Don’t Let Doomsayers Distract You from the Next Bull Run

Predictions of Doom and Gloom Sell

BUT Cost Investors Like YOU a Fortune

Dear Subscriber,

Remember the 1976 movie "Network"? Long before Gordon Gekko, Arthur Jensen in made the case that greed is good.

Most think of "Network" as a fictional tale of an old, crazy, broken-down alcoholic news anchorman who persuades millions of Americans during a live broadcast to open their windows and yell, "I’m mad as hell, and I’m not going to take it anymore!"

Keep in mind, "Network" was originally written to be a farce like "Blazing Saddles." But this 38-year-old film has now become a prophetic vision of the times we live in.

It wrestles with many of the same perplexing social, economic and international financial issues we are struggling with right this very moment.

It is also a cautionary tale about power: the power of television, the power of a rapidly evolving media, and what might happen if the "wrong people" get control of it.

What happens when news is driven entirely by profit and becomes focused on entertaining instead of informing?

Unfortunately, some investors found out that answer the hard way. But I’ll give you three reasons why optimism, not frustration, is the key to unlocking your true profit potential …

12 hours until it’s all over …

If you don’t act by tonight at 11:59 PM, you’ll miss out on three huge opportunities …

First, you have until the end of today to discover how you can achieve a remarkable 95% win rate in your trading. Since the beginning of the year, my "A-I Indicator" has turned out 23 winning trades, and just one single loss.

Second, you will miss out on the chance to claim your $800 reward just for viewing this groundbreaking report.

Third, my trading partner Geoff Garbacz and I will host a special subscribers-only event tomorrow for those who read our report and took action.

So, if you want your chance to win almost every trade you make … to learn exactly how we do it, and to receive an $800 bonus, then I urge you to click this link immediately.

Internal Sponsorship

Howard Beale’s iconic call to action comes from a deep frustration and inability to control his life, career and what he perceives as endless unsolvable problems that America faces.

He rails against a litany of grievances that include pollution, poisoned food, a deepening recession, spiraling oil prices, chronic unemployment and the Vietnam War, to just name a few.

Forget being ‘mad as hell’ with my 3 rules

to unlock your profit potential

Now, Beale’s conclusion revealed no solutions to any of the staggering problems.

He wasn’t sure whether anyone had solutions. But he believed there was hope for answers … and it had to begin with a mindset.

He believed those answers would come when we collectively became "mad as hell," and "not going to take this anymore."

Are We There Yet?

Beale’s exacerbation and frustration strikes a chord. Millions of people shout from their windows and a washed-up relic becomes an overnight sensation. His news show goes from having dismal ratings to reaching an audience bigger than CBS, NBC and ABC combined in just a matter of days.

The fictional network that fired Beale suddenly becomes massively profitable. Beale accepts the anointment as the "Prophet of the Airwaves" and the network, UBS, turns control of its news division over to the entertainment division.

Beale’s news hour is reformatted with a fortune-teller, a gossip reporter, a truth-seeker and a computerized opinion poll.

However the "Prophet," as it turns out, cannot be controlled or managed by the network. Beale continued to bask in his celebrity and UBS management stuck with him, until he eventually turned his anger and rhetoric on the interests of the network itself.

Maybe This Part Feels Familiar …

It is then that Beale tells his audience about a corporate takeover engineered by Saudi Arabia: a $2 billion deal that will merge the parent company of the network with another company to create the ExxonMobil (XOM) of the media industry. (I take license for prose.)

Beale then asks his audience to bury the White House in millions of telegrams demanding that the president stop the merger and keep the Saudis from getting the network.

‘I’m so frustrated now that I could scream’

With the merger endangered, Beale commands a meeting with Arthur Jensen, the chairman and majority stockholder of the fictional network’s parent company, CCA.

Jensen is an ideologue who believes in Beale’s message. And at this meeting, Jensen delivers a thunderous speech explaining "the natural order of the universe" is the same reason money makes the world go round.

With that, Jensen anoints the chosen messenger to help the natural order of things continue properly. By this point in the storyline, Beale has truly become so psychotic and delusional that he looks at Jensen with awe and says with conviction (OR all certainty) …

"I have seen the face of God."

Jensen replies to his prophet, "You just might be right, Mr. Beale."

