Graham Summers’ Weekly Market Forecast (Stocks Are Last to Get It Edition)

Last week’s moves were entirely based on the fact that stocks are now tracking the Euro almost tick for tick. And last week, the Euro hit “take off,” despite the clear indications that Europe is facing systemic failure (the entire banking system is leveraged at Lehman-like levels and European sovereigns are facing failed bond auctions on a weekly basis).

From a technical standpoint, stocks are now coming up against the 50% retracement level:

I mentioned that last week could be a potential top. I still hold that view and would consider anywhere between today’s levels and 1,250 (MAJOR resistance) to be a spot to lighten up on longs and establish shorts.

 

Indeed, deflation looks to be the dominate theme in the markets today. Gold is having trouble catching a bid:

While Treasuries are bouncing off support and look ready to start a new leg up.

Inflation hedges falling, Treasuries rallying… this is a deflationary backdrop.  And it’s occurring at a time when the EU is talking about launching a LEVERAGED version of the EFSF and the Fed has hinted at launching another version of QE 1???

Folks, something VERY bad is brewing behind the scenes. The Sarkozy- Merkel talks, the short-selling bans, the halted stocks, the leveraged EFSF, the hints of QE 3, all of this is telling us that the financial system is on DEFCON 1 Red Alert.

Ignore stocks, they’re ALWAYS the last to “get it.” The credit markets are jamming up just like they did in 2008. The banking system is flashing all the same signals as well.

So if you have not already taken steps to prepare for systemic failure, you NEED to do so NOW. We’re literally at most a few months, and very likely just a few weeks from Europe’s banks imploding.

I’ve already alerted Private Wealth Advisory to 12 CRISIS trades (three for Europe, nine for the US) that will all produce HUGE profits as this mess collapses.

We’ve also taken steps to prepare our loved ones and personal finances for systemic risk with my Protect Your Family, Protect Your Savings, and Protect Your Portfolio Special Reports.

With a total of 20 pages, these reports outline:

1) how to prepare for bank holidays
2) which banks to avoid
3) how much bullion to own
4) how much cash is needed to get through systemic crises
5) how much food to stockpile, what kind to get, and where to get it

And more…

I can do the same for you. All you need to do is take out a subscription to my Private Wealth Advisory newsletter.

You’ll immediate be given access to the Private Wealth Advisory archives, including my Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports.

You’ll also join my private client list in receive my bi-weekly market commentaries as well as my real time investment alerts, telling you exactly when to buy and sell an investment and what prices to pay (we’ve recently closed out 14 straight winners).

All of this, for one full year, for just $199.99… but not much longer.

Indeed, we are raising the price of Private Wealth Advisory from $199 to $249 at the end of October. The reason is simple: both the performance of our picks (we’ve just closed out 14 straight winners) and the quality of our research (we predicted the 2008 bust, the Euro 2010 bust, the August 2011 collapse, and more) warrant a premium price.

So we’re raising the price of Private Wealth Advisory to $249 at the end of October.

To take out an annual subscription to Private Wealth Advisory now, lock in the soon to be old price of $249, and start taking steps to insure your loved ones and personal finances move through the coming storm safely…

Click Here Now!!!

Best Regards,

Graham Summers

 

 

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Old-School Business Virtues From the Master of Nouvelle Cuisine

“Is this even food? How can food taste so good?”

My wife and I are sitting at Table #1 of Citronelle, the flagship restaurant of Master Chef and award-winning culinary genius, Michel Richard, at the Latham Hotel in Georgetown, Washington DC

We’re on our third course, Richard’s famous Tomato Tartare, a dish that transforms tomatoes, shallots, soy sauce and a handful of otherwise normal kitchen ingredients into a faux “beef patty” that honestly might be the single most delicious appetizer I’ve ever tasted.

It has all the hallmarks of a Michel Richard dish. The presentation was joyful, fun, and immaculate. Every bite was velvety, rich, succulent, sweet and tart at the same time. In fact, I was so overwhelmed by my first few bites that I actually caught myself saying the above quote to my wife.

And we were only three courses into a nine-course dinner.

I’ve eaten at some of the top restaurants in the world, having been to France multiple times, as well as Dubai, Singapore, Switzerland, and Peru. I can say with absolute conviction that I have never had a dining experience on par with Citronelle.

The Citronelle experience is like stepping into the mind of Richard himself.  Even without knowing anything about the Chef, the diner at Citronelle can tell that he is a man of enormous passion, precision, and focus. The amount of effort that goes into creating food this flawless in its execution, presentation, and taste is tremendous.

It is this combination of intense focus and fun, discipline and passion, that has allowed Richard to thrive in an industry that enjoys one of the highest rates of failure: nearly 60% of all restaurants close or change owners in the first three years of business.

Citronelle has been packed for 18 years straight. And Richard has run top-rated, successful restaurants spanning from LA to Tokyo to Santa Fe, New York, Baltimore, and Las Vegas for over 30 years.

Even more astounding, he made the transition from being a pastry chef (Julia Child once called him “the greatest puff pastry chef in the US”) to master chef: Richard has won several James Beard awards and cooks at a level that Wine Advocate describes as ”exceed[ing] any Michelin three-star chef in France.”

The move from pastry chef to chef is almost unheard of in the food world. And to go from being a top rated pastry chef to a MASTER chef, indeed, one of the best in the world, borders on the impossible.

I recently spent the better part of an afternoon discussing food, business, and how to translate passion into profits with Chef Richard at the Chef’s table located in Citronelle’s kitchen.

I started off by asking him about his transition from pastry chef to chef.

“When I was living in France in 1974, I was working for a famous pastry chef (the legendary Gaston LeNotre). One day he comes up to me and says, “Michel you wanna go to NEW YORK CITY?” I was excited. Unfortunately the restaurant didn’t succeed, but for me it was too early to go back to France. Then someone offered me a job in Santa Fe, New Mexico.”

“So I went to Santa Fe and I was working hard. But after a few months I was very unhappy. I was not in love with Santa Fe. I was a very ambitious young man and I was thinking about moving to San Francisco or LA. So I talked to the owner of the shop and told him I wanted to leave and he yelled, “OH NO! DON’T MOVE! DON’T MOVE! I want you to buy this place!””

“I told him I didn’t have any money. And he asked ‘How much do you have?’ I said “three thousand dollars,” and he sold it to me for $100,000 using the $3,000 as the down-payment.”

“I took over and the place was PACKED. I already had a reputation and I worked both day and night. I used to sleep on the floor. I was very anxious to pay back my debt and to save some money.“

The first word that comes to mind when speak to Chef Richard is “enthusiasm.” Enthusiasm for moving to the US despite not speaking English well. Enthusiasm for moving to Santa Fe. Enthusiasm to run a successful pastry shop. Enthusiasm to become owner despite not having any experience as manager. Enthusiasm to expand from Santa Fe to LA (more on this in a moment).

It was this enthusiasm that resulted in Richard’s meteoric rise in the US cooking scene. Well, that, and a work ethic that borders on the brutal: while Richard is given to dramatic statements, the above anecdote about sleeping on the floor is 100% true.

And the chef’s focus on perfection is extraordinary even 48 years into his career (throughout our conversation he stopped no less than 10 times to correct something in his staff’s performance or the restaurant as a whole that was not what he wanted).

Lamb fillet, Michel Richard-style

This combination of intense worth ethic, enthusiasm, and the highest devotion to quality translated into profits. Shortly after taking over the pastry shop Richard had not only paid off his debts but had pocketed enough money to open another pastry shop in LA, this time without any partner.

“My shop in LA was very successful. People stood in line outside every day. It was just a little pastry shop/ café but it was very busy. I was having a good time so I started traveling and enjoying myself.”

For modesty’s sake, Richard asked me not to state precisely how much money his shop was making, but I will say that it was over six figures … in annual revenue [remember this was the ‘70s]… from a single 1,800 square foot café/ pastry shop. He was only 26-27.

Having met hundreds, possibly even thousands, of businesspeople in my life, I can say that 90% of them would have sat on their laurels had they attained the level of success Richard experienced at the same age. Of the 10% who would have pushed for greater success, nearly all of them would have chosen to simply expand their current business.

Richard did neither. Having made the jump from penniless French pastry chef in France to successful pastry chef in Santé Fe, then successful entrepreneur in Santé Fe and Los Angeles (within two years), he decided to jump from pastry chef to chef, a move generally considered to be impossible in the cooking world.

“My old boss, Gaston Lenotre had a lot famous chef friends, guys like Paul Bocuse (a legend in French cuisine) who were masters of nouvelle cuisine. They used to come to LA or San Francisco and they would call me to make desserts for their special events. Because I was nice to them and trying to help them, they would invite me back to France. ‘Michel, why don’t you spend some time with us?’ they said.”

Porcupine Shrimp and Tuna Nicoise

“So I went to France with Mr. Bocuse in Lyon. Jean-Louis Palladin (the famed chef of the Watergate Hotel) was another friend of mine. I fell in love with his style of modern cuisine. His food was impeccable. I tried to imitate him… to be better than him.”

“But most importantly, I fell in love with the kitchen, with the restaurant. I fell in love with food. In a pastry shop someone comes in and buys a pastry and then they leave. In a restaurant, you take care of people all evening long. You have great wine. You talk to them. It’s like a dream place for them.”

Richard’s love for his profession is evident even at age 63. When he talks of restaurants and food his eyes gleam with joy.

“After staying with these great chefs, I came back to LA and I started to try and create my own dishes. Gradually I started serving some of my dishes in my pastry shop/ café for lunch and dinner. Some of my friends would say ‘Michel you are such a good chef, you should open a restaurant.’ But I didn’t feel ready. So it was ten years before I opened a restaurant.”

Humility is a theme that occurred throughout the course of my talk with Chef Richard. Despite being a legend in pastry circles at the age of 27, he dropped all pretence when he decided to become a chef. And though he’s primarily self-taught, and has become a master chef in his own right (one of the best), the respect he has for his mentors and profession even today is obvious.

Part of this humility came when he sought out investors for his first restaurant. Despite his fame as a pastry chef, when it came time to make his dream of opening a restaurant a reality, Richard found himself having to prove his talents yet again.

“It was tough for me to find money. I was a pastry chef. People would say, ‘A pastry chef wants to open a restaurant?!?! What does he know about food?’ But I would cook in my home and invite people over. They would be impressed, but it was not easy. I turned to a few of my friends. It took me ten years, but eventually I opened the restaurant.”

“The restaurant was a smash. It quickly became known as one of, if not the best French restaurant in California. I was working harder than ever. And I pushed to expand I started to open more restaurants: Santa Barbara, San Francisco, Baltimore, etc.”

“I was national now. But I was sad. The quality of the food went down. And I would be on a plane going to a restaurant feeling guilty for not being with my family or my other restaurants. I didn’t like it. Being involved with 10-15 restaurants doesn’t make me happy. So I started to downsize. I moved from LA to DC. And I focused on what makes me happy.”

In a culture such as today’s where money is often equated with happiness, Richard’s decision to focus on what really made him happy rather than his bank account stands in stark contrast to the image of the ever-ambitious businessman often promoted by the mainstream financial media. Today, it’s the norm for companies and businesspeople to focus on the bottom-line no mater what the cost to quality or personal fulfillment.

