On July 14th, FutureMoneyTrends.com told members to get defensive, to prepare for the second wave down, we even issued a crucial article that went viral all over the internet titled, [su_quote]The Fed has been Checkmated.[/su_quote] Right now FutureMoneyTrends.com is more concerned for investor portfolios than ever before. YES we could get a bounce, however, IF we don’t see a a huge rally or QE3 announcement by the Fed, we could be headed towards 1,000 on the S&P 500.
We should also point out that the dollar index has also broken resistance and could be headed to the mid 80s from here, this of course would only confirm our thoughts of a downturn in the markets. Just how ugly can it get for main stream investors, without more immediate inflation from the FED, think 2009, only lower.
As of right now, the U.S. markets have officially entered a bear market. One interesting thing to point out is that the S&P is virtually at the same level it was on October 4, 2008.
The biggest losers over the next few months will be the buy and hold investors who are diversified, they are going to see their portfolios probably get cut in half. Rallies in our opinion should be used to load up on strategic PUT options and shorts. Sell-Offs should be used to increase exposure to natural resource plays, short term and long term ideas. Obviously, we make it no secret that we are EXTREMELY BULLISH when it comes to silver, gold, oil, timber, coal, rare earth metals, and most of the finite resources that should hold up during a fiat currency crisis.
Prospering in a Down Market
In the last three trading days, our two option PUTS that were included in our exclusive report are up HUGE. The option that is focused on the European banking crisis is up 129.6% and the option that is focused on the U.S. depression is up 77%, these gains have been made in just the last two and a half trading days since the release of our report. If you are interested in seeing what is possibly the most important report you will ever review when it comes to protecting and prospering in our current market conditions, please visit:
Deflation Vs. Inflation
Remember, FutureMoneyTrends.com focuses on the trends, right now the trend is deflation, however, by knowing how central planners will respond to this trend, we can easily predict future trends. Bernanke has not only written about his response to deflation, but we have seen him in action since 2005. Why anyone would ever think that this man isn’t going to print like a Kincos Employee of the Month on steroids is beyond us. Bernanke hates deflation and prides himself on being a self described expert on the Great Depression of the 1930’s, this man is hell bent on NEVER allowing deflation to occur despite having demographics and macro-economics against him. This is why FutureMoneyTrends.com doesn’t focus on inflation or deflation. We focus on the currency crisis ahead, where all fiat currencies will be in question, something that is extremely bullish for all of the longer term trends that we have presented to our members.
QE3 Prediction Stands
For months FutureMoneyTrends.com has predicted that QE3 will come only after a crisis has begun. We should note that a crisis by Bernanke’s standard is not high unemployment, 100% Debt to GDP, or the dollar losing value, it’s the stock market going down. Now that stocks are going down, Bernanke is officially entering crisis mode where politicians, 401kers, and millions of Americans are almost ready for him to UNLEASH the largest printing bonanza the world has ever seen. The foreplay of the last few months has been QE2.1 (low rates until mid 2013) and QE2.5 (aka “operation twist”). The day of a major QE3 announcement is almost here, of course the key word is ‘almost’ we still believe that the S&P 500 will have to be in triple digits.
Watch GOLD because Bernanke does.
The recent pull back in gold has caused many westerners to question their holdings. Which is not surprising since colleges, main stream pundits, and government officials have done everything they can in order to brain wash the public into thinking that gold is nothing more than a speculative commodity.
What’s really going?
- A fund in Qatar plans to buy $10 billion in gold-mining investments.
- China plans to purchase 300 tons this year according to the World Gold Council. China accounted for 6% of global demand in 2000, in 2010 they accounted for 18%.
- Central banks who are printing and manipulating interest rates are BUYING GOLD, for the first half of 2011 central banks imported 198.4 tons of gold. Just 2 years ago central banks were net sellers.
- The U.S. will reach 100% Debt to GDP in a matter of months.
- According to Alix Steel of TheStreet.com, India could be importing as much as a thousand tons this year.
VIRAL STATUS!!! Our latest micro-documentary released yesterday just made it onto several major websites that get hundreds of thousands of hits. This is amazing since we believe educational videos like our housing video will help change the way society views government and its role in our daily lives.