We find it truly extraordinary that anyone is surprised the financial system is under duress again.

After all, what have the Central Banks accomplished in the last five years?

1)   Did they clear out the bad debts that caused the 2008 collapse? NOPE

2)   Did they implement structural reforms to insure another 2008 didn’t happen? NOPE

3)   Did they punish fraud or corruption in any way to insure that the system was clean? NOPE

So what did they do?

They cut interest rates over 500 times and funneled over $10 trillion into the financial system, over 98% of which went to the very players (key banks) who nearly blew up the world in 2008.

And people are actually surprised that the system is back in trouble again? Would you be surprised if giving another shot of heroin to a drug addict who was in a coma didn’t bring him to health?

Honestly, did anyone think this would really work? I know that the connected elites loved it because the whole process allowed them to hand off their garbage investments to the public while leveraging up to acquire more assets via the Fed’s cheap money… but what about those who DON’T work for a top 20 global financial institutions? Did anyone actually believe this would work?

So here we are today, Europe’s already insolvent banks are now potentially on the hook for $3 trillion in Emerging Market investments.

When your entire banking system is leveraged at 26-to-1 it really doesn’t matter who you lend to… you’re bust. But in this case, the bad emerging market investments are just the icing on the rotten cake that is Europe’s banking balance sheets.

Hopefully Mario Draghi can “promise” something again and the whole system will hold together. After all, THAT and Bernanke’s decision to engage in more and more QE (despite NO evidence that QE benefits the economy) are what brought us back from the brink in June 2012… maybe Janet Yellen and Mario Draghi can repeat this.

Then of course there’s China… which has created the single biggest credit bubble relative to GDP in history. Nevermind, that they literally blow up buildings to build new ones to pad their GDP numbers… China is a miracle and its economy is on the verge of becoming another US.

The world believes China can become more driven by consumers… though the data shows consumer spending has grown by 9% a year for 30 years there… so hoping that things are going to erupt higher there is a little misguided.

And of course there’s the US, which is STILL printing $65 billion per month despite two QE tapers… which folks claim were terrible for the world (how exactly is printing $65 billion per month five years into an alleged recovery, a good thing? Doesn’t that NEGATE the entire claim of a recovery at all?).

You can build a house on a rotten foundation (bad debt, fraud, corruption) and it will stand for a while. But eventually it will collapse.

This will again happen with the markets. The only difference is that this time around, the Central banks have already spent most if not ALL of their ammo propping up the system.

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

Published on the third Wednesday of every month 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 four months 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

 

 

 

 

One of the biggest issues facing investors today is finding reliable income.

Unbeknownst to most folks, most of stocks’ returns come from dividends, NOT capital gains.

Indeed, according to a study performed by the London Business School, when you remove dividends, stocks have returned a mere 1.7% in average annual gains over the last 109 years.

To put this into perspective, this is less than you’d make from owning long-term US Treasury bonds (2.1%) over the same time period.

Indeed, if you’d invested $1 in stocks in 1900 and reinvested your dividends, by 2009, you’d have made $582 (adjusted for inflation). Take out dividends and you’d have only seen $6 from price appreciation. Yes, $6 from 109 years’ worth of capital gains.

The fact of the matter is that most businesses fail overtime. Trying to pick winners (stocks that will rally) is extremely hard.

So by focusing on those companies that pay dividends, you’re effectively focusing on those that have already succeeded because:

1)   The company has to have generated some kind of cash flow to pay the dividend in the first place

2)   The company has exhibited a commitment to shareholder returns by paying dividends (at the end of the day management’s culture sets apart winners from losers.

This is why I like big dividend companies so much… you KNOW you’re going to get paid for putting your capital to good use!

With my Big Dividends Investor newsletter, I show investors how to lock in BIG dividends for HUGE returns.

Already our two most recent picks are cranking out cash for our subscribers. One sports a massive 7% yield that is virtually tax free. The other pays out a whopping 12% dividend in monthly payments.

As a result, we’re crushing the market AND lock in massive dividend payments to secure their retirement.

If you’re an investor looking for a second stream of income to grow your wealth during retirement, you simply couldn’t ask for a better newsletter than Big Dividend Investor.

For just $99 a year, you get:

1. 12 issues of Big Dividend Investor featuring at least 12 investment ideas
2. All of Buck’s Special Investment Reports outlining special situations.
3. Real time email alerts when it’s time to sell
4. The peace of mind knowing that your retirement is secure

To sign up for Big Dividend Investor… and take action to start receiving massive dividend payments as soon as this month…

Click Here Now!!!

Buck Wilson

 

 

 

One of the biggest mistakes investors make when it comes to dividend investing is assuming that BIG dividends= GREAT dividends.

Dividends are paid based on cash flow. A company can sometimes pay out a dividend through financial innovation (issuing shares as dividends, etc.), but if you are looking for REAL income from your investments, you NEED the company to be producing CASH.

No cash= no dividends= no yield.

This is why dividend investing is a tricky business. You cannot simply assume that because a company paid out a big dividend before, that it will continue to do so.

Moreover, you don’t just want the dividend to be constant, you want it to GROW!

This is why I focus on a particular type of dividend paying investments… investments that GROW their dividend consistently over time… which I call “Low Risk Dividend Growers” or LRDGs.

Consider Exxon for example.

Exxon has increased its dividend for over 30 YEARS. Indeed, if you bought Exxon as late as 2000, you would be collecting a 7-8% yield today based on DIVIDENDS alone (share price in 2000 was roughly $32, and dividends paid in 2013 were roughly $2.50).

At the same time, your initial position in Exxon’s stock would have risen 400%!

So you’d have made 400% in capital gains… and would continue collecting 7-8% per year in dividends.

And the best part is… the dividend keeps growing!

This is how you get truly rich from investing. Find investments that are Low Risk Dividend Growers and HOLD ON for the long-term.

With my Big Dividends Investor newsletter, I show investors how to lock in BIG dividends for HUGE returns.

Already our two most recent picks are cranking out cash for our subscribers. One sports a massive 7% yield that is virtually tax free. The other pays out a whopping 12% dividend in monthly payments.