Another Richard creation: the lobster burger.

Interested in this admission of success as personal fulfillment, not merely financial success, I asked Richard what made him happy.

“What makes me happy is to have a restaurant with good food and happy guests. I LOVE this side! [points at kitchen] I was born there. I was born in the kitchen. I love it. It’s a playground, a canvas, a place I love to be. I feel so comfortable. When I put my chef coat on I feel so good. I’ve been wearing it for 50 years. But the minute I put it on I feel I have to respect it. I have to respect the tradition. “

“When people make a reservation I NEED to make sure they are happy, to take care of them all evening. I need to respect them. I want them to feel good.“

This is not just idle conversation. Richard’s love and respect for his profession are obvious in everything he does. Indeed, during the course of our conversation he stopped mid-sentence to personally wipe a table so that it was clean to his standards.

This is Michel Richard, master chef, and owner of the restaurant, personally wiping a table rather than getting someone else to do it. At age 63. With a smile on his face.

It was a striking moment, and one that any businessperson could learn from. Too often success is accompanied by arrogance and condescension for others. Not for Michel Richard. Despite his fame and an unending list of awards, he still strives for quality in everything he does.

Indeed, while our conversation primarily focused on the restaurant industry, the points and principles Chef Richard lives would serve as an example for any businessperson. His success is the product of hard work, respect for his customers, and a near superhuman focus on quality.

My advice to readers, particularly those involved in business: consider the points and principles Richard lives by in relation to your own work. Do you strive for quality in everything you do? Do you respect your customers or do you simply see them as a source of money for your business? How can you improve the quality of your work and client fulfillment?

On a more personal level, are you doing what really makes you fulfilled professionally? Do you work hard because you find meaning in your work or because you’re afraid of chastisement from a superior or others?

Finally, if you are ever looking for a dining experience like no other, you NEED to go to Citronelle in Georgetown Washington, DC. I must warn you in advance that it’s a high end restaurant. But you will remember the meal for the rest of your life.

Best Regards,

Graham Summers

 

 

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Four Facts that PROVE the EFSF Doesn’t Matter… At All

It’s time to settle the debate regarding Europe’s banking system. I know that the mainstream media keeps talking about another round of bailouts or an expansion to the Emergency Financial Stability Facility (EFSF) as though these things matter.

But the reality is… they don’t. Europe’s problems go WAY beyond Greece’s debt. And the entire European banking system is primed for a systemic collapse.

Consider the following four facts:

FACT #1: Europe’s entire banking system is leveraged at 25 to 1.

This is nearly two times the US’s leverage levels. With this amount of leverage you only need a 4% drop in asset prices to wipe out ALL equity. These are literally borderline-Lehman levels of leverage (Lehman was 30 to 1).

Mind you, these leverage levels are based on asset values the banks claim are accurate. Real leverage levels are in fact likely much MUCH higher.

KA-BOOM.

FACT #2: European Financial Corporations are collectively sitting on debt equal to 148% of TOTAL EU GDP.

Yes, financial firms’ debt levels in Europe exceed Europe’s ENTIRE GDP. These are just the financial firms. We’re not even bothering to mention non-financial corporate debt, household debt, sovereign debt, etc.

Also remember, collectively, the EU is the largest economy in the world (north of $16 trillion). So we’re talking about over $23 TRILLION in debt sitting on European financials’ balance sheets.

Oh, I almost forgot, this data point only includes “on balance sheet” debt. We’re totally ignoring off-balance sheet debt, derivatives, etc. So REAL financial corporate debt is much MUCH higher.

KA-BOOM.

FACT #3: European banks need to roll over between 15% and 50% of their total debt by the end of 2012.

That’s correct, European banks will have to roll over HUGE quantities of their debt before the end of 2012. Mind you, we’re only talking about maturing debt. We’re not even considering NEW debt or equity these banks will have to issue to raise capital.

Considering that even the “rock solid” German banks need to raise over $140 BILLION in new capital alone, we’re talking about a TON of debt issuance coming out of Europe’s banks in the next 14 months.

And this is happening in an environment prone to riots, bank runs, and failed bond auctions (Germany just had a failed bond auction yesterday).

KA-BOOM

FACT #4: In order to meet current unfunded liabilities (pensions, healthcare, etc) without defaulting or cutting benefits, the average EU nation would need to have OVER 400% of its current GDP sitting in a bank account collecting interest.

This last data point comes from Jagadeesh Gokhale, Senior Fellow at the Cato Institute, former consultant to the US Treasury, and former Senior Economic Advisor to the Federal Reserve Bank of Cleveland.

This is a guy who’s worked at a very high level on the inside studying sovereign finance, which makes this fact all the more disturbing. And he knew this as far back as January 2009!!!

Folks, the EFSF, the bailouts, China coming to the rescue… all of that stuff is 100% pointless in the grand scheme of things. Europe’s ENTIRE banking system (with few exceptions) is insolvent. Numerous entire European COUNTRIES are insolvent. Even the more “rock solid” countries such as Germany (who is supposed to save Europe apparently) have REAL Debt to GDP ratios of over 200% and STILL HAVEN’T RECAPITALIZED THEIR BANKS.

Again, it DOES NOT matter what Sarkozy and Merkel say. It doesn’t matter how much leverage the EFSF gets. Europe is broke. End of story. And those investors who get suckered into betting this mess will work out well are very likely going to lose everything.

The impact of the fallout from this will make 2008 look like a joke. The EU is the largest economy in the world. So if its banking system collapses (and it will) we’re facing a full-scale Global financial meltdown (the IMF has even warned of this).

That’s the reality of the situation we’re in today. I know nobody likes to publicly admit it. But it’s true.

What happened in 2008 was literally just the warm up. The REAL DEAL is coming in the next 14 months. And it’s going to involve corporate, financial, and sovereign defaults.

This is why I released my three special reports titled, Prepare Your Family, Prepare Your Savings, and Prepare Your Portfolio: to help my Private Wealth Advisory subscribers prepare these areas of their lives for a Crisis that will make 2008 look like a picnic.

In terms of specific investment strategies, I’ve also had my clients move into our Special Crisis Trades: the very same trades we used to make triple digit returns in 2008.

So we’re positioned for whatever may come. In fact, the worse things get, the greater our profits will be.

If you’re ready to take action now, prepare your personal finances and loved ones for what’s coming, and potentially even lock in triple digit winners when the Crash come, you NEED to take our a trial subscription to my Private Wealth Advisory newsletter.

You’ll immediately be given access to my Prepare Your Family, Prepare Your Savings, and Prepare Your Portfolio reports telling you in pain-staking detail how to prepare these areas of your life for what’s coming.

You’ll also join my private client list (including executives at some of the largest corporations in the world as well as every major financial firm on Wall Street) in receiving my bi-weekly market analyses and real-time investment alerts, devoted to helping you profit in any market environment.

To do so… and start preparing for a Crisis that will make 2008 look like a picnic (heck just look at the first leg down that occurred in early August)…

Click Here Now!!!

Best Regards

Graham Summers

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Forget Greece, Europe is Finished

Let’s take an honest look at Europe.

Merkel and Sarkozy claim they’ve got everything under control. They’re lying. Anyone who uses common sense can tell this. The reason…

They’ve never considered the true price tag for the leveraged EFSF. I’m not talking about money, I’m talking about funding costs for France and Germany when they lose their AAA rated status as a result of backing up Greece.

First off, while France and Germany are the most solvent members of the EU, they’re not exactly models of fiscal austerity. Consider that both countries officially have Debt to GDP ratios of roughly 80% (Germany’s is 78% and France’s is 84%). And that data point doesn’t include off balance sheet risk or unfunded liabilities for either country.

Indeed, Germany, which is widely thought to be super solvent, is in fact sitting on a REAL Debt to GDP ratio north of 200% when you consider unfunded liabilities such as pension plans and so on.

Before you label me as crazy, consider that this statistic comes from Axel Weber… the head of Germany’s CENTRAL BANK (Bundesbank).

Folks, this is a CENTRAL BANKER, admitting his nation is in fact far more broke than people realize. And let us not forget…

Germany hasn’t RECAPITALIZED ITS BANKS YET!

Indeed, by the German Institute for Economic Research’s OWN admission, German banks need 147 billion Euros’ worth of new capital.

To put this number into perspective TOTAL EQUITY at the top three banks in Germany is less than 100 billion Euros.

Debt to GDP ratios north of 200%… banks needing 147 billion Euros in new capital… and somehow Germany is going to bailout Europe? Give me a break. German has its own fiscal disaster approaching.

Not to mention the following:

1)   Over half of Germans want out of the Euro

2)   75% of Germans are against increasing the bailout fund.

Of course, there is no limit to political idiocy, so it’s possible German politicians may go “all in” to prop up Greece. But I’m here to tell you that the short term upside to this move is minimal as it will result in Germany losing its AAA status and will only speed up its own funding crisis/ banking collapse.

In plain terms, Europe is finished. This isn’t even about Greece anymore. Even the most stable and “solvent” European nation (Germany) is facing its own funding Crisis. So the notion that Germany and France (which has an even worse REAL Debt to GDP than Germany) can somehow bailout Europe is ridiculous.

With that in mind, the time to prepare for what’s coming is NOW before this situation results in systemic failure in Europe.

Yes, systemic failure.

Greece is not the issue here. The issue is that Europe as a whole is broke, facing massive unfunded liabilities, and running out of viable creditors to band-aid its banking crisis. We are literally talking about a banking system collapse over there.

In plain terms, what’s coming to Europe (and then the US due to the interconnected nature of the financial system) is going to make 2008 look like a picnic.

If you have yet to prepare yourself for what’s coming, now is the time to do so. I can show you how. Indeed, my clients MADE money in 2008, outperforming every mutual fund on the planet as well as 99% of investment legends.

We also outperformed the market by 15% during the Euro Crisis of 2010. And in the last month and a half, while every one else lost their shirts, we’ve locked in 13 winners.

So if you’re looking for a guide to get you through the coming disaster, I’m your man.

I’ve been helping investors, including executives at many of the Fortune 500 companies, navigate their personal portfolios through the markets for years.

I can do the same for you with my Private Wealth Advisory newsletter.

The minute you subscribe to Private Wealth Advisory you’ll be given access to my

Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports telling you precisely which steps to take to prepare your loved ones and your personal finances for what’s coming.

You’ll also join my private client list in receiving my bi-weekly market updates outlining what’s really happening behind the scenes in the markets and which investments will profit in the coming months.

And when it’s time to pull the trigger on a given investment, I’ll send you real-time trade alerts.

All of this is yours for just $199 per year.

In fact, if you subscribe now, you’ll receive my latest issue of Private Wealth Advisory detailing 12 investments that are poised to produce enormous profits in the next month.

The time for dilly dallying is over. The market’s have already taken out critical support and my Crash indicator is on a confirmed SELL. Failing to take action now means risking HUGE losses as the Great Collapse snowballs.

To take action to protect yourself… and insure that the coming weeks and months are a time of profit and safety, NOT losses and pain…

Click Here Now!!!

