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Free Services
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Mon 17 Mar 2008 |
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The Crash of the Century? |
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| "The current financial crisis in the US is likely to be
judged in retrospect as the most wrenching since the end of the second
world war." - Alan Greenspan, March 16, 2008
Five short months ago, the Dow was at its all-time high of 14,198. I warned readers at that time that the party was over.
All
the economic signs that are being splashed across every front page were
already there (if you didn't believe Wall Street's spin and knew where
to look to find the real story!):
- Industry advisors knew that the real estate failure would to extend into 2009 and foreclosures would spike at least 30%.
- Banking insiders already knew that billions in mortgage derivatives weren't worth the paper they were printed on.
- Astounded that oil is over $100 per barrel? Oil executives knew for a fact that import prices were climbing at a record rate.
- Shocked
that the dollar has lost 15% against key foreign currencies? The
Federal Reserve knew exactly what would happen if it cut more than 100
basis points off interest rates -- and so far, it has cut more than
twice that much with more to follow!
Since that day last October, the U.S. stock market has lost 20% of its value (just as I predicted). And it's not done yet!
Some
analysts are calling it the worst situation they've seen since the
crash of 1929, Others are saying it will more likely resemble the meat
grinder of the 1970s, when the Dow was cut in half and we didn't see a
new high for a decade. Washington claims this is just a simple
correction and everything is "under control."
Even the most
optimistic technical scenario calls for the Dow Jones Industrials to
fall to support at 9,976. That's a loss of over 2,000 points, another
17%! And there's no guarantee whatsoever that it will stop there.
To
the spin-masters in Washington, another fall to Dow 8,676 -- an
additional 28% loss that will cost investors billions! -- would still
qualify this train wreck as "a bull market." Only a full-on rout below
Dow 7,350 could change their minds, and by then you will have lost 48%.
Virtually half your money up in smoke!
Just
as I predicted this crash to a T, I also showed investors exactly what
they needed to do to preserve their capital. Since this 17% downturn
began, Bryan Bottarelli and I have guided our readers to cumulative
maximum gains of over 1891% on put contracts against U.S. blue-chip
stocks.
What's more, in our special "Storm Warning Report," we have specifically alerted readers to an option contract that will automatically gain 61% for every $100 the Dow loses.
Should the Dow Jones Industrials "only" fall to 9,976, this asset would gain 129%. A genuine bear market breakdown would push those gains to 283%.
It
is too late to stop this drop. Wall Street can whine and beg...
Washington can drop rates to 1% and offer every major bank a bailout...
it doesn't matter!
But it is not too late for you to protect
yourself and your money from the "the worst market in decades... and
possibly of the last 100 years."
Adam Lass Editor, WaveStrength Options Weekly
The Worst Is Yet to Come for 2008
One analyst has called every market top since 1999, and he says the worst is yet to come. Learn which three sectors and nine stocks he says to avoid at all costs to sidestep the teeth of the storm. And learn about his simple yet sinister plan to make up to 205% from the coming blow.
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