Day: April 5, 2011

Looking Like You Know What You’re Talking About Doesn’t Mean That You Do

Enough is enough.

The mainstream financial media always tries to offer fundamental reasons for why stocks do what they do. If stocks rally it’s because on good earnings or improved consumer confidence or some other development.

On the surface, this approach is valid: the markets are meant to react to economic and financial developments. However, the problems with the mainstream media’s attempts to explain the market’s actions today are:

1)   These people are journalists, NOT investors or businesspeople.

2)   None of them know what they’re talking about.

3)   The markets haven’t moved based on fundamentals since 2008

4)   Most if not ALL of the data coming out of the US is massaged at best or fraudulent at worst.

Let’s start of with the first two points. The people on the mainstream financial media channels talking about investing aren’t investors themselves. They’re not entrepreneurs or businesspeople either. As such they have little if any actual experience in the markets other than as observers (on the outside I might add).

However, this doesn’t mean that they’re not very good at acting knowledgeable or convincing on camera. And this is where things become confusing for viewers. Oftentimes the people speaking on camera is so good at looking confident and knowledgeable that you are tempted to believe what they say.

However, if you listen closely to what they’re actually saying, it’s clear they do not actually understand what they’re talking about. Yes, they have the right vocabulary and have some basic grasp of the terms and relationships they’re describing, but that’s as far as it goes.

Case in point, when was the last time ANYONE reporting for a mainstream financial media outlet pointed out that the US’s GDP, employment, and inflation numbers are an absolute crock?

Name one time a talking head addressed the fact that the Federal Reserve is chaired by a guy who has absolutely NO understanding of finance or economics. Or that he’s committed perjury, fraud, and outright theft.

I could go on for another 12 pages, but you get the general idea. These people are nothing more than front-people for large corporations that make their revenue from advertising dollars (usually from the financial sector). Their salaries and income are directly related to how much money Wall Street wants to spend on advertising. That, and their viewership, which is directly related to how high the market is (and the US Government’s bailout of their bankrupt parent companies… which of course results in them being objective in their reporting).

So don’t expect to ever hear any of these folks tell the truth, which is that that the market’s moves are in fact controlled by just three factors:

1)   The Fed’s money pumps

2)   High Frequency Trading Programs

3)   The suspension of accounting standards and permission of endless fraud in the financial system

Everything else is simply peripheral issues at this point. Indeed, if you remove any of these three key market props we’d be at sub-1000 on the S&P 500 in a matter of days (if not hours).

We’ll go there again at some point regardless, but don’t expect any of the guys on TV to let you know it’s coming in advance. Did they warn about it in 2008?

Similarly, do you think they’ll warn about the Inflationary Disaster in time for you to prepare yourself?

Yesterday, the COO of Wal-Mart warned the US to prepare for “serious inflation” in the coming months.

Let’s put that into perspective, Wal-Mart is the lowest priced rung on the retail food chain. And because of their size have the highest amount of pricing power of any retailer in the US. So if prices will “seriously” rise for it, then they’ll absolutely EXPLODE everywhere else.

In fact they already are.

Prices of goods are EXPLODING higher. It’s being hidden because retailers like Wal-Mart are downsizing the size of their packages OR packing less goods in the same space (look inside any cereal box or other dry good and you’ll find that at best it’s 75% full).

This is why I’m already preparing investors for the inflationary disaster NOW rather than waiting for the US Dollar to collapse. It’s also why our hedges are all UP with gains of 17%, 18% 27%, 56%, and 111% though the US Dollar has fallen less than 10%.

How is this possible? Because I’m focusing on extraordinary inflation hedges that 99% of the investment world don’t know about. I’m talking about inflation hedges that will outperform even Gold and Silver because of their incredible value.

And I detail them (including their names, symbols, and how to buy them) in my recently published Special Report The Inflationary Storm Pt 2.

And I’m only making 250 copies of this second report available to the public. As I write this, there are less than 80 copies left and they’re going fast (for obvious reasons).

So if you want to pick up a copy of this report, you better move fast.

To reserve a copy…

Click Here NOW!!!

Best Regards,

Graham Summers

Posted by Phoenix Capital Research in It's a Bull Market, 0 comments