened six targeted trades to profit from the stock bubble bursting.

We’ve also taken care to prepare our finances and our loved ones for what’s coming, by following simple easy to follow steps concerning our savings, portfolios, and personal security via my Protect Your Family, Protect Your Savings & Protect Your Portfolio reports.

I’ve helped thousands of investors manage their risk and profit from market collapses. During the EU Crisis we locked in 72 straight winning trades and not one loser, including gains of 18%, 28% and more.

In fact, we’re currently on another winning streak having locked in ELEVEN winning trades in the last two months, including gains of 21% and 25%.

All for the small price of $299: the annual cost of a Private Wealth Advisory subscription.

To take action to prepare for what’s coming… and start taking steps to insure that when this bubble bursts you don’t lose your shirt.

Click Here Now!

Yours in Profits,

Graham Summers

 

 

 

The markets fell yesterday despite the Fed pumping over $5 billion into the system. The primary reason is that the Fed is once again talking about tapering QE. There’s also the uncertainty of who the next Fed Chairman will be (Larry Summers’ odds of filling the roll can be correlated to the dips in the market as Summers has been critical of QE in the past).

Stocks are on the edge of a small cliff. It we take it out we could go to 1650 in a heartbeat. And it we take out 1625, then look out, we’ll likely wipe out several months of gains in a short period.

Speaking of which, the Nikkei has formed a triangle pattern. Watch this formation closely. Japan is leading the US as far as markets are concerned. A breakdown here would signal a major correction in US stocks.

In the US, the Fed continues to argue that money printing and QE can generate growth. There is literally no evidence of this in history. Japan and the UK have both engaged in massive QE programs to little or no effect.

However, the Fed is terrified of losing control of the system, so it wants to continue doing anything no matter how futile in order to maintain the appearance of confidence. God forbid anyone figures out the emperor has no clothes…

Folks, there is no other way to put this… the markets are in a massive bubble. And when it bursts, things will get ugly very FAST.

With that in mind, I’ve already urged my Private Wealth Advisory clients to start prepping. We’ve opened six targeted trades to profit from the stock bubble bursting.

We’ve also taken care to prepare our finances and our loved ones for what’s coming, by following simple easy to follow steps concerning our savings, portfolios, and personal security via my Protect Your Family, Protect Your Savings & Protect Your Portfolio reports.

I’ve helped thousands of investors manage their risk and profit from market collapses. During the EU Crisis we locked in 72 straight winning trades and not one loser, including gains of 18%, 28% and more.

In fact, we’re currently on another winning streak having locked in ELEVEN winning trades in the last two months, including gains of 21% and 25%.

All for the small price of $299: the annual cost of a Private Wealth Advisory subscription.

To take action to prepare for what’s coming… and start taking steps to insure that when this bubble bursts you don’t lose your shirt.

Click Here Now!

Yours in Profits,

Graham Summers

 

 

 

 

 

 

 

 

 

I keep hearing that whenever “stocks are rising” it’s a good thing.

I completely disagree. If a market move is warranted by earnings and fundamentals, then yes, a sharp move higher is great. But if the market is rallying based on false hopes, or even worse, is in a bubble, then it’s actually very bad for stocks to move higher because it means the ensuing collapse will be even more violent (a la 2000 and 2008).

With that in mind, this market has essentially moved up almost non-stop since December 2012. This entire move has occurred against worsening economic fundamentals.

While the cheerleaders on TV applaud this move, it’s important to consider the “big picture” for the economy and market as a whole. Here’s the big picture:

1)   Earnings, the primary driver or prices, are falling. If you exclude financials earnings for the last quarter, earnings are down 2.9% year over year.

2)   Economic activity, the other driver of stock prices, has fallen too, leaving stocks diverging sharply to the upside.

3)   The “smart” money is fleeing the market en masse (institutions, wealthy private investors, etc.).

4)   The problems in Europe have not gone away. They’ve been shuffled under the carpet until Germany’s elections. But Spain, Portugal, and even Italy are rapidly descending into financial chaos and insolvency.

5)   Japan massive experiment with monetary policy is proving to be a disaster with industrial production falling while costs of living are rising. Japan is skirting on the verge of financial collapse.

6)   China is experiencing a hard landing, if not economic crash. If you look at their electricity consumption their GDP growth is barely 2.9%. Yet the entire world continues to believe the People’s Republic will produce 7% growth ad infinitum. Good luck with that.

Folks, there is no other way to put this… the markets are in a massive bubble. And when it bursts, things will get ugly very FAST.

With that in mind, I’ve already urged my Private Wealth Advisory clients to start prepping. We’ve opened six targeted trades to profit from the stock bubble bursting.

We’ve also taken care to prepare our finances and our loved ones for what’s coming, by following simple easy to follow steps concerning our savings, portfolios, and personal security via my Protect Your Family, Protect Your Savings & Protect Your Portfolio reports.

I’ve helped thousands of investors manage their risk and profit from market collapses. During the EU Crisis we locked in 72 straight winning trades and not one loser, including gains of 18%, 28% and more.

In fact, we’re currently on another winning streak having locked in ELEVEN winning trades in the last two months, including gains of 21% and 25%.

All for the small price of $299: the annual cost of a Private Wealth Advisory subscription.

To take action to prepare for what’s coming… and start taking steps to insure that when this bubble bursts you don’t lose your shirt.

Click Here Now!

Yours in Profits,

Graham Summers