Best Regards

Graham Summers

 

 

 

 

 

 

 

 

 

 

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Graham Summers’ Weekly Market Forecast (Resistance Edition)

Traders have gunned the market higher over the last two weeks courtesy of:

1)   Short covering

2)   The Euro rally on French liquidity concerns

3)   Rumors of yet another Euro bailout

Regarding #1, short interest on the NYSE was at March 2009 levels going into this rally. With this kind of short interest, even a small rally will become explosive as the shorts cover (buy stocks)… which sends the market higher… which in turn results in more shorts cover.

This same dynamic is playing out for large financial institutions in France resulting in #2. French banks are facing major short-turn funding shortages. As a result they are selling long positions and covering shorts to free up capital. Because of this, the Euro is rallying hard, just as the US Dollar did in 2008 when the US banking system was in collapse.

Because stocks are moving in lock-step with the Euro, the Euro move has pushed stocks higher in a big way.

Finally, regarding #3, it is obvious to anyone that the EU is completely out of ideas that will possibly work. The kick the can mentality is ending. I know Merkel and Sarkozy claim to be working on some great plan to fix things… but the reality is that if those countries do go for the leveraged EFSF then they will lose their AAA status… which comes with its own set of major problems.

Will France and Germany go “all in,” and choose to lose their AAA status to bailout Greece again? Hard to believe that will be the case. And we see reports emerging of Germany preparing for a Greek default and bondholders taking a 60% haircut.

It is literally a case of “pick your poison.” If Germany and France backstop Greece again with the leveraged EFSF, they will lose their AAA statuses and we’ll see a bloodbath in Europe. If they don’t backstop with the leveraged EFSF, we’ll see a bloodbath in Europe.

With that in mind, the Euro is coming up against major resistance at 140:

We’re facing a quick correction here to 135 if not 130 in short order. Long-term I expect we’ll see Greece default followed by a domino effect in which all bankrupt European nations restructure. When this occurs the Euro will break below the 2010 lows of 118.

In terms of stocks, we’ve been in a large trading range between 1,125 and 1,220 on the S&P 500. We’re now testing the upper end of this range, which sets us up for a return to the low end of the range.

Given the economic backdrop in the US and Europe, I remain convinced we’re breaking out of this range to the down side. I’ve warned to get defensive for over a month now. This week looks to be a good time to add to shorts as I expect we’re going to likely see a top put in as earnings season kicks into higher gear and the usual options expiration nonsense ends.

However, larger picture, I believe we’re facing systemic risk… as in another 2008 event. The most likely culprit for this will be Europe, which is literally on the ledge of a cliff.

Indeed, the facts remain that Greece will default. End of story. Greece is broke. The market knows this which is why it’s pricing a Greek default at 100% guaranteed.

Once Greece defaults, Spain and Italy will follow suit. When that happens we’re facing a situation that will make 2008 look like a picnic. The powers that be know this… which is why the IMF has warned we are facing a “global financial meltdown.” And the Bank of England says we’re facing the “worst financial crisis in history.”

Folks, these are the guys in charge of holding the financial system together… warning that we’re facing a meltdown. Did they do that in 2008? Nope. So how bad are things going to be? BAD.

If you have yet to prepare yourself for what’s coming, now is the time to do so. I can show you how. Indeed, my clients MADE money in 2008, outperforming every mutual fund on the planet as well as 99% of investment legends.

We also outperformed the market by 15% during the Euro Crisis of 2010. And in the last month and a half, while every one else lost their shirts, we’ve locked in 14 winners.

So if you’re looking for a guide to get you through the coming disaster, I’m your man.

I’ve been helping investors, including executives at many of the Fortune 500 companies, navigate their personal portfolios through the markets for years.

I can do the same for you with my Private Wealth Advisory newsletter.

The minute you subscribe to Private Wealth Advisory you’ll be given access to my

Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports telling you precisely which steps to take to prepare your loved ones and your personal finances for what’s coming.

You’ll also join my private client list in receiving my bi-weekly market updates outlining what’s really happening behind the scenes in the markets and which investments will profit in the coming months.

And when it’s time to pull the trigger on a given investment, I’ll send you real-time trade alerts.

All of this is yours for just $199 per year.

In fact, if you subscribe now, you’ll receive my latest issue of Private Wealth Advisory detailing four investments that are poised to produce enormous profits in the next month.

We just opened these trades late last week. Already all four of them are up. And we’re going to be seeing MAJOR gains from them in the coming weeks.

The time for dilly dallying is over. Failing to take action now means risking HUGE losses as the Great Collapse snowballs.

To take action to protect yourself… and insure that the coming weeks and months are a time of profit and safety, NOT losses and pain…

Click Here Now!!!

Best Regards

Graham Summers

 

 

 

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The Second Wave of the Greatest Depression

It is now clear the US economy has broken down in a BIG way. Indeed, no less than Ben “green shoots” Bernanke has stated that the recovery is “close to faltering.” This, coming from a cherrleader like Bernanke is essentially an admission from the powers that be that the US economy is a disaster.

Indeed, the recent manufacturing survey just posted its second consecutive month of contraction. As ZeroHedge noted, collapse in this economic metric has been greater than any two-month period in the last ten years, including 2008.

We also see that the ISM purchasers managers’ index, the Philly Fed index, payrolls, and the ECRI weekly leading index are all at or about to break into recessionary levels.

These are, of course, mainstream indicators of economic activity, which are heavily massaged. The economic realities in the US are far worse than even they proclaim as food stamp usage (43 million a record high), the labor participation rate:

… and U6 unemployment numbers reveal:

Suffice to say, the US economy is a disaster. And yet, analysts are expecting another earnings season of double-digit growth (the eighth quarter in a row). Somehow I think we’re in for some major surprises to the downside this earnings season.

And this is coming at a time when the markets are already shows signs of MAJOR duress.

Indeed, I truly cannot stress enough how dangerous things are right now. This is the most dangerous market I’ve ever seen. We’re seeing moves of 4-% in just HOURS, not even days.

And considering that leverage levels prior to this round of the Crisis were even higher than those from the Tech Bubble… combined with the $600+ TRILLION in derivatives floating around in the financial system… should give you a sense of how serious the market declines can and will be as this whole thing breaks apart.

The fact remains that we are going down, down, DOWN over the coming months.  We’re going to be seeing major banks go under, market crashes, food shortages, government shutdowns, and SYSTEMIC FAILURE.

Yes, I believe that before this mess ends, the financial system as a whole will have collapsed. What’s coming is going to make 2008 look like a joke.

If you have yet to prepare yourself for what’s coming, now is the time to do so. Whether it’s by moving to cash and bullion, opening some shorts, or simply getting out of the markets altogether, now is the time to be preparing for what’s coming (remember, stocks took six months to bottom after Lehman… and that was when the Fed still had some bullets left to combat the collapse).

If you’re looking for actionable investment ideas with specific “buy” and “sell” alerts, few if any folks on the planet can match my ability to make money during times of Crisis.

The below chart shows actual, verifiable recommendations I made in 2008. These are real “buy” or “sell” alerts that I sent to my clients during that time:

Aside from this, my clients ALSO made money during the Euro collapse in May 2010, locking in gains of 14%, 16%, even 19% as the markets broke down.

And finally, in the last two months, while the markets were a sea of red, Private Wealth Advisory subscribers have locked in fourteen (14) winning trades including gains of 6%, 7%, 9%, even 10% in just DAYS.

In fact, we haven’t closed a single LOSER since the end of July.

And we’re doing this with stocks and ETFs, NOT options futures or any other sophisticated financial instruments.

So if you’ve looking for someone to help you navigate this mess, I’m your guy. I’ve been helping investors (including executives at many Fortune 500 companies and strategists at numerous financial institutions and hedge funds) avoid collapses and profit from the market for years.

I can do the same for you. All you need to do is take out a subscription to my Private Wealth Advisory newsletter.

You’ll immediate be given access to the Private Wealth Advisory archives, including my Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports.

You’ll also join my private client list in receive my bi-weekly market commentaraies as well as my real time investment alerts, telling you exactly when to buy and sell an investment and what prices to pay.

All of this, for one full year, for just $199.99.

To take out an annual subscription to Private Wealth Advisory now and start taking steps to insure your loved ones and personal finances move through the coming storm safely…

Click Here Now!!!

Best Regards,

Graham Summers

 

Posted in It's a Bull Market | Comments Off on The Second Wave of the Greatest Depression

We Had Short Covering in 2008 Too… It Didn’t Stop the Collapse Then…

I wanted to take a moment to discuss the current stock market rally.

For starters, this rally has largely been driven by short covering. Before the market exploded last week, short interest on the NYSE was at its highest levels since March 2009: a time when the entire investment community thought the world was ending and had gone short to profit from it.

So there were plenty of shorts to shred with a market ramp job. And that’s precisely what has happened.

Now, I know that most commentators believe that anytime stocks go up it’s a good thing, but short-covering rallies are in fact quite dangerous.

The reason for this is because these moves are caused by articifial buying interest (people covering their short positions) NOT by investors actually buying stocks because of some perceived value.

So when the short covering ends, the market implodes again. Indeed, during 2008, between September 15th and December 1st alone we had no less than FIVE RAPID double digit rallies: 11%, 19%, 12%, 11%, and 13% all brought about by short-covering.

Suffice to say, none of these ended well.

So let’s be honest about what’s happening in the financial system today… and why this current rally is in fact just another head fake as we enter the Great Crash.

1) Europe’s banking system faces potential systemic collapse: the insolvency issues are beyond PIIGS’ debt at this point. Even Belgian banks which no one thought were problematic are now going to $0.

2) The “powers that be” have lost control of the markets. Both the IMF and the Bank of England have warned we are facing a financial meltdown of historic proportions and possibly the worst ever in history. These are the very groups that are supposed to hold up the financial system… telling us that we’re facing a “meltdown.”

3) The world Central Banks cannot hold the markets together anymore. Indeed, even China is now having to actively buy shares in its own banks to prop up its financial system. This is CHINA, the supposed largest creditor nation in the world… having to step in to BUY bank stocks to stop its ongoing Crash.

4) The US Federal Reserve is insolvent. With only $50 billion in capital and a portfolio of $2.8 trillion, the Fed is leveraged at OVER 50 to 1. Lehman Brothers was leveraged at 30 to 1 when it collapsed. And the Fed’s portfolio of toxic debt and other junk it bought from Wall Street has tainted the US’s balance sheet.

I could go on and on, but the fact remains that we have now entered a Financial Crisis to which 2008 was just the warm-up.

You see, 2008 was caused by toxic debts on private bank balance sheets. Today, thanks to US Federal Reserve and other Central Banks’ moves, these toxic debts have moved onto the PUBLIC’s balance sheet.

So this time around, the market collapse is ALSO going to feature the bond bubble bursting, sovereign defaults (including eventually
the US), MAJOR bank failures (Bank of America?), bank holidays, government shutdowns, civil unrest, and food shortages.

In short, we’re entering the Greatest Depression: the full-scale collapse of the entire credit-based financial system in the developed world.

If you have not already taken steps to prepare your family AND your finances for what’s coming, you need to get moving NOW. Because the situation in Greece today IS coming to a country near you in short order.

I can help you navigate this mess so that you not only keep your self and your loved ones’ secure, but I can even help you to actually MAKE money from what’s coming.