As a result, we’re crushing the market AND lock in massive dividend payments to secure their retirement.

If you’re an investor looking for a second stream of income to grow your wealth during retirement, you simply couldn’t ask for a better newsletter than Big Dividend Investor.

For just $99 a year, you get:

1. 12 issues of Big Dividend Investor featuring at least 12 investment ideas
2. All of Buck’s Special Investment Reports outlining special situations.
3. Real time email alerts when it’s time to sell
4. The peace of mind knowing that your retirement is secure

To sign up for Big Dividend Investor… and take action to start receiving massive dividend payments as soon as this month…

Click Here Now!!!

Buck Wilson

 

 

 

One of Warren Buffett’s greatest investment ideas concerned “economic moats.”

What he meant by this was to invest in companies with significant competitive advantage that stops competitors from breaking into their market share. These competitive advantages served as “moats” around these businesses, much as a moat of water would protect a castle from intruders in medieval times.

To consider how “moat” investing works in the real world, let’s consider McDonalds (MCD).

For starters, MCD has a moat. MCD was launched in 1940. Burger King was launched in 1953. Wendy’s was launched in 1969.

Despite these competitors moving into its space, MCD has thrived, growing to become the largest hamburger based business in the world: its 2012 revenues were $27 billion compared to Burger King’s $1.9 billion and Wendy’s $2.5 billion.

Today, MCD has over 34,000 restaurants based in 199 countries employing 1.8 million people. Obviously the company is able to defend its market share from competitors. That’s an economic moat.

Between this and the company’s focus on producing returns to shareholders, those who invested in MCD and held for the long-term have dramatically outperformed the market and built literal fortunes.

Indeed, had you in McDonalds in 1986, you would have outperformed the S&P 500 by a simply enormous margin (see Figure 1 below). Not only that but you would have crushed every asset manager on planet earth with very few exceptions.

Regarding returns to shareholders, MCD has paid dividends every year for 37 years and has increased its dividend at least once per year.

Dividends per share have increased from $0.11 in 1986 to $2.87 in 2012. Those who invested in MCD shares in 1986 are receiving a yield of nearly 30% per year on their initial investment today just from dividends alone.

MCD is so focused on producing returns for shareholders that the company has bought back 23% of its shares outstanding in the last ten years. So even investors who bought in 2000 have experienced a synthetic yield of roughly 5% per year.

However, the most dramatic returns produced by “moat” investing are evident through the power of compounding as illustrated by MCD’s Dividend Re-Investment Plan or DRIP (a plan through which cash dividend payouts were  automatically used to buy more MCD shares).

If you had invested in MCD’s DRIP program in 1988, you would have turned $1,000 into over $23,000 by the end of 2012. This is not by adding to your positions, this is the result of one single $1000 purchase of MCD stock.

This example of “moat” investing is precisely the kind of wealth generating investment that has made Warren Buffett a billionaire.

We invest solely in businesses with economic moats in our value investment newsletter Cigar Butts and Moats. And it has paid off BIG TIME.

Of the seven investments we’ve made in 2013, FIVE made money including gains of 6% (still open), 15% (still open) and 28% (closed in one month).

And because we’re focusing on these businesses as long-term investments, I have very little doubt that we’ll not only BEAT the market with them… but we’ll also outperform the vast majority of professional investors.

This is the beauty of investing in Cigar Butts and Moats: you have such a wide margin of safety that if a company temporarily trades down, you actually end up wanting to buy MORE.

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
• The investment knowledge to build a safe and stable retirement.

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

 

 

… is making sure you get paid.

When you buy shares in a company, you want to make money.

However, there is no guarantee that the shares will rise in price. Indeed, if you are investing simply because you believe prices will rise, you are essentially betting that someone else will want to pay more for your shares at a later date.

No matter how much research you perform, there is no guarantee this will happen.

Dividends, however, DO make sure you make money. Because the company is actually paying you to own shares. And this makes a heck of a difference.

If you had invested $1 in stocks in 1950 and held onto your position until 2010, you would have made EIGHT TIMES more money through dividends than share appreciation.

Let me restate that: by receiving and reinvesting dividends you’d make 800% more money than without them between 1950 and 2010.

The difference is even more incredible if you go back further.

Historically dividends have accounted for 70% of all stock market gains.

According to a study performed by the London Business School, when you remove dividends, stocks have returned a mere 1.7% in average annual gains over the last 109 years. To put this into perspective, this is less than you’d make from owning long-term US Treasury bonds (2.1%) over the same time period.

Indeed, if you’d invested $1 in stocks in 1900 and reinvested your dividends, by 2009, you’d have made $582 (adjusted for inflation). Take out dividends and you’d have only seen $6 from price appreciation. Yes, $6 from 109 years’ worth of capital gains.

Put another way, by focusing solely on capital gains when it comes to stock investing you’re only doubling your money about every 18 years (remember, this analysis simply focuses on the returns generated by the market… which outperforms most professional and individual investors).

So unless you’re buying stocks with dividends, you’re likely not making diddly in the long-term.

Again, if you’re going to buy stocks… make sure you get PAID. And there’s no better way to do this than with dividends.

With my Big Dividends Investor newsletter, I show investors how to lock in BIG dividends for HUGE returns.

Already our two most recent picks are cranking out cash for our subscribers. One sports a massive 7% yield that is virtually tax free. The other pays out a whopping 12% dividend in monthly payments.

As a result, we’re crushing the market AND lock in massive dividend payments to secure their retirement.

If you’re an investor looking for a second stream of income to grow your wealth during retirement, you simply couldn’t ask for a better newsletter than Big Dividend Investor.

For just $99 a year, you get:

1. 12 issues of Big Dividend Investor featuring at least 12 investment ideas
2. All of Buck’s Special Investment Reports outlining special situations.
3. Real time email alerts when it’s time to sell
4. The peace of mind knowing that your retirement is secure

To sign up for Big Dividend Investor… and take action to start receiving massive dividend payments as soon as this month…

Click Here Now!!!

Buck Wilson

 

 

Over the last five years, the US Federal Reserve has substantially changed the investing landscape of the capital markets in the last 12 months. In particular we need to assess how ongoing QE programs affect notions of “risk” and rates.

