Just in the past few days, the administration has launched a new economic stimulus plan, a new bank rescue plan, a new mortgage relief plan, plus a new plan for still more plans.
But most investors are NOT buying it — and for good reason!
Consider the sequence of events …
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Last year, the Bush administration announced plans “A” through “D” — rate cuts, Fed broker bailouts, Fannie-Freddie bailouts and TARP.
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And after each time a new plan was announced, the stock market enjoyed at least a temporary rally. The rallies eventually fizzled. But at least the initial investor response was positive.
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Now, this year, we have plans E through G — the president’s stimulus package … the Treasury Secretary’s failed bank bailout plan announced last week … plus the new mortgage relief plan announced this morning.
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But instead of responding with glee like they did last year, investors are recoiling in horror. All over the world, they are coming to the realization that this great global bear market is far larger than any government’s ability to fight it.
Now, here’s the greatest irony:
Nearly all Wall Street pros are continuing to invest as if this were still in a bull market. They’d rather suffer massive losses in this bearish environment, than get out of their beloved investments.
It’s a recipe for disaster: Over the past year, investors who followed this approach have already lost 50%, 60%, 70%, up to 90% of their money.
That’s a shame. Because with the right investments, each of 50% losses could have been a 50% profit … and each of the 90% losses could have been a 90% profit — all by applying our 11 bear market laws that have made investors rich in previous crises … and that empower you to confidently use a similar approach to grow your wealth even in the worst of times.
And to help you do just that, I’ve just scheduled a very special — and completely free — online event …
THE 11 LAWS OF BEAR MARKET SUCCESS
How To Prudently Grow Your Wealth
Even When Others Are Losing Everything
In this fast-paced, one-hour, online video briefing at noon on Thursday, February 26, I’ll bring you quickly up to date with the latest dramatic changes that pose grave new risks — and open great new opportunities — for every dollar you have invested, including …
The Washington Bailout Disasters: How and when the new stimulus and bank rescue packages will backfire, plus what you must do now to protect your wealth and your family.
Wall Street Treachery: How big mutual funds, financial planners and Wall Street brokers have dumped pure garbage into your portfolio.
Main Street Sabotage: Why many of the investments they tell you are “safe” — “too-big to fail” banks, “insured” municipal bonds, and junk bonds masquerading as quality bonds — are little more than ticking time-bombs set to blow your portfolio apart at virtually any moment.
Bomb Disposal 101: How to quickly spot and get rid of the landmines concealed in your portfolio.
Bear Market Bonanzas: Precisely how this bear market gives you hundreds of opportunities to make money more quickly than virtually anybull market. Six types of investments that make that possible immediately.
The 11 Laws of Bear Market Success: My 11-point checklist for making money in times like these — the rules I follow to determine what I’ll buy or sell, to improve my timing, to lower my risk, and to boost the profit potential in all markets.
This must-attend briefing is FREE
and registering takes only seconds …
Just click this link to tell me you’re coming and to make sure we can get you the instructions for attending.
And when you’ve reserved your place, please come right back and post a comment to tell me the one thing I can do for you at this event that will help you most!
Good luck and God bless!
Martin
{ 18 comments… read them below or add one }
Everybody is talking about Gold and the coming hyperinflation. What do you recommend? Hype or for Real? Bullions, Coins, GLD ETF ? (I brought GLD ETF and hedged with puts just to be safe)
Also as the market is unpredictable and goes down, up, and sideways – what about alternative income strategies such as Selling Options? I realize this may not be in the scope of your publication or the audience.
What will start up global trading again and allow the wealth generation in trading nations to get going again?
Hello Gang:
Irving Weiss got me started with Safe Money in the very early 90s. I have SRS and SKF along with DOG and DBC. And I’m charting REW. I just want to thank all of you there for saving me from the disasters that most others suffered. You have kept most of my money “Safe”, even after this financial mess. I still took a loss, but is was small, and with money I could afford to lose. I anticipate this video ’seminar’. B. Riordan.
Hi Martin. Thanks a bunch for the great commentary by all the staff contributing to MONEY AND MARKETS and your timely comments on current financial issues.
I lost a bunch by hanging on to oil stocks. What is your outlook on the near to the year-end on oil stocks?
Will oil stocks recover contrarily to the rest of the market ?
Thanks,
Charles E. (Ed) Spwncer
I understand the danger we face with banks these days but I’d like to hear your comments on Credit Unions. How are they differ from banks and are they safer than banks. I know it’s not possible to rate each one like banks but just a general comment on their use during these times.
