If someone had told you 10 years ago what the economy and the markets would be like today, you'd probably have thought they were nuts.
The U.S government on the brink of default? Never.
The S&P 500 still below its 2000 high? Impossible.
The family home a losing investment? Can't be.
CDs paying essentially nothing? Who would buy them?
Unemployment at nearly 10%? Not in my lifetime!
The top technology stocks trading like utilities. As if!
Oil over $100 a barrel, with the economy on the verge of recession? Not a chance!
Gold selling for more than $1,500 an ounce? That's insane!
Institutions like Lehman Brothers, Merrill Lynch, Washington Mutual, AIG, Wachovia either failed, sold under distress, or taken over by the government? Was there a revolution or something?
China the new engine of global growth? Seriously? China?!
Believe me, I know how crazy all these developments would have sounded 10 years ago, because at the time I was trying to warn people about many of them (oil, gold, tech stocks, and China, for instance). And you should have seen the looks I got.
Nonetheless, the events of the past decade demonstrate some important truths about successful investing...
1. You can't assume the future will look like the recent past, which is what most people do. The 2000s looked nothing like the 1990s, and the 2010s will probably be very different from the 2000s (particularly when it comes to inflation—as you'll shortly see).
2. Despite this, investing doesn't have to be unpredictable. It is possible to anticipate the future--the broad trends anyway--which is all you need to make solid, steady returns. I've helped countless investors do just that throughout my career, and with considerable success I might add.
3. The trick is to pay attention to the big developments that are taking place now. In fact, the better you are at spotting emerging trends, the more reasons you have to be optimistic about the future. Investing in line with major trends not only gives you the best chance of getting rich, it also makes for an easy, low-stress investment plan that doesn't take up too much of your time.
I'm Dr. Stephen Leeb. For the past 30 years I've been developing increasingly sophisticated methods for spotting emerging investment opportunities. My experience has taught me that even during the worst economic times there are opportunities to make a lot of money. And for that reason, I'm looking forward to the next 10 years.
However, I also recognize that our economy faces some serious challenges at the moment that require a different approach to investing than you may be used to. We can't simply invest the way we did in the 1990s anymore. Not when we're facing challenges like...
Runaway Commodity Prices. Considering the size of the 2008 recession (which we still have not recovered from) one would expect that commodity prices would be very low today. Yet instead, they have rebounded and many are above their previous highs. The problem with high commodity prices is that (in the Western world at least) they raise business costs, helping to keep economic growth suppressed. However, that's not the case in...
China and the Developing World. China and other developing nations such as India, Russia, and Brazil, have become the main source of economic growth these days. And it's China's rapid development that is keeping global commodity prices high. What's more, if and when China allows its currency to trade more freely (i.e. higher), commodity prices will escalate even more rapidly. That could drive Americans' cost of living higher, choke consumer spending, and delay the economic recovery even more. And speaking of currency...
A Global Currency War. With many nations around the world desperate to improve their economic growth, they have begun to engage in a currency war. This is a race to the bottom in which each nation tries to drive down the value of its currency in order to make its exports more affordable. Trouble is, when everyone does it at the same time, nobody wins. Instead, the risk is that inflation will rise to heights not seen since the 1970s with a very negative effect on the most common investments. Europe, Japan, and even the U.S. have already fired their first shots in this way. And the next one is on its way, in the form of...
Quantitative Easing. Since the start of the financial crisis, the Federal Reserve has resorted to buying bonds to flood the system with new cash. Known as quantitative easing, the practice aims to stimulate the economy and exports by printing money. The consequences over time are a weaker U.S. dollar and higher prices for imports. Investors therefore need a strategy to stop their savings from losing buying power. Of course, the other way to stimulate the economy is through government spending. But that too has consequences...
Skyrocketing Government Debt. The Federal government ran a deficit of nearly $1.3 trillion for 2010, and it's widely expected to add $10 trillion worth of debt over the next 10 years if we don't change course. This is the result of having to spend our way out of a major recession while fighting the longest war in our history at the same time as the Baby Boomers are starting to collect Social Security. Soon, investors may start demanding higher interest rates on Treasury bonds to compensate them for the higher risk of default which could again strangle economic growth and stock market returns.
All These Factors Add Up To One Thing... RUNAWAY INFLATION!
Yes, inflation like you've never seen will be the major story this decade. The recent record-high in gold prove that it's coming. And just like in the 1970s, runaway inflation will take a huge bite out of investment returns. Stocks, bonds, cash, all could take a hit. Anyone living on a fixed income will be hit especially hard as their real incomes decline.
Right now, everyone hopes that the Fed's quantitative easing program proves big enough to get the economy moving again. If so, the broad stock market will benefit but only for a limited time until inflation pushes the cost of raw materials too high and crushes consumer spending.
On the other hand, if the Fed's efforts prove insufficient, the stock market could collapse much sooner, taking unemployment to ever greater heights.
However, the good news is that certain key sectors will benefit either way because they are leveraged to major trends in the world that are largely immune to Fed policy. In fact, 3 investments in particular are poised to make fantastic gains in 2011. That's where I plan to keep my personal money, and, I believe, you should too.