In the period from March 2008 to late 2013, the Federal took a series of strategic steps to attempt to rein in the financial crisis and to support certain financial institutions that it deemed most critical to the health of the financial system.

These steps consisted of cutting interest rates to zero and engaging in rounds of Quantitative Easing, commonly referred to as QE.

QE in its simplest form consists of printing new money that is then used to buy US debt, called Treasuries. The Fed has made a myriad of claims for why it did this (to help housing, the help the economy, etc.) but the blunt reality is that this policy was primarily a means of financing the US deficit, which swelled in the post-2008 period as the public sector expanded rapidly in an effort to pick up the economic slack in the private sector.

The US went into the 2007-2008 Crisis with a national debt of $5 trillion and unfunded liabilities  (Medicare, social security) somewhere in the ballpark of $50 trillion. And as the debt ballooned in the post-2008 era due to Government spending, it became more and more important for the Fed to maintain low rates: any increase in interest rates would mean much larger interest payments on a rapidly growing debt load.

This is why the Fed has maintained near zero interest rates as the US nati0nal debt swelled to $16 trillion. It’s also why the Fed continues to engage in QE despite the clear evidence over the last four and a half years that it is not an effective tool for stimulating economic growth or a rise in employment.

Regarding this latter point, I want to draw your attention to the labor participation rate below. The official unemployment rate is highly charged politically as it is used by the media to gauge how well a particular administration is doing at generating job growth.

As such the unemployment numbers are routinely massaged to the point of no longer reflecting the true number of unemployed Americans. For this reason, I prefer to use the labor participation rate when gauging the health of the US jobs markets: this metric represents the number of Americans who are currently employed as a percentage of the total number of Americans of working age.

As you can see, the number of employed Americans of working age peaked in the late ‘90s. It has since fallen to levels not seen since the early ‘80s. Moreover, looking at this chart it is clear that job creation has failed to keep up with population growth.

This negates any claims of “recovery” in the jobs market.

In particular, I want to draw your attention to the last five years of this chart below. The US Federal Reserve began its first QE program, called QE 1, in November 2008. Since that time it has launched three other such programs, spending over $2 trillion in the process.

During this period, the labor participation rate has not once experience a sustained uptrend. Put another way, job creation has never outpaced population growth to the point of creating a significant turnaround in the jobs market. This has happened despite the recession officially “ending” in mid-2009.

The evidence here is clear. QE does not generate jobs in the broad economy.

Best Regards

Phoenix Capital Research

 

 

 

No doubt you have read the statistics over the years that perhaps only 30% of investment managers beat the market.  Even that statistic is misleading because of all the fees and taxes an investor should consider.

Mutual fund companies almost never warn you about your tax costs and also seek to hide performance lag.

Here is one example.  OppenheimerFunds Main Street Fund has about $6 billion in assets and the overall strategy we would estimate runs perhaps $20 billion under portfolio manager Manny Govil, who took over the fund in May 2009 after building a successful track record at other firms.

When you read their online materials the company will show returns that, on the surface, seem pretty good.  Comparing the fund to the S&P 500 would suggest Main Street fund delivered value, outperforming in 2009, 2010, 2012 and the first nine months of 2013.

If you are a taxable investor pay attention to the fact that 20% of your profits will go to the government.  This is also true if you select your own investments but unlike a fund you get to determine the timing of the tax liability.

Then you have the “marketing expenses.”   Oppenheimer will charge you 5.75% so they can pay the broker who sells you the fund on the front through its Class A shares.  Many people instead opt for a different share class that foregoes the upfront charge but has a “back end” load if you liquidate in the first few years.

Well, if you just hold it no problem, right?  Wrong!  If you opt for the no load route Oppenheimer will charge you 0.99% for “12b-1” fees instead of 0.24% as on the load fund.  Does this extra charge help you?  No.  They use it to pay their sales people to gather more assets on the theory that more assets will spread the costs wider.  Yet somehow the expense ratio on these funds will never go down.

In the end, even with an above average money manager like Manny Govil running this fund the average investor will lose about (3%) annually when all the costs are factored in.

Remember, keep your costs down and only pay for value.

And when it comes to value… we suggest looking for companies that pay you to own them with hefty dividends…

I call them Low Risk Dividend Growers or LRDGs. And they are the primary focus of my dividend product, Big Dividend Investor.

With interest rates at roughly 0% today, it’s absolutely critical to find investments that will show you a solid return on your money.

Companies can massage their earnings any number of ways… but dividends mean CASH IN HAND.

Consider my latest pick for Big Dividend Investor … if pays a whopping 7% dividend to investors. And because the payments are made monthly this is a literal second stream of income for investors.

And best of all, because of its corporate structure, this 7% yield is virtually TAX FREE.

THAT’s what I mean by Low Risk Dividend Growers.

So if you’re an individual investor who is looking for investment income, I highly recommend you give Big Dividend Investor a try. I’ve made investors hundreds of thousands of dollars in investment income over the last ten years… and I can do the same for you with a subscription to Big Dividend Investor.

All for the low price of $99.99.

To learn more about Big Dividend Investor and how it shows investors the most extraordinary dividends on the market…

Click Here Now!!!

Profitably Yours,

 

Buck Wilson

Last year was a blockbuster year for stocks, with the S&P 500 rising nearly 30%.

This was the single best year for stocks since 1997. We are literally back to “the good old days” for stocks.

However, a small group of investors saw a return that absolutely dwarfed this.

Indeed, if this groups of folks positively DEMOLISHED the S&P 500 for the year, with an incredible 194% RETURN ON INVESTED CAPITAL.

That is not a typo, nor is it based on some kind of cherry picking (pumping your winners and ignoring your losers). This group of folks nearly TRIPLED their money in 2013.

Indeed, using just $10K you could have grown your position into $29K using this ONE strategy.

See for yourself:

And here’s the crazy part… these investors did it this by making JUST ONE TRADE PER WEEK.

I know that sounds absurd. Most people believe that to make money in the markets you need to trade all the time and trade everything under the sun.