In terms of personal preparation, my three reports Protect Your Family, Protect Your Savings, and Protect Your Portfolio outline exactly what you need to do to prepare for:

1) market crashes
2) bank holidays
3) runaway deflation OR inflation (whichever may come)
4) food shortages
5) debt defaults

…and more.

All in all, these reports contain 20 pages of detailed, specific steps to take to insure your loved ones and your finances come through the coming disaster intact.

As for making money from the financial markets, few if any folks on the planet can match my ability to make money during times of Crisis.

The below chart shows actual, verifiable recommendations I made in 2008. These are real “buy” or “sell” alerts that I sent to my clients during that time:

Aside from this, my clients ALSO made money during the Euro collapse in May 2010, locking in gains of 14%, 16%, even 19% as the markets broke down.

And finally, in the last two months, while the markets were a sea of red, Private Wealth Advisory subscribers have locked in fourteen (14) winning trades including gains of 6%, 7%, 9%, even 10% in just DAYS.

In fact, we haven’t closed a single LOSER since the end of July.

And we’re doing this with stocks and ETFs, NOT options futures or any other sophisticated financial instruments.

So if you’ve looking for someone to help you navigate this mess, I’m your guy. I’ve been helping investors (including executives at many Fortune 500 companies and strategists at numerous financial institutions and hedge funds) avoid collapses and profit from the market for years.

I can do the same for you. All you need to do is take out a subscription to my Private Wealth Advisory newsletter.

You’ll immediate be given access to the Private Wealth Advisory archives, including my Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports.

You’ll also join my private client list in receive my bi-weekly market commentaraies as well as my real time investment alerts, telling you exactly when to buy and sell an investment and what prices to pay.

All of this, for one full year, for just $199.99.

To take out an annual subscription to Private Wealth Advisory now and start taking steps to insure your loved ones and personal finances move through the coming storm safely…

Click Here Now!!!

Best Regards,

Graham Summers

Posted in It's a Bull Market | Comments Off on We Had Short Covering in 2008 Too… It Didn’t Stop the Collapse Then…

Graham Summers’ Weekly Market Forecast (Dexia Now… Who’s Next Edition)

Things are getting truly desperate in Europe. I’d like to show just how bad they are by way of example: the Belgian bank Dexia, which is now in the process of being nationalized.

For starters, Dexia had 566 billion euros in debt and 19 billion euros in equity as of the end of 2010. Right off the bat, that’s a leverage ratio of 29 to 1. Lehman Brothers was leveraged at 30 to 1 when it collapsed.

Now consider that Belgium’s entire GDP is just 348 billion euros. Dexia has 566 billion euros in assets. Of this 352 billion are loans. Put another way, Dexia’s loan portfolio alone is larger than its home country’s entire economy.

AND THIS BANK PASSED THE STRESS TESTS.

Suffice to say, Europe’s banking system is in far FAR worse shape than anyone over there is admitting. The stress tests were complete and total fiction. And the market is starting to figure this out.

Small wonder then that had both the IMF and the Bank of England have recently warned that the world is facing a “financial meltdown” and “the worst financial crisis in history.”

Ben Bernanke issued his own statement of doom last week as well, stating that his precious recovery is “close to faltering.” For a guy who’s spent TRILLIONS trying to create a recovery to admit things aren’t working out ought to give you an idea of just how bad things will be getting in the near future.

Indeed, stocks were rejected last at a descending trendline from the July top.

We should have at least gotten a bounce to the 38.2% retracement (1,200 on the S&P 500). So if the market fails to get there and simply rolls over here, then we’re going DOWN in a big way FAST.

Here is the reality of the financial system today:

  • The European banking system is facing systemic collapse.
  • The US economy has rolled over and is in a confirmed double dip in the context of a larger DE-pression.
  • The Central Banks and regulators have admitted we are peering into the abyss and they have no clue what to do.

Yes, I believe that before this mess ends, the financial system as a whole will have collapsed. What’s coming is going to make 2008 look like a joke.

If you have yet to prepare yourself for what’s coming, now is the time to do so. I can show you how. Indeed, my clients MADE money in 2008, outperforming every mutual fund on the planet as well as 99% of investment legends.

We also outperformed the market by 15% during the Euro Crisis of 2010. And in the last month and a half, while every one else lost their shirts, we’ve locked in 14 winners.

So if you’re looking for a guide to get you through the coming disaster, I’m your man.

I’ve been helping investors, including executives at many of the Fortune 500 companies, navigate their personal portfolios through the markets for years.

I can do the same for you with my Private Wealth Advisory newsletter.

The minute you subscribe to Private Wealth Advisory you’ll be given access to my

Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports telling you precisely which steps to take to prepare your loved ones and your personal finances for what’s coming.

You’ll also join my private client list in receiving my bi-weekly market updates outlining what’s really happening behind the scenes in the markets and which investments will profit in the coming months.

And when it’s time to pull the trigger on a given investment, I’ll send you real-time trade alerts.

All of this is yours for just $199 per year.

In fact, if you subscribe now, you’ll receive my latest issue of Private Wealth Advisory detailing 12 investments that are poised to produce enormous profits in the next month.

The time for dilly dallying is over. The market’s have already taken out critical support and my Crash indicator is on a confirmed SELL. Failing to take action now means risking HUGE losses as the Great Collapse snowballs.

To take action to protect yourself… and insure that the coming weeks and months are a time of profit and safety, NOT losses and pain…

Click Here Now!!!

 

Best Regards

 

Graham Summers

 

 

 

 

 

 

 

 

 

 

Posted in It's a Bull Market | Comments Off on Graham Summers’ Weekly Market Forecast (Dexia Now… Who’s Next Edition)

This is Short Covering Before the Next Collapse

The market action of the last few days reeks of short-covering more than anything else. I realize that rumors abound of more European bailouts (what is this… the 12th rumor?), Microsoft buying Yahoo! (an outright lie), and other items… but the reality is that the market is telling us plain and simple that this is just short-covering and a snapback.

For one thing, short interest today is at levels comparable to those of March 2009… when everyone thought the whole world would end. So there’s plenty of fodder for a sharp short-covering rally to occur.

We’re also seeing market action that indicates a short squeeze is on. Case in point, consider Tuesday’s action in which an unfounded rumor concerning yet another European bailout produced a 4.2% move in the S&P 500 in the span of 40 minutes:

The effect was even more pronounced in the Russell 2000. In that case the market moved over 6% in the span of 40 minutes:

That’s a 6% move… in less than one hour… based on another rumor pertaining to a European bailout (what is this… the 12th?). This is absolutely extraordinary and shows in no uncertain terms just how broken ad fragile the market is.

Indeed, the whole thing smells of 2008. Back then we saw rallies of 11%, 17%, even 20% too… how’d those work out? Did the market going up then mean that things were fixed and we had made a bottom?

Do not be fooled. This move is short-covering and a snapback and nothing else. We’ve seen several of these in the last two months alone. Every time the market rolled over quickly and collapsed.

So let the traders play their games. Based on retracement levels this move could go to 1,182 or 1,200 on the S&P 500. But this rally should be used to get even more defensive than before.

The reasons are clear: the European banking system is facing systemic failure. Bailouts will not solve this mess. The banks are all insolvent based on toxic debt exposure.

Meanwhile, the US economy is rolling over in a BIG way.  The ISM purchasers managers’ index, the Philly Fed index, payrolls, and the ECRI weekly leading index are all at or about to break into recessionary levels AGAIN.

Nearly half of Americans receive Government aid in some form or another. Food stamp usage is at a record high. The labor participation rate continues to fall.

And on and on.

In plain terms, the financial system is getting hit from all side. And the markets are setting up for a Crash on par with the 2008 collapse.

However, this time around we’re also going to be seeing major banks go under, market crashes, food shortages, government shutdowns, and SYSTEMIC FAILURE.

Yes, I believe that before this mess ends, the financial system as a whole will have collapsed. What’s coming is going to make 2008 look like a joke.

If you have yet to prepare yourself for what’s coming, now is the time to do so. I can show you how. Indeed, my clients MADE money in 2008, outperforming every mutual fund on the planet as well as 99% of investment legends.

We also outperformed the market by 15% during the Euro Crisis of 2010. And in the last month and a half, while every one else lost their shirts, we’ve locked in 13 winners.

So if you’re looking for a guide to get you through the coming disaster, I’m your man.

I’ve been helping investors, including executives at many of the Fortune 500 companies, navigate their personal portfolios through the markets for years.

I can do the same for you with my Private Wealth Advisory newsletter.

The minute you subscribe to Private Wealth Advisory, you’ll be given access to my

Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports telling you precisely which steps to take to prepare your loved ones and your personal finances for what’s coming.

You’ll also join my private client list in receiving my bi-weekly market updates outlining what’s really happening behind the scenes in the markets and which investments will profit in the coming months.

And when it’s time to pull the trigger on a given investment, I’ll send you real-time trade alerts.

All of this is yours for just $199 per year.

In fact, if you subscribe now, you’ll receive my latest issue of Private Wealth Advisory detailing 12 investments that are poised to produce enormous profits in the next month.

The time for dilly dallying is over. The market’s have already taken out critical support and my Crash indicator is on a confirmed SELL. Failing to take action now means risking HUGE losses as the Great Collapse snowballs.

To take action to protect yourself… and insure that the coming weeks and months are a time of profit and safety, NOT losses and pain…

Click Here Now!!!

Best Regards

Graham Summers

 

 

 

 

 

 

 

 

 

 

 

 

 

Posted in It's a Bull Market | Comments Off on This is Short Covering Before the Next Collapse

The TBTFs Have Undone ALL of Their QE (1 &2) GAINS!!!

While the European banking collapse is grabbing the most attention, the US banks, particularly the Too Big To Fails are showing serious sounds of distress as well.

As you’ll recall from previous  articles I’ve written, the TBTFs are the institutions most favored by the Federal Reserve and Treasury during the bailouts/ interventions of the last four years. With the greatest derivative exposure, the greatest leverage, and the greatest toxic debts on or off their balance sheets, these firms provide a glimpse into the US financial system’s inner workings.

With that in mind, I want to draw your attention to the fact that all of these firms’ share prices have recently dropped below their critical support lines established during the relief rally following the market bottom in March 2009.

Here’s Bank of America:

As you can see, the market drop of August 2011 has brought shares of BAC below the support level established by the first major rally coming off of the March 2009 lows (when the Fed first announced QE 1).

The same is true of Citigroup:

As well as Wall Street darling Goldman Sachs:

Indeed, the only TBTFs that haven’t fallen below their post bottom support lines are JP Morgan and Wells Fargo. But by the look of things, they’re both going to break down soon:

And Wells Fargo:

These charts tell us in no uncertain terms that the US financial system is once again under extreme stress. They tell us that the market is going down, down, DOWN over the coming months.  We’re going to be seeing major banks go under, market crashes, food shortages, government shutdowns, and SYSTEMIC FAILURE.

Yes, I believe that before this mess ends, the financial system as a whole will have collapsed. What’s coming is going to make 2008 look like a joke.

If you have yet to prepare yourself for what’s coming, now is the time to do so. I can show you how. Indeed, my clients MADE money in 2008, outperforming every mutual fund on the planet as well as 99% of investment legends.

