Larry Edelson - 30-years experience analyzing and trading precious metals and natural resources.

With every collapse, there is a silver lining

by Larry Edelson on February 13, 2009

in General

Good news is hard to come by these days. With announcements of new layoffs making headlines everyday and record losses tainting earnings reports all over the world, one can easily forget now may be the best time to invest in markets.

The Fed recently released numbers that showed the median net worth of the typical American family in October 2008 was 2% lower than it was in 2001 after the tech wreck. Since October, stock prices have fallen a another 15% and home prices another 2%. While seven years of wealth gains may have been erased, there has still been eight years of earnings and innovation in many companies that make them worth more than they were in 2001. Real estate aside, the crisis in the capital markets has now put most stock prices in real terms back to 1994 levels, and in many cases, valuations that go back even further.

The sale of the century is here, but wait for my signals in Real Wealth Report before diving in with both hands.


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{ 4 comments… read them below or add one }

1 Randy Lindsey 02.13.09 at 9:41 pm

I personally hope you are right. I am currently 50% T-bills, 30% gold, 10% oil trusts, 5% equities, and 5% options. I am ready for some good news, and I am eager to start riding the Bull once again - but I don’t think the bull is quite ready to take on the big bad bear; not yet. Soon, I hope. If only our politicians would just let the economy heal itself… if only.

I enjoy reading your blog, and I really enjoy and profit from reading your Real Wealth Report. I can’t wait till your next issue comes out. It sure has been a long time since the last report! Keep up the good work.

Larry Edelson Reply:

Thank you and ditto. Do note: We publish on time every month.

2 Darryl 02.16.09 at 12:26 pm

When do you think we get a solid buy on either gold or energy. Gold had an almost classic double bottom in Oct. and Nov but energy seems to be still in a basing pattern.
On another topic: Many people have seen their 401-K become 201-K or worse (myself included). At what point should the average investor quit taking the tax advantage of the 401-K and start using that money to act on recommendations such as yours in Real Wealth Reoprt

Larry Edelson Reply:

Oil needs more time, but I believe it is bottoming. Gold has entered a new phase up when it closed above $929 last week. As to your second question, I don’t believe retirement funds should ever be used for speculation.

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