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We Warned You U.S. Stocks Could Plunge – Here's the Safety Play You Need to Make Now

U.S. stocks reversed course in the final minutes of trading yesterday (Monday) to push the Dow Jones Industrial Average back over 11,000 – but that still wasn't enough to make a dent in the index's 4.8% loss so far this month.

Europe debt fears and dismal economic news have caused the Dow to fall in five of this month's seven trading sessions, each time by more than 100 points.

We warned you September would be a tough market month – several times.

What's more, we showed you how to protect yourself.

Monday's slight 0.63% gain in the 30-stock Dow followed a 302-point fall on Friday that dragged the index below the 11,000 level.

The Standard & Poor's 500 Index is also down this month, losing 4.6%, and the tech-laden Nasdaq Composite Index has fallen 3.3%.

Today wasn't the only time we warned readers that there were rough waters ahead for stocks. In the Sept. 1 edition of Private Briefing, in the report "Investment Plays for the Current Economy," I reminded readers that September (not October) was the absolute worst month for stocks: Since the Dow's creation in 1896, the blue-chip index has lost an average of 1.07% in September – compared to an average gain of 0.71% for all the other months combined.

That differential, or "spread," of 1.78 percentage points is what mathematicians refer to as being "statistically significant at the 95% confidence level."

In that Sept. 1 Private Briefing column, Martin Hutchinson predicted what was ahead for the U.S. economy, and told readers why this September wasn't going to be any better for U.S. stocks. He even detailed a "safety-first" investing strategy he said would help investors navigate the rough waters he said lay ahead.

Before that, as part of our Aug. 11 debut of Private Briefing, our new premium advisory service, we issued a special investment report "The One Safety Play Every Investor Should Make." The report warned subscribers that global uncertainty was certain to boost stock-market volatility, and showed readers how to protect their portfolios from a big decline.

All charter subscribers to the Private Briefing service get that report.

This warning about the tough month for U.S. stocks wasn't the only correct call we've made. In fact, Private Briefing has enjoyed a pretty remarkable first month. In the first four weeks the service has been up and running, we:

  • Warned charter subscribers that gold was due for a correction – and showed them how to "insure" their huge profits in gold – just days before gold suffered its third-worst down day in history.
  • Recommended a biotech stock that zoomed 25% in the three days after we wrote about it.
  • Profiled two different silver stocks that our experts recommended a week apart – and watched as each posted a double-digit advance in a matter of weeks.
  • And correctly predicted what the next round of economic reports would say – and outlined an investment strategy that investors could use for the remainder of the year.

This month's plunge in U.S. stocks adds to that list of timely market calls.

To find out more – or to get started accessing those reports – please click here.

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About the Author

Before he moved into the investment-research business in 2005, William (Bill) Patalon III spent 22 years as an award-winning financial reporter, columnist, and editor. Today he is the Executive Editor and Senior Research Analyst for Money Morning. With his latest project, Private Briefing, Bill takