No one can foresee future human events with any semblance of specificity or precision.
But there are unique times in history when the winds of change are so powerful and their impact so dramatic, it is possible to foretell the broad outlines of what’s to come.
And sometimes, all it takes is one singular, relatively safe assumption — that the trends already in motion will stay in motion.
That certainly seems to be the case today.
Four and Half Decades of
Dètente Now Unraveling
You don’t need a Ph.D. in International Relations to see the step-by-step unraveling of the détente that defined East-West ties, a process that began 45 years ago …
First in Helsinki, Finland in 1969, when the Cold War superpowers began the Strategic Arms Limitation Talks (SALT) …
Second, in Vladivostok, USSR in 1974, when U.S. and Soviet leaders, Gerald Ford and Leonid Brezhnev, signed an historic treaty limiting anti-ballistic missiles …
Next, on to Vienna, Austria in 1979, when President Jimmy Carter and Brezhnev signed an even broader SALT II treaty to limit nuclear weapons …
Then, a long series of Strategic Arms Reduction Treaties (START), signed by U.S. presidents Ronald Reagan, George H. W. Bush and Barack Obama.
None of these pacts was ideal. None ended tensions entirely. In fact, one (SALT2) wasn’t even ratified. But all of them, when combined, led to the greatest arms reductions in the history of mankind.
In today’s environment, however, any such agreement is unthinkable.
Even talk about talks is far from anyone’s mind, as both sides plow ahead on a fast track of hand-to-hand economic combat and arm’s length military confrontation.
Last month, for example, a Russian submarine breached the territorial waters of Sweden, and Swedish authorities have recently released sonar images of a foreign submarine to prove it.
Also last month, NATO reported large-scale Russian Air Force activity in European airspace.
And just last week, Russia announced plans to send its planes on patrol over the Gulf of Mexico and the Caribbean.
All this on top of Putin’s thinly veiled threats that Russia is still a nuclear power … Putin’s personally-directed initiatives to test and build nuclear missiles … Putin’s massive troop deployments swarming across the border into Eastern Ukraine … and much more!
Who started it? Western leaders say it’s Putin, who opened hostilities with his annexation of Crimea and his de-facto invasion of Ukraine’s Eastern provinces. Putin says it’s the West and NATO, which, years earlier, broke its vow never to expand to Russia’s borders.
But regardless of the past, what matters now is that the threats and counterthreats are snowballing — with no sign of a new détente, with abundant signs of more clashes ahead, and with a chain reaction of parallel East-West conflicts now emerging. These include …
Eastern European countries that still side with the West vs. those, like Hungary, which are now restoring closer ties with Russia …
China vs. Japan, getting ready to blame each other for their sinking economies …
Iran vs. Saudi Arabia, a kingdom prepared to do everything in its power to sabotage Iran’s possible nuclear pact with the West …
Shia vs. Sunni extremists, now on a series of new, bloodier murderous rampages …
Israel vs. West Bank Palestinians, who are now finding common cause with the more radical Hamas to actually “celebrate” recent murders of their “sworn enemies” in Jerusalem …
Just to mention the most obvious ones!
And regardless of the past, what matters most to you is …
The Impact of These Spreading
Conflicts on U.S. Stock Markets
A casual observer might jump to the conclusion that the impact of overseas turmoil would be, on the face of it, negative — a drag on the U.S. economy, falling profits, a sinking Dow.
Money and Markets editor Larry Edelson explained the phenomenon with a great clarity of vision more than one year ago, when he declared, in bold headlines that …
The cycle of war will ramp up steadily and continue to do so for years to come …
The inevitable fears of instability and physical danger will drive wealthy individuals and institutions to transfer their liquid funds to the U.S. dollar and U.S. stock markets. And then …
Those investors, already shell-shocked in their home countries, having lost their appetite for risk, will seek the highest quality assets they can lay their hands on.
This is exactly what has happened — and is likely to continue happening!
This is why the U.S. dollar has surprised nearly everyone else with its tremendous relative strength — not because the United States is suddenly so attractive, but because it has continually won the “Least Ugly” prize in the global Miss Universe contest.
This is why, every time the U.S. stock market has seemed ready to retreat, new foreign money has flooded in to buy perceived bargains and drive the averages to new highs.
This is why, big blue-chip stocks (seen as safer bets), have consistently outperformed small cap and penny stocks (widely considered riskier).
And this is why the Weiss Stock Ratings, which stress quality and safety, have so handily outperformed the market AND outperformed the ratings of other ratings firms.
My view: The key to a successful strategy can be summed up in two simple words:
Quality Investing means picking out the small handful of elite companies that are at the pinnacle of our charts in terms of their big cash hoards … abundant, unencumbered capital … plus a steady and sturdy pile-up of net profits.
Quality Investing also means using strictly stocks that let you buy or sell at a moment’s notice, almost any time, in almost unlimited quantities.
And for me, Quality Investing means doing all this with my Weiss Stock Ratings, which I consider to be among the most powerful selection tools in the world.
I make no pretense of modesty here. I know what my Weiss Stock Ratings have achieved year after year. I know how accurate they are.
Just this year, for example, if you had bought just the top ten stocks on our charts each month, you could have seen a total return of 26.7%, compared to a 13% rise in the S&P during the same period.
And in prior years, we have done even better, helping investors preserve their capital — or even make money — while others lost their shirts.
For the evidence, see my recent column “Immediate Answers to Your Questions.”
And for my family legacy behind The Weiss Stock Ratings and critical lessons I feel all investors must learn, see my Money and Markets columns “My Father’s Story: The Most Amazing Bargains of My Lifetime” and “Retirement Breakthrough.”
We have made major strides in developing this tool. But we’re not resting on our laurels. My team and I are absolutely committed to constant improvement. It is our mission — and our obsession.
The ultimate goal: To create the ultimate comprehensive system for buying and selling the right investments at the right time.
I will keep you posted regarding our progress. And when we make major or even minor breakthroughs, I’ll make sure you are among the first to know.
Good luck and God bless!