Beale returns to his broadcasts but ends up reversing his message completely. He goes from telling his audience how important they all are as individuals to telling them that they don’t matter as individuals, they’re insignificant, and television itself is just a "boob tube."

His rants turn on the audience as he insists all television is phony, dishonest, and plagued with liars and all of them are meaningless and living a lie. Beale then pleads with his television audience:

"Turn off your television sets. Turn them off now. Turn them off right now. Turn them off and leave them off! Turn them off right in the middle of the sentence I’m speaking to you now! TURN THEM OFF!"

This doom and gloom that Beale spins sends UBS’ ratings into a nosedive.

The UBS corporate executive committee tries to no avail in convincing the CCA’s chairman to fire Beale. However, with the chairman being intractable and making it clear that Beale cannot be fired, the UBS executive committee concludes there’s only one way out of Beale’s ratings meltdown:

Beale must die. Preferably, live while he is on the air.

Triple Deadline Tonight!

If you don’t act by tonight at 11:59 PM, you’ll miss out on three huge opportunities …

First, you have until the end of today to discover how you can achieve a remarkable 95% win rate in your trading. Since the beginning of the year, my "A-I Indicator" has turned out 23 winning trades, and just one single loss.

Second, you will miss out on the chance to claim your $800 reward just for viewing this groundbreaking report.

Third, my trading partner Geoff Garbacz and I will host a special subscribers-only event tomorrow for those who read our report and took action.

So, if you want your chance to win almost every trade you make … to learn exactly how we do it, and to receive an $800 bonus, then I urge you to click this link immediately.

Internal Sponsorship

The UBS executive committee concludes that ratings for the assassination of Howard Beale and the publicity that surrounds it will dramatically boost the network’s ratings and generate priceless publicity.

The movie ends with a cynical summation of the story by the film’s narrator:

"This was the story of Howard Beale, the first known instance of a man who was killed because he had lousy ratings."

However, this is not the moral of the story.

When you peel back the all the delicious layers of insanity, greed and plausibility of the storyline in the film, it delivers a reckoning reality: No matter what ideology or religion man believes in, at the end of day, all nations and human beings still rely on money and their assets.

Mankind has and always will be centered on business and profit. "Every human will benefit, thanks to the existence of business," Jensen tells Beale.

‘The natural order of the universe’ is the same reason money makes the world go round.

Everything else, including the news he delivered to 60 million people Monday through Friday, was pure entertainment for the masses. 

My focus on this film unknowingly rekindled Tom McClellan of the McClellan Market Report. He recently released a key chart showing the power of the Federal Reserve. In the chart, Tom measures the Federal Reserve’s balance sheet growth versus the S&P 500 from 2006 through 2014.

When I saw Tom’s chart, it confirmed to me the message conveyed to Howard Beale by CCA’s Chairman Jensen:

Don’t fight the natural order of things. Don’t fight the money and power. Don’t fight the Fed.

This is No. 1 of three core-investing rules I have hammered repeatedly into every investment publication I’ve written since 1986 when I wrote, "Precious Metals and Numismatic Focus."

Source: Mcoscillator.com

In "Network," we are confronted with many of the same financial, social and economic problems in the past 14 years that were faced in the 1970s, but worse. There were 200 million Americans back in 1975 when this filmed. Today, there are 317 million Americans and almost 12 million of them are undocumented residents.

I lost count of all the books and articles I read growing up predicting economic, social and political doom in the ’70s. Between painful recriminations and divisions from the Vietnam War and the resignations of Agnew and Nixon, it is easy to understand the context that underlines not only the movie, but also its fine nuances.

Will You Miss the Next Bull Market?

Doom-and-gloom has become more than the cottage industry it was in the ’70s and ’80s. It has become so pervasive and institutionalized, that it has crept into financial news and news programming.

Consider this for a moment. How many experts will be interviewed because of their calamitous predictions this week on the top three financial networks?

The constant parade of gloom streamed by the top six national news programs did such a number on investors that the majority missed a runaway bull market.

In paraphrasing one of my subscribers named Henry:

"I lost my shirt in the tech bubble in 2000. Made it all back and then got hammered by the financial crisis of 2009. I’m so frustrated now that I could scream. I missed this bull market so far because I was deluged with dire predictions — I couldn’t bring myself to buy stocks."

