Friday’s Stock Market Drop Was Just a Hint Of What’s Coming

By: Graham_Summers

The gaming of economic data continues in the US.

On Friday it was announced that consumer confidence hit its highest level in nearly six years. Indeed, the last time we saw confidence in the economy as this reading was July 2007…

Here’s a riddle… how can consumer confidence be so high when:

1)   Household wealth remains 45% lower than it was before the Crisis?

2)   Incomes are falling?

3)   Prices are generally rising?

Technically we’re all poorer than we were before 2008 happened. Most of us are making less money. And we’re spending more just trying to get by thanks to higher food, energy, and healthcare prices. Heck, housing is now even soaring again, pricing most beginning home buyers out of the market.

And yet… supposedly we’re all feeling much better about things. Either we’re all delusional… or the data is being massaged to look better than reality.

Against this backdrop, Bernanke continues to talk about how removing stimulus could damage the “recovery.”

This is extraordinary.

We’re five years into a financial crisis. The typical business cycle is 10 years. So just based on historical cycles alone we should be witnessing a roaring recovery by now. And yet, the Fed Chairman is worried that removing stimulus (which is now north of $85 billion by the way) would damage the “recovery.”

Folks this entire mess is one big house of cards that is getting ready to collapse again. The Fed doesn’t have an exit plan. It never had a plan to begin with except to leave the paperweight on the “print” button. The fact that they’re still talking about a recovery five years and $2+ trillion after the Crisis hit makes it clear they’re losing control.

The market is beginning to sense this as Friday’s collapse indicates. As I’ve stated many times in the past weeks, stocks were ready to correct. Friday we got a hint of what’s coming:

Investors take note… now is the time to be prepping for a market correction. As Friday’s action showed, when it comes, it’s going to be fast and violent.

Investors, take note… the financial system is sending us major warnings…

If you are not already preparing for a potential market collapse, now is the time to be doing so.

I’ve been warning subscribers of my Private Wealth Advisory that we were heading for a dark period in the markets. I’ve outlined precisely how this will play out as well as which investments will profit from another bout of Deflation.

To join us…

Clicking Here Now!!!

Graham Summers

Chief Market Strategist

Good Investing!

http://gainspainscapital.com

PS. If you’re getting worried about the future of the stock market and have yet to take steps to prepare for the Second Round of the Financial Crisis… I highly suggest you download my FREE Special Report specifying exactly how to prepare for what’s to come.

I call it The Financial Crisis “Round Two” Survival Kit. And its 17 pages contain a wealth of information about portfolio protection, which investments to own and how to take out Catastrophe Insurance on the stock market (this “insurance” paid out triple digit gains in the Autumn of 2008).

Again, this is all 100% FREE. To pick up your copy today, got to http://www.gainspainscapital.com and click on FREE REPORTS.

Graham also writes Private Wealth Advisory, a monthly investment advisory focusing on the most lucrative investment opportunities the financial markets have to offer. Graham understands the big picture from both a macro-economic and capital in/outflow perspective. He translates his understanding into finding trends and undervalued investment opportunities months before the markets catch on: the Private Wealth Advisory portfolio has outperformed the S&P 500 three of the last five years, including a 7% return in 2008 vs. a 37% loss for the S&P 500.

Previously, Graham worked as a Senior Financial Analyst covering global markets for several investment firms in the Mid-Atlantic region. He’s lived and performed research in Europe, Asia, the Middle East, and the United States.

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