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Surprises in the Financial Market
1000 Point Drop in the Dow | Fed Printing Press | Euro
Financial Bailout |
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This
market is certainly full of surprises and
uncertainty. The financial market news this past 2
weeks has been nothing short of extraordinary and
volatile. Can the perfect quarter be followed by the
perfect storm of conditions associated with
uncertain markets? The 1000 point drop last week
maybe a leading indicator. At some point the market
needs to recalibrate and factor in all the debt and
cheap dollars created by the Fed printing press. The
Euro bailout now has the two largest consumer
markets with similar negative financial balance
sheets. At some point all the creative accounting
comes home to roost.
The housing crisis is
far from over with mounting foreclosures over supply
and the commercial segment about to implode.
Office for lease vacancies signs are everywhere with
landlords advertising very aggressive incentives to
attract clients. With increased taxation and
inflation growing this bubble will implode and
capsize the markets. Our strategy continues to hedge
with precious metals Gold & Silver. Record high for
Gold was achieved today and Silver continues to push
past the $19.00 level. Investors purchase Gold
as a form of money that retains its value as the
euro /dollar continues to lose value. Despite a
stronger U.S. dollar, the euro crisis has spooked
many investors who want to balance their portfolio
with gold. The liquidity provided by the bailouts
will dry up. The central banks received junk quality
collateral in exchange for cash and near zero
interest rates. The banks in turn have not lent to
small business or homeowners. They lent back to the
government which found its way back on the markets.
One big catch 22.
2009 WSG Top 10 Gold Stock Picks - ALL Performance
Winners!
This
has been a Huge Year for our Members. Our average
Gold Pick Gain is
269%!
Who else can give you Ten Stock picks in November
of 2008, and return winners like this?:
AGT
-
408%
JAG
-
464%
SA
-
274%
GRZ
-
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