Not these folks. They made… 194% GAIN with just ONE TRADE PER WEEK.

And they didn’t trade ANYTHING ELSE.

The groups of investors I’m talking about subscribe to options trading system called OPTIONS 1-1-1.

OPTIONS 1-1-1 is a unique and insanely profitable system for trading options.

It only makes ONE TRADE… On ONE OPTION… ONCE PER WEEK.

Hence the name, OPTIONS 1-1-1.

Don’t let the simplicity fool you… most traders who make money even 51% of the time are considered geniuses…

OPTIONS 1-1-1 makes money 70% of the time.

And because we keep our losers as small as possible, we end up CRUSHING the market AND 99% of investing legends.

Indeed, in 2013, we saw a 194% gain. But we’ve seen even better years than that. In 2011 we were up over 220%!!!

Here’s how it works…

Every Tuesday morning, OPTIONS 1-1-1 sends you an email and text alert identifying your weekly trade.

We pick out the option for you, tell you what price to pay, and how long we’ll be holding the trade for.

All you have to do is enter this information into your brokerage account.

Then, when it’s time to sell, we send you another text and email telling you to sell your position and what price to sell it at.

That’s it.

We’ve made our subscribers tens of thousands of dollars with this system. And we’re inviting you to join us now… before our next trade goes out on Tuesday. There’s already a better than 70% chance it will MAKE a MAJOR profit.

OPTIONS 1-1-1

One Trade… One Option… Once Per Week = BIG PROFITS.

To sign up now…

CLICK HERE!!!

Graham Summers

Editor

Options 1-1-1

 

 

 

 

 

 

 

Today is the first day for market trading in 2014.

In the very short-term, financial institutions will be repositioning their portfolios to start the year. This will likely mean more buying power in the markets.

The markets have broken out of the large wedge pattern formed in 2011-2012 and are entering a blow off top.

Wall Street is decidedly bullish now. There is no telling how high this rally can go based on momentum. Manias are always more powerful than one expects. And this is nothing if not a mania (investors are buying stocks at a rate not seen since the Tech Bubble).

Investors who choose to ride this momentum should be cautious. The market is already overbought and overextended. If I were to liken it to anything it would be 1999. We all know how stocks did 1-2 years out from that.

And while the US is taking off, there are other, potentially much larger opportunities outside of it. Take a look at the emerging market space. We are on the verge of breaking out of a massive triangle pattern, much like the one formed by US stocks in 2011-2012.

If we do breakout of this pattern to the upside, the move could be extreme (possibly as high as 60).

I believe the biggest opportunities for investors will be outside the US in 2014. Now is the time to look for greater diversification.

Best Regards

Graham Summers

 

Last year, 2013, will likely go down as the beginning of the end for the bull market in stocks.

Since the market bottom in 2009, stocks have rallied over 170%. It’s been an incredible run, but I fear that we’re nearing the end.

From 2009-late 2012, most of the rally was driven by mutual funds and other large institutional investors. During this period, individual or “Mom and Pop” investors were largely investing in bonds.

This changed in late 2012. At that point, individual investors joined in and stocks entered a mania. You can see it clearly in the chart above.

You can also see this in fund flows movements: from 2009-early 2013, individual investors shunned stock-based mutual funds and poured their money into bonds instead.

This changed in early 2013, as investors suddenly found an appetite for stocks again, pouring a RECORD $324 BILLION into US stock mutual funds.

To put this into perspective, this means investors put more money into stocks this year than they did in 2000: at the very peak of the TECH BUBBLE!

Which brings us to today.

Today investors are more bullish than at any point in 20 years. In fact, they are so bullish they are borrowing money (called margin debt) to BUY stocks at fastest pace in history.

Companies like Twitter, which have never made a penny in profit, are valued at tens of billions of Dollars.

In short, the market, taken as a whole, is overbought, overvalued, and overextended.

Now, this doesn’t mean that stocks cannot go higher from here. After all, market manias always tend to last long than you expect.

However, it does mean that “the good times” are ending. And the likelihood of stocks posting another massive up year is very slim indeed.

In this environment, it’s wise to lighten up on ownership to the longside. It’s even wiser to look for beaten down undervalued companies that offer you good down side protection: companies that will weather any market environment, good or bad.

Companies like ones we single out in our premium value-investing newsletter, Cigar Butts & Moats.

Cigar Butts & Moats follows the investment strategies of value investing legends Benjamin Graham and his famed student Warren Buffett.

That is to say, we look to make a fortune by buying incredible companies that are trading at fantastic prices and holding them for the long-term.

Indeed, our latest pick is already up 3% from last week.This comes on the heels of a 28% winner from August and more! All in less than six months.

If you’re looking for a long-term deep value investing newsletter, you simply cannot do better than this. Our investment analysis is second to none… which is why we have clients in over 56 countries and on four continents.

To take out a trial subscription to Cigar Butts and Moats (a $79.99 cost)…

Click Here Now!!!

Phoenix Capital Research

 

 

Greetings from Peru!

When most investors think about South America, they think about Brazil: the single largest South American economy.

Indeed, even the famous acronym for the most important emerging markets “BRIC” features Brazil (the “B”) as the South American representative.

But Peru is a real gem you should know about.

Peru’s economy has grown at an average pace of 7% for the last 10 years. During that time the Peruvian middle class has literally DOUBLED in size.

I can attest to seeing this in action. When I first came here in 2009, the famous Jockey Plaza mall featured mainly Peruvian brands and stores with middle priced goods.

Today, the mall has completely been designed with luxury goods (I saw Versace, Hugo Boss and the like) and beautiful architecture:

Source: Consultora Metropolis

Everywhere you turn Peruvians are hustling, building new condominiums, selling hand crafted goods, and of course, eating the famed Peruvian cuisine (I’ve already packed on 5lbs in the last two weeks alone!).

And the work ethic is tremendous.

Peruvians don’t believe in sitting around waiting for handouts or hoping the Government will pay their bills. There’s a saying in Peru “you don’t work… you don’t eat.” And they live by it.

A friend of mine recently ordered a modern glass dining room table for his 7^th floor apartment. The store thought the table would fit in the elevator and so sent only two delivery men for the 100+lb table top to be delivered.