I'm not kidding about this one. I am putting my money where my mouth is. I've already told my inner circle of investors how and when they should buy these assets. These are people who have earned the privilege of looking over my shoulder and seeing how I invest my own money before I do it so they can copy my trades in their own portfolio, and make money alongside me. My goal is to help each of them quadruple their initial investment in six years and grow a modest initial investment into their own Million Dollar Portfolio.
But here's where you come in. Because the months ahead may be exceptionally volatile, I'd like to invite you to join my inner circle. I believe that the investment decisions I share with members are selected for their ability to grow in value regardless how volatile the markets get...how severely the currency wars affect the U.S. economy...and how high inflation and commodity prices climb. They are exactly the investments you want to build a secure, long-term nest egg and they are the investments I trust my personal future to.
So if you want to enjoy financial security despite these difficult times, consider accepting this...
If you've followed my investment commentary for some time, you should know that I absolutely hate to lose money! I absolutely hate it even more when people I'm trying to help lose their hard earned money. It makes me feel even worse.
Something else I despise almost as much is how frequently talking heads and financial pundits tell people what to do with their money, without backing their own advice with personal money.
I launched Leeb's Million Dollar Portfolio because I wanted to offer my most dedicated readers a higher level of service. I wanted them to have the confidence that comes from knowing the guy making the calls has skin in the game, that there's real conviction behind my recommendations and that I'll feel the same financial pain if I fail!
I want you to have that same confidence as we enter some of the most challenging market conditions I've ever seen.
We're in this together because I'm working with my own cash. But I believe we'll not only survive but prosper!
I've invested my own personal money in a special portfolio and launched Leeb's Million Dollar Portfolio so that my inner circle can track my progress and copy my trades. My goal is to quadruple my own portfolio in 6 years or less! And you're invited to come along for the ride.
I'll show you places to put your money today that I believe are safe from the extreme volatility we'll see in the markets tomorrow - yet where the likelihood of enjoying strong returns, according to my research, will be far greater than with the major market indices.
In fact, because we will be among the first to seek out these havens of wealth, I think, we will get in at very reasonable prices. Over the coming months, as more of the world's investors start running for safety from the next financial shock, the price of these havens could rise very quickly, giving us a added bonus return on our investment.
How do I know we will be among the first to get in on these investments? Because the financial media are still ignoring the danger! By the time they catch on, I expect to have already made substantial returns and you could too.
As the TV pundits and Washington economists keep trying to reassure investors that the economy is back on track and broad market is a safe place to invest, my best indicators are screaming to get out of mainstream investments, and they point toward 3 niche areas that are immune to the biggest risks and ready to skyrocket!
Let me tell you why it's so important to buy into the right investments now.
Europe's Debt Crisis Could Be A Taste Of What's In Store For The U.S.!
As I mentioned earlier, the U.S. government is running a deficit of $1.6 trillion this year, and there's no end of deficits like this in sight. Deficit spending will cause America's total debt to reach 100% of GDP this year! That's a level that clearly can't be sustained.
On top of that, U.S. government debt largely consists of short-term notes which means that when investors grow more nervous about buying U.S. debt, they can drive up interest rates very quickly.
Are there any alternatives?
Two possibilities are open to us. First, the U.S. government could follow the IMF's suggestion and cut its deficit by 12%. That would be like axing the entire U.S. military, or cancelling the retirement benefits of millions of voters. Frankly, I don't think that's going to happen.
Instead, our government's best option will be to keep devaluing the U.S. dollar with quantitative easing. That will let the government pay off its debts with newly minted money that's worth less. But there would be some alarming consequences, including...
The devaluing of both the U.S. dollar and the euro. When the Greek debt crisis became well-publicized in the Spring of 2010, the first casualty was the value of the euro. Prior to that, the U.S. dollar had been falling, as a result of the huge stimulus and bailout efforts made to save the financial sector and end the recession. The lesson is clear: as Europe and the U.S. are forced to use massive spending and money creation to keep their economies afloat, the result will be weaker currencies and the downfall of Western economies and influence in the world.
And the Greek tragedy is only in its second chapter. By the time it reaches Chapter 11, the whole world will be suffering. This is the destructive aspect of the currency war I mentioned above.
The return of double-digit annual inflation. Long-term, devaluing the dollar can only lead to hyper-inflation that will resemble the 1970s but on steroids. But the hardest impact will be on the price of imported oil, food, and raw materials. It's only a matter of time until crude oil trades at $150-a-barrel. At that level, the cost of living will rise considerably, putting a good retirement out of most people's reach.
In short, if there was ever a time to switch, this is it!
As I said earlier, I am making significant changes in where I've invested some of my personal money. I'm not only trying to protect it against huge losses, I'm investing it in a way to profit from the growing volatility. I am preparing my portfolio for major market corrections and I am urging you to be ready for some major market swings. Think of this service as "Insurance on Steroids."
I want you to know what I've done with my personal money so that we not only survive but prosper during the coming possible meltdown.
