Welcome to Super Stock Screener’s first Stock Picking Contest.
Pick the best performing stock from Monday June 28th to Friday July 23rd and win a cash prize of $100!
Congratulations to Marc Chretien of Montreal, Canada on winning our first stock picking contest! To win the contest Marc sold Blockbuster short, which subsequently fell 36.74%. He will take home a cash prize of $100.
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Buy-and-hold has not been kind to U.S. equity investors over the past decade. The S&P 500 index remains below its level at the beginning of 2000 and it is difficult to predict when this strategy will prevail again. As a result, we have built an investment model to help our subscribers determine when it’s safe to own U.S. stocks vs. when to sell and hold cash. The model is based on an in-depth historical analysis dating back to the early 1930s. Essentially, we have uncovered certain market conditions that have historically been associated with positive gains, and we only recommend investing during these periods in order to protect your capital and avoid large losses. Since the early 1930s, only investing when the conditions are ripe according to our model would have led to substantially better returns than that of the S&P 500 and more importantly it avoided bear markets and corrections.
This week’s article marks the conclusion of series of pieces on trends in the global economic landscape. In this edition, we outline the main investment themes and opportunities that have been created by what might be the biggest bubble in recent memory: The financial crisis of 2008.
Please, click the following link for part I of our piece on asset bubbles.
Please, click the following link for part II of our piece on asset bubbles.
Please, click the following link for part III of our piece on asset bubbles.
What goes up must come down
– Sir Isaac Newton (1642-1727)
It is likely that we are transitioning from a period of declining inflation to a period of rising inflation, similar to what happened in the mid- to late 1970s. While this may take some time to play out, the thesis is built on the following:
1) Governments and central banks have “solved” a crisis created by excess liquidity (the credit crunch) by spending and borrowing even more. History has shown that the only outcome of reckless fiscal and monetary policy is higher prices. In other words, printing money to boost growth at any cost will trigger rises in inflation.
2) The credit crunch will limit capital investment, meaning that capacity constraints will become more of a threat, and thus raise the likelihood of rising inflation.
3) The “easy money” from globalization has already been made, and we have run out of countries with declining unit wage costs to outsource to, which is also inherently inflationary.
