It’s early Saturday morning, and I’ve been up before the crack of dawn. Here’s what’s happening …
First, unemployment has suddenly turned sharply higher: A mediocre 113,000 jobs added in July … a 4.8% unemployment rate, the highest since February … and lay-offs on the way!
Second, inflation is out of control — the worst jump in core prices in 11 years, also announced just this week!
And all this new data does not even reflect the effects of the latest Middle East crisis!
That’s why …
Ben Bernanke and the Fed Have
Their Backs up Against the Wall!
They’re meeting this coming Tuesday. They’re supposed to decide whether to raise interest rates or not.
But they’re cornered between the unemployment and the inflation. They’re fighting two tough wars on two opposite fronts. There’s no way they can win both.
If they decide to raise interest rates still further, it will be a disaster for the economy.
But if they decide not to raise interest rates, it will be a disaster because of run-away inflation.
Either way, this means both danger and opportunity for you. And because the Fed is meeting on Tuesday, you have just one more business day to prepare!
My Recommendation:
Take the Following
Steps on Monday …
First, stay away from long-term bonds. No matter what the Fed decides, inflation is bad for bonds. And bond prices are bound to fall in anticipation of more inflation.
Keep the bulk of your money in maturities of less than 12 months, preferably 3-month Treasury bills or a Treasury-only money fund. My favorites are:
- American Century Capital Preservation Fund (CPFXX, 800-345-2021)
- Dreyfus 100% U.S. Treasury Fund (DUSXX, 800-645-6561)
- Fidelity Spartan U.S. Treasury Fund (FDLXX, 800-544-8888)
- USGI U.S. Treasury Securities Cash Fund (USTXX, 800-873-8637)
- Vanguard Treasury MMF (VMPXX, 800-662-7447)
- Plus, also consider the Weiss Treasury Only Money Fund (WEOXX; 800-430-9617), managed by one of our affiliates.
Second, if you own the natural resource stocks we’ve been recommending, stick with them. Gold is soaring, up $40 just in the past few days. Oil is approaching record new highs and about to blast off to $100 a barrel. Naturally gas prices are jumping again.
That’s why Enerplus (ERF), one of my favorite energy funds, continues to churn out a nice dividend yield that’s double what you can get in money markets … PLUS a yearly capital gain that’s averaging many times the S&P’s.
Third, sell U.S. tech stocks, especially those that cater mostly to consumers. Already, just since the beginning of April, the tech-heavy Nasdaq has fallen as much as 13%. Yesterday, despite revived hopes on Wall Street for a Fed rate pause, it was down again!
Fourth, if you own shares in interest-sensitive sectors — like mortgage lenders or home builders — get rid of them immediately. They’re destined to fall much further.
Fifth, sign up for a risk-free trial of my Safe Money system at a whopping 60% savings, and stay on top of my members-only recommendations of specific investments designed to grow your wealth as events unfold.
Right off the bat, you get monthly issues of my Safe Money Report by mail — the moneymaking, money saving backbone of my entire Safe Money system. Safe Money:
- Keeps you up to date on the information you need to protect your investment portfolio from potentially devastating losses.
- Shows you how to not only hedge against a stock market crash, but also PROFIT from a decline.
- Gives you a solid model portfolio of conservative investments that I feel are the best in any market. (My Mr. Conservative Portfolio)
- Picks investments that I feel are likely to surge no matter what happens to other sectors.
- Clearly explains proven ways to kick the earning power of your discretionary funds into overdrive … with aggressive, high-powered investment plays that can deliver up to triple-digit gains! (My Mr. Speculator Portfolio)
- Helps protect you from the nightmare of institutional failures with our exclusive safety ratings you won’t find anywhere else on banks, S&Ls, insurance companies and more.
- Gives you honest answers to your most pressing investment questions and concerns. Got a question about my published recommendations or analysis? Fire it off to us by email or snail mail.
PLUS, you get free access to the Safe Money Private Member’s Web Site and many of the world’s most powerful money making tools 24 hours a day, 365 days a year.
- Track your Safe Money portfolio online, with real-time share price updates … instantaneous profit/loss tabulation … and a complete listing of your Safe Money holdings … plus single-click access to charts and news on each investment …
- Check out our latest Flash Alert for urgent action needed to protect and grow your wealth …
- Take advantage of the complete archive of Safe Money Report back issues … market commentary annals … and historic records of my question-and-answer sessions with YOU and your fellow subscribers … plus my comprehensive INVESTOR UNIVERSITY of helpful tips and tricks for making your assets work harder…
- Review Safe Money Reports’ hot-off-the-press market forecasts for stocks, bonds, mutual funds, real estate, precious metals, and more …
- Take a look at the latest updates—from our Mr. Conservative and Mr. Speculator portfolios …
- And much, MUCH, more!
Other investment websites charge up to $19 a month … $228 a year — but as a Safe Money member, they’re yours FREE!
You ALSO Get URGENT FLASH ALERTS by Email
or First-Class Mail Whenever Events Warrant!
Whenever there’s a major development in key markets … on the world’s geopolitical stage … or when I smell blood and it’s time to take profits in your Safe Money Portfolio, I’ll send you an URGENT ALERT by either email, or First-Class Mail (your choice).
This lightning-fast response to the constantly changing investment landscape gives you the edge you need to keep your money safe, saves you time, AND maximizes your gains!
And the best part is …
I’ll be 60 years old in 60 days!
But you get the gift:
60% savings on my entire
Safe Money system!
Turning 60 is a once-in-a-lifetime event. So, rather than sit around, wondering how the heck my 60th crept up on me so fast, I’ve decided to share my celebration with you right here and now.
Start your subscription to my prize-winning Safe Money system now, and I’ll give you a 1% discount for every year I’ve been around — a whopping 60% savings.
You pay only $75 to subscribe for one year, and you save $114.
This is the lowest rate we’ve ever offered online or probably ever will. I only turn 60 once, so this offer will never, NEVER be repeated. But you must act now!
Two Strict Limitations
On This Offer
| Limitation #1. | The longest possible time period you can lock in the 60% discounted rate is four years. We can no longer accept the 5-year deep-discount subscriptions. |
| Limitation #2. | Your order must be in our hands by the close of business on August 31, 2006. |
My recommendation: To save the maximum amount — a whopping $454 — lock in the low rate for the longest period possible — four years.
The unfolding trends we’re seeing in the markets today are bound to continue for at least four years. So locking in your subscription for that time frame not only saves you the most dollars, it makes the most sense.
Call Regis at 800-236-0407.
Good luck and God bless!
Martin
For more information and archived issues, visit http://legacy.weissinc.com
About MONEY AND MARKETS
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, and Tony Sagami. 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 inasmuch as we do not track the actual prices investors pay or receive. Regular contributors and staff include John Burke, Amber Dakar, Monica Lewman-Garcia, Wendy Montes de Oca, Kristen Adams, Jennifer Moran, Red Morgan, and Julie Trudeau.
Attention editors and publishers! Money and Markets issues can be republished. Republished issues MUST include attribution of the author(s) and the following short blurb: 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
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