Keith Fitz-Gerald
Investment Director
Money Morning/The Money Map Report
Investors who are regular readers of the financial pages are no doubt feeling about as uneasy as can be about the near-term outlook for the U.S. economy and U.S. stock prices.
But if you're a regular reader of the Money Morning Web site these same headlines are probably a lot more reassuring. The reason: Almost all of them reinforce the messages that we repeat here time and again.
These daily developments reinforce the need for globally focused investments like those we advocate, because such holdings are "decoupled" from the fiscal disaster that continues to build here in the U.S. market.
But even for us, I know the headlines can sometimes be tough to stomach. Just remind yourself that with each development, there are actually profit opportunities for us as investors - even though those same headlines mean we'll experience pain from a consumer standpoint.
Beginning at the top:
When these facts are taken together, two things are clear:
Before you start to believe everything is bleak and that we're headed for a Great Crash-style downturn, let's take a look at the good news.
And believe it or not, there still is good news for investors. There are plenty of ways that investors can position their assets for growth, even as they more closely control downside risk - even the face of such horrific market conditions.
Some of these investments - such as balanced funds - provide stability, which is crucial in a market like this one, and which is why we've been recommending them for a while. Other types of investments, such as bond funds, provide additional stability and generate a stream of income, to boot.
As for specific companies, it should be no surprise that we continue to favor the so-called "Global Titans" that we've referred to so often in recent months. Not only are these stocks holding their own, but many actually are expanding their market share and profits.
Of course, the inverse funds that we've been recommending are up by double-digit amounts, too. Compare that with the broader markets, which have plunged to hair-raising levels in only a matter of weeks.
When I look into my crystal ball - in my case, a very powerful PC supercharged with some highly customized and highly proprietary analytics - I see some very bright times ahead. But that's only for investors who are shrewd enough to play the hand they're dealt - and not the investors who sit around waiting for the so-called "perfect" hand.
We are not facing anything close to the death of the equities markets. In fact, when we see a cover story in Time, BusinessWeek, Forbes or Fortune that's eulogizing the U.S. capital markets, I'll be backing up a truck to buy.
Studies show that investors have a great history of doing exactly the wrong thing at the wrong time so that kind of media coverage is one of the best Contrarian indicators in the technical playbook.
Keep an eye out.
You can bet that we'll be doing just that.
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About the Author
Keith is a seasoned market analyst and professional trader with more than 37 years of global experience. He is one of very few experts to correctly see both the dot.bomb crisis and the ongoing financial crisis coming ahead of time - and one of even fewer to help millions of investors around the world successfully navigate them both. Forbes hailed him as a "Market Visionary." He is a regular on FOX Business News and Yahoo! Finance, and his observations have been featured in Bloomberg, The Wall Street Journal, WIRED, and MarketWatch. Keith previously led The Money Map Report, Money Map's flagship newsletter, as Chief Investment Strategist, from 20007 to 2020. Keith holds a BS in management and finance from Skidmore College and an MS in international finance (with a focus on Japanese business science) from Chaminade University. He regularly travels the world in search of investment opportunities others don't yet see or understand.