Ultimate Sell Signal Mailed to 3.1 Million People

Written By Brian Hicks

Posted April 17, 2010

Welcome to the Wealth Daily Weekend Edition — our insights from the week in investing and links to our most-read Wealth Daily and sister publication articles.


Aaaaand we’re back! America is back! 

We were, at least,  when Newsweek mailed a sell alert to 3.1 million people…

Newsweek’s "America’s Back: The Remarkable Tale of our Economic Turnaround" issue with a glossy red, white, and blue cover could bring an end to "America’s recovery" party.

Historically, publications like Newsweek have had a real knack for being contrarian indicators, hyping the over-hyped and succumbing to the American psyche.

But they’re not alone in this business…

When BusinessWeek published its "Death of Equities" cover in 1979, it was time to mortgage the house and plow savings into anything and everything. That very cover was followed by a huge bull market of the 1980s.

When Time published "Home Sweet Home" in 2005, talking up the housing boom, it was time to sell your home and take money out of the market. That very cover called the top of the housing bubble.

And less than a year after his cover shoot as Person of the Year for Time‘s 1999 issue, Jeff Bezos’ Amazon — along with most of the Internet bubble — collapsed more than 90%.

Does this mean these guys are bad at their jobs?

Not exactly. More often than not, mass-marketed magazines are typically late to the party. They jump on the "herd mentality" of the investing public, hyping what’s already played out. (Let’s just hope the recent covers celebrating the iPad won’t crash Apple’s stock.)

So, is today’s market really topped out?

Well, if you listen to George Soros, you’ll hear him warning the financial "world is on the wrong track and that we may be hurtling toward an even bigger boom and bust than in the credit crisis."

Maybe the magazines will get around to publishing that story — months after the crash.

Despite what you see on newsstands, the way to profit right now is to simply play on the belief that we’re recovering.

And you can do so by trading energy.

You see, as long as there’s a belief that we’re recovering, oil and other energy-related trades will rocket. It’s one of the reasons we predicted $100 to $110 oil this year. We even gave you three ways to trade higher energy on the recovery perception, and all have paid off incredibly well.

Profit from the idea of a recovery first… But be prepared for the sell-off that’ll follow Newsweek‘s ultimate contrarian cover.

When that happens, short the market. Short anything associated with Option ARM resets and coming foreclosures, and anything that’ll suffer from rising unemployment.

And when the mass-marketed magazines get around to covering the fallout, it’ll be time to go long again… And as usual, they’ll be late to the party.

Stay Ahead of the Curve,

Ian L. Cooper
Wealth Daily

P.S. In case you missed any of the week’s top-read articles from Wealth Daily and our sister publications, you can catch up on them now:

Greece Gets $61 Billion Bailout From EU, IMF: The Kick-the-Can School of Economics
Wealth Daily Analyst Adam Sharp reports as Greece finally gets cash needed to avoid default, to the tune of $61 billion.

Greek Rebound as Bank Stocks Soar: The Eurozone Blasts Greece with Cash… Stocks Launch
Editor Christian DeHaemer bets right on Greek Bank Stocks and tells you how to profit with this simple strategy.

The Death of Death: Changing the Future of Biotech
A single American company is harboring the medical breakthrough that could be the key to ending cancer and other fatal diseases. And your $5,000 investment could turn into an easy $500K return. In this new report, Wealth Daily gives readers the name of this stock that could end disease as we know it, all the while lining your pockets.

Battery Company Stocks: Harnessing Billions in Battery Spending
Wealth Daily Editor Nick Hodge chronicles the coming boom in batteries, and discusses a few companies that will easily benefit.

$100 Oil?: Profit from it Domestically
Time reports the real-live boom happening in the state where there’s three times more cattle than people. Not only does it boast the country’s lowest unemployment rate; home values are actually up and companies are actively recruiting workers from all over the country. Check out the latest report from Wealth Daily to read about profit opportunity in domestic oil.

Simple Oil Facts: Don’t Be One of these Ill-Informed Readers
Energy & Capital Editor Nick Hodge discusses peak oil theory and the simple facts that people always seem to get wrong.

Warren Buffett’s Dividend Stock Strategy: How Warren Buffett Survives on $1,923.09 a Week
Wealth Daily‘s Steve Christ takes a look a dividend stock strategies and explains how Warren Buffett has it all figured out.

Green Stocks: Three Green Stocks that Could Double Your Money
Green Chip Editor Jeff Siegel reveals three green stocks that could easily double your money — if you get in now.

Biggest Metals Investment of 21st Century: The Canadian Miner Tapping into $60 Billion Deposit
With China suddenly a net importer of this once plentiful element, other major consumers, including the U.S., EU, and India, are scrambling for new sources. We’re now in a perfect storm scenario for a commodities rush unseen since the 1970s Hunt Brothers’ campaign to monopolize silver. Wealth Daily‘s newest report tells readers what they need to know to profit from today’s metals market.

Governments Worried about Peak Oil: But Not Enough to Tell You the Truth. Part 2 of my report: Officials Wake Up to Peak Oil
In this second part of a two-part series, Editor Chris Nelder reviews several more recent studies indicating that peak oil is in the near future… 

Investing in Molybdenum Stocks: The Legend of Masamune
Wealth Daily Editor Luke Burgess tells investors how to profit from rising molybdenum prices through moly stocks.  

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