The table didn’t fit in the elevator.

Rather than rescheduling the delivery, the two guys (both of them shorter than 5’5”) hauled the table up the seven flights of stairs. The entire time they had to do so somewhat bent over to fit the table in the stairwell.

THAT’S SOME SERIOUS WORK.

I’ve come down here to scout around for investment opportunities for my Private Wealth Advisory newsletter. I’ll be detailing them in the coming weeks.

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

Published on the third Wednesday of every month 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 four months 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 markets are ramping higher today, with the S&P 500 having bounced of its 50-DMA in the overnight futures session.

As you can see, this has been THE line since stocks began rallying in early 2013. Any time we broke through this line, stocks rallied hard soon after.

With that in mind, it seems likely traders will try to affect a Santa Clause rally. If you’re unfamiliar with this term, the “Santa Clause Rally” refers to the fact that the markets tend to rally into the end of the year.

December is hands down the single best month for stocks: historically the Dow has rallied in December at least 70% of the time.

Moreover, the biggest push usually occurs in the last ten trading days of the year (this week and next). This is why they call it the Santa Clause rally (it happens around Christmas).

So barring any huge negative developments, the markets should rally over the next few weeks based on historical and seasonal patterns.

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

Published on the third Wednesday of every month 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 four months 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 markets are in a perilous condition today.

We’ve been noting for months that the markets were displaying signs of a top. Among other items, we recently noted:

1)   Margin debt (when investors borrow money to buy stocks) has hit new all time highs.

2)   The number of bearish investors has hit an all time low.

3)   Market leaders have peaked or are peaking.

4)   Market breadth (the number of stocks that are rallying) is falling.

5)   Earnings are falling at key economic bellweathers.

6)   Stocks have diverged dramatically from earnings and revenues.

Of course, market tops always take longer than one expects. The weakness of the S&P 500 over the last few weeks isn’t too promising.

A break below this line would open the door to a more serious correction, possibly to 1,700.

The key item to note would be if the market does correct in a big way while the Fed was engaged in its $85 billion per month QE plan. We’ve never had a correction greater than 5% since the Fed announced QE 3 and QE 4. A 5% correction from the most recent peak would bring us to 1,710.

That would be the key line to watch. I’ve drawn it in the chart below.

Is the market topping? It’s too early to tell. But for certain we are in a bubble. It’s just a question of when it bursts.

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

Published on the third Wednesday of every month 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 four months 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

 

 

Perhaps the single most misunderstood item in the financial world is the Chicago Board Of Options Volatility Index, or VIX.

The VIX is a measure of how much investors are willing to pay for portfolio “insurance.” If they’re willing to pay a lot (the VIX is high), then it’s assumed investors are nervous. If they don’t want to pay much (the VIX is low), then it’s assumed investors are calm and expecting blue skies ahead

Because of this, most investors, including the majority of professional investors, believe the VIX provides a reliable barometer of market risk.

This is not true. The reason is because investors are usually greedy when they should be fearful and vice versa. If the VIX is up, it’s not because the market is “risky” or at risk of falling… it’s because the market already FELL!

As anyone knows, the time to buy stocks is when they’re “low” as in “buy low, sell high.” But as I just explained, stocks are usually “low” when they’ve already fallen  (which would mean the VIX is already spiking). Put another way, the VIX doesn’t really measure risk per se… instead it shows you when investors are panicked… and that’s when you should consider buying

Take a look at the above chart. Everytime the VIX spiked (the blue line below), the market had already dropped and was in the process of bottoming.

Now let’s look at a longer-term chart. Once again, the VIX spiked after the market had already plunged. In fact, buying stocks around the time the VIX spiked was a GREAT way to trade the market going back for years. If you had done this, you would have profited handsomely.

If you want to make a killing in the markets, you need to be willing to see the world the way it really is, NOT how you THINK it is. Most investors think the VIX measures the market’s risk, but really, it’s almost the opposite: the VIX almost always picks market bottoms!

With my weekly premium investment newsletter Global Alpha Trader, I show investors how to play the market using this and other proprietary “risk reward” metrics I’ve developed in over 25 years on Wall Street.

During that time I’ve built up an arsenal of how to find “out of the way” investment ideas that will make you money while always minimizing your risk.

For instance, in the last month alone I’ve alerted subscribers to:

1)   An extraordinary energy asset play that corporate insiders are loading up on. If the market even begins to sniff the value here, we could easily see gains of 400%.

2)   A back-door play on China and India’s ongoing infrastructure boom that Wall Street TOTALLY misunderstands. We could easily see a double-digit winner here within six months.

3)   The single most important theme for the global economy in the year 2014. I call this “the Great Game” but for you it will result in GREAT profits. Indeed, I’ve got three investments based on this theme which could return as much as 800% in the next 24 months.

And much, much more.

An annual subscription to Global Alpha Trader costs $499.99.

Considering these are the same insights my institutional clients used to pay me six figures for when I worked on Wall Street, this is an absolute steal.

Each subscription to Global Alpha Trader comes with:

1)   52 weekly issues of Global Alpha Trader (featuring at least 20 actionable investment ideas per year)

2)   The 400% Energy Opportunity Wall Street Won’t Tell You About Special Report

3)   The Global Alpha Trader investment manual.

4)   Real time trade alerts telling you when to buy or sell an investment.

5)   EVERY Special Report I write between now and December 2014.

… And much more.

You can even keep the investment reports if you decide Global Alpha Trader is not for you and cancel during the first two months for a full refund.

How’s that for a low risk proposition?

To take out an annual subscription to Global Alpha Trader…

Click Here Now!!!

Best Regards

Tom Langdon

 

 

 

 

 

 

 

 

 

The markets are entering a blow off top.

For five years, by keeping interest rates near zero, the Fed has been hoping to push investors into the stock market. The hope here was that as stock prices rose, investors would feel wealthier (the “wealth effect”) and would be more inclined to start spending more, thereby jump-starting the economy.

This has not been the case.

From 2007-early 2013, individual investors fled stocks for the perceived safety (and more consistent returns) of bonds. During that time, investors have pulled over $405 billion out of stock based mutual funds.

