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Here are six reasons why the stage is now set for a rare double-dip recession …
An economic conflagration that will send unemployment soaring, crush home values again and light the fuse on a new banking and credit crisis that will make the last one seem tame by comparison.
PLUS, it will pull the rug out from under Wall Street, pushing the S&P down to its old lows of 2009.
QUESTION: What should YOU be doing now to protect your wealth and profit?
There’s no doubt that the stock market is acting like a toy balloon in a room full of razor blades. It’s down nearly 1,200 points in just two, short months. Equally troubling: Volatility is increasing – 200-point-plus down days are increasingly common.
Clearly the stock market is trying to tell you something very important. If you listen, you stand a good chance of grabbing substantial gains this summer. If you don’t, I fear for the safety of your savings and investments.
I count at least six reasons the stock market is telling us, “Look out below!”
1. The economy is quickly running out of gas: The recovery that followed the bear market was bought and paid for with $2 trillion in government stimulus money. Now, that money is running out. The economy and stock market are running on fumes. And with no new stimulus on the horizon, there’s nothing left to keep stocks from plunging.
2. Jobs, jobs, JOBS: Despite everything Washington has tried to do, nearly one in four American workers is still struggling to get by without a paycheck. Worse: The job growth of recent months has now dwindled to nearly nothing. After 431,000 new jobs were created in May, only 41,000 appeared in April.
3. 70% of the economy is beginning to shut down: Consumers are responsible for 70% of all economic activity — and consumer confidence is cratering. Worse: Retail sales are already plunging.
4. The housing slump has returned with a vengeance: New home sales just cratered by 33%, the biggest decline on record. Foreclosures are increasing again, creating new nightmares for our largest banks.
5. Most U.S. states drowning in debt; New York, California and others going down for the third time: The 50 U.S. states now have a cumulative deficit of $127.5 billion. Plus, states have more than $1 trillion in pension obligations they can’t pay. They must make massive spending cuts to survive – cuts that are sure to impact corporate earnings and stock prices from coast to coast.
6. Sovereign debt crisis leaving investors gun-shy: More and more investors are viewing Europe’s sovereign debt crisis as a sneak preview of our own future here in the United States. After all – our debts are far greater than Portugal’s, Greece’s or any of the other PIIGS!
If they’re right, we could see interest rates soar – pure poison for an economy as strapped as ours is.
BOTTOM LINE:
The time to brace yourself for a massive stock decline
and a powerful double-dip recession is NOW!
What you do now will determine whether this impending crisis will make you poorer or make you richer.
So today, let’s share our best ideas for multiplying wealth at a time like this!
Just click this link and leave a comment to answer our question of the day:
What should a seasoned investor be doing right now to get positioned for substantial profits as the stock market dives?
This should be much more than just a fun discussion – I’m looking forward to seeing a ton of great money-making ideas from our readers!
Good luck and Gold bless!
Martin
{ 138 comments… read them below or add one }
Go!
What should a seasoned investor be doing right now to get positioned for substantial profits as the stock market dives?
Put funds & or inverse ETF’s
For fixed income people, cash is not a very good option, so I think that the best defense is to go on offense, take a little bit more risk and look for opportunities outside the U.S.
Buy Gold and silver bullion, ETF’s (Canadian best), gold stocks, both large and junior (but they may go down with the market collapse for a while), short stocks and especially real estate stocks. Short term interest rates will go down, so bonds may rally, but after that, they will reverse quickly when the rest of the world sees the US will only print money as a solution.
Get short!!
Do you put much stock in the monthly chart with the 20month moving average as an indicator of Bull or Bear Markets?
For starters buy EVP, the Proshares Ultra Short MSCI Europe Proshares. Up 10% since Monday and bound to go higher as Europe implodes!
WHERE IS THE ANSWER?
We should buy gold but what gold stock ???
My suggestion to other investors, as well as individuals, is to stock up on food, as a hedge against inflation. Don’t forget to rotate. This is how I figure to weather the storm. I’m sure most readers are now savy to the coming hyperinflation. Stay safe and keep your powder dry!
i am loosing money too fast.I need to do something.Can you show me way out of this windfall?
Buy precious metals…………
go into gold
As long as the Administration and Congress keep on blindly throwing money at problems and increasing the size of Govt. business doesnt have a chamce
Maintain a position in Gold. Be a contrarian in the market with solid stocks. Stay fairly liquid to take advantage of the market as it recovers. Stay tuned to Weiss for advise.
buy inverse etf like SH, hold cash
June 29, 2010 Cash, Gold, get some money into Canadian Dollars, get your needed cash into a very good bank (Washington Federal Savings, thanks to you, a long time ago, in your ranking banks). Some Silver (coins). And luckily I trade futures so can ride the Dow down (Short).
This never needed to happen. (I’m 84, so I can see way back 60 years as an adult, when there were few lawyers (we didn’t need them, business was done between honest people who kept their word!). What none of you have seen here is that we did not act when OPEC shut us down in 1973 (those long gas lines) –we refused to learn that lesson and start THEN working on alternative energy, so that was the CAUSE of the later EFFECT we know as “911″ (and our then having to go to war in the Middle East to hold onto our needed ENERGY SOURCE, since we had not acted back in 1973, which, if we had, we would not have had “911″ or had to go to ward in the Middle East at all: WE have created all of this mess all by ourselves (misuse of CREDIT)(spoiled)(short-sighted)(electing wrong “leaders” for wrong reasons)(lack of morality)(lack of mental discipline)(ever believing that we could cover medical care, social security, deficit spending beyond our ability to pay back our debts, far too many people in government (now nearing 19,000,000 –fed/state/local– at $60,000 bucks a year, average pay = $1 TRILLION of overhead cost that the private sector has to factor-into it’s COST of producing real wealth, that government cost pushing up PRICES until we are no longer competitive in the world marketplaces) and on and on. “What you sew, you will (surely) reap.” and here we are!!!!! I feel sorry for our Founding Fathers AND our kids, because of these adults of the last 40 years = 2 generations of undisciplined minds and bodies. Exceptions, sure, but not enough. We were never a Democracy, we are a Republic, but without common sense or understanding that we did this to ourselves and therefore natural forces have to come in and take over here now, if our planet is going to survive it’s human beings actions toward self instead of toward common sense and thoughtfulness. 6,63 Billion of us are way too many here now, and we keep coming and we keep living longer, so this no longer computes, Gang! WE HAVE TO LEARN THE HARD WAY HERE NOW.
