 |
My mission is to worry so you don’t have to.
And I’ve never been more worried than I am right now. At the same time, though, I’m also more excited than ever about your opportunities to grow your wealth.
I’m proud of the fact that, for nearly four decades, my company has established a distinguished record as “the first to warn of the dangers and say so unambiguously” (New York Times).
And right now, it’s clear that the current dangers are unfolding as we anticipated. Indeed, beginning nearly three years ago, we laid out this scenario in no uncertain terms:
First, we warned you that the mortgage bubble would burst and that most of the banking and real estate sectors would be crushed. It happened.
Next, we warned you about the second phase of this crisis: Massive losses in the banking sector and a credit freeze, spreading like wildfire throughout the economy, killing corporate earnings, sending unemployment through the roof. That’s happening now as well.
And just over two months ago — in my Safe Money Report and in a white paper I delivered to Congress — we warned that the third and most destructive phase was about to begin:
A Bond Market Fiasco!
We warned that
- The federal deficit would balloon toward $2 trillion and beyond, flooding the market with Treasury offerings …
- Washington’s efforts to bail out giant companies would make global bond investors recoil in horror …
- Treasury bond prices would plunge and interest rates would surge — pure poison to the entire U.S. economy and stock market.
Now, this has happened too!
The Third Phase of This Great Crisis
Has Kicked in With a Vengeance …
 |
Just in the past few days …
Moody’s raised serious doubts about the U.S. government’s credit rating.
The manager of the world’s largest bond fund predicted that America’s credit rating could be slashed.
Treasury secretary Geithner warned of the dangers of record-shattering government borrowing.
And even the Fed, despite all its buying power, was overwhelmed by the avalanche of Treasury bonds being dumped on the market.
Result: Bond prices crashed. Interest rates surged.
A Unique Convergence of Events
If all of these events can tell you anything, it’s that you now have the kind of opportunity that generations of investors could only dream about.
You have the ability to read the handwriting on the wall; to know in advance what is most likely to happen next.
Treasuries bond prices are already sinking. Long-term interest rates are already rising. Just since December alone, the yield on the 10-year Treasury has soared 50 percent (1.5 times its prior level).
This is the recipe for disaster I’ve been warning you about:
- Even before the interest rate rise, mortgages and consumer loans were already scarce.
- Even before the rate rise, the official, greatly understated unemployment rate was already at 8.9 percent, on its way to 10 percent.
- Even before higher rates, consumers were scared — delaying or cancelling major purchases.
Now, rising interest rates are about to kill what little consumer demand is left in the U.S. economy — a perfect storm for corporate earnings and the U.S. stock market.
It’s time to ask yourself, “If not now, WHEN?”
With the handwriting so clearly on the wall … with America’s credit rating now being called into question … with the disastrous implications so clear for the stock market this summer and for the rest of 2009, you should be asking yourself:
“If I don’t act to seize this opportunity now, how will I feel when these contrarian investments soar in the weeks and months ahead?”
Bottom line: If you haven’t done so already, buy the contrarian investments we’ve been recommending.
Good luck and God bless!
Martin
About Money and Markets
For more information and archived issues, visit http://legacy.weissinc.com
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.
Attention editors and publishers! Money and Markets issues can be republished. Republished issues MUST include attribution of the author(s) and the following short paragraph:
This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://legacy.weissinc.com.
From time to time, Money and Markets may have information from select third-party advertisers known as “external sponsorships.” We cannot guarantee the accuracy of these ads. In addition, these ads do not necessarily express the viewpoints of Money and Markets or its editors. For more information, see our terms and conditions.
|
© 2009 by Weiss Research, Inc. All rights reserved. |
15430 Endeavour Drive, Jupiter, FL 33478 |