The pace did not slow throughout this period either with investors pulling $90 billion out of stock based mutual funds in 2012: the largest withdrawal since 2008.

In contrast, over the same time period, investors put over $1.14 trillion into bond funds. They brought in $317 billion in 2012, the most since 20008.

Throughout this period, the market rose, largely due to institutional buying. Every time the market started to collapse, “someone” stepped in and propped it up. Consequently, institutional traders were not committed to a collapse, and gradually the market moved higher.

At this point the “mom and pop” crowd was, for the most part, not participating in the rally.

That all changed in early 2013. Suddenly the “crowd” began to get religion about the Fed’s monetary madness and piled into stocks. We’ve now reached truly manic proportions: thus far in 2013, investors have put $277 billion into stock mutual funds.

This is the single largest allocation of investor capital to stock based mutual funds since 2000: at the height of the Tech bubble. That year, investors put $324 billion into stocks. We might actually match that inflow this year as we still have two months left in 2013.

Indeed, investors are reaching a type of mania for stocks. They put $45.5 billion into stock based mutual funds in the first five weeks of October. If they maintain even half of that pace ($22.75 billion) for the remainder of the year, we’ll virtually tie the all-time record for stock fund inflows in a single year.

As a result of this, the market has entered a blow off top from a rising wedge pattern.  You can clearly see the mania beginning to hit in the middle of 2013.

So, we have investor sentiment showing record bullishness, investors are piling into stocks at a pace not seen since 1999-2000: at the height of the Tech Bubble, earnings are generally falling, the global economy is contracting, and the Fed is already buying $85 billion worth of assets per month.

We all know how this bubble will burst: badly. It’s just a question of when. The smart money is either selling into this rally (Fortress and Apollo Group) or sitting on cash (Buffett). They know what’s coming and are waiting.

If you are not preparing yourself for this, NOW is the time to do so.

With that in mind, I’ve already urged my Private Wealth Advisoryclients to start prepping. We’re about to open our crisis trades: the very same trades we used to see triple digit returns in 2008 when the market collapsed.

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.

You can access all of these reports AND receive my crisis trades when they go out with a subscription to All for the the small price of $179: 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

 

Best Regards

Phoenix Capital Research

 

 

 

 

 

 

Resource pressure is a constant.  As we continue to track the nearly delusional energy “debate” in the United States about whether we will continue to burn coal and whether natural gas is a panacea, China continues to struggle with the sufficient acquisition and deployment of resources to support economic growth.

China has an environment versus growth problem.    Already China is the #1 importer of oil in the world. That‘s right.  China imports more oil than the United States.   By itself that comment is meaningless because it reflects greater US oil production, substitution by natural gas, and significant and increasing energy efficiency gains.

The United States can hold energy consumption growth below GDP growth with efficiency gains and because of the greater percentage of service relative to the economy.   China cannot.

Chinese oil consumption will continue to rise.  China, however, has an emerging and growing middle class that wants to buy a car, as is typical when annual GDP per capital hits $10,000-20,000 per year.  We don’t need to see U.S. ownership rates – the population is 4X so even getting to half the ownership rate over time means twice as many cars.

Besides trail, buses, domestic aviation and trucks China is putting over 1 million cars every month onto its expanding road and highway network.

Which strains other sources of energy supply and water!

We find our best opportunities when we identify a huge gap between public perception and underlying reality.

Indeed, I recently outlined such an opportunity in the energy industry to readers of my Global Alpha Trader newsletter.

Even by conservative estimates, the upside potential for this trend is 400%. There is literally a $21 billion opportunity here. And the three specific companies I’ve outlined in a report The 400% Energy Opportunity Wall Street Won’t Tell You could all show gains between 500%-800% or even more.

This is what we do on a weekly basis with Global Alpha Trader: identify major trends that could show individual investors huge gains with minimal risk.

Every week I outline the most critical developments in the global economy, showing individual investors the opportunities where you can make BIG money and with minimal risk.

I’ve spent the better part of 30 years doing this for institutional clients, pension funds and the like. Now I’m doing it for you!

To find out what these companies are, all you need to do is take out a trial subscription to Global Alpha Trader. You’ll immediately be given access to the Global Alpha Trader subscribers only website where you can download my report: The 400% Energy Opportunity Wall Street Won’t Tell You.

You’ll also begin receive Global Alpha Trader to your inbox every Monday after the market closes.

Now, a subscription to Global Alpha Trader costs $995.

If that sounds like too much money – I can tell you right now Global Alpha Trader is not for you. This research is for serious investors who understand that high quality investment ideas come at a premium: you don’t get insights with 400+% upside cheaply.

Of course, I can tell you about how successful this service has been… but the best way to judge is to check it out for yourself.  So I propose you take the next two months to give Global Alpha Trader a look…

If you find it’s not what you’re looking for, simply drop us a line and we’ll issue a full refund.

To subscribe to Global Alpha Trader today…

Click Here Now!!!

Respectfully submitted,

Tom Langdon

Editor

Global Alpha Trader

 

 

 

 

 

 

 

 

 

 

 

The primary theme driving US stock markets, is that of whether the Fed will taper or not.

The mere fact that this is the single most important theme for the markets goes a long way towards explaining how busted our financial system has become. Before 2007, the talk concerned whether the Fed would change interest rates. Today we talk about whether scaling back from $85 billion in asset purchases per month represents tightening.”

At the end of the day, the fact is that the Fed can never exit its strategies. I realize there are a lot of smart people with smart explanations for why the Fed can exit, but they are missing a critical component: human nature.

We saw this in real-time back in May 2013 when the Fed first floated the idea of tapering its QE programs. The Fed had hoped it could float this idea and let the markets get used to it, instead interest rates spiked with rates on the 10-year moving up from 1.5% to nearly 3% in a matter of weeks.

At the time, the financial media began to write articles about the market’s “taper tantrum” as though metaphorically aligning the capital markets with s spoiled brat explained the reaction.

The Fed then did a 180 despite all but promising it would taper QE. Bernanke even went so far as to negate the call for a taper in his July Q&A.