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Gold, treasuries, short-term bonds & cash. Maybe some local real estate.
Well, with stock prices swirling sround the bowl, gettig ready to go ‘down the drain’ after the toilet has been flushed….only a fool thinks about buying more stocks right now. Sure, you can buy cheap, and tomorrow they’ll be even cheaper. I try to buy shortly after they have hit bottom. I rarely buy at the low, but often enjoy a ride up in value. As yet, there has been no bottom, so my stock exposures are minimum. They may stay that way for awhile. he Fed has crapped on its balance sheet bailing out the BIG BANKS. There is no money, only fresh debt. The wealthy have not been paying their historical rates on taxes (70-90% as in the 50’s ‘thru 70’s) for top tier earners. So, until that is equalized, what does it matter? I don’t trust big money, nor do I trust those that aspire to be big money. Happiness is where you are right now, never forget that.
Should I be invested in stocks or in other investment areas?
just would like to view the comments
I am reading that we are about to see hyperinflation because China
wants the yuan to become the world currency and they are not accepting any more dollars. This will devalue our dollar to the point
of worthless. What can we do to protect ourselves.
I have no idea how to answer the q1uestion but sure would like to know the correct thing to do.
As you pointed out, inverse etf’s sound like the best investment if one gets in sooner than later. Getting out of the market and bonds is imperative. Not sure that real estate is the a safe haven, after all jobs are not being created or replaced so where’s the support to purchase and lending standards are now what they should have been 8 years ago. Unfortunately, the bubble has collapsed and don’t think its hit ‘bottom’. With interest rates set to rise to keeping some money flowing into the U.S., might think about waiting and then investing in interest income producing investments but, won’t the U.S. run out of borrowing power at some point and be forced to print new money like mad? And won’t this cause rampant inflation? Seems assets like real estate may benefit from the inflation but this is a weird bubble economy and I’m convinced things will play out in traditional ways. Stay safe and ready to move on the right things when the opportunity presents itself.
I have been following the advice given in the Contrarian. We were told we’d sell all long positions except gold if the S&P 500 closed below 1050. Well, its at 1031 at the close of market today, and still not alerts. What are we to do??? Sell or not sell
Seasoned investors should already be in:
1. Tradable commodities
2. Real property
3. Land
4. Basic life necessities such as food, water & energy
They should weight their portfolio to the demographically largest populace with the lowest cost of production.
Seasoned investors should NOT be in:
1. Government securities
2. Government-related securities
3. Non-essential service companies
4. Highly-leveraged companies
This is not “life boat investing.” This is positioning for the longer voyage.
First he should be selling most stock”s , that are most likely to noise dive. Second shorting stocks with inverse ETF would be one great way, also buying some gold ETF funds. But still keep the biggest portion of your money in short terms treasury bills. and PRAY….PRAY……PRAY.
It looks like the force of gravity will hit the Treasury soon and when it starts the question is where will it peak. Since they can print the money to pay the cpns I will start in at 8% or more thinking it will do at least as much as in 1982.
Otherwise I will stick with my tax exempts and dry powder…and AAApfds.
LAW
Go to cash in the safest forms possible, short term treasuries (BIL), actual cash federal reserve notes & some gold bullion coins. All stocks will go down in a crash, so if keeping some, need to hedge with sds,qid, dxd , or some other inverse funds for foreign or emerging market stocks you opt to keep in portfolio. I’m very concerned about the ability of money market funds to maintain $1/share especially since FDIC is broke & Fed Reserve has removed backing of $250K and now back to $100K limit. Much of their holdings is short term debt of banks, tht I see as becoming increasingly risky as the meltdown continues. Many brokerages don’t have a short term treasury money market fund for IRA’s or they’ve been closed due to the low rates. I’m also concerned about rumors of the Obama administration to nationalize private 401K & IRA moneys and wonder what to do to protect my retirement savings.
1. Get to safety.
2. Tbills are not safe.
3. Move money to Candian Bullion funds like: CEF, PHYS etc. Not GLD or SLV.
4. Get into Inverse ETF NOW>
YOU should be already loaded up with inverse (or better double inverse) ETF’s on the main indices like S&P 500 or the Dow and the banking sector. Hopefully we will get some important recos in what particular sectors tons of money could be made. ;-)
Martin
I have been trying to accumulate quality dividend paying stocks and writing covered calls close to the money. If they get called away I make money plus the option premium. If they go down I at least have a dividend to help ride out the storm and live to write future options.
I need to learn how to write options to protect for the downside. I believe that is a put, but never have utilized that option for lack of execution savey and knowledge of which stocks to write puts on.
Inverse ETFs, bonds (for awhile)and gold related investments should be the order of the day.
As a retiree needing monthly income, I am holding onto our dividend paying utility stocks, insured AAA rated muni-bonds and laddered short term GNMA’s paying monthly dividends. The GNMA bonds are government insured against loss of principle and they return principle along with interest every month. Should inflation or interest rate start rising, I will sell the GNMA bonds and then start investing in longer term interest bearing securities. Gold ETF funds will also be held and possibly added to if the dollar continues its slide.
Just a humble and curious visitor to the blog. Thanks in advance for letting me sit-in and learn from those much smarter than I.
My fundamental, technical, and cyclical analysis is telling me that it appears a good bet that we will have a 3rd or c wave leg down in the stock market that looks like it started at the recent peak of this market in April. This wave could be strong enough to test the March 2009 lows. Even if it does not and only rhymes with the 2008 decline, we should expect ALL asset classes to decline, just like in 2008, with the exception of the following: Cash, Short Term to Long Term Treasuries (as they are rising in exact opposite of the current stock market decline), Investments that SHORT the market. Even natural resources (possible exception is natural gas), including mining stocks could get hit. Best case is that gold stays in a trading range. Then, once this leg down completes. I would exit all treasuries and short positions and then re-enter the equity market via precious metals and natural resources as primary equity beneficiaries.
