[su_quote cite=”Warren Buffet” class=”wwd-post”]”I will tell you the secret to getting rich on Wall Street. You try to be greedy when others are fearful. And you try to be fearful when others are greedy.”[/su_quote]
Dear FutureMoneyTrends.com Subscriber.
For stocks and gold, people are starting to ask, is this the end? In just the past few weeks, these are the headlines I have come across on major media outlets.
- 5 Signs Stocks Will Collapse in 2013
- Doomsday Investors Betting on Market Crash
- Is the Stock Market About to Crash
- How to Survive a Stock Market Crash
- Technical Charts Show the U.S. Market is About to Crash
The funny thing is, they actually all make sense and I agree with the reasons why the market should and deserves to crash. However the market isn’t going to crash, certainly not with this many people predicting it!
The market won’t crash until central banks stop printing in my opinion.
With 50 million people on food stamps and the U.S. economy being in a depression, this entire stock rally has been built on a lie. To add to the lie, companies have been buying back shares giving the preception that earnings are up and that times are good…but this is not the case, stocks are rising due to inflation. Which is perfectly fine with me, I want to own things that as Rick Rule said, “the enemy can’t print.”
Are we in a stock bubble? I have always believed that bubbles require public participation and we just aren’t seeing that, volume for stocks is literally at New Decade lows this year.
Looking at Google Trends, the interest on the search word, “stocks” is down 41% since June 2005. This is the same time time period of President Bush’s 2nd term, I also felt that using that phrase around 2008 would be highly distorted since we were experiencing a collapse. For those curious, the interest for that search word are down 68% since October 2008.
I also looked to see the interest in the phrase, “how to buy stocks.” My thought was if the current stock bubble had public support, this number should be rising.
That number is down 37% in the past year. Which is actually further evidence that people are turning bearish, the only problem with this ofcourse is when is the last time the public has ever been right about the direction of the market? Try never…
For gold it is a bit more difficult since gold is a hated investment by main stream analysts. Instead I just looked at the hardcore gold bug sites, have any of them waivered, nope, not 1. King World News is still spouting out the imminent rise of gold to $50,000, Jim Sinclair is still making predictions, and I have been getting plenty of bottom calls in my email inbox. Please know that I myself am a gold bug, so I am not trying to disrespect some of the experts in this industry, but even I as a gold bug can only take so much B.S. coming from every single headline Eric King has put out for the past 5 years.
Now since we have over 600 videos I do have a little inside edge on seeing what the average gold investor is thinking, and for the average guy, I am getting a little more optimistic about gold. Recent comments are turning negative to gold and most gold investors outright hate the miners. This could signal a bottom is coming soon, but I would still like to see a few of the big names make some shocking negative gold calls, until then I am buying regularly as I always do for insurance purposes, but won’t be backing up the truck anytime soon.
Loren B: According to your latest post written by Josh, deflation is more powerful than inflation and metals
are out, is that what you wanted to get across?
Daniel Ameduri: Loren, Remember, deflation is the natural force, the market wants to liquidate the debt and reset the system. The FED is creating man-made inflation, deflation is always the stronger force up until the FED crosses a line where people lose faith in the currency, at that point in time, hyperinflation destroys the currency eliminating any chance of deflation. So to answer your question, I truly believe the FED will do everything in its power to fight deflation, which will eventually lead to a loss of faith in the currency, for me the metals are NOT out, in fact I am liking them more everyday.
Katherine R.: I am grateful for the learning I get from you by just reading your article and watching your videos. They are really helpful to me. Please continue what you are doing because you bring light to my life when comes investing.
Daniel Ameduri: Thank you so much for the feed back, I geniouly hope that I can help people make better decisions about their financial future and life.
Gabriel: If you had to choose between BDX, PM, PFE and INTC as a dividend-stock.
Which one would you go for?
Daniel Ameduri: Extremely tough question since those are my favorites, I call them “legacy stocks” since I never plan to sell. BDX is probably the safest business, followed by PM, however no one beats INTC when it comes to dividends. In fact out of all the large safe super companies, INTC has the highest dividend.
Remember all of these companies completely dominate their sectors, BDX for example is twice the size of ALL their competitors combined!
John: You think it’s possible to get wealthy without owning a business? By owning stocks for example.
Daniel Ameduri: No, I seriously doubt your average person could get rich from stocks, unless you gave them 30-40 years, which should be part of your plan to get rich, but not THEE plan. Living way below your means is probably what helped my wife and I the most, so for example, if you can afford to have a 30yr mortgage on a $400,000 house, I would suggest looking for a 10yr mortgage on a $200,000 house. Eliminating your monthly housing cost is the single best decision you will make in your financial life. This important life changing decision can help anyone, whether you have a job or a business.
As far as increasing your income, only a business can do this, jobs have caps, stocks avg. 8%, but with a business the sky is the limit!
Editor in Chief, FutureMoneyTrends.com
Share Disclosure: I am long BDX, PM, INTC, and PFE