Why did he do this? It’s simple. He like the rest of the Fed saw in simple terms that there is no such thing as a smooth exit. The market rebelled at the mere hint of tapering at a time when the Fed is buying $85 billion per month. If the Fed were to actually go ahead and taper what would rates do?

Moreover, with the financial system now even more leveraged than it was going into 2007… what would happen if interest rates moved back to their historical averages of 4% on the ten year Treasury?

Ka-Boom.

So now, there is talk of the Fed tapering in December. Maybe it will, maybe it won’t. I have no idea. No one does. If we were going to try to analyze the Fed’s moves via logic or economic fundamentals, we would have tapered months if not years ago.

Instead we’ll get more of the same: talk of taper to talk the markets down, then a surprise decision to not taper so market take off again. The Fed is now managing expectations more than anything. The Fed has acted in 90+% of the months since the Crisis began. This tells us precisely what the game plan is going forward.

f you are not preparing yourself for this, NOW is the time to do so.

With that in mind, I’ve already urged my Private Wealth Advisory clients to start prepping. We’ve opened a series of targeted investments to profit from any market correction going forward.

And if the market crashes… we could see literal fortunes.

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.

During the EU Crisis we locked in 72 straight winning trades and not one loser, including gains of 18%, 28% and more.

I believe that when the next Crash comes, we’ll see similar success.

All for the the small price of $179: 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 following is an excerpt from a recent issue of Private Wealth Advisory… To find out more about Private Wealth Advisory and how it can help you beat the market, Click Here Now!!!

China’s government continues to walk a very thin line. China’s GDP is largely created by funneling easy credit (total credit is now at 200% of GDP) into infrastructure projects (a record 49% of China’s GDP is in investment)… the cost of this money pumping and incessant investment is higher inflation:

In China, consumers pay nearly $1 more for a latte at Starbucks than their U.S. counterparts. A Cadillac Escalade Hybrid Base 6.0 costs $229,000 in China, compared to just over $73,000 in the U.S.

Welcome to China’s modern retail world, where the price of many goods is far higher than in many other countries, a disparity that is all the more stark considering the income differences. A basic iPad 2 is priced at $488 in China, where average per capita income is around $7,500. The same tablet is $399 in the U.S., where average per capita personal income totals $42,693.

Clothing and other apparel is on average 70% more expensive for consumers in China than in the U.S., according to data from SmithStreet, which compared the prices of 500 items of 50 brands in both countries.

http://online.wsj.com/news/articles/SB10001424127887323932604579052973988936230

However, the reality of higher inflation won’t show up in China’s inflation data (which clocks in at an absurdly low 3%). However, you can see clear signs of this in China’s civil unrest: you don’t get wage and labor strikes for nothing. Workers protest for higher wages because they cannot afford increased costs of living.

In the three months from June to August 2013, China’s Labor Board recorded a total of 183 incidents on our Strike Map, up seven percent from the previous three months, and more than double the 89 incidents recorded from June to August in 2012.* In July alone, we recorded 78 incidents, with another 67 in August…

In Guangdong, for example, police detained 14 workers from Xinrongxin Kitchen Appliance in Shunde district on 27 August after they took to the streets demanding a total of four million yuan in wage arrears…

One trend of particular note in the strike map data is the increasing number of disputes in larger enterprises, those with 100 to 1000 employees. The proportion jumped from 35 percent in the months of June, July and August 2012 to 60 percent in the same period this year. In addition we noted five strikes involving more than a thousand people. In the manufacturing hub of Dongguan, for example, more than a thousand women workers staged a strike against wage cuts on 14 June and blocked the roads outside Hop Lun, a Swedish-owned garment company.

http://www.clb.org.hk/en/content/china’s-workers-turn-heat-summer-protest

Thus we are in a world in which Chinese officials must manage expectations, trying to convince investors that they won’t let inflation get out of control… but won’t crash the financial system either.

China’s central bank added fuel to fears on Thursday it was clamping down on inflation risks as it allowed cash to drain from the financial system for a second straight week, sparking a jump in short-term rates.

The move by the People’s Bank of China (PBOC) happened as Beijing stepped up its efforts to counter surging property prices in the capital in an attempt to calm rising discontent over the city’s record-high home prices.

China also widened the funding options for local governments and property companies by giving them access to the interbank bond market to finance affordable housing, a priority of Chinese leaders, sources told IFR, a Thomson Reuters publication.

Housing data this week has raised fresh concerns about property bubbles in some major cities, which could add to consumer inflation – already at a seven-month high – and add to criticism that home prices are increasingly out of reach of ordinary Chinese.

http://www.reuters.com/article/2013/10/24/us-china-economy-idUSBRE99N07P20131024

I was bearish on China before, but they appear to have successfully navigated their “liquidity crisis” from earlier this year. But inflation is becoming a real problem there. The key issue will whether it erupts into a “China Spring” similar to the Arab Spring or if it simply will fuel asset bubbles.

Mark this as a major theme for 2014.

Best Regards

Graham Summers

 

 

The Times of Israel recently reported that Saudi Arabia and Israel are coordinating attack planning against Iran should the West (meaning the U.S.) back down and allow for unacceptable development of Iranian nuclear capability.  This situation will have major implications for investors.

Here is our assessment.

Iran will NOT attack Israel because:

• The IRGC (Revolutionary Guard) controls the economy and has the weapons; the religious leaders do not.

• A missile leaving Iran has to cross over at least two countries to hit Israel (see the map below).

• In terms of an attack from the sea, Iran has 3 old Kilo (Russian) subs that would have to transit through a 25-mile choke point into the Red Sea and still have to fire over Egypt (again see the map below).

Iran doesn’t want war. What Iran really wants is a stronger negotiating position for rapprochement with the U.S. and influence in the Middle East.  

Brinksmanship is the order of the day – which means there is always risk of miscalculation. Iran is a rational  (not nice, I said rational) actor and needs an accommodation with the West from an economic perspective:  Iran’s economy is archaic and resource driven.