Loved it. Six billion cancer cells destroying our planet, our fellow creatures and our future.
Two hundred million government employees and handout dependents living off a dwindling number of real workers and producers. Learn Mandarin.
Buy inverse ETFs on indexes for diversified coverage on down side.
Alan Scott is right. Personally I think people should listen to their elders for advice. Are people in
Washington considering the elderly and handicapped people who live on fixed income? The problem is in the heart of mankind as always. I have a little money I am concerned that I enter
the shorts or buy too soon and not have enough cash. That is my financial concern about this event.
What do the elderly people who have some knowledge of these things have to say? God Bless Everyone in Jesus!
I am not real sure what to do. I have some mining shares and I wonder how bad they might get hit
when the market heads south. I think We are heading for a depression that will make the last one look good. The worst thing about our Republic is it is morally broke.
Buy the inverse ETF on the S & P.
Loved Alan Scott’s comments and “Mr. and Mrs. Regular Worker’s”. Like them, I don’t buy green bananas, if you get my drift. Been on the planet too long to either panic or celebrate my good fortune. Needless to say, “the hens are coming home to roost” (spot on, Alan). What to do:
Save as much (deflated) cash as you can. Cut back on as many of your expenses as you can. Sell anything you don’t need. Grow a garden. Grow your soul. Get to know your neighbors and local resources. Streamline. Live in the moment but maintain your integrity. Put 5-10% minimum in gold bullion and/or gold-related stocks (GLD, GDX & Larry’s recommended miners). Politically, it is obvious (G-20, endless war, etc.) the hand that deals the cards is no longer the invisible hand but a well-oiled government/corporate mechanism (aka “Facism). We are transitioning in the 21rst century from the end of the nation-state (don’t buy the flag-waving or bible thumping) to a nationless (perhaps even, sadly, well-intentioned) oligarchy whose members sit on each other’s boards of directors. Pledge allegiance to them and you are assured at least a temporary survival. Try to remember this for down the road (because our liberties are eroding slowly and we are like the naive frog slowly cooking in the global warming pot): whatever you do…don’t let them send you to the camps. I know that sounds scarey so, above all, understand the history of civilizations, your (limited) place in it and have faith that a better day is coming.
Buy gold, inverse etfs and canadian dollars and stocks.
1. inverse stocks – ETF’s
2. minerals in general
3. specific gold and silver
4. Valuta from the far east; every bank?
5. Leaving the dollar and euro for 75% in due time.
In view of what is very soon to come in the overall stock market the best place to be is heavily invested in gold and selective gold stocks.–MC
So where in the world do I take my family so that my children have a future. It seems that the powers that be are intent on creating a poverty stricken civilization. How to navigate this. Spend all on private education on children? Invest all in metals? Move to South America? What to do?
It has been known for many years that the current, raw, unregulated capitalistic system
worked only for the well endowed. Clearly, pure socialism and/or communism is not the answer
either.
So, I’m curious what the committed capitalists will now suggest; another confiscation of the
treasures of the government and the ordinary people in the name of public good? Or maybe, they don’t know what to do
this time . What an interesting dilemma! Borrow more? But, that just feeds the the banks and other big institutions. Where is the whole idea of public good in all of this?
Let’s just hope that we have enough police to keep order! That is if things get bad enough.
Somebody should be held accountable for all this. Let’s hope. There must be a better way
to handle ordinary peoples’ investments and retirement income than rely on the neurotic
stock markets–they are not scientific and in reality are gambling casinos where the wealth
of ordinary people is determined by the big stockholders and their guesses.
short term T Bills
Cash, Swiss Franc money account
Pay off everything…then sell what’s not important to you
Move to a third world country with favorable visa options…Rep of Panama
Continue learning…with a very open mind.
Remain cautious
ALL OUR TROUBLE IS DIRECTLY TIED TO ABAMA AND UNION LABOR PRICEING THEMSELVES OFF THE MARKET AND THUS BECOMING TAX USERS RATHER THAN TAX PAYERS. LOOK AT THE MOB LABOR BOSES AND OBAMS AND YOU SE THE SAME IMAGE.
follow your advice
thanks
Cash and inverse ETFs. Be ready to buy some solid companies that pay dividends. The returns will be high and the share prices will appreciate eventually.
Buy gold on the dips and broad-based inverse ETF’s on the rally days following the 2-4% drops in the major indices.
When are people going to wake up and smell the coffee, the global fiat money is worthless. We are being scammed and need to invest in something real. Mining stocks are so under valued they are just waiting to soar. Sooner or later even most unsophisticated investor will figure it out, and when they do it will make the dot com days look like child’s play.
Best bet for rest of 2010 is to buy Gold and Silver and sell all non-commodity stocks short. Also get out of bonds that mature after 2011. There are no other safe bets , except in insured C.D.s. at 1-2 %. Even US treasuries are subject to loss.
Stock Markets down , gold up , energy /crude up and down and the dollar down , bonds down and housing down even further.. The markets are driven by Washington blunders and hidden agendas. The only question is:
Where will the bottom be and when ? Maybe…. Temporary bounce up by end 2011 then another leg down in 2011. Maybe by 2012 we will see some light, but only if ALL Washington elected officials are thrown out of office. The hidden plan is to bankrupt us and take over as a Socialist/Islamic regime. El Presidente does not want a solution , just spend , spend , spend. Watch what they do , not what they say.
I think options is the best way to make money in the impending downturn
Invest in gold mining stocks?
Buy good Canadian gold/silver junior shares on the Canadian exchange, in Canadian dollars. Also, a few gold 1, 1/2, and 1/10 ounce coins wouldn’t hurt either.
Long on gold, oil (Israel won’t wait much longer to “lite the fuse” on Iran), double and triple inverse ETF’s like financials, real estate, airlines.