We also outperformed the market by 15% during the Euro Crisis of 2010. And in the last month and a half, while every one else lost their shirts, we’ve locked in 13 winners.

So if you’re looking for a guide to get you through the coming disaster, I’m your man.

I’ve been helping investors, including executives at many of the Fortune 500 companies, navigate their personal portfolios through the markets for years.

I can do the same for you with my Private Wealth Advisory newsletter.

The minute you subscribe to Private Wealth Advisory you’ll be given access to my

Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports telling you precisely which steps to take to prepare your loved ones and your personal finances for what’s coming.

You’ll also join my private client list in receiving my bi-weekly market updates outlining what’s really happening behind the scenes in the markets and which investments will profit in the coming months.

And when it’s time to pull the trigger on a given investment, I’ll send you real-time trade alerts.

All of this is yours for just $199 per year.

In fact, if you subscribe now, you’ll receive my latest issue of Private Wealth Advisory detailing four investments that are poised to produce enormous profits in the next month.

We just opened these trades late last week. Already all four of them are up. And we’re going to be seeing MAJOR gains from them in the coming weeks.

The time for dilly dallying is over. The market’s have already taken out critical support and my Crash indicator is on a confirmed SELL. Failing to take action now means risking HUGE losses as the Great Collapse snowballs.

To take action to protect yourself… and insure that the coming weeks and months are a time of profit and safety, NOT losses and pain…

Click Here Now!!!

Best Regards

Graham Summers

 

 

 

 

 

 

 

 

 

Posted in It's a Bull Market | Comments Off on The TBTFs Have Undone ALL of Their QE (1 &2) GAINS!!!

Seriously Folks, This is the Great Collapse

Stocks have now begun to confirm what the credit and bond markets have been telling us for weeks: that we are in a full-scale Crisis and going to new lows.

This process will not happen all at once. Remember, the S&P 500 didn’t hit its low for the first round of the Crisis until almost six months after Lehman Brothers went under.

So the markets are not going to suddenly go to 500 on the S&P 500 in one day. Instead it’s going to be similar action to what we’ve already seen: sharp violent sell-offs followed by snap-back rallies.

However, the fact that leverage levels prior to this round of the Crisis were even higher than those from the Tech Bubble… combined with the $600+ TRILLION in derivatives floating around in the financial system… should give you a sense of how serious the market declines can and will be as this whole thing breaks apart.

Indeed, this is the very problem with leverage: once things go against you, the selling pressure can create a death spiral as the drop in asset prices result in margin calls and redemptions which in turn beget more selling/ drops in asset prices and on and on.

However, this doesn’t mean that things will go straight down. Just as we’ve seen in the last month, there are going to see sharp snap-back rallies during the process of deleveraging and default.

Indeed, during the 2008 Collapse we saw rallies of 11%, 17%, and 20% respectively. Every time the market rolled over hard soon afterwards.

Indeed, the likelihood of a Crash is high as we recently got a confirmed SELL on my proprietary Crash indicator. This is the SAME indicator that registered before the 1987 Crash, the Tech Crash, and the 2008 collapse.

It’s just triggered again… which means that last week’s sell off is JUST the beginning of what’s coming.

Yes, the GREAT COLLAPSE has begun. The markets will be going to new lows (below the March 2009 lows) in the coming months.

We’re also going to be seeing major banks go under, market crashes, food shortages, government shutdowns, and SYSTEMIC FAILURE.

Yes, I believe that before this mess ends, the financial system as a whole will have collapsed. What’s coming is going to make 2008 look like a joke.

Many people will lose everything in this mess. Yes, everything. The US is going to be defaulting on its debt, paper currencies around the world will fail. It’s going to be a dark dark time.

I’ve recently published three reports devoted to helping my clients get through this mess in one piece. They’re titled Protect Your Family, Protect Your Savings, and Protect Your Portfolio.

All in all these reports cover everything from how much food to store to which banks will go under,  when the US will default on its debts, which investments will pay out the biggest gains as the system collapses and more.

Regarding that last point, no one on the planet can match my ability to return a profit during times of Crisis.

To wit, my clients MADE money in 2008, outperforming every mutual fund on the planet as well as 99% of investment legends.

We also outperformed the market by 15% during the Euro Crisis of 2010. And in the last month and a half, while every one else lost their shirts, we’ve locked in 13 winners.

So if you’re looking for a guide to get you through the coming disaster, I’m your man.

I’ve been helping investors, including executives at many of the Fortune 500 companies, navigate their personal portfolios through the markets for years.

I can do the same for you with my Private Wealth Advisory newsletter.

The minute you subscribe to Private Wealth Advisory you’ll be given access to my

Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports telling you precisely which steps to take to prepare your loved ones and your personal finances for what’s coming.

You’ll also join my private client list in receiving my bi-weekly market updates outlining what’s really happening behind the scenes in the markets and which investments will profit in the coming months.

And when it’s time to pull the trigger on a given investment, I’ll send you real-time trade alerts.

All of this is yours for just $199 per year.

In fact, if you subscribe now, you’ll receive my latest issue of Private Wealth Advisory detailing four investments that are poised to produce enormous profits in the next month.

We just opened these trades late last week. Already all four of them are up. And we’re going to be seeing MAJOR gains from them in the coming weeks.

The time for dilly dallying is over. The market’s have already taken out critical support and my Crash indicator is on a confirmed SELL. Failing to take action now means risking HUGE losses as the Great Collapse snowballs.

To take action to protect yourself… and insure that the coming weeks and months are a time of profit and safety, NOT losses and pain…

Click Here Now!!!

Best Regards

Graham Summers

 

 

 

 

 

 

 

 

Posted in It's a Bull Market | Comments Off on Seriously Folks, This is the Great Collapse

Graham Summers’ Weekly Market Forecast (Crisis Mode Edition)

Looks like the end of the quarter performance gaming is over. Indeed, the market got rejected in a big way at resistance (1,175 on the S&P 500). It then rolled over sharply and is now sitting on the trendline that has supported the last three minor bottoms.

We may get a brief bounce here due to beginning of the quarter (and month) buying, but unless that bounce is substantial we’re breaking the trendline soon and on our way to new lows.

Indeed, the big picture take shows us in a clear bearish flag formation targets 1,000 on the S&P 500:

I suggested to get defensive weeks ago. I urge you to be even more defensive now. Use rallies to lower exposure to stocks to the longside and to establish some shorts. I would also be heavily exposed to cash as the US Dollar rally I forecast last month looks ready to go into hyperdrive:

As you can see, the massive wedge formation has been broken in a BIG way. We’ve now taken out major resistance at 78 which sets the stage for a move to the mid 80s.

This move could easily be accompanied by greater weakness in Gold. I warned in August that Gold was succeptible to a sharp sell off. We’ve seen had that correction and the precious metal has fallen to test its 34-week exponential moving average.

This situation needs to be watched carefully. Gold has only broken below the 34-week exponential moving average in a big way ONCE in the last ten years: during the 2008 Crash. If Gold breaks below again, WATCH OUT!

Indeed, we recently got a confirmed SELL on my proprietary Crash indicator. This is the SAME indicator that registered before the 1987 Crash, the Tech Crash, and the 2008 collapse.

It’s just triggered again… which means that last week’s sell off is JUST the beginning of what’s coming.

Yes, the GREAT COLLAPSE has begun. The markets will be going to new lows (below the March 2009 lows) in the coming months.

We’re also going to be seeing major banks go under, market crashes, food shortages, government shutdowns, and SYSTEMIC FAILURE.

Yes, I believe that before this mess ends, the financial system as a whole will have collapsed. What’s coming is going to make 2008 look like a joke.

Many people will lose everything in this mess. Yes, everything. The US is going to be defaulting on its debt, paper currencies around the world will fail. It’s going to be a dark dark time.

I’ve recently published three reports devoted to helping my clients get through this mess in one piece. They’re titled Protect Your Family, Protect Your Savings, and Protect Your Portfolio.

All in all these reports cover everything from how much food to store to which banks will go under,  when the US will default on its debts, which investments will pay out the biggest gains as the system collapses and more.

Regarding that last point, no one on the planet can match my ability to return a profit during times of Crisis.

To wit, my clients MADE money in 2008, outperforming every mutual fund on the planet as well as 99% of investment legends.

We also outperformed the market by 15% during the Euro Crisis of 2010. And in the last month and a half, while every one else lost their shirts, we’ve locked in 14 winners.

So if you’re looking for a guide to get you through the coming disaster, I’m your man.

I’ve been helping investors, including executives at many of the Fortune 500 companies, navigate their personal portfolios through the markets for years.

I can do the same for you with my Private Wealth Advisory newsletter.

The minute you subscribe to Private Wealth Advisory, you’ll be given access to my Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports telling you precisely which steps to take to prepare your loved ones and your personal finances for what’s coming.

You’ll also join my private client list in receiving my bi-weekly market updates outlining what’s really happening behind the scenes in the markets and which investments will profit in the coming months.

And when it’s time to pull the trigger on a given investment, I’ll send you real-time trade alerts.

All of this is yours for just $199 per year.

In fact, if you subscribe now, you’ll receive my latest issue of Private Wealth Advisory detailing four investments that are poised to produce enormous profits in the next month.

We just opened these trades late last week. Already all four of them are up. And we’re going to be seeing MAJOR gains from them in the coming weeks.

The time for dilly dallying is over. The market’s have already taken out critical support and my Crash indicator is on a confirmed SELL. Failing to take action now means risking HUGE losses as the Great Collapse snowballs.

To take action to protect yourself… and insure that the coming weeks and months are a time of profit and safety, NOT losses and pain…

Click Here Now!!!

Best Regards

Graham Summers

 

 

 

 

 

 

 

Posted in It's a Bull Market | Comments Off on Graham Summers’ Weekly Market Forecast (Crisis Mode Edition)

After Europe’s Finished It’s Our Turn

I wanted to take a moment to address the Fed’s new program of buying the long-end of the Treasury curve and its implications.

First off, because of the August collapse in stocks, long-term Treasuries have already rallied quite sharply. Indeed, the 30-year Treasury just hit a new ALL TIME high the afternoon after the Fed announced its new program.

That’s correct, the 30-Year Treasury is now trading even HIGHER than it was at the absolute nadir of the 2008/2009 Crash:

The fundamental picture here couldn’t be worse. The US is running a deficit equal to 10% of GDP. The US’s debt to GDP level is north of 100%. And the 30-Year Treasury is at an all-time high.

To be blunt: for the Fed to be buying Treasuries at this level is akin to buying Tech Stocks in 2000 or Housing stocks in 2007. Treasuries are in a bubble. And this bubble will end as all bubbles do: with a bang.

As noted in previous issues articles, interest rates are already at or near all time lows. So why would the Fed choose to buy longer-term Treasuries at all?

The answer lies in new US debt issuance. While everyone focuses on Europe’s mess, the US has once again raised its debt limit in September (the huge debt-ceiling debacle of August was just smoke and mirrors). With deficits and debt-to-GDP ratios on par with Greece, the US will be following Europe in the global debt implosion.

