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Most investors are familiar with inflation … it’s the devil we know and have guarded our wealth against for most of the past half century.
But now we are face to face with a devil we don’t know well … deflation. And make no mistake … we could be in for the fight of our lives to defend our wealth against this ominous peril.
In the 1970s and early 1980s, investors battled soaring inflation so severe that it caused major disruptions to our economy and to our very way of life. Sometimes mild, and sometimes insidious, inflation was always there … steadily chipping away at our purchasing power.
Today however, the tables have turned. We are now battling deflation … and it is potentially a much greater financial storm threatening our economy, our wealth, and even our way of life.
Already, the destruction of American wealth over the past 18 months alone is of historic proportions — a stunning $20 trillion has gone up in smoke. But it’s not over yet …
We are dealing with another great crisis that has some similarities to the Great Depression, which transformed American society, and re-shaped financial markets for decades afterward.
Here’s the harsh reality: The after-shocks of this economic and financial crisis may be just as severe and challenging. I’m not trying to scare you, but to protect your wealth, your home and your family from this financial typhoon … you must confront these new investment and economic realities head on.
Consider the hidden signs, which don’t get much air time in the financial media, but could send markets tumbling toward new lows …
Insiders Are Selling Stock Like There’s No Tomorrow!
Corporate insiders should be in the best position to know if the economy will soon recover, and there has been plenty of talk about better times ahead for business.
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But corporate America is not putting its money where its mouth is … in fact, just the opposite is true …
- Directors and officers of public companies SOLD $353 million worth of their own stock in April — that’s the fastest pace of insider selling since this bear market began.1
- Insider sales outnumber buys by a huge 8-to-1 margin! Why else would they so aggressively dump shares … unless they’re convinced NO lasting recovery is coming any time soon?
Two Key Reasons Why The Great Real Estate BUST Is Not Over Yet: The burst real estate bubble put us into this crisis in the first place … and we’re NOT likely to get out of this mess while it continues.
- A third wave of devastating foreclosures is still intensifying, with more than four million home loans worth $717 billion now in distress — UP +60% from a year ago.2
- Commercial real estate is just beginning to roll over. On top of the $800 billion3 in residential real estate losses recorded already, banks may suffer almost $700 billion4 in additional losses on commercial loans too before this crisis is over.
Why This Financial Storm Could Be The Opportunity Of A Lifetime To Build An “All-Weather” Portfolio: Here’s the good news … THIS moment in time presents you with a rare opportunity to help protect your wealth and potentially grow your investments better than ever before …
Markets Could Remain Volatile for Years to Come … You
Need an “All-Weather” Strategy to Help You Survive This Storm
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Never in our lifetime have we seen so many former blue-chip companies driven to the brink of bankruptcy.
Never before has our government committed such vast sums of money in a desperate attempt to stabilize our economy and financial markets. The economic and investment landscape will be drastically and forever altered as a result.
At Weiss Capital Management†, our overriding vision has always been to help investors preserve and grow their wealth through good times and bad. The rules of the game are changing … dramatically, and the new reality may be quite different from your past investment experience.
So your investment strategy should change too … but how?
First, recognize that confusion and uncertainty reign supreme during periods of economic upheaval, then focus on the new reality and its impact on your investments …
Reality #1: Higher risk is here to stay! All risks are likely to remain higher in the next several years than they’ve been in the recent past. Prepare for more intense ups and downs and stronger percentage moves in the markets than usual.
Reality #2: Plan for slower growth ahead in the economy and financial markets. Not just in the next few quarters, but over the next several years, our economy is likely to remain subdued. This doesn’t mean there won’t be opportunities to grow wealth, but you’ll need to be more specialized and nimble to take advantage of the best opportunities.
Reality #3: Learn to expect realistic, NOT robust, returns from your investments. In our view, earning a reasonable return, without taking unreasonable risks, will prove the surest and safest way to preserve your wealth and protect your purchasing power going forward.
This is NO time to be complacent about your investments! But, this IS the time to consider changing your strategy to help protect and potentially grow your wealth in this “new economic reality.”
As an investment adviser for the last three decades, we believe these challenges necessitate a change in the way you think about your savings and investments.
Adopting a new approach to confidently guide your wealth through this changing investment climate … is the ultimate goal.
One option to consider is building a sound investment strategy suitable for all-weather investing conditions … a strategy designed not just to survive, but potentially thrive in this new economic reality …
It should be based on a prudent and proven investment methodology designed for both good times and bad. It should seek to endure in the calmest of seas AND in the worst financial storms that may still lie ahead.
Preparing Your Investment Portfolio for the New Reality
The good news: My team and I at Weiss Capital Management are intently focused on these realities and have been doing everything in our power to make sure investors like you are fully prepared.
On Wednesday, June 3 — JUST a few days away — we will make every effort to ensure that you have the essential information you need to confidently guide your wealth through this changing investment climate.
You are cordially invited to attend an exclusive online video presentation: The Weiss Wealth Event … giving you a unique, but limited, window of opportunity to learn about a NEW investment strategy we offer that’s specifically designed for all-weather conditions … a strategy we believe can help you protect and potentially grow your wealth in this turbulent climate.
While no investment program can assure profits, I sincerely believe this important event could be the opportunity of a lifetime for you to learn about our exclusive Weiss All Weather Managed Account strategy. Just click this link to register for this special event at no cost.The time to take action is now!
Best wishes,
Sharon A. Daniels
President
Weiss Capital Management, Inc.
P.S. Access is limited. To make sure you’re on our guest list for Wednesday, please RSVP to tell me you’re coming. I’ll make sure you get all the instructions you need for attending right away!
†Weiss Capital Management, Inc. (an SEC-Registered Investment Adviser) is a separate but affiliated entity of Weiss Research, the publisher of Money and Markets. Both entities are owned by Weiss Group, LLC.
The preceding is a paid for editorial that may contain forward-looking statements regarding intent and belief with regard to Weiss managed strategies and the market in general. Readers are cautioned that actual results may differ materially from those statements.
1 Barron’s: “Shareholders Be Damned!” 4/27/09
2 New York Times: “Job Losses Push Safer Mortgages to Foreclosure,” 5/24/09
3 Decision Economics: Economic Perspectives, 4/3/09
4 Advisor Perspectives: “Roubini: Bank Write-offs are at the Halfway Point,” 1/27/09
About Money and Markets
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Money and Markets (MaM) is published by Weiss Research, Inc. and written by Martin D. Weiss along with Nilus Mattive, Claus Vogt, Ron Rowland, Michael Larson and Bryan Rich. To avoid conflicts of interest, Weiss Research and its staff do not hold positions in companies recommended in MaM, nor do we accept any compensation for such recommendations. The comments, graphs, forecasts, and indices published in MaM are based upon data whose accuracy is deemed reliable but not guaranteed. Performance returns cited are derived from our best estimates but must be considered hypothetical in as much as we do not track the actual prices investors pay or receive. Regular contributors and staff include Kristen Adams, Andrea Baumwald, John Burke, Amber Dakar, Dinesh Kalera, Red Morgan, Maryellen Murphy, Jennifer Newman-Amos, Adam Shafer, Julie Trudeau, Jill Umiker, Leslie Underwood and Michelle Zausnig.
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