Wife and I are pulling our chips off of the U.S. table and expating to Panama. The America of my youth is DEAD!
Advice to American’s: encourage the military to read their oath to defend the Constitution from domestic threats. If Obama and his crew don’t meet that criteria, nothing and no one does!
How can interest rates be so unbeleivably low for such an amazingly
long period of time. Senior citizens such as myself depended for years for some income and many thousands are now forced to live on principal only, unless they have money tield up in stocks, bonds, etc.
Everything is just awful!
I’m concerned about the value of the dollars that I’ve been able to stash away over the years. I’ve got quite a few invested, but being a relatively new investor, I still have more cash than I have invested. How can I protect them? I believe wholeheartedly in gold and own my share. What percentage of my stash should be in gold? What percent should remain in cash?
I have not been able to make any money in the last 4 years. I have been able to maintain status quo but thats about it. I have made big on some and lost big on others. The market lately has been out guessing me. I am still able to maintain the level of my money but not gain anything significantly. I have been investing in alternative energy stocks but none of them have done much so far. I have been in and out of oil and natural gas but they don’t seem to be doing well either. Just maintaining status quo. I had Chesepeak and Petrohawk energy before the last big crash and they have never recovered from that even though all the hype out there was forecasting great things for natural gas. It has not happened and doesn’t look like it will happen in any kind of acceptable time frame. I am out of time. I am over 70 years old now and can’t take a big risk anymore with my retirement money. I am just trying to hang onto what I have and make enough to stay ahead of inflation. I have some stocks that offer great promise for some really great gains someitme in the future. However, the market movement and economy is against them. It is doubtful if they will succeed.
In summary, everything that I have tried has failed. All I could do was hang onto my nest egg.
So far it seems that the consus is that Inverse ETF/s and shorting stocks is the answer. Thats about as close as you can come to a self fullfilling prophecy………..
RT
Martin,
I’ll respond first to the items on your list which are indeed devastating enough, BUT afterwards I want to address the BIGGEST threat of them all that, in my humble opinion, should be # 1 on your list because, if it is not stopped now, it will soon drawf everything else in terms of its devastating effect on the U.S., and that is the Gulf Oil Spill.
My recommendation is to immediately withdraw enough cash from the bank(s) to cover living expenses for at a minimum through 2012. A cash supply of five years would be better. And everyone should act right now, while they still can get money out. That’s priority # 1. If they don’t have that much cash, they should sell anything they can get along without to raise cash ASAP.
Their second priority should be to buy at least six months of emergency planning survival supplies; food, water and a water filter, breathing masks and a well-stocked medical kit. One good information source for all this is The Survival Center in Washington state. And people within 200 miles of the Gulf coast should create a thorough evacuation plan NOW !
Any remaining cash should be invested 40% in physical gold for the next two years, at least. One ounce bars are best. And 10% in silver coins. Be careful who you buy from so you are not charged too much and get the real thing. Find somewhere else other than a bank safety deposit box to store it all for access when you want it.
Then what? Savy investors could set aside 25% of the balance for short term trades as opportunities afford themselves; like shorting the market the next phase down. But everyone should keep the final 25% in cash, even though cash is not the long term place to be, it is definitely necessary in the short term. When we do finally hit bottom, it will be worth a great deal in buying the best opportunities at the outset of a recovery. Or if everything turns out to be worse than we all imagine, cash might buy the very life supplies we need most.
Now, back to the BIGGEST IMMINENT DANGER OF THEM ALL, THE GULF OIL SPILL. Think about it, if they could have stopped this GUSHING GUSHER, they already would have.
Ask yourself, what happens if it is UNSTOPPABLE, as it now appears The consequences dwarf the threat of everything else on your list.
It is UNIMAGINEABLE how devastating it will soon become, not in years, but in months. Right now the signs favor the worst. Real estate, fishing, agricultural production and the wonderful land of Florida and that all along the Gulf coast could be lost for who knows how long. If that happens, small businesses all across the U.S. will soon shut down (credit is not available to them even now), the currrent unemployment numbers will soon look like child’s play by comparison, the stock market and the entire U.S. economy will soon all plummet beyond anything CNBC is currently covering. A great number of people could become seriously ill from the fallout, causing a dam break on health care costs, adding to unfathomable soaring government deficits.
Bottom line, this gushing oil well, if not stopped now, will soon break the collective already weak back of the U.S. economy. To put it another way, it is clearly the straw that breaks the camels back.
Suddenly OIL supersedes the greatest threats to America; overshadowing terrorism, overshadowing this present destructive bunch in Washington, overshadowing financially destroyed state governments, overshadowing the global soverign debt crisis, and whatever other threats there are. Destruction is at hand; right upon us, right now.
The economy is a terrible mess. I am in the mortgage business for 23 years and there are some buyers for real estate but I feel with inventory at high levels this will continue driving prices down further. I believe our way of life is changing. More families will “bunk up” together, housing demand will be lower for some time. Housing is a HUGE part of our economy.
Though I don’t agree with it, government stimulus has given us unrealistic, unstainable results in the economic numbers. What I see on the streets is some peolpe are still going out to eat and enjoying services and discrecionary spending because they ARE NOT paying their mortgages, essentially living rent free at the cost of future bank losses and us hard working Americans bailing them out thru taxes. As the government cannot continue to throw fiat money at this problem and eventually all those property owners will have to pay rent somewhere this will be a continued drag on the economy when this fake money supply dries up. I have heard countless stories of people living two plus years in their house without making a single mortgage payment waiting for the bank to kick them out. Unfortunatley, bad behavior is rewarded by this administration. The good, conservative hardworking American is getting the shaft as as we are struggling to meet our obligations, and remain solvent as individuals. My vote is double short inverse ETF’s shorting lets say the DOW or the S and P 500 and ride the market down and making twice the profits. I will keep my GLD and SLV positions in ETFs and hope that they hold their value when the market tanks. Let go of the stocks that you are hoping to make up your losses on and move on before you lose more. Wait for the bottom and possibly ride the blue chips back up, that is of course if future numbers point up, that is yet to be seen. And pray for a new leader of this wonderful America that will make the tough decisions we need to make to avoid the iceburg in a ship much larger than the titantic. My real concern is that it may be to late….. God Bless all you hardworking and retired Americans!