The Fed’s decision to buy $400 billion of longer-term US Treasuries in this environment is essentially the Fed announcing that it will be covering a significant portion of new debt issuance going forward as a means of putting off the inevitable US debt default. At most the Fed has bought 2-3 months of time for the US. I fully believe that before the end of this year, the bond market will shift its sights away from Europe to the US. At that time, the US debt bubble will burst resulting in systemic failure.

Indeed, last week we got a confirmed SELL on my proprietary Crash indicator. This is the SAME indicator that registered before the 1987 Crash, the Tech Crash, and the 2008 collapse.

It’s just triggered again… which means that last week’s sell off is JUST the beginning of what’s coming.

Yes, the GREAT COLLAPSE has begun. The markets will be going to new lows (below the March 2009 lows) in the coming months.

We’re also going to be seeing major banks go under, market crashes, food shortages, government shutdowns, and SYSTEMIC FAILURE.

Yes, I believe that before this mess ends, the financial system as a whole will have collapsed. What’s coming is going to make 2008 look like a joke.

Many people will lose everything in this mess. Yes, everything. The US is going to be defaulting on its debt, paper currencies around the world will fail. It’s going to be a dark dark time.

I’ve recently published three reports devoted to helping my clients get through this mess in one piece. They’re titled Protect Your Family, Protect Your Savings, and Protect Your Portfolio.

All in all these reports cover everything from how much food to store to which banks will go under,  when the US will default on its debts, which investments will pay out the biggest gains as the system collapses and more.

Regarding that last point, no one on the planet can match my ability to return a profit during times of Crisis.

To wit, my clients MADE money in 2008, outperforming every mutual fund on the planet as well as 99% of investment legends.

We also outperformed the market by 15% during the Euro Crisis of 2010. And in the last month and a half, while every one else lost their shirts, we’ve locked in 11winners.

So if you’re looking for a guide to get you through the coming disaster, I’m your man.

I’ve been helping investors, including executives at many of the Fortune 500 companies, navigate their personal portfolios through the markets for years.

I can do the same for you with my Private Wealth Advisory newsletter.

The minute you subscribe to Private Wealth Advisory you’ll be given access to my

Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports telling you precisely which steps to take to prepare your loved ones and your personal finances for what’s coming.

You’ll also join my private client list in receiving my bi-weekly market updates outlining what’s really happening behind the scenes in the markets and which investments will profit in the coming months.

And when it’s time to pull the trigger on a given investment, I’ll send you real-time trade alerts.

All of this is yours for just $199 per year.

In fact, if you subscribe now, you’ll receive my latest issue of Private Wealth Advisory detailing six investments that are poised to produce enormous profits in the next month.

We just opened these trades yesterday. Already ALL of them are up.

The time for dilly dallying is over. The market’s have already taken out critical support and my Crash indicator is on a confirmed SELL. Failing to take action now means risking HUGE losses as the Great Collapse snowballs.

To take action to protect yourself… and insure that the coming weeks and months are a time of profit and safety, NOT losses and pain…

Click Here Now!!!

Best Regards

Graham Summers

 

 

 

Posted in It's a Bull Market | Comments Off on After Europe’s Finished It’s Our Turn

What’s Coming And How to Prepare For It

As I’ve noted in recent missives to you, the world financial system has begun the Great Collapse: the Crisis I’ve been warning about for over two years. I wanted to take some time to explain what is going to be coming this way

The first wave is going to come from Europe where it is clear that the ECB has reached the End Game of monetary intervention. Germany has said “NEIN” regarding further bailouts for Greece. No German backing… no bailouts… no EU.

So Greece will default. And the bondholders will take a 50% haircut if not more. But Greece is the last of Europe’s worries. Indeed, there is a MUCH bigger problem here and that problem is the same one that created the 2008 disaster: DERIVATIVES.

US commercial banks have over $200 trillion in derivatives outstanding on their balance sheets. However, worldwide, the derivatives market is over $600 TRILLION in size. And the financial system in Europe is as saturated, if not MORE saturated with toxic debt than the US financial system.

According to the Bank of International Settlements, the total exposure worldwide to PIGS (Portugal, Ireland, Greece, and Spain) debt is over $2.5 TRILLION. Most of this is in the form of derivatives. And 70% of it is from foreign entities (banks and firms located outside of the country).

Let’s take Greece for instance. Courtesy of derivatives, France has $92 billion in exposure to Greece debt. Germany is on the hook for $69 billion. Great Britain has $20 billion. And the US has $43 billion.

These levels, while dangerous, are not catastrophic. As I’ve stated before, Greece is NOT the big problem for the EU. However, worldwide exposure to Greek debt is in the ballpark of $277 billion. So a default there would result in significant market dislocations.

Now consider the exposure to a BIG Problem such as Spanish debt. In this situation, Great Britain is on the hook for $51 billion. The US is on the hook for $187 billion. France is on the hook for $224 billion. And Germany is on the hook for a whopping $244 billion.

As I said before, Greece is ultimately a small player in this mess. Worldwide exposure to Greek debt is $277 billion. Worldwide exposure to Spain, on the other hand, is north of $1 TRILLION.

Now this is where things get REALLY tricky. Because of the intertwined nature of the derivatives market, a Greek default could result in systemic risk for the simple fact that if one of the banks that goes down with Greece has extensive exposure to Spain as well, then things could get ugly very, VERY fast.

We are close DARN close to this happening. And when it does, we’re going to see a Crisis that makes 2008 look like a picnic.

Indeed, last week we got a confirmed SELL on my proprietary Crash indicator. This is the SAME indicator that registered before the 1987 Crash, the Tech Crash, and the 2008 collapse.

It’s just triggered again… which means that last week’s sell off is JUST the beginning of what’s coming.

Yes, the GREAT COLLAPSE has begun. The markets will be going to new lows (below the March 2009 lows) in the coming months.

We’re also going to be seeing major banks go under, market crashes, food shortages, government shutdowns, and SYSTEMIC FAILURE.

Yes, I believe that before this mess ends, the financial system as a whole will have collapsed. What’s coming is going to make 2008 look like a joke.

Many people will lose everything in this mess. Yes, everything. The US is going to be defaulting on its debt, paper currencies around the world will fail. It’s going to be a dark dark time.

I’ve recently published three reports devoted to helping my clients get through this mess in one piece. They’re titled Protect Your Family, Protect Your Savings, and Protect Your Portfolio.

All in all these reports cover everything from how much food to store to which banks will go under,  when the US will default on its debts, which investments will pay out the biggest gains as the system collapses and more.

Regarding that last point, no one on the planet can match my ability to return a profit during times of Crisis.

To wit, my clients MADE money in 2008, outperforming every mutual fund on the planet as well as 99% of investment legends.

We also outperformed the market by 15% during the Euro Crisis of 2010. And in the last month and a half, while every one else lost their shirts, we’ve locked in 11winners.

So if you’re looking for a guide to get you through the coming disaster, I’m your man.

I’ve been helping investors, including executives at many of the Fortune 500 companies, navigate their personal portfolios through the markets for years.

I can do the same for you with my Private Wealth Advisory newsletter.

The minute you subscribe to Private Wealth Advisory you’ll be given access to my

Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports telling you precisely which steps to take to prepare your loved ones and your personal finances for what’s coming.

You’ll also join my private client list in receiving my bi-weekly market updates outlining what’s really happening behind the scenes in the markets and which investments will profit in the coming months.

And when it’s time to pull the trigger on a given investment, I’ll send you real-time trade alerts.

All of this is yours for just $199 per year.

In fact, if you subscribe now, you’ll receive my latest issue of Private Wealth Advisory detailing six investments that are poised to produce enormous profits in the next month.

I’m just putting the finishing touches on this report now. And it will be delivered “hot off the press” to your inbox the second it’s complete this evening.

The time for dilly dallying is over. The market’s have already taken out critical support and my Crash indicator is on a confirmed SELL. Failing to take action now means risking HUGE losses as the Great Collapse snowballs.

To take action to protect yourself… and insure that the coming weeks and months are a time of profit and safety, NOT losses and pain…

Click Here Now!!!

Best Regards

Graham Summers

 

 

 

Posted in It's a Bull Market | Comments Off on What’s Coming And How to Prepare For It

We Had Sharp Rallies in 2008 Too… How’d Those Work Out?

The markets are snapping back sharply on short covering and end of the month performance gaming. Hedge funds have been getting destroyed over the last few months. So now, more than usual, there is incentive to push the market higher, mark up their positions, and end the quarter on a positive.

We’ve now filled the gap from last Thursday and our moving to challenge resistance at 1,200.

Do not let these sharp rallies fool you into thinking that the ongoing Crisis in the markets is over. We had very similar sharp rallies in 2008. In fact, during the Crash itself we had three sharp rallies of 11%, 17%, and 20% respectively. Every time the market rolled over hard soon afterwards.

My primary point is that just because stocks rally doesn’t mean things are better. The markets were sharply oversold and short interest was rising dramatically. In this environment it’s quite easy to kick off a sharp short-covering rally due to rumors and the usual end of month performance gaming.

About the rumors.

Steve Liesman of CNBC claims a source informs him that we’re going to see a leveraged European Financial Stability Facility announced soon. Liesman’s source obviously doesn’t know what he or she is talking about OR the story was a plant (or both).

The reason I can say this with certainty is that German is fed up with bailouts as the below quotes from Finance Minister Wolfgang Schaeuble attest:

*SCHAEUBLE SAYS `WILL NOT SPEND OUR WAY’ OUT OF CRISIS

*SCHAEUBLE SAYS `SOLIDARITY HAS LIMITS,’ REQUIRES RETURN EFFORTS

*SCHAEUBLE SAYS `IMMEDIATE FISCAL REFORMS ARE OF THE ESSENCE’

The reality is that Europe in its current form is over. No German backstop means no success for the EFSF no matter who big it becomes. Germany IS the backstop for the EU. Take it out of the equation and the EU in its current form is finished.

So those who are buying into Liesman’s BS are going to be in for a truly RUDE surprise in the coming days. We’ve seen how heavily manipulated rallies end several times in the last six weeks: BADLY.

Indeed, last week we got a confirmed SELL on my proprietary Crash indicator. This is the SAME indicator that registered before the 1987 Crash, the Tech Crash, and the 2008 collapse.

It’s just triggered again… which means that last week’s sell off is JUST the beginning of what’s coming.

Yes, the GREAT COLLAPSE has begun. The markets will be going to new lows (below the March 2009 lows) in the coming months.

We’re also going to be seeing major banks go under, market crashes, food shortages, government shutdowns, and SYSTEMIC FAILURE.

Yes, I believe that before this mess ends, the financial system as a whole will have collapsed. What’s coming is going to make 2008 look like a joke.

Many people will lose everything in this mess. Yes, everything. The US is going to be defaulting on its debt, paper currencies around the world will fail. It’s going to be a dark dark time.

I’ve recently published three reports devoted to helping my clients get through this mess in one piece. They’re titled Protect Your Family, Protect Your Savings, and Protect Your Portfolio.

All in all these reports cover everything from how much food to store to which banks will go under,  when the US will default on its debts, which investments will pay out the biggest gains as the system collapses and more.

Regarding that last point, no one on the planet can match my ability to return a profit during times of Crisis.