Thanks
What do you think of investing for 6-12 months into bonds that are issued by financial institutions that get enormous support from government (BAC, AIG, WF, american express, etc). I am told that I can 6% return for 6 months, how do you quantify the risk?
I am a Canadian. I have a Registered Retirement Saving Plan account that is managed by my broker. My money is invested in the Canadian Equity and Global Equity funds. Now the account has lost 40% since it was opened in later 2006. What should i do? Should i continue to put money in or stop to invest and then transfer money to other investment?
AT&T is still paying a good dividen, should I sell it in View of this bear market??
I have $172K in cash that my broker wants to start getting back into the market; initially with $50K then cost average into the following funds 14% MCGFX 14% NYVTX 2% RAIMX 2% NAMAX 2% KSCVX 3% BSCFX 30% LSIZX 20% BHYAX 6% IYG 7% FDL. Since the market is so uncertain I thought I would buy the bond funds first and hold on to the rest of the cash until the market picks up. What do you suggest?
The most vital investment info now seems to me to be *macroeconomic* info. This is unprecedented but true. Recently I heard US current accounts deficit is at a six-ear low, and that came completely as news to me (assuming it is true). Please discuss if, how, and when foreign creditors will slow or stop lending to US. Please tell if you still think UST bonds are a good deal, for I certainly cannot see it. Please tell how to access info on current accounts (trade) deficit.
ABOVE, Charles (ED) Spencer, remarks on oil, i’m in same factor, ie its Canadian oil, in YOUR peoples data, they tell of OIL being OK to be with, i assume its juts waiting it out till barrel prices get back up, IS THIS RIGHT????\/ms
I’m 62 and have lost 55% of my net worth. I now 60% in cash, munis, C.D. Wfc pfd & JPM pfd on my stocks I write 3mo. calls. I also have stocks like 100shsKMP,500shsBPT,100shsNS,500shsPBT, 500shs ATN, Just bot 50 shs GLD, 200 shs UUP, 100 shs TBT, 100 shs PSQ & 100 shs DOG MY a/c MKT Value is now worth 1.5mm Please advise
Frank
Are CanRoys a good place to invest (double up/down), with their high dvd’s or is it time to take losses or move from the smaller CanRoys to the big ones with tax cushions for the 2011 change. i.e. Can Tax laws change in 2011, specifically ERF, PWE. You’ve been on the money with “Safe Money”! Wish I would have followed your early warning advice much closer and lost less! Inverse ETF’s are only positions above water. Sell into rally or hold CanRoys?
I’m still unclear on the “federal insurability” of cash positions in a brokerage account. The disclaimers state something to the effect that it can’t stagnant in the account (collecting interest), and not being used for the purpose of investing in stocks, bonds, etc. Does this mean that if you happen to have a large cash position in , for example, a TDAmeritrade account, that it would not be insured, even if it were there following a recent trade? I also see the broker mentioned above buying back shares..presumably to increase the founding family’s cash position for purchase of an athletic team. Will that leave them cash hungry, and put investors holdings at risk?
I am 67 years old. I have a $50,000 “River Source Universal Life insurance Co. of New York”, Policy to leave my son when I pass. Right now the cash “surrender value” of the policy is $10,008.
I am worried about the saftey of the policy as I originally purchased it in Albany NY, where my “financial advisor” still has his office, but my statements now come from
“Ameriprise Financial” Minneapolis, MN. I know that the Ameriprise Bank has a very low rating. Should I be worried? Should I cut any losses and just cash in the policy now? Help!
Do you feel that it will get so bad that there will be a run on banks and grocery stores?
Should we be buying silver coins to use for buying groceries because the dollar will be
worthless and useless? Should we be hoarding canned food now for the disasterous
collapse to come?
how does only a $10,000.00 spot get you started. I read what you have to say but
do not see how a man with little to start with can play and win.
Dear Martin,
My wife, Diana, and I truly respect your knowledge and wisdom. However, we have little investment experience, and already had most of our savings in guaranteed savings accounts in our bank and Federal Credit Union. Therefore, as yet, we have been blessed not to have lost money in the stock market and mutual funds. But we are worried about what to do, especially since we do business with a small bank and have most of our money in CDs, or savings accounts. The rest is in our Federal Credit Union. In light of possible bank failures, should we place most of our savings in a Federal Credit Union? Are they saver than a bank? As I am retired and my wife has about five more years as a public school teacher before retirement, we would appreciate your recommendations on what actions we need to take to protect and even grow our savings. The actions of our Government are really worrying us! Thank you. John and Diana Burton, Virginia Beach, VA.