Martin………as a long time member to your news letter……in your web blast you said to buy SCC at the open…..I did…thanks…….$$$$ to the good….I had my own stops….LOL
as you can see the post above I and people are afraid of what to do……inflation…..deflation..
where do we put our $$$$.
I do not wish to get rich…..I only want to hold my buying power as to restart the system….you have said this……
so I ask where do we go from here…….Steven W
Hi Martin,
I”m somewhat bemused. You advocate action and your Manager on the MDCP kind of agrees with your analysis but is sitting on his hands. I’m sticking with Claus if only because I’m paying him so I hope he’s right,
cheers, Bob
what put options should we buy to profit from this decline?
QUESTION: What should YOU be doing now to protect your wealth and profit?
oh I see an investment question…..LOL
of the stocks over the years I like the dividends payers.
I am a bond player….30 years
in 1975 to 1979 I liked gold…….in 1979 the top was 400…….any thing is BS……do the charts
1. Sell All treasuries. Especially tax-exempt munis. With 47 banckrupt states and more municipalities going banckrupt, munis are NOT safe. If China is dropping treasuries, why not you?
2. Stay in cash, keep at least six months worth of expenses for emergency. Do not put cash in ANY bank.
3. Exchange dollars for gold coins and or silver coins. One silver coin will buy a loaf of bread. One USD will buy crumbs.
4. Buy only dividend payers. BUY MLPS, REITS, CANADIAN ROYALTY TRUSTS, USA TRUSTS, UTES FOR INCOME. They are income and growth stocks
5. OPEN a ROTH IRA. Transfer all IRAS offshore.
6. Store food, water and essentials like the mormons. Use FIFO system. They are good at it.
7. Do not use credit cards for ANY purchase. Use these for emergency purposes only. Pay credit card bills in full when due.
8. Do NOT spend money you do not have. Do not buy anything unless you absolutely need it. Put extra money in your emergency fund.
9. Re-use, re-cycle what you can. You are helping the environment that way. Use flea markets, thrift stores and Craig’s list.
10. Spend it down, to less than a million dollar assets. No estate taxes. Besides you could not bring it with you. Let your children struggle for their own nest eggs. You did it, why can’t they?
Short the S&P-500, I have done this since the 20th and doing very well.
WRT post about Chinese wanting yuan to be world currency, with what commodity do you think they will offer to back it? Gold and silver are scarce. Copper? They are stockpiling it.
for the last three months I have been
40% cash
15% double and triple short the markets
5% precious metals
30% short term ( 4 years or less ) corp bonds ( some BBB or less )
10% oil, gas, water and misc stocks
HOPE I AM RIGHT ?????
put some in peer-to-peer lending — such as Lending Club — to net about 12%, highly diversified.
Dr. Weiss:
I believe you are on the right track and I am taking some measures to get off the Titanic before it hits the ice berg’s tip. For starters I am selling all of my blue chip stocks and doing two things with the money…develop a ready cash fund for daily operations, invest additionally in gold and finally I am making some investments in dividend return programs with long standing stable corporations that have long established records for returning double returns on shares and dividends. My plan is not extensive but it is a plan that just might work.
Find stocks that will be falling in price and buy puts. The question is how does one find those stocks!Dr. Weiss: What is a good method to use?
I agree with those who suggest buying short ETFs and I think 10 yr treasuries will likely head toward 2% so those look good too, until interest rates reverse and/or the dollar falls. Up to 20% in gold (GLD, etc.) would seem like a good idea too. My prediction is that the S&P 500 is headed to 880-930 (head and shoulders count).
Hello Matin:
I am Short the Dow, Short Financials and RealEstate. Also short the 20+ Bonds, all with the Pro Shares Ultra short ETFs.
I have a whack of Gold I purchased for $295, many years ago, and a ton of silver mostly purchaded for $4.72. I have a lot of resource strocks such as lithium and unanium along with major and junior Golds on the CDN market. I’m ready. I could be mistaken if they illegalize Gold. Or if there could be no currency to cash my precious metals in for. It’s scarey, but I’m ready as anyoune can be. Brian Riordan.
buy inverse etf’s
You mention interest rates; low interest rates are
“great”; less burden for the borrower.
What about the person who doesn’t know or trust
stocks and has his/her savings/investments in
interest earning investments? They are consumers
too! How are they coping in this low –income?
Not only individual investors but, likewise,insurance
companies and other fixed income holders.
The other side of the low interest situation.
At this time of uncertainty I think it is more important not to lose money than to make money. So , in my opinion, it is prudent to substantially increase positions in cash ; hold gold mining stocks; perhaps increase holdings in precious metals for long term investment.
RR
1. Recognize 96% of all S&P 1000 stocks got clobbered between Sep 2008 and Mar 2009, thus, there is essentially no safe haven stock or group to own in a massive downturn.
2. Utilize inverse ETFs of major indices, 1:1 (SH) and 2:1 (SDS) leveraged instruments, to trade and profit with targeted modest 4-10% increases from entry points, using stop losses for each instrument, & adjusting SLs on a frequent (perhaps daily) basis;
3. select & focus on core set of instruments (e.g., ~40) in categories of precious metals (GLD, CEF, GTU, SLV, GG, AEM), oil/gas (UNG, OIL, IXC, ERF, CNQ, XES), specialty materials and processing (OMG, SSL), index and special sector ETFs (QID, DXD, SRS, SKF, VXX), and growth-oriented country index EFTs (PIN-India, EWZ-Brazil);
4. slowly start to accumulate inverse long bond ETFs (TBT, TMV) watching for indications of interest rate increase;
5. diversify & watch dynamic movement of each instrument, buying against the ticker when slow stoichastic measure is 80%.
