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Two years ago, we began warning you that the housing market was headed for a massive crash and we urged you to dump mortgage lenders, home builders, and other real estate stocks.
If you had listened then, you would have avoided major losses as our warning became reality.
One year ago, with the housing market sinking as predicted, we began warning you that the crisis would soon spread to banking and other financial industries — and we urged you to dump those stocks as well.
If you had listened then, you wouldn’t have lost a dime as these sectors began coming unglued this year.
Then, last week, I sent you not just one — but TWO — Crash Alerts: First on Monday and then again on Saturday.
In each one, I warned you that the impact of this mortgage meltdown will be far greater than anyone begins to suspect right now … that the U.S. stock market will suffer major damage … that you should get the heck out of the way of every sector that’s vulnerable to this crisis.
Now …
This is Your Crash Alert #3!
This could be your last chance to act — both for self defense and to reap enormous profit opportunities.
Just yesterday, the Fed pumped a whopping $24 billion into the U.S. banking system to counter a quarter-point surge in short-term interest rates.
You’d think Wall Street would welcome the Fed’s help with sighs of relief or even cheers. Not so: The Dow still plunged 387 points, and last I checked this morning, it was down ANOTHER 200 points!
Instead of loosening up their purse strings and returning to the market, investors snapped shut their pocketbooks and recoiled in horror.
“If the authorities are pumping in that much money,” they reasoned, “this crisis must actually be a lot worse than we thought. There could be even more nasty surprises just around the corner that we still don’t know about.”
Let this be a stark warning to Fed Chairman Ben Bernanke that he can’t paper over this crisis with “funny money” that will only kill the U.S. dollar in the long run …
And let this be the last warning you need — to make absolutely sure you take steps to protect your wealth, not Monday or the day after, but right now, TODAY …
SELL all stocks that are vulnerable to the mortgage meltdown — housing stocks, mortgage companies, bank stocks, brokerage stocks, insurance stocks. Yes, they’ve already plunged. But it’s not too late to protect your remaining value.
SELL all low-rated bonds. When credit is scarce, interest rates rise. And when interest rates rise, the market value of your bonds inevitably fall. Right now, U.S. Treasury bonds are rallying due to a flight to quality, helping other bonds rally as well. Take advantage of that rally to get better prices for your bonds.
SELL the dollar! Here too, due to a knee-jerk flight to quality, we may see a sharp rally, while counter-dollar investments fall temporarily. Let the dollar rally run its course. Then use it as your chance to sell the dollar and shift your money to safer havens such as gold and select foreign currencies.
STASH YOUR CASH in shortest-term U.S. Treasuries, which help you BENEFIT from rising interest rates. Regardless of the dollar’s decline, they are still the ultimate safe haven. The most convenient vehicles: Treasury-only money market funds like American Century’s Capital Preservation Fund, U.S. Global’s U.S. Treasury Securities Cash Fund, or our affiliate’s Weiss Treasury Only Money Market Fund.
BUY hedges that can help protect the balance of your portfolio, such as the ETFs designed to go UP when the markets go DOWN. Look, for example, at the long menu of inverse ETFs offered by ProFunds. Then pick the ones that most closely match the assets you want to protect.
You have my word, dear reader: I’m going to be here for you throughout this crisis. I’ll do everything in my power to get you through this with your wealth intact.
More than that: Making the right moves at a time like this can be enormously profitable — and my team and I are committed to helping you use this crisis to grow you wealth while millions of others are losing theirs.
That’s why I’ve called an emergency teleconference for next Thursday — an event made all the more urgent by yesterday’s events. (Click here for free registration.)
Our mission: To help you harness the enormous profit opportunities that this crisis is creating — beginning IMMEDIATELY!
This teleconference — “The Spreading Credit Crunch: Protect Yourself and Profit!” — is next Thursday, August 16. The time is 3 p.m. Eastern Time. And the registration is free by clicking here.
Register now, while there are still slots available!
Good luck and God bless!
Martin
About Money and Markets
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Money and Markets (MaM) is published by Weiss Research, Inc. and written by Martin D. Weiss along with Sean Brodrick, Larry Edelson, Michael Larson, Nilus Mattive, and Tony Sagami. To avoid conflicts of interest, Weiss Research and its staff do not hold positions in companies recommended in MaM, nor do we accept any compensation for such recommendations. The comments, graphs, forecasts, and indices published in MaM are based upon data whose accuracy is deemed reliable but not guaranteed. Performance returns cited are derived from our best estimates but must be considered hypothetical in as much as we do not track the actual prices investors pay or receive. Regular contributors and staff include John Burke, Amber Dakar, Adam Shafer, Andrea Baumwald, Kristen Adams, Maryellen Murphy, Red Morgan, Jennifer Newman-Amos, and Julie Trudeau.
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