To wit, my clients MADE money in 2008, outperforming every mutual fund on the planet as well as 99% of investment legends.

We also outperformed the market by 15% during the Euro Crisis of 2010. And in the last month and a half, while every one else lost their shirts, we’ve locked in 11winners.

So if you’re looking for a guide to get you through the coming disaster, I’m your man.

I’ve been helping investors, including executives at many of the Fortune 500 companies, navigate their personal portfolios through the markets for years.

I can do the same for you with my Private Wealth Advisory newsletter.

The minute you subscribe to Private Wealth Advisory, you’ll be given access to my

Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports telling you precisely which steps to take to prepare your loved ones and your personal finances for what’s coming.

You’ll also join my private client list in receiving my bi-weekly market updates outlining what’s really happening behind the scenes in the markets and which investments will profit in the coming months.

And when it’s time to pull the trigger on a given investment, I’ll send you real-time trade alerts.

All of this is yours for just $199 per year.

In fact, if you subscribe now, you’ll receive my latest issue of Private Wealth Advisory detailing six investments that are poised to produce enormous profits in the next month.

I’m just putting the finishing touches on this report now. And it will be delivered “hot off the press” to your inbox the second it’s complete this evening.

The time for dilly dallying is over. The market’s have already taken out critical support and my Crash indicator is on a confirmed SELL. Failing to take action now means risking HUGE losses as the Great Collapse snowballs.

To take action to protect yourself… and insure that the coming weeks and months are a time of profit and safety, NOT losses and pain…

Click Here Now!!!

Best Regards

Graham Summers

 

 

 

 

 

Posted in It's a Bull Market | Comments Off on We Had Sharp Rallies in 2008 Too… How’d Those Work Out?

Graham Summers’ Weekly Market Forecast (Crash Time Edition)

The market onslaught of the last week is now staging a snap-back rally. As I write this Sunday evening the S&P 500 has pushed to 1,143 in the futures markets. This was to be expected as we’d come up against the neckline for the Head and Shoulders pattern I noted the last two weeks:

From a larger perspective, 1,110 is a line of MAJOR support. The S&P 500 spent a major portion of 2010 at this level. It’s also the level at which the S&P 500 staged its last bounce before entering the 2008 Crash.

So this is THE line to watch in stocks. Once we take it out, we’re going to 1,000 in short order. By the look of things, it won’t be long.

Indeed, last week we got a confirmed SELL on my proprietary Crash indicator. This is the SAME indicator that registered before the 1987 Crash, the Tech Crash, and the 2008 collapse.

It’s just triggered again… which means that last week’s sell off is JUST the beginning of what’s coming.

Yes, the GREAT COLLAPSE has begun. The markets will be going to new lows (below the March 2009 lows) in the coming months.

We’re also going to be seeing major banks go under, market crashes, food shortages, government shutdowns, and SYSTEMIC FAILURE.

Yes, I believe that before this mess ends, the financial system as a whole will have collapsed. What’s coming is going to make 2008 look like a joke.

Many people will lose everything in this mess. Yes, everything. The US is going to be defaulting on its debt, paper currencies around the world will fail. It’s going to be a dark dark time.

I’ve recently published three reports devoted to helping my clients get through this mess in one piece. They’re titled Protect Your Family, Protect Your Savings, and Protect Your Portfolio.

All in all these reports cover everything from how much food to store to which banks will go under,  when the US will default on its debts, which investments will pay out the biggest gains as the system collapses and more.

Regarding that last point, no one on the planet can match my ability to return a profit during times of Crisis.

To whit, my clients MADE money in 2008, outperforming every mutual fund on the planet as well as 99% of investment legends.

We also outperformed the market by 15% during the Euro Crisis of 2010. And in the last month and a half, while every one else lost their shirts, we’ve locked in 11 winners.

So if you’re looking for a guide to get you through the coming disaster, I’m your man.

I’ve been helping investors, including executives at many of the Fortune 500 companies, navigate their personal portfolios through the markets for years.

I can do the same for you with my Private Wealth Advisory newsletter.

The minute you subscribe to Private Wealth Advisory, you’ll be given access to my Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports telling you precisely which steps to take to prepare your loved ones and your personal finances for what’s coming.

You’ll also join my private client list in receiving my bi-weekly market updates outlining what’s really happening behind the scenes in the markets and which investments will profit in the coming months.

And when it’s time to pull the trigger on a given investment, I’ll send you real-time trade alerts.

All of this is yours for just $199 per year.

In fact, if you subscribe now, you’ll receive my latest issue of Private Wealth Advisory detailing six investments that are poised to produce enormous profits in the next month.

The time for dilly dallying is over. The market’s have already taken out critical support and my Crash indicator is on a confirmed SELL. Failing to take action now means risking HUGE losses as the Great Collapse snowballs.

To take action to protect yourself… and insure that the coming weeks and months are a time of profit and safety, NOT losses and pain…

Click Here Now!!!

Best Regards

Graham Summers

 

 

 

 

Posted in It's a Bull Market | Comments Off on Graham Summers’ Weekly Market Forecast (Crash Time Edition)

The Fed Disappointed… The Great Collapse Is Here

I’ve been warning for weeks now that the Fed would disappoint with its September meeting. And boy did it.

As I forecast, the Fed didn’t announce QE 3. In fact, it didn’t announce any new policy of note. Instead it is simply reshuffling its holdings to focus more on the long end of the bond markets.

On top of this, the Fed announced it will only be moving roughly $400 billion of its portfolio around. This is the smallest major intervention the Fed has announced since it began implementing QE in 2009 (QE 1 was $1.25 trillion while QE 2 was $600 billion). Indeed, this move is on par with the Fed’s implementation of QE lite which to date has been about $300 billion give or take in scope.

Even more striking, while announcing this disappointing move, the Fed downgraded its view of the economy stating, “there are significant downside risks to the economic outlook.”

Previously, any admission of economic deterioration from the Fed resulted in the US Dollar selling off sharply as traders expected additional easing/ printing. This time around, the market senses that the Fed has disappointed and that the Fed’s move is largely symbolic more than anything else.

The end result of this: the market is Crashing just as I warned. The S&P 500 has gone from 1,200+ to 1,136, a 6% drop, in the overnight session.

We’re just getting started here. Today we got a confirmed SELL on my proprietary Crash indicator. This is the SAME indicator that registered before the 1987 Crash, the Tech Crash, and the 2008 collapse.

It’s just triggered again… which means that today’s sell off is JUST the beginning of what’s coming.

Yes, the GREAT COLLAPSE has begun. The markets will be going to new lows (below the March 2009 lows) in the coming months.

We’re also going to be seeing major banks go under, market crashes, food shortages, government shutdowns, and SYSTEMIC FAILURE.

Yes, I believe that before this mess ends, the financial system as a whole will have collapsed. What’s coming is going to make 2008 look like a joke.

Many people will lose everything in this mess. Yes, everything. The US is going to be defaulting on its debt, paper currencies around the world will fail. It’s going to be a dark dark time.

I’ve recently published three reports devoted to helping my clients get through this mess in one piece. They’re titled Protect Your Family, Protect Your Savings, and Protect Your Portfolio.

All in all these reports cover everything from how much food to store to which banks will go under,  when the US will default on its debts, which investments will pay out the biggest gains as the system collapses and more.

Regarding that last point, no one on the planet can match my ability to return a profit during times of Crisis.

To whit, my clients MADE money in 2008, outperforming every mutual fund on the planet as well as 99% of investment legends.

We also outperformed the market by 15% during the Euro Crisis of 2010. And in the last month and a half, while every one else lost their shirts, we’ve locked in 11winners.

So if you’re looking for a guide to get you through the coming disaster, I’m your man.

I’ve been helping investors, including executives at many of the Fortune 500 companies, navigate their personal portfolios through the markets for years.

I can do the same for you with my Private Wealth Advisory newsletter.

The minute you subscribe to Private Wealth Advisory you’ll be given access to my

Protect Your Family, Protect Your Savings, and Protect Your Portfolio reports telling you precisely which steps to take to prepare your loved ones and your personal finances for what’s coming.

You’ll also join my private client list in receiving my bi-weekly market updates outlining what’s really happening behind the scenes in the markets and which investments will profit in the coming months.

And when it’s time to pull the trigger on a given investment, I’ll send you real-time trade alerts.

All of this is yours for just $199 per year.

In fact, if you subscribe now, you’ll receive my latest issue of Private Wealth Advisory detailing six investments that are poised to produce enormous profits in the next month.

I’m just putting the finishing touches on this report now. And it will be delivered “hot off the press” to your inbox the second it’s complete this evening.

The time for dilly dallying is over. The market’s have already taken out critical support and my Crash indicator is on a confirmed SELL. Failing to take action now means risking HUGE losses as the Great Collapse snowballs.

To take action to protect yourself… and insure that the coming weeks and months are a time of profit and safety, NOT losses and pain…

Click Here Now!!!

Best Regards

Graham Summers

 

 

 

Posted in It's a Bull Market | Comments Off on The Fed Disappointed… The Great Collapse Is Here

QE Can’t Save the Day… We’ve Been Doing a Form of It For Over a Decade

While most commentators proclaim that QE is a completely new phenomenon, we have in fact seen a version of it in the form of the Fed’s and Asia’s (especially China’s) purchases of US Treasuries/ currency pegs over the last decade or so.

Indeed, today, the Fed, China, and Japan collectively hold 61% of the $10 trillion of US debt held by “the public.” When you add in the additional $4.6 trillion in US debt held by “intragovernmental holdings” (basically the Federal Government buying Treasuries by raiding Social Security and other pension funds) you find that Asia and the Feds have monetized $10.7 trillion of the US’s total $14.6 debt (roughly 73%) over the last 20 years.

In this context, unveiling even more QE (the Fed buying US debt) is virtually pointless. Indeed, the Fed would have to unveil a QE plan of $2 TRILLION just to make its US debt ownership on par with the Federal Government’s “intragovernmental holdings.”

To put a $2 trillion QE program into perspective, that would be on par with the Fed unveiling a QE program equal to QE 1, 2 and some of QE lite combined in one single program.

Now, if QE 2 which was only $600 billion, blew the price of food and energy through the roof, how would a QE program of $2 trillion impact these items? Do you really think the Fed could unleash a QE program of that size without inciting full-scale unrest in the US, not to mention destroying the US Dollar.

And with the Fed already as unpopular as it is, Obama’s polls falling to new lows on a weekly basis, and Bernanke well aware of the potential legal issues coming his way, the odds of the Fed doing this in two weeks’ time are next to none.

Indeed, the Fed’s balance sheet is already close to $3 trillion in size. How would commodities and the US Dollar respond to a Fed balance sheet of over $5 trillion? The Fed has already proved it has no means of draining the liquidity its put into the system in the last two years. What impact would an additional $2 trillion have?

The short answer is that QE 3 of that size would kill the US Dollar, destroy the US economy, and result in Bernanke being forced to resign at the least and possibly the Fed being dissolved.

Do you think the Fed would do this? These guys are morons, but they’re not so stupid as to take note of how the Greeks responded to financial ruin.