In truth, this life-imitating-art concept that Henry described is similar to Howard Beale.

Unfortunately Henry was among many intelligent — but no doubt exhausted — investors who became so dispirited by the doom industry that they were only able to listen and see the downside.

No matter what ideology or religion man believes in, all nations and human beings still rely on money and their assets.

This negative sentiment is everywhere. Congress has only a 7% favorable rating and Obama has a favorable rating at 41%, which is only 7 points higher than President George W. Bush when he left office. Furthermore, the vast majority of people believe our country is heading in the wrong direction.

The anger and frustration has become so ubiquitous that it has no doubt closed Henry’s, and many other investors’, eyes to reality.

A reality McClellan’s chart shows clearly is that the S&P 500 has almost tripled from its 2009 low.

The chart shows the incredible power of the Federal Reserve.

When the financial crisis started to take hold, the Federal Reserve made the mistake of reducing its balance sheet in 2008, sapping liquidity just a bit. The reaction of the U.S. stock market was clear. In a matter of a few months, the S&P 500’s valuation was cut in half.

Trillions of dollars were erased from existence, and a credit crisis led to a banking crisis that put this country in the worst economic mess since the Great Depression.

Then, the Federal Reserve reversed direction and started to steadily increase its balance sheet, adding liquidity.

The Fed also increased the availability of credit, increased the money supply, and coordinated the most-accommodative monetary and interest-rate policy in U.S. history.

This guaranteed the extraordinary comeback of the U.S. stock market from the lows that hit six years ago that we have now seen unfolding.

Don’t let the stupidity of Washington and its politicians distract you from forgetting the natural order of things. Resolve not to allow the hyperbole of entertainers posing as news broadcasters scare you away from investing in the United States.

The good news is as long as the Federal Reserve continues to expand its balance sheet and/or maintain an accommodative monetary and interest-rate policy, this bull market will continue.

Take a look at another chart below. It illustrates the Federal Reserve’s balance sheet vs. the S&P 500. However, in this chart, you can see from January 2008 through 2016, including projections and taking into account the anticipated termination of QE. This trend suggested by this chart, which I offer as one analyst’s opinion, is still up.

Source: STAWealth.com

It doesn’t take into account any additional accommodative interest-rate cuts or monetary policy that might come from the European Central or any other of the larger Asian central banks. It is something many central bank analysts are allowing as a possibility in light of the sluggish economic growth in Europe and Asia.

Of course, there will be a few 5% pullbacks and, statistically, one 10% pullback every year. It is a part of the natural order.

More Reasons for Optimism Than Frustration

No bull market goes straight up, thankfully. We have had a generous number of "buy the dip" opportunities as the market climbed. And we should see more as the bull market continues to run.

It’s also true that America’s energy bonanza is under way, and the rapid acceleration of technological and scientific development will have a dramatic effect on efficiencies.

This will also help maintain the upward bias in the U.S. equity markets. The S&P and Dow have steadily reconfigured to express the gains driven by new paradigms in technology, science and energy.

This month marks my one-year anniversary return to Uncommon Wisdom Daily. (You can access all of my past columns here.) Since rejoining, I have been beating the drum on three core rules of investing:

  • Rule No. 1: Never, ever fight the Fed. You will always lose.
  • Rule No. 2: Take Ray Kurzweil’s prediction of reaching the "Singularity" seriously.

Today, the "Singularity" is nothing more than utopian science fiction to many. I guarantee you; the Singularity will be considered real science in just a few years.

(I made the case in America’s Next Great Leap: 2029’s Technology, Today’s Profits and America’s Energy Boom Ushers in a New Era of Prosperity.)

Take a look at the recent science and technology news. The explosion of software, hardware and discoveries in science and medicine clearly show the direction. In order to believe in the "Singularity," you have to be an optimist.

  • Rule No. 3: Don’t buy into the ghastly doom-and-gloom predictions about America’s future. There are great things ahead for this country.

Mark my words, the Dow, S&P 500 and Nasdaq are going to double in the next three to five years.

Remember, follow my three core rules of investing, and you won’t miss the balance of this historic bull market’s next chapters.

Watching Your Chickens,

James DiGeorgia