Martin Weiss: Two recent mega-events — the Wall Street collapse in 2008 and the Washington response in 2009 … the debt implosion and then the money printing explosion — are mind-boggling in their dimensions.
Neither you nor I can know with certainty what the future will bring. But at this particular juncture, we don’t have to poke around in hidden crevices of the economy. Nor must we stretch our imagination to conjure this or that scenario. To get a pretty good idea of what’s likely to happen next year, all we have to do is follow the path of natural consequences from these two mega-events. And that’s what we’re going to do right here and now.
I have assembled our Weiss Research team of analysts to lay out for you, step-by-step, what those consequences are likely to be in the coming year — 11 startling forecasts for 2010.
Mike Larson is one of the only analysts in the country who accurately predicted both the real estate bust in 2005 and the recent real estate bottom in 2009. Today, he is not only our resident expert on real estate, but also our chief Fed watcher, interest rate specialist and analyst of the entire financial sector.
Larry Edelson, joining us from Bangkok, Thailand, was among the very first to predict that gold would one day exceed $1,000 per ounce, and now that day has come. But Larry’s gold forecast is just one of many that illustrate a special skill he brings to as a Director of the Foundation for the Study of Cycles: Timing the markets.
Claus Vogt, joining us today from Berlin, is the man I’ve personally selected to make the picks — and give the signals — for one million dollars of my own money, based not only on his own years of trading experience but also on the input from our entire Weiss Research team.
I can think of no better person to help us forecast the direction of the global economy and global stock markets.
I hasten to add that forecasting what we believe is likely to happen in 2010 is strictly the first part of our program today. During the second, equally important, part we will give you actionable guidance — investment ideas you can USE to take advantage of the profit and income opportunities that flow directly from our forecasts. And to bring you the best of the best ideas we can, I have also assembled a panel of our investment specialists in each major arena.
Ron Rowland, our specialist on ETFs … Nilus Mattive, our specialist on dividend stocks … and Bryan Rich, our foreign currency expert.
From Southeast Asia, we have our Asia stock specialist Tony Sagami, who just completed a reconnaissance tour of Indonesia and … from Southern South America; we have Sean Brodrick, reporting on his visits to resource companies in Chile and Argentina.
Plus I have invited a special guest, Monty Agarwal, one of the nation’s leading experts on hedge funds, sovereign wealth funds, and global money flows.
Thanks to their participation in this special summit, you benefit from some of the most timely, in-depth and fascinating research in the world today.
Mike Larson: I happen to think the research effort has paid off very nicely. For example, look at the absolutely huge companies that failed, were bought out or bailed out last year! And look how many of those companies Weiss Research specifically named as candidates for failure well ahead of time:
Two of the nation’s largest brokers, Bear Sterns and Lehman Brothers … the nation’s largest mortgage lenders, Countrywide Financial and Fannie Mae … the nation’s largest savings and loan, Washington Mutual … and the nation’s second largest commercial banks, Citigroup.
And next, look at the utterly massive government reaction to those failures that we have uncovered: Fed Chairman Bernanke has responded with the most rapid acceleration of monetary expansion in U.S. history.
Before the Lehman Brothers collapse last year — it took nearly 14 years for the Federal Reserve to double the cash and reserves at the nation’s banks.
But after the Lehman Brothers collapse, it took Mr. Bernanke’s Fed only 112 days — barely four months — to double the monetary base. In other words, he accelerated the pace of bank reserve expansion by a factor of forty-five to one.
Meanwhile, Treasury Secretary Geithner and his predecessor responded with the largest bailouts of all time, helping to triple the size of an already-bulging federal deficit.
In earnings news, Google (NASDAQ:GOOG) is expected to post earnings of $6.60 per share on 20% higher revenue of $4.95 billion after the close of trading. UPS (NYSE:UPS) said its adjusted first-quarter earnings would be much higher than anticipated and reported they were 71 cents a share, far exceeding analyst expectations of 57 cents a share. Revenue rose 7%. UPS raised its 2010 profit outlook to $3.05 to $3.30 a share from a range of $2.70 to $3.05 a share announced in January, again, far above projections. Shares jumped 5% ahead of the bell. In the automotive sector, Ford Motor (NYSE:F) said Thursday its European sales rose 16% to 192,500 vehicles in March, making it the best-selling brand on the continent. -Daily Finance
China’s economic growth accelerated to the fastest pace in almost three years in the first quarter, highlighting overheating risks that may prompt the government to scrap the yuan’s peg to the dollar. Gross domestic product rose 11.9 percent from a year earlier, the statistics bureau said at a briefing in Beijing today. That was more than the median 11.7 percent estimate in a Bloomberg News survey of 24 economists. A lower-than-estimated gain in consumer prices complicates a debate in Beijing on when to raise interest rates, cut in 2008 to counter the financial crisis. Australia and India have already moved and Singapore yesterday allowed a one-time revaluation of its currency as the region winds back stimulus policies to limit asset-bubble and inflation risks. -Bloomberg
TD Ameritrade (NASDAQ:AMTD) is looking to use its $1.1 billion in cash for an acquisition, a dividend or a share buyback CEO Fred Tomczyk told Reuters. AMTD had told Reuters in November that it was eyeing smaller rival E*Trade (NASDAQ:ETFC). ETFC shares rose about 3%. –Daily Finance
China continued selling U.S. Treasurys in February, although it remained the largest foreign holder, the Treasury Department said. Overall, foreigners were net buyers of long-term U.S. financial assets in February, according to the monthly Treasury International Capital report, known as TIC. China’s holdings of Treasurys fell $11.5 billion to $877.5 billion, following net sales of $5.8 billion in January. Heavy Treasury sales by China in December, when it cut holdings by $34.2 billion, set off fears that the largest creditor nation to the U.S. might be shifting out of U.S. assets. –The Wall Street Journal