5. keep bulk of portfolio in 13-wk US Treasury instruments while not engaged in a specific trade suitable to “tolerable risk” based on financial status, experience level, and availability to follow instruments closely;
6. Use advice from services like Weiss Research and Daily Reckoning to guide selection of instruments; however, do not rely on monthly newsletters for timing of trades
7. Take profits when instrument price swings exceed acheivable level (e.g. 4%), recognizing volatility will likely create multiple opportunities for profits in same instrument in relatively short time intervals;
8. Buying and “holding” stocks for years is imprudent and risky approach, given electronic trading and volatility now generated on a global basis; use price swings to guide buy and sell decision for each instrument; stay focused & disciplined, and avoid greedy tendancy and tentativeness in decision-making.
Dear Martin, Thank you very very much for your timely and wise cautionary Red Flag. You asked an emphatic : WHAT WOULD YOU DO ? My simple answer is I am already planning my going the SAFEMONEY REPORT way . Along with it I am ready to also go into my favorite RealWealthReport positions. These are what my best financial condition needs. That is my best insight toward myself,wife,and my family financial stability. I am not a highly wealthy man. My wife holds more financial wealth than I. She listened to some of the Weiss Group reports and followed me into the AM Century Global Gold Fund. She gave me no ill reply when I told her about my doing according RealWealthReport & SAFEMONEY Report. Thank You.May Jehovah bless.
I write this as a Uk citizen but from a US perspective
Next deflationary collapse will bring down ALL assetts good and bad including PM’s.
Buy double short ETF’s on major indices and short term T Bills. Short Home Depot (HD) and Assured Guaranty (AGO) to take advantage of bust in Municipal Bonds.
Before second round of QE buy proven div stocks such as Canadian MLP’s, PM’s physical and stocks,plus selected stocks in India, China and surrounding countries, put cash into CAD$ and CAD bank accounts, short 20yr treasuries via (DJT) and the USD via puts on (UUP) they will be at a peak after a second crash as people will run to perceived safe havens, the US$ and treasuries.
Disclaimer: I may be wrong but!!!!!!!!!
Buy Gold stocks,
selling S&P 1050 July 31 calls & buying 1000 July 31 Puts for same money,
buying SH to hedge my good stocks I don’t want to sell
buying SDS for downside profit.
I’m short SPY with August 85 put options. Anyone (Martin) hazard a timescale for a major market correction? Thanks again MW for prescient advice.
Buy into Gold and Gold $ silver producing Companies
Just read a blog yesterday by Nick Guarino claiming Goldman Sachs is “front-running” with a supercomputer called “The Beast”… i.e. HFT or high-frequency trading that accounted for the
“flash crash” recently. The game is rigged. He suggests inverse ETF for the big banks and another triple inverse ETF for a certain financial index and an inverse ETF for commercial real estate. He is in zero-coupon bonds that are poised to go up as the yield on the treasuries goes down.
I was wondering about what kind of a drop to expect in junior gold stocks.
Gold and silver, inverse ETF’s, cash and good quality stocks that pay a consistent dividend. Like MLP’s , also consider Canadian trusts. Canada seems to have their act together. US is a mess and Europe is a disaster.
in this finance difficlty , there is no good advice
Does it not make sense to search out high dividend stocks with a good history and ride this market out?
My suggestion to other investors, as well as individuals, is to stock up on food, as a hedge against inflation. Don’t forget to rotate. This is how I figure to weather the storm. I’m sure most readers are now savy to the coming hyperinflation. Stay safe and keep your powder dry!
What should I buy £650 000 worth of baked beans?
Well said Sir. In addition, going to God, asking for forgiveness and accepting it. The realization of what one actually needs will change – Jesus Christ submitted his will to that of his Father, God. I think this is wise. With God’s help will there be a turn around. I suggest to support those that are doing the works of Jesus Christ – signs follow those that believe. I encourage all to believe and pour your heart out before your Maker. He will direct your path. Trust God.
I’m cash, physical gold (bars not coins) and GLD. Not too heavey on the Au. I don’t want to end up like midas!!!
YOUR PREDICTION IS VERY UNNERVING.
A LOT NEEDS TO BE DONE TO EARN MONEY.
Beware of the possibility of serious DEFLATION. Banks are not lending, and the money supply (M3) is shrinking despite obscene efforts to devalue currency through printing carloads of it. You can’t have inflation when banks don’t distribute (lend) the money created. Stay away from stocks AND commodities at least until the DOW drops below 8000. Shorting the S&P with inverse etf’s a good strategy!
I lived through the Great Depression and I can tell you that a very secure mattress is a good temporary strategy when the dung hits the fan. Deflation is a verrrry bad outcome— you still have the debts but no cheap money to pay it off—if you have any money left, that is.
Martin,
I think your Father Irving Weiss said it best, “think not about the return on your money but the return of your money that counts.”
Would Irving recommend holding a short term Treasury money market fund? Could you post his work on your website again?
Kevin Mc
Has there ever been a study to determine if there have been certain types of company/industry- group survivors which were common to all or most of the “crashes” which have occured in 1929 and later?
By survive, I mean those entities which saw stock values rising more or less steadily after the crash and early resumption of meaningful dividend payments.
If I am correct, the little guy represents less than 80% of market volume while the computor traders with deep pockets have the ability to drive a stock’s price up while simultaneously buying puts on the same stock. So I’m thinking that it makes sense to buy puts on whatever when the market is bullish and calls when the market turns bearish, or do the same using ETF’s. But what if a retiree needs income to survive – or just to keep up with inflation?
Has there ever been a study to determine if there have been certain types of company/industry- group survivors which were common to all or most of the “crashes” which have occured in 1929 and later?
By survive, I mean those entities which saw stock values rising more or less steadily after the crash and early resumption of meaningful dividend payments.
If I am correct, the little guy represents less than 20% of market volume while the computor traders with deep pockets have the ability to drive a stock’s price up while simultaneously buying puts on the same stock. So I’m thinking that it makes sense to buy puts on whatever when the market is bullish and calls when the market turns bearish, or do the same using ETF’s. But what if a retiree needs income to survive – or just to keep up with inflation?
gold and index funds are what I’m doing, also some EFT’s. I like Brazil MidCaps too.
