Huge double-dip profits starting NEXT week!

Two amazing things have just happened.

First, bullish sentiment among investors has just hit a record high, matching the same level of three years ago, immediately preceding the deepest bear market since the 1930s.

Second, at the very same time, consumer confidence has just plunged anew, signaling more belt-tightening, lower retail sales and sinking corporate earnings.

Never before have I seen a greater discrepancy between investor euphoria and consumer fears! And never before have I seen a clearer set-up for:

1. A major breakdown in the market …
2. A huge opportunity to go for double-your-money profits with contrarian investments, and …
3. A trade that has very limited downside risk.

That’s why I’m getting ready to issue a brand new set of recommendations early next week. And that’s why the time to join me is now — or at the very latest, before 5 PM Eastern Time this coming Monday.

The Worst Fundamentals in My Lifetime

I don’t think I’ve ever witnessed a time when the economic fundamentals — slowing growth, rising unemployment and a dying real estate market — were more disturbing …

Or when stocks seemed more disconnected from that news!

And to make matters worse, we have Washington politicians and Wall Street fat cats swearing on a stack of Bibles that the recession is over — even as the Fed prepares to kick the printing presses into overdrive again!

Let’s not beat around the bush, here:

The housing slump has returned with a vengeance …

Unemployment is sky-high …

Consumers — 70% of the economy — are slashing their spending …

Despite the Fed’s efforts to keep interest rates low, it’s actually getting harder to borrow money!

If the economy is recovering … WHY ARE BANKRUPTCIES EXPLODING?! According to the American Bankruptcy Institute, the number of U.S. companies filing for bankruptcy each year has TRIPLED since 2006 and is setting new records this year. PLUS, the number of personal bankruptcy filings is soaring — up as much as 35% per month so far in 2010!

Given these facts, the conclusion seems inevitable: The worst of this recession is NOT behind us!

The recovery is a sham — a temporary respite bought and paid for by Washington. According to U.S. Government Accountability Office (GAO), the government’s own watchdog agency, Washington has spent a staggering $3.7 trillion so far. But now that bailout money is running out. And America’s great financial judgment day is about to dawn.

I’m talking about an economic catastrophe that will …

• Erase what little home equity Americans have left, wiping out up to 100% of the nation’s #1 source of retirement money, sentencing millions to poverty and driving foreclosure rates through the roof.

• Push banks like Citibank, Bank of America, Wells Fargo, JPMorgan Chase, US Bancorp, SunTrust, Capital One, and many others back to the edge of the precipice.

• Greatly diminish the U.S. dollar’s buying power and end the greenback’s reign as the world’s reserve currency.

• Kill what little consumer spending is left in the economy, slash corporate earnings and leave the stock market a smoking ruin.

How low could stocks go? Anybody who tells you he knows for sure is pulling your leg, of course. But my indicators are telling me that we’re likely to see the Dow, S&P 500 and Nasdaq all return to their lows of March 2009.

At a time like this, self-defense is critical:

STEP #1 — Close out vulnerable positions! Use any short-term rallies to reduce your exposure to stocks — especially in the real estate, construction banking and retail sectors.

STEP #2 — Raise cash! Do NOT re-invest in stocks for now. Instead, hold the proceeds from stock sales in cash or short-term Treasuries for safety’s sake.

STEP #3 — Hedge! Use inverse investments — investments that soar when stocks decline — as insurance for the positions you can’t sell now.

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