But pride matters and nations act like five year olds on the world stage.  Iran wants the bomb because it makes them feel big and relevant.  They also compete with Turkey (historically the Ottoman Empire ruled the Middle East) and their own history as a major empire (Persia!) whereas Saudi Arabia is the upstart with money.   By all means – throw in Shia versus Sunni, Arab versus Persian, and family/clan dynamics but, in the end, Iran’s future will be directed by the quest for money and influence, not carnage.

We don’t see an Israeli/Saudi alliance launching an attack.  The House of Al-Saud does not want a shooting war.  The Saudi population is hardly enamored with the ruling family and actually shooting at another Muslim country, even Shia, will not go down well either domestically or in the region.

Israel has lost trust in the U.S. as an ally for at least the next two years and probably longer given an increasingly isolationist bent on both sides of the aisle in the U.S’s congress.  In terms of acting alone, it’s unlike Israel would want to take a potshot against Iran, which has 10X the population and 4X the economy.

Finally, no matter the political posturing, the US is the primary military and geopolitical ally to Saudi Arabia and Israel. And the U.S. does not favor action. At the end of the day, we do provide the supply chain and fulfillment to Saudi Arabia, cash to Israel and intelligence support to both.

With this in mind, it is our view that war with Iran is unlikely. And there will be significant investment implications due to this.

U.S. defense contractors will likely get hurt.

The U.S. is “going wobbly” with consequences.  The fact that Saudi Arabia and Israel are working together is a positive potential silver lining (hey, Saudi Arabia is actually thinking about letting women drive, how progressive!!!!) but U.S. defense firms will probably pay a steep price in terms of future orders for weapons and goods from the region.

The United States represents about half of total global defense spending and in turn is in a tie with Russia for being the largest exporter of defense products and services.  Totals vary by year but roughly speaking Russia is about equal to the US, China is about 25% but growing and France and Germany are both about 10-15%.

The two biggest buyers of defense offerings are Saudi Arabia, particularly the last two years, and India.  The U.S. benefitted handsomely from the success of their weapons and systems over the years. The fact that Saudi Arabia is beginning to realize that the US is unlikely to be overly supportive of military action against Iran suggest that Saudi Arabia may start shopping elsewhere.

Saudi Arabia has the largest wallet here. Their thinking is likely the following:

• Supply chain – can I get parts and support and to whom am I locked in contractually?
• Needs – do I need top shelf weapons and defense items or is an older generation aircraft adequate?
• Supporting allies – Dassault (France) makes good aircraft too, should we shop there instead?
• Sending a message to the US – see prior comment?

Unfortunately these recent developments suggest significant incremental headwinds for U.S. defense companies like Lockheed Martin (LMT), Northrop Grumman (NOC), Raytheon (RTN), L3 Systems (LLL) and others.

These companies are already under siege in the U.S. given that “international growth” could dry up quickly.  Do not forget Boeing (BA), which is about 40% defense over time and, additionally, must compete for commercial orders with EADS, which makes aircraft that are just as good.

Bad politics can be very bad for business. And a wobbly U.S. in the Middle East will hurt profits at US defense contractors.

Respectfully submitted,

Tom Langdon

 

We’ve long maintained that Japan is ground zero for the “QE works vs QE doesn’t work” debate.

The Fed’s economic models, and 99% of the economic models employed by Central Banks in general, believe that monetary easing can bring about an economic recovery. The primary argument for this crowd if QE has thus far failed to produce a recovery is that the QE efforts have not been big enough.

And then there’s Japan. In a nation with GDP of $5.96 trillion, the Bank of Japan has launched a $1.4 trillion QE effort: a monetary move equal to 23% of Japan’s GDP.

To put this into perspective, this would be akin to the US’s Federal Reserve announcing a QE effort of over $3 trillion.

Suffice to say, Japan’s QE most certainly should be considered “enough” by even the most pro-QE supporter. But the very problem is that it does not appear to be having the intended effects.

The following is an article from the Wall Street Journal. I’ve highlighted a few choice items for your review:

At Koeido Co., a 156-year-old sweets maker based in this city in southwest Japan, chairman Shuichi Takeda says he feels the country may finally be coming out of a 20-year funk.

Sales of Koeido’s sweet millet dumplings are holding up. The company is spending around 80 million yen ($800,000) to renovate two shops—a sign of how Japan’s economy is showing signs of life, lifted in part by a flood of easy money from the central bank that has boosted stocks and helped spur growth.

But with future demand unclear, and costs for imported sugar rising, Koeido still isn’t bullish enough to take out bigger loans to replace equipment or expand its business—even though banks are begging it to borrow more.

“The economy doesn’t necessarily get better just because of monetary easing,” says Mr. Takeda. “And you don’t borrow just because rates are low.”…

It is an attempt to literally crowd banks and other investors out of the market and force them to put their money to work in other ways—through loans or investments in real estate, for example—to help stimulate the economy…

“The idea that the Bank of Japan will buy bonds, and then the extra money will start flooding into corporate or retail loans—that’s just a theoretical exercise,’‘ says Chugoku’s Mr. Miyanaga. “Most important is [for the government] to hurry up and produce a concrete growth strategy, which will spur private economic activity.”

http://online.wsj.com/news/articles/SB10001424052702304470504579163094082999108

I want to point out that the individuals who are expressing basic common sense views about monetary policy and the economy are businesspeople who run actual businesses, NOT academics.

This is what happens when academic monetary theory meets reality: theory proves to be just that theory.

There are some perceived benefits (the markets rally) from the easy money high. But the inevitable hangover is usually intense (see 2000-2001 and 2007-2008).

So stocks rally for now. But eventually this will end. In fact it may come sooner rather than later.

Remember 2008? Everyone said everything was just fine… right up until the Crash hit.

We’re seeing the same warnings in the markets now.

If you are not preparing yourself for this, NOW is the time to do so.

With that in mind, I’ve already urged my Private Wealth Advisory clients to start prepping. We’ve opened a series of targeted investments to profit from any market correction going forward.

And if the market crashes… we could see literal fortunes.

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.

During the EU Crisis we locked in 72 straight winning trades and not one loser, including gains of 18%, 28% and more.

I believe that when the next Crash comes, we’ll see similar success.

All for the the small price of $179: 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