http://albertpeia.com/thebigsurprise.htm
‘Having moved to the sidelines
due to the uncertainty of the US Presidential election and the Fiscal Cliff negotiations
(as well as the holidays), investors are beginning to creep back in the
marketplace.
And they’re in for a
surprise.
First and foremost,
the commitment of traders report indicates that investors are more bullish now
than at any point since 2007. This is truly extraordinary given the sheer
magnitude of the issues the global economy is facing. The only clear reason for
being that bullish at this point is belief that the Central Banks will
continue to flood the system with liquidity pushing stocks to new all time
highs.
The problem with
this belief is that the Central Banks have reached the limits of their
policies. The ECB promised unlimited bond buying under the conditions of a country
formally requesting a bailout.
No country in Europe
wants to do this because it would mean A) opening their books to EU officials
(along with the realization that said books are cooked B) any formal EU bailout
requires austerity measures which Greece has proven are a disaster for
politicians.
On the other side of
the pond, the US Fed publicly announced QE 3 and QE 4, giving the bulls the
belief that the markets are primed to soar to new highs. However, privately,
the Fed balance sheet is virtually unchanged year over year. And the latest Fed
minutes reveal that dissent is growing at the Fed regarding the efficacy of QE.
This, combined with discussions of spending cuts in the US, has kicked Gold and
Silver down in the last few months.
So, we have rampant
bullishness in the markets at the same time that Central Banks are finding
political and professional limitations to their monetary tools. Moreover,
globally the economy is contracting again. It never really recovered all that
much, but when Central Banks pump $10 trillion into the system that money has
to go somewhere.
Indeed, inflationary
pressures are on the rise globally. We can see this with wage protests and
civil unrest in the emerging market space, higher costs and lower profit margins
at multinational corporations, and consumers paying higher prices or equal
prices for less product at the supermarket.
How many times have
you opened a new canister of coffee, a box of cereal, or some other item of
produce to see that it’s only 75% full? That’s not chance. Inflation doesn’t
just explode into a system… it creeps in at first. And corporations are already
implementing strategies (small packages, higher prices, etc.) to deal with it.
One of the key items
to remember as investors is that the market doesn’t always reflect reality.
Oftentimes it reflects belief. And belief can prove to be delusion. Which is
why investors today are super-bullish on stocks (which will suffer from
inflation) and less enthusiastic about Gold and Silver (which inflation
benefits far more).
As medical costs,
food, energy, and other staples show, the inflation genie is already out of the
bottle. And it will only be getting worse going forward. What Gold and Silver
do in the short-term can have nothing to do with what’s coming down
the pike in the intermediate and long-term.
With that in mind,
the global markets have handed everyone a tremendous opportunity to begin
positioning their portfolios now while things are still relatively
calm. We’ve just had about two months of the world essentially being put on
“hold” due to the US Presidential election, the elections in China, and the
holidays.
That period is now
ending and the issues that had already begun to unfold in 2012, namely,
inflation worldwide, a debt crisis in Europe, and ongoing economic pain in much
of the developed world, are already beginning to rear their heads again.
Smart investors are
taking advantage of the lull in action to position themselves accordingly. Our Private
Wealth Advisory newsletter subscribers have already been warned of these issues
and are taking action (just as they did in early 2008 when others were bullish,
or in 2010 when the EU crisis first began to take off).
Private
Wealth Advisory outlined several critical investment strategies, designed to hedge
our subscribers from the risks in the market while also alerting them to unique
investment ideas that 99% of investors don’t know about.
This includes out of
the way hard asset plays that are undervalued by as much as 70%, back-door
investments on Europe’s banking system that allow individual investors to
profit when the stuff hits the fan there, and more.
To find out about
these investments and start positioning yourself for what we all know is
coming, but no one wants to openly admit, all you need to do is take out a
trial subscription to Private Wealth Advisory.
You’ll immediately
be given full access to the subscribers’ only Private
Wealth Advisory website where you can find the historical archives of this
investment newsletter.
You’ll also begin
receiving new, hot off the press, issues of Private
Wealth Advisory to your inbox every other Wednesday. Running between 20 and 30
pages in length, these intensive newsletters outline an expert understanding of
what’s happening in the world, in plain, easy to understand language so our
subscribers have the best research presented in the clearest way possible.
In this manner, our
clients are always informed about the economy, financial markets, and most importantly,
their investments.
To find out more
about Private
Wealth Advisory and how it can help you and your investments…’
Phoenix Capital
Research