Get into gold and commodities.
so where if i had any money put it
Said like a wise old sage….
Unfortunately the government was hijacked during the Kennedy assassination / Johnson-coup.
No one is as stupid/irrational as DC (district of criminals) pretends to be. This was all engineered.
Listen to Martin’s advice as he’s been 90% spot on for the 10 years i’ve been reading him; and hold on to your azz, its going to be a wild ride (down)…
the above was a reply to Alan Scott but this software has malfunctioned
come on Art, this has been brewing for a long time… obama is the one with the hot potato in his hands, not because he caused it. The problem now is it’s world wide… The unions gave a man a decent wage, one he could buy a home, have retirement and health insurance… wait till the baby boomers start hitting retirement age, with no retirement, no health insurance (other than medicare), with less people working than retired… the mess is just beginning…
What everyone should be doing right now is: Position yourself to offer service and or products that everyone must buy. Food, Shelter, Clothing, transportation etc. Forget the new car as an older model will work, an honest mechanic will make lots of money. Bankers will, most likely, be shot as will other crooks: I don’t advocate violence. At least they should be imprisioned. What do you know, we will have a complete turnover of politicians. If you are a retailer or wholesaler, forget offering credit, you’ll never see your money again. Don’t participate in any business offering anything that people don’t absolutely need.
Hang onto your cash, you will need every “peeenny” of it.
Take out all my money
Dear friends,
Does history always repeat itself? and if so, why? Could it be because – in a way “people are
predictable” – which we refer to as “public opinion” – and as we all know “public opinion is
not really public since its a known fact that “public opinion can be and is successfully manipulated, now and for years!
So adding up “all of these known facts” what will “actually bring down “this house of cards”?
According to your report today, its all happening and will continue to happen, despite everything I just enumerated, is that true?
If so, wouldnt the “computer”s know that also” – “garbage in/garbage out” -
If this is the case then “its only a “question” of time when “all of this nonsense will “implode/explode” – since your firm is now linked with a “timing system” when do you
predict the “final collapse” – that is, according to your charts of course?
Summing all of this up – “puppets will always remain puppets” since they are “not the puppeteers – - however, the day of the puppeteer according to the expertise of your firm,
is “fast coming to an end”
What happens after that?
mrothman
Red Aleart: 1. Winners, Loosers, break-even: Sell all stocks NOW!!
2. Short S/P and /or the DJIA with Inverse ETFs depending upon your risk tolerance 1x, 2x, 3x leveraging levels.
3. Gold: boullion, ETFs, stocks, gold and silver coins for long term. I would include Sliver ETFs, also.
4. Put options: short trem, 1 to 4 mounths out: moderate term 6 months to 1 year out: long term leaps 18 months to 2 years out. CHEAP OPTIONS high risk investing? Yes. However, you can’t loose any more than you invest. [ ie 600 strike price @ $1,500 means all you can loose is $1,500!! I use stop mental stop losses of 40% on options. My investment style and methods are not for everyone.
Thank you Martin for Safe Money Report. Over the years you have helped to grow both my retirement and long term emergency money into 7 digits!! Over the nextfifteen years I hope your new ” incharge ” will do as you have done!! Ask Larry E. to hope with suggestions for LEAP options for the Spectulator portion of SMR!! It really helped to boost my money and I only used 10% to start with!! It’s a thought!! Bless You and yours and the staff for all that has been accpmplished through the years!! Wishing all a safe and happy 4th of July!!
Need current income? Buy income [ dividend ] paying stocks: DRIP plans are good if you have 15 + years before retirement. The compounding effect takes that long to show solid gains! For example:
I bought a stock [ LG ] when I was 13 and I still own it today, I’m 65. I have reinvested the dividends and have added 50% of my Overtime all of my working life!! Today I have over 20,000 shares and it pays me $0.395 cents every quarter per share!! Thats over $31,600 a year and I’m still adding to it! I’ll retire at 70!! By the way there has never been a missed dividend payment.
The stock hit lows of $8.50 a share to highs of $52.73: currently it’s at $32.73 and stills pays 4.8+% dividend!! There are many good dividend paying companies. A lot depends upon your age and $$$ wealth value $$$ Starting young is best but if your older then use your savings . . . ?
This is great for kids: Start them out with minimum investment{ 10 shares @ 15.00 ] and a 4.5% dividend. Each hoilday / birthday buy a share + what ever dividends are reinvested!! Some good companies are [ have DRIP plans ] AT&T, IBM, COca-Cola, Ford, ect. Just start calling companies and ask for the Stock mgr / Treasuer and DRIP plans. Usually you need to ask about 424 Boost form or something like that to get stasrted!!
I hope that will help you out. Good luck
What immediately comes to mind: short, wait for lows, re-buy. Ok for those with a big $ idle cushion or an unneeded portfolio. But is that majority? Likely not!
Stash as much cash as possible, better yet, gold/silver bullion. Get out of debt ASAP. Use credit cards very cautiously. Live frugally and don’t try to keep up with the Jones. The Jones are in trouble.
stash as much cash as possible in a safe place. Better yet, make that gold/silver bullion physically held. Get out of debt ASAP. Live frugal below your means and do not try to keep up with the Jones…they are BROKE!
stash as much cash as possible in a safe place. Better yet, make that gold and silver bullion physically held. Get out of debt ASAP. Live frugal below your means and do not try to keep up with the Jones…they are broke.
I am buying SH, the inverse of the S & P, and shorting the Feb 2011 SH. I expect DEFLATION to precceed INFLATION, and I want dollars in hand to buy things cheaply.
DOC
Why is nobody saying anything about our companies replacing native employees with foreigners? That phase of our decline is just beginning.
Does it make any sense for a retired couple to buy companies that have secure dividends, with an equal amount of inverse ETF’s to protect your down side. This will provide you with income, but also give you market protection.
Move to Canada.
I am stressed out. I look to others for answers. I don’t hear any practical ones. The ‘Market’ is seriously over sold. It is being traded in low volume. I can’t figure how best to get out. I have acquired a new 100 watt solar panel and new batteries…. but for what? to amuse myself when I have nothing to do and the WWW is also controlled by the feds?
