Stock Market Armageddon! What to do …

In what can only be viewed as a prophecy of the carnage to come, blood ran knee-deep on Wall Street yesterday:

The Dow Jones Industrials plunged more than 512 points — a shocking one-day, 4.5% decline.

The S&P 500 fell even farther, losing 4.8% of its value in a single session.

And the tech-heavy Nasdaq fell farther still — losing nearly 137 points. A staggering 5.4% of its value simply vanished in a single day!

Many stocks fell even farther: In the financial sector, MGIC Investment dove 20.5%. The mortgage insurer, PMI Group, on the brink of bankruptcy, collapsed 53.4% — more than half of investors’ money was simply wiped out in just a few hours.

By the end of the day, CNBC was reporting that one-hundred percent of the profits all three indexes had generated this year had been completely wiped out.

Now, whether the market bounces or not, DO NOT forget this crucial warning:

Major damage has been done to the stock market. Critical support levels have been taken out.

Plus, the U.S. economy is slowing. The second phase of this great “double dip” recession is now beginning.

U.S. stocks — and particularly financial stocks — are in grave danger just like we warned you.

Good luck and God bless!

Martin

Dr. Weiss founded Weiss Research in 1971 and has dedicated his entire career to helping millions of average investors find truly safe havens and investments. He is Chairman of the Weiss Group, which includes Weiss Research and Weiss Ratings, the nation’s leading independent rating agency accepting no fees from rated companies. His last three books have all been New York Times Bestsellers and his most recent title is The Ultimate Money Guide for Bubbles, Busts, Recession and Depression.