The Coming Economic Ice Age
There is an economic collapse fast approaching, a calamity that will be known as the first Great Depression of the 21st Century. This economic crisis will be global, affecting all nations, including the United States. The economic ruination will make the recessions of 2007 through 2009 and 2000 through 2002 look minor, and could be worse than the Great Depression of the 1930s. However, history has shown that with every economic calamity, there are new opportunities to create wealth and prosper – if you are prepared.
Government intervention will not be sufficient to prevent the damage. The Federal Reserve Bank will fail in its attempts to reverse the collapse. Fiscal policy will not fix the problem. In fact, Fed and government actions will make matters worse. This prediction is not clairvoyant, is not fantasy, and is not based upon opinion. This prediction is based upon what the markets are saying, based upon a science that studies the language of the markets, technical market analysis, and based upon an understanding of the message of the markets right now.
One of my concerns with what is headed our way is that often in the past the sort of economic collapse that is coming has been followed by life altering political change and world war. That may result again.
The stock market is the most perfect accumulation of all knowledge from everyone everywhere on the planet. Market prices are the net result of predictions made by everyone everywhere about everything. Every time someone buys something such as a stock, they are making a prediction about the future based upon their knowledge of the world, of their world, either optimism or pessimism, of new trends and old irrelevant trends, of what is likely to happen and not happen. Markets can predict their own future. Economies are the sum of all markets. When markets are warning of trouble ahead, it comes, and economies suffer. When markets are saying the future is bright, economic prosperity follows.
I am here to tell you that the stock market right now is warning of impending danger to itself and therefore to world economies that will be more ominous than we have seen in a century, perhaps centuries. The language of the market is an excellent forecast source, one I take very seriously, and you should as well. There are historical instances when the stock market gave similar warnings, and what followed. I am convinced that we need to prepare for the trouble dead ahead. Those that take the stock market’s warning seriously, and prepare, will not only survive, but be positioned to prosper.
There is a stock market pattern that has been in formation for 23 years, that is finishing now. This pattern is a Broadening Top pattern, which I have dubbed the Jaws of Death pattern. It has appeared eight previous times over the past century, and each time has led to an economic decline. It is finishing right now in the Dow Industrials, the Dow Transportation average, the Wilshire 5000 (which is essentially the entire U.S. stock market), and in the Dow Jones Euro STOXX 50 average.
The good news is there are steps we can take to mitigate the pain, to protect ourselves, and be positioned to grab new wealth building opportunities. This coming Economic Ice Age ™ can be a blessing instead of a curse.
This month I am launching my new book, The Coming Economic Ice Age, Five Critical Steps to Survive and Prosper, available at www.amazon.com , (direct link is http://tinyurl.com/lypv47v ), Thomas Noble Books, copyright © 2013, which will show you why we see this event coming, how bad it is going to be, when I believe it will begin, and how you can prepare to survive this storm and even prosper. This book will show you those opportunities and how to be positioned to prosper. My intent is not to scare you, but to prepare you and give you five steps to protect your family, protect your wealth, avoid personal bankruptcy, and present an opportunity to prosper. I will share with you where the stock market is headed, where the U.S. Dollar is going, what Gold is likely to be worth. I will show you what real estate will be doing. This book will tell you how to prepare for that possibility. I will show you a conservative portfolio model that will outperform markets, and protect your wealth. This is tough stuff, but hard times are being foretold, and as in Noah’s day, we need to build our arks. This book will help you do just that.
Do not be satisfied hearing what the market did; learn how to predict what the market is going to do. Join us at www.technicalindicatorindex.com as we study the language of the markets. Markets tell where they are headed. Technical Analysis is the science where we learn and apply the language of the markets. We are currently offering a FREE 30 Day Trial Subscription. Simply go to www.technicalindicatorindex.com and click on the Free Trial button at the upper right of the home page. If you would like to follow us as we analyze precious metals, mining stocks, and major stock market indices around the globe, We prepare daily and expanded weekend reports, and also offer mid-day market updates 2 to 3 times a week for our subscribers. We cover a host of indicators and patterns, and present charts for most major markets in our International and U.S. Market reports.
Robert McHugh Ph.D. is President and CEO of Main Line Investors, Inc., a registered investment advisor in the Commonwealth of Pennsylvania, and can be reached at www.technicalindicatorindex.com. The statements, opinions, buy and sell signals, and analyses presented in this newsletter are provided as a general information and education service only. Opinions, estimates, buy and sell signals, and probabilities expressed herein constitute the judgment of the author as of the date indicated and are subject to change without notice. Nothing contained in this newsletter is intended to be, nor shall it be construed as, investment advice, nor is it to be relied upon in making any investment or other decision. Prior to making any investment decision, you are advised to consult with your broker, investment advisor or other appropriate tax or financial professional to determine the suitability of any investment. Neither Main Line Investors, Inc. nor Robert D. McHugh, Jr., Ph.D. Editor shall be responsible or have any liability for investment decisions based upon, or the results obtained from, the information provided. Copyright 2013, Main Line Investors, Inc. All Rights Reserved.