Ingore the chatter!
And
Be prepared for the following:
First deflation will resume where it left off last year & eventually finish its course. Then inflation will start which is what governments want. Then the currency abuse will finally cause hyperinflation to set in & destroy the likes never before seen & we will be wishing deflation to come back but it will be too late. Once trust of the fiat currencies is broken its a fire that causes much worse pain than the natural cycle of deflation.
Hello, I am buying FAZ (3X inverse DOW) ETF on pullbacks and will buy Eldorado Gold Corp. hopefully near the bottom in preperation for the loss of faith in the Dollar as a safe haven when its value continues to fall against the Yuan.
Hello Edward, From what I have read, the basic necessity companies faired best during the great depression but did not do well. Proctor & Gamble, Walmart, and such. Only, gold increased in value during that time period.
Hey Mike, I like how you think. How will you know the bottom? Tom
Elaborate on why t-bills are unsafe and exactly where to go with my cash in t-bills?
Anybody?
RHL
Realize that the crooks in the government and on wall street will inject tons of cash into the market to keep it from imploding and keep their illusion of recovery going no matter what the reality is as they have done in the last week. It is disgraceful.
Extreme caution, including taking profit and moving more to cash to position for bargains down the road. Distrust government stats, and distrust financial balance sheets.
Martin may views are the same, but what Americans do not understand that putting money
via 401K and ira’s in the stock market is nothing more than pure gamble, and not investing. You only invest when you buy real property for long term. With the likes of white collar crooks like
Goldman Sachs, Chase, Merrill Lynch who manipulating and skimming your money of the top
by flipping the same stock from one fund to another, generating millions of dollars in fees daily.
Just look at the stocks that skyrocketed in the ninties, msft, intc, dell, csco, what have they done
in the last ten years. Nothing !, absolutly nothing!, but yet they trade millions of shares each day.
They convince the worker to invest for long term, and they skim their fees, and sell their stocks
options ,while you are promised this nest eggs down the road, with this wortless paper call a
stock certificate. I guarantee that thes suckers, workers will most of their money if not all,
unless they wise up and either save their money or put it sonewhere same. They have no clue,
how much printed money the goverment handed over to the thieves on Wall Street who are
put your money in toxic assets while reaped big fees and bonuses, at the goverments and your
expense. Wise up and protect what you have, because the big tsunami is coming soon.
Goodluck Steve
Clearly, paper money has now lost its function as a store of value and a medium of exchange, and this is what gold is reflecting. Paper money has gone down 98 percent in the last 100 years against gold and about 80 percent in the last 10 years against gold. So gold is just a stable medium of exchange that is reflecting the printing of the money. Gold will play a major role in the future. When this problem is over, there will probably be a future reserve currency that will have gold as a part of it.
Long term I definately believe gold will win out, fiat currency will scare investors :we may see a gold backed currency, with the dollar losing ground. That being said, it would be easy to underestimate how others such as China may keep us propped up for longer than we expect while they transition to a consumer society.
It seems to me that the mood of the average person is turning sour – south. There are lots of small ‘lay-offs’ but they add up. The residential real estate forclosure absorption rate is slow and will take years to stabilize. Banks will suffer more. Commercial space is a glut which will last for years too. The big Stock market investors are in the hopey – changie box and the little investors (like me) are going to cash – short term treasurys for safety.
I got out of debt. I pay cash and stash my cash. Stay liquid and watch for opportunities.
BB
Dr. Weiss,
I am still waiting for you to publish the truth: That the stock market has turned into one big criminal enterprize, and that stocks are not going to go into a huge slump like they did a couple of years ago. That slump was real. Since then, backroom deals have been made and all kinds of systems put in place to MAKE SURE that the market never tanks big time again; the biggest buyer of stocks is and will continue to be the US Government which is buying up the country with their funny money; and the government will continue to support bullish or moderate markets by infusing the market with billions of dollars in cash whenever it looks like a crisis is in the wings.
There is, as you have said, absolutely NO more connection between the stock market and reality, and that is because the stock market is now a sham, a guaranteed movie-set that has iron posts of governmental interferance holding it up. The Obama administration will NEVER let it go into a huge swoon again. Bernanke will never let it go into a huge swoon again. The truth will NEVER be allowed to come out, until it is too, too late. The last ten years, starting with the election of Bush, have been the biggest swindle in human history.
Dear Martin;
What we are struggling against now began in earnest during the 60’s revolution. Only now are serious numbers of citizens waking up to the critical nature of what was and is at essence a socialist movement; this is their moment to transform our Republic into a socialist state…do or die,now or never.This is why many of those in power oppose over and over again the will of the people, issue after issue. This is not so much a matter of party affiliation as it is of ideology. As extreme as it may sound, I fear for the survival of the Republic and the future of my grandchildren.
For ultimate irony, we see Communist China doing all it can to support what is now basically a capitalist free market business system as our president et.al,struggle to transform America into a socialist state ! I believe that we are in the wave of history,generations taken for granted what previous generations struggled and sacrificed for. However,I also believe, that America is sufficiently unique so as to contradict the patterns of the past…but the hour is late. This war resides not only in our nations capitol but also in our nations class rooms and theaters. Short of some horrendous acute disaster, this cultural war, this struggle for the very soul of our country, will last for many years. Will we as a people return in faith and vision to the founders of our great nation or fall victim to the vapid promises of socialism, of huge centralized government and the nightmare visions of the previous century that led to over 100 million dead?
All other concerns are the result of and or follow the above considerations. …IE. cash,shorting ETF’s,precious metals,commodities,short term bonds,storing foodstuffs etc.
if the dow and us economy do what i think they will do(GO DOWN DOWN DOWN DOWN, THEN SOLI D 2 FOR 1 ETFS WILL WILL BE THE SAFEST FOR WHAT LITTLE INVESTMENT MONEY I HAVE LEFT. THANK YOU FOR WHAT YOU DO FOR US AND OUR NATION.
CURT PHILLIPS
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