Another consideration is that each new Dollar of QE has created less “bang” for the marketplace. As I noted in previous articles, QE 2 proved that each new Fed stimulus program is less effective than the first. At that time I wrote:

Consider that QE 1 provided $1.25 trillion in liquidity to the markets. From the date of its inception until its end, the S&P 500 roughly 540 points. Put another way, each $10 billion was worth 4.3 points on the S&P 500.

In comparison, QE lite and QE 2 put roughly $900 billion into the market (roughly 75% of QE 1) creating a 251-point rally in the S&P 500. In this case, every $10 billion in additional capital was worth 2.7 points on the S&P 500.

So in financial terms, QE 3 is not likely to have a large impact on the market. The reason is that the entire US GDP miracle has been induced by some form of QE whether it be the Fed, China or Japan buying US debt or the US raiding pension funds to buy Treasuries over the last 20 years.

Combine these facts with the inflationary pressures created by QE 2 as well as the current political climate which is increasingly anti-Fed, and it’s clear the Fed will not be able to unveil QE 3 without some kind of catastrophe hitting first. Put another way, the Fed will be acting purely reactively, not proactively going forward.

This sets the stage for a MAJOR upset to the downside in the near future. Indeed, I fully believe that we may be on the verge of a market Crash. Behind the scenes, the market is on DEFCON Red Alert. Ignore what the mainstream media and White House are saying, we are in BIG TROUBLE.

So if you’ve not already take steps to prepare for what’s coming, you need to do so NOW while the markets are still holding up.

Because once the selling pressure comes back into the markets… it’s going to be far FAR too late.

To take action to insure you don’t get crushed in the coming Collapse…

Click Here Now!!!

Best Regards

Graham Summers

 

Posted in It's a Bull Market | Comments Off on QE Can’t Save the Day… We’ve Been Doing a Form of It For Over a Decade

The Market is On the Edge of a Cliff

The financial markets are currently waiting for the Fed to announce QE 3 or Operation Twist 2 either today or tomorrow. I don’t think either of these are coming. In fact, I think they’re not even on the table.

For starters, QE 3 is off the table unless we see a market collapse or a major bank go under. That’s the truth, though the financial media refuses to accept it.

The reasons for this are both political and financial. From a political standpoint, the Fed particularly Ben Bernanke, has become politically toxic

Indeed, Bernanke and his loose money policies are now virtually synonymous with current President Barrack Obama’s spending and stimulus programs.  Neither of these men or their policies are popular with the American people today. And it’s clear that both will be campaign issues going forward into the 2012 Presidential election.

Indeed, we’ve already seen one round of spending conflicts between the GOP and the President. True, it was mainly smoke and mirrors. However, the fact that the topic of Government spending is now being debated at all indicates that the political environment has shifted from one in which the Government was seen as the savior of the economy (as it was from March 2009 to the end of 2010) to one in which Government spending and deficits are perceived as a problem/ campaign issue.

That is a massive shift in political perspective. Only two years ago the Federal Reserve and Obama were thought to have saved capitalism and the US economy. Today Obama’s polls are at new lows and the Fed has been openly criticized by three of the Republican frontrunners for the 2012 Presidential election (Perry, Bachmann, and Paul).

This is hardly a climate in which the Fed can unveil QE 3 without some catastrophe striking first. On top of this, the Fed is also going to be facing increased political and likely even legal pressure from Wall Street in the near future.

First off, Goldman Sachs CEO Lloyd Blankfein has hired a criminal defense attorney… and not just any attorney, but Reid Weingarten. I’ll let the following portion of a Bloomberg article speak for this man and his track record.

Weingarten won the acquittal in May of Lauren Stevens, a former GlaxoSmithKline Plc (GSK) attorney accused of impeding a U.S. Food and Drug Administration investigation. He also represented Elizabeth Monrad, the former chief financial officer at General Reinsurance Corp. who was convicted in an accounting fraud scandal. She won a retrial earlier this month.

Weingarten previously represented former WorldCom CEO Bernard Ebbers, who was sentenced to 25 years in prison after he was convicted of an $11 billion fraud. He defended former Enron Chief Accounting Officer Richard Causey, who was sentenced to 5 1/2 years in prison.

If Blankfein is under investigation and hiring someone of Weingarten’s caliber, a massive legal storm is about to begin on Wall Street. These lawsuits will involve the US Federal Reserve. And when push comes to shove, Blankfein (and other Wall Street executives who broke the law) will be blaming Bernanke and the Fed.

After all, the easiest defense is for Blankfein and his kind to simply say that they were pressured into defrauding investors and the public by Bernanke and the Fed when the financial system imploded in 2008.

Given that the Fed is run by spineless academics while Goldman Sachs and other Wall Street firms are run by those who make a career out of profiting at other’s expense, who do you think will be going down when the legal dust settles?

Bernanke and the Fed.

The Fed already senses this and is moving to defend itself and shift the blame for the Financial Crisis to Wall Street. Consider that not long after Blankfein hired Weingarten, the Fed actually sued Goldman Sachs:

The Federal Reserve announced an enforcement action against Goldman Sachs Group Inc., saying the company’s mortgage-servicing unit had engaged in “a pattern of misconduct and negligence” in its handling of home-mortgage loans.

The Fed’s action on Thursday seeks changes in mortgage-servicing practices and unspecified monetary damages. It came as Goldman reached an agreement with New York state banking regulators over wrongful foreclosures, allowing it to complete the Sept. 1 sale of its Litton Loan Servicing unit to Ocwen Financial Corp.

The significance of this development cannot be overstated. Goldman Sachs used to be one of the Fed’s favorite firms. Indeed, it could easily be argued that Goldman received the most preferential treatment from the Fed during the Financial Crisis.

Given just how close Goldman was to the Fed previously, the Fed/ Goldman relationship would only breakdown if an external threat meant that either group is going to be in MAJOR legal trouble (possible jail time). In light of Blankfein’s recent moves as well as the Fed’s lawsuit against Goldman, I fully believe that this is the case and that the relationship between the Fed and Wall Street will be deteriorating further in the coming months.

In a climate of increased legal pressure such as this, the bar for QE 3 is going to be much, much higher.  It’s one thing if the Fed and Goldman Sachs were simply making critical statements about one another in public. But lawsuits/ legal actions are a totally different matter. In plain terms things are now getting very serious behind the scenes. And Bernanke will not be able to simply do as he pleases without consequence.

For this reason, it will take another catastrophe for the Fed to implement QE 3. The days of the Fed implementing QE just for the sake of raising the stock market or affecting a “recovery” are over. It is clear now, even to those who have little financial understanding that Obama and Bernanke have essentially spent trillions of Dollars and accomplished next to nothing.

As a result of this, the Fed will be implementing large-scale moves ONLY in reaction to crises. Imagine the political impact it would have if the Fed were to unveil QE 3 today or tomorrow two with Oil already at $86 a barrel and food prices skyrocketing.

Indeed, I fully believe the Fed will disappoint in a BIG way today and tomorrow. With every one and their mother expecting QE 3 or some other major program today and tomorrow, the potential for MAJOR market upset is higher than ever before.

Indeed, I fully believe that we may be on the verge of a market Crash. Behind the scenes, the market is on DEFCON Red Alert. Ignore what the mainstream media and White House are saying, we are in BIG TROUBLE.

So if you’ve not already take steps to prepare for what’s coming, you need to do so NOW while the markets are still holding up.

Because once the selling pressure comes back into the markets… it’s going to be far FAR too late.

To take action to insure you don’t get crushed in the coming Collapse…

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Best Regards

Graham Summers

 

Posted in It's a Bull Market | Comments Off on The Market is On the Edge of a Cliff

Graham Summers’ Weekly Market Forecast (Market Crash? Edition)

The financial markets are literally standing on the ledge of a cliff looking down into the abyss. The fact we’ve had a coordinated Central Bank intervention in the last week should tell you just how desperate things are getting.

The one hope for the bulls is that the Fed will announce some massive new program at its September meeting which takes place tomorrow and Wednesday. I fully believe the Fed will disappoint in a big way as Bernanke and his loose money policies have become politically toxic: see the GOP debate in which all frontrunners united in their criticism of the Fed.

The market looks to be agreeing with me. The bearish flag formation I warned about last week remains in play. The ultimate downside target for this is 1,000 on the S&P 500.

Within the bearish flag formation, we’ve also got the makings of a Head and Shoulders pattern: another very bearish formation. The drop Sunday night has made this pattern even more probable.

Neither of these formations predict a massive rally on QE 3 or some other new Fed program. Indeed, how can the Fed announce something new? A record number of Americans say they are paying more for their food. Oil is close to $90 per barrel. And Gold is north of $1,800, having touched $1,920 earlier this month.

Aside from this, the Fed has already instigated several new moves this month including the coordinated Central Bank intervention of last week and the opening of FX swap lines last month. I view these moves as preparation for a Greek default, which is most certainly in the near future.

Indeed, having staged two bailouts of Greece and talking down the possibility of a Greek default non-stop over the last 18 months, the ECB and political leaders in Europe seem to have done a complete 180, with the notion of a Greek default now a matter of “when” not “if.”

In early 2010, a Greek default was never even considered to be on the table. At that time, the entire discussion focused on whether or not Greece even needed a bailout. Today, the words “Greek Default” show up in almost every headline pertaining to Europe.

Greece Has 98% Chance of Default on Euro-Region Sovereign Woes

Potential Greek Default Worries European Politicians

Greece default ‘virtually 100 percent

Scenarios: Potential market impact of a Greek default

I fully believe that behind the scenes, the groundwork has already been laid for Greece to default. The market is already pricing this as a 100% certainty. France has its own problems and won’t be able to provide another Greece bailout. Germany is now in another round of elections in which voters are destroying Angela Merkel and her party for supporting the bailouts… at a time when it’s revealed that even German banks needs tens of billions more in capital.

In simple terms, the “bailout” madness is ending in Europe. What will follow will be a Greek default followed by debt collapses and restructurings in Italy and Spain. Europe is already aware of this, which is why liquidity has dried up to the point that the world’s Central Banks had to stage a coordinated intervention last week.

Indeed, I fully believe that we may in fact be on the verge of a Crash in the markets. All the Red Flags are there. Europe’s entire banking system is on the verge of systemic collapse. Take a look at European banks and you’ll see what I mean.

This is Agricole, the mega-French Bank. Does this look like a solvent financial institution to you? Do you really think that Europe has a chance when even French and German banks are collapsing?

Let’s be blunt, the global financial system is now on DEFCON Red Alert. If you have not already prepared your portfolio for a possible CRASH, you NEED to move now! Because by the time the selling pressure comes back into the markets in a BIG way (next week or so) it will be too late.

I can show you how to turn this into a time of profits, NOT pain. My Private Wealth Advisory subscribers MADE money during the Crash of 2008 as well as the Euro Crisis of May 2010. And we’ve already locked in gains of 7%, 8%, and 9% during the first leg down in this latest collapse.

In fact, 8 of our last 9 trades have made money. And we’ve taken action (and trading positions) to profit in a BIG way from the very REAL potential of systemic risk with my Crisis Trades: the very trades I used to make triple digit returns during the 2008 Crash.

If you’d like to find what they are… and take action to profit from the Great Crash of 2011 which has already begun…

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Graham Summers

 

 

 

 

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