We know you're concerned about the economy and the markets.
As elite businesses have been coyly preparing for a stock market crash, big banks and wealthy private investors have been stocking up on precious metals to ward off a coming financial apocalypse...
Consequently, the U.S. now faces a huge gold deficit as it has already exported a record 424 metric tonnes of gold this year (this month not included).
This is quite alarming, considering the U.S. exported a grand total of 488 tonnes in the full 12 months of 2011. In the first seven months of the year, the United States ran a shocking 102 metric tonne gold account deficit (even when taking our domestic gold supply and gold imports into account).
An intense international fear is growing regarding the global stock market as investors worldwide run toward the same safe havens.
With the election just two weeks away, we've received a slew of panicked calls from readers considering pulling out of the markets. And I understand their concern; I share their sentiment...
All the statistics I have researched further justify this uneasy feeling — which is eerily similar to the calm-before-the-storm mood of 2008.
History to Repeat Itself?
Unfortunately, today's financial system is even weaker and more vulnerable today than it was back in 2008 (and we all know how painful that market crash was).
Peter Schiff, Doug Short, Robert Wiedemer, Harry Dent, and Nouriel Roubini have all warned a massive stock crash is imminent.
The analysts who acutely predicted the collapse of the housing bubble and the complete economic disaster of 2008 are now saying next year will be another big year for "a global perfect storm,” as Roubini calls it.
Goldman Sachs recently revised their market forecast for 2012-2013 for a 15% decline.
Meanwhile, the looming fiscal cliff — which would otherwise deduct 5% GDP growth — and the never-ending debt ceiling debate further signal a bigger market crash.
Today's Special: Volatily
We at Wealth Daily are eager to help you prepare for “the year of system collapse” — before it hits.
Nick Hodge reminded readers that the Dow is quickly approaching pre-recession levels, inching closer to the 14,000 mark. Last time that happened, the equal and opposite reaction wasn't very pretty: It dipped below 7,000 in less than six months.
If history has taught us anything, it's that market trends repeat themselves — especially when the market is this vulnerable.
Just because the Dow and NASDAQ are making momentous moves upward right now doesn't mean we're experiencing real recovery...
Markets are merely being moved by inflation induced by the Fed's QE3 policies combined with low interest rates for consumers.
Much like steroids for athletes, fiat money and inflation offer only a temporary boost of strength. Real strength will have to come from internal factors like improving jobless ratings, undergoing a sustainable manufacturing uptick, and more overall creation and innovation giving our American companies a stronger competitive edge.
Once investors realize that we don't have these crucial elements in play yet, the market will undergo extreme volatility as investors try to determine which sectors are truly going to bring them sustainable gains.
How to Play a Flat Market
We find ourselves in a pivotal election year amidst widespread social unrest — not only in the U.S., but across Africa, Europe, and the Middle East.
Changes that lie ahead could trigger even bigger market fluctuations.
You can't afford to ignore the number one investing metric that too many investors have been ignoring this year: value growth.
Investors must pay attention to growth trends instead of focusing on a company's book value at a specific point in time.
That's the only way billionaire investors like Warren Buffett are able to stay ahead of the curve regardless of volatility, flat markets, and a stifled economy.
Here are five bargain stocks that fit the mold:
- Ford Motors (NYSE: F) has received wishy-washy sentiment from investors since the recession hit. At first, investors were proud to invest in Ford, as it was the best of the best among automakers... Now investors are leery. But if you look at Ford's fundamentals, it appears now is an ideal time to buy, as demand for stock is low and car prices have dropped dramatically. Ford may take a strong, momentous jump forward into 2013 as their new cars has been received with accolades and good reviews from automotive journalists.
- Western Digital (NASDAQ: WDC) has acquired an impressive book value growth. The firm has obtained a 32.3% surge in book value per share this past year alone. Western Digital is now officially the world's largest hard drive manufacturer after acquiring Hitachi's hard drive business in March.
- Joy Global (NASDAQ: JOYG) is a heavy equipment maker whose book value per share surged by 32.1% over the course of the year. Investors seeking dividends and value growth may want to give Joy Global a closer look as emerging markets are predicted to give Joy Global another boost; JOYG already has a presence in China and India.
- Teradyne (NYSE: TER) is a leader in providing automated test equipment for the semiconductor industry. This year its book value per share climbed up an impressive 25.5%. Teradyne holds more than $840 million in cash and other investments allowing them to easily offset the $167 million debt. Approximately 24% of its market capitalization is made up of “cold, hard cash” — not too shabby.
- Exelon (NYSE: EXC) is a $30.5 billion power holding company that has grown its book value per share more than 21% this past year after acquiring Constellation Energy. It owns a blend of businesses, both regulated and unregulated. If you don't already know, the power business is known to be “capital intense,” and Exelon's balance sheet proves that stereotype to be true. Its book value growth is just one more “source of tangible shareholder value that shouldn’t be ignored.”
Although I believe severe volatility lies ahead in 2013, there are safe sectors that will benefit in an otherwise flat stock market.
For further guidance on choosing the right sectors, check out the articles below...
Best Wishes for a Prosperous Future,
for Wealth Daily
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