Coming! Maybe in weeks,
Obviously, the possibility of early knowledge of next market turn can protect us from the kind of earth-shattering events the system is starting to signal now. It also may enable us to reap peak profits from investments that have bottomed and that our indicators tell us are poised for a rebound.
And, when it seems like the entire market is sliding even lower, our tools may help us to identify the few solid investments that are about to swim against the current.
Remember, even in the worst of times, there are ways to make a profit. Every time a market, currency, or other asset falls, something else goes up. Right now, I'm putting some of my personal money in a few key assets that I feel are almost certain to do very well both in the next 6-12 months and over the long haul as well.
As a Member of Leeb's Million Dollar Portfolio you too will be able to benefit from the same forward-looking insights of our powerful forecasting model.
Join me now and I'll tell you exactly what I'm doing with my own personal money so we are protected from the coming onslaught and positioned to make money as the market plummets.
I don't trade in and out every day either. I don't do anything exotic, just the basics. And you won't have to watch your computer constantly to invest alongside me. Timing, of course, will be dictated by the market, but I expect most of my positions will be held for three months or more easy as pie for you to follow.
I'll email you before I actually place an order so you always know ahead of time what I'm doing with my money. Now It's Time to Act!
I know many are arguing that the current market rally is for real...that the economic recovery is at hand...that unemployment will start to fall...that the Chinese bubble will burst. Many believe the long ordeal is finally over! Don't you believe it! If you trust conventional wisdom that can't see the tell tale signs of impending inflation
You could see the
Worse, you could miss
out on this
Hesitate even a week or so and you could be caught snoozing when the tide changes and inflation spikes upwards. You could miss your chance to protect your buying power and to make new investments leveraged to the new realities.
Remember, I'm putting my money where my mouth is. I'm not telling you what to do with your money. I'm telling you what I'm doing with my money! There's a big difference.
Finally, remember that even if the market tanks there are always places to put your money where it can earn a profit. So please, I hope you'll join me in repositioning your hard earned money before the next crisis hits.
Membership is limited on a first-come basis. Reserve your spot now and here's what you'll get:
FREE Report: Mega-Trends of 2010-20: This Decade's Biggest Investment Opportunities.
Plus, a FREE Bonus, my newest guide Prospering Through The Global Currency War
Plus, save almost 50% off your first year!
Leeb's Million Dollar Portfolio is a dispatch sent each week by email and posted on our members-only Website. It's easy to read. Easy to follow. And easy to use so that you can partner with me.
Here's what you'll get in your first week:
Best New Picks This is pay dirt! As a member of my inner circle, you'll receive emailed or faxed instructions so you can invest your money exactly as I invest mine. You'll always know before I make a move, what I'm about to do and how to match my every move if you so choose. You'll find all the information you need (the result of our own independent research) to understand why each position represents an outstanding opportunity. This is where I'm putting personal money and if you want to follow my lead, this is what you'll need to do.
Million Dollar Portfolio Weekly Update where you'll find my take on the current market, what's happened and why since your last issue, what it portends and how best to take advantage of whatever is going on. This feature alone is worth the price of admission. Your Weekly Update also covers all my open positions. You'll also find observations on individual positions as well as sectors along with my forecasts and predictions. In these updates, I'll also highlight notable performances. For each of the positions, you'll be able to see what I think today and more.
Unlimited FREE Access to Our Members-Only Website the absolute fastest way to get the latest issue, to check on developments impacting recommended positions, as well as access back issues. Use the Members only Website to look over my shoulder at any time.
PLUS EXTRA FREE BONUS
The information in this guide is a vital complement to Membership in Leeb's Million Dollar Portfolio and will help safeguard your financial welfare.
PLUS Get a 2nd FREE BONUS Prospering Through The Global Currency War. Subscibe now, and you'll also receive as a FREE Bonus, a Special Report containing details on high quality stocks and ETFs that benefit from the global currency wars. You'll find out how to hedge against a falling U.S. dollar and take advantage of the inevitable rise in the Chinese yuan. These investments are leveraged to some of the strongest economic trends today and poised to grow handsomely over the next few months.
But please, do sign up today. I only have a limited number of FREE copies of both these reports, so I have to give them out on a first-come-first-serve bases.
Let me assure you, if you're not a total and enthusiastic Member of Leeb's Million Dollar Portfolio you can cancel your Membership within the first 30 days and receive a prompt, no-questions-asked refund. After that, you can cancel at any time and receive a full refund on the unused portion of your membership fee. So your risk is small. Yet the potential rewards are huge.
To make absolutely certain you lock in the extra FREE Bonus Report, Mega-Trends of 2010-20: This Decade's Biggest Investment Opportunities, and your FREE copy of Prospering Through The Global Currency War, simply click on the button below.
I look forward to hearing from you.
P.S. As background for your Membership in Leeb's Million Dollar Portfolio, the information in my new guide, Mega-Trends of 2010-20: This Decade's Biggest Investment Opportunities, is vital to your financial success over the next few years as the global economy copes with today's extreme stress and volatility. I simply must get it into your hands right away!