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With so much happening so quickly, I know it’s sometimes hard to set aside a quiet time to think.
But this weekend I want the two of us to focus on the big picture … find some clarity in these confusing times … and chat about where we’re headed from here.
Because when the history books are written, I believe the period we’re living through today will be remembered as a critical turning point in this crisis.
For many months now, my team and I have been warning that the United States was embarking on the path of
- severe recession
plus, at the same time …
- severe inflation.
We warned you about a collision between a sinking economy and — as Washington fought the crisis tooth and nail — accelerating price increases.
Until now, though,
The So-Called “Experts”
Scoffed at Our Warnings
Just a few months ago, for example, Wall Street analysts assured investors that the downturn would be isolated to subprime mortgages. Fed Chairman Ben Bernanke did the same.
And at almost every opportunity since, the “leading lights” of Wall Street and Washington have done their dead-level best to convince you that this crisis was limited both in scope and longevity.
But last week …
A String of the Government’s Own Reports
Debunked the Government’s Assurances
First, the government reports showed that the economy is not just slowing, it’s contracting — unemployment claims at their highest levels since the tech wreck … manufacturing at its lowest levels since early 2001 … plus one indicator after another confirming and double-confirming this reality.
Second, the reports revealed that, even while the economy is going down, inflation is going up at an accelerated pace — import prices jumping at a double-digit rate … consumer price indexes breaking out to the upside … commodity prices zooming.
Where Is This Taking Us?
How Long Can It Last?
What Can You Do about It?
The immediate consequence is undeniable: Washington will continue throwing money at this crisis — slashing interest rates, passing stimulus packages and, alas, trashing the purchasing power of the U.S. dollar.
But, in my heart and soul, I am an optimist.
Don’t laugh. I’m serious, and it’s true.
I’m an optimist in that I believe that, with last week’s government reports, we are closer than ever to a clear vision of the economic beast we’re dealing with … a vivid picture of what to expect in the months to come … and a solid roadmap for action.
I’m an optimist because I believe that, ultimately, Washington will do the right thing. They will have no choice. The overwhelming selling power of millions of investors will force them to.
And I’m an optimist because I believe in you. By protecting yourself today, and by joining the growing minority of others who are doing the same, you are creating a reservoir of wealth that, at the right time, will be instrumental in turning our country back on a positive path.
But to do so you need to take the right steps today:
Step #1. Get to safety with short-term U.S. Treasury bills or a Treasury-only money fund. I know they are unexciting. I know they are in U.S. dollars. But for U.S. residents, there is no safer or more liquid investment.
Step #2. Protect yourself against inflation and the declining dollar. (More on this in a moment.)
Step #3. Go for mega-profits. Recognize that, often, the best defense is a strong offense. Then transform this crisis into a life-changing, wealth-building situation.
With that in mind, I see three promising and mega-profit opportunities that you should seriously consider as this crisis unfolds:
Mega-Profit Opportunity #1
The World’s Strongest Currencies
It’s almost inevitable that Washington will continue — even intensify — its attempts to fight this crisis with lower interest rates, more spending and bigger deficits.
And as we’ve shown you time and time again, every new dollar Washington creates ultimately decreases the value of every other dollar in circulation.
Plus, as foreign investors see the dark clouds hovering over our economy, they’re likely to continue reducing their U.S. investments, trading their dollars for other currencies. Despite intermediate dollar rallies, those investors will drive the dollar lower and push most foreign currencies sharply higher.
Years ago it would have been difficult for you to profit from this situation. But not today. Today, new, revolutionary investment vehicles make it possible to invest in the world’s strongest currencies through your regular brokerage account, much like investing in any common stock.
Our forecast: Investors who take advantage of these new currency vehicles will be among the few who escape the turmoil in other financial markets … and even come out with potentially massive profits on the other side of this crisis.
Mega-Profit Opportunity #2
The World’s Hottest
Natural Resources
Since time immemorial, whenever inflation has reared its ugly head, investors have stampeded into tangible assets: Gold, silver, platinum, and more. And that’s precisely what they’re doing now.
Plus, people still have to eat no matter what — and since billions of new consumers in China and other developing nations are demanding ever-more food commodities, the value of those commodities is flying as well.
Our forecast: The companies that produce key natural resources and commodities will profit handsomely as these two titanic forces — inflation and exploding global demand — drive the value of nearly everything they make through the roof.
Mega-Profit Opportunity #3
Investments that Soar
When U.S. Stock Sectors Fall
Picking the weakest sectors in this economy isn’t rocket science. And picking the weakest stocks in the weakest sectors is also very straightforward.
So why not transform that foresight into another mega-profit opportunity?
The investment vehicles are handy and readily available. You can buy them low and sell them high — just like any other investment. Plus you can do so with great ease and low commissions, either online or offline.
Thanks to two limited-risk investment vehicles — designed to surge when weak stock sectors plunge — you have a great opportunity to grow your wealth even as other investors are losing theirs.
My forecast: Investors who use these new vehicles to profit as the most vulnerable sectors get hammered will pile up massive gains over the next 24 months.
One Last Word …
Each of these mega-profit opportunities can put you on the right side of ultra-powerful, long-term, fundamental trends.
Use them wisely and they can be your friends.
But never lose sight of the big picture. Never let intermediate moves in the opposite direction divert you from your plan or take your eye off the ball.
Remember: As long as the big, long-term fundamental trends are still in place — and as long as your investment strategy is on the right side of that trend — the opportunity is limitless.
We saw this crisis coming miles away and we told you so, #field8#. And each step of the way, we’ve guided you to the investments that tend to do best at times like these.
You have my solemn word that we’ll continue doing everything in our power to stay on this course.
Good luck and God bless!
Martin
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 Sean Brodrick, Larry Edelson, Michael Larson, Nilus Mattive, Tony Sagami, and Jack Crooks. 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 John Burke, Amber Dakar, Adam Shafer, Andrea Baumwald, Kristen Adams, Maryellen Murphy, Red Morgan, Jennifer Newman-Amos, Julie Trudeau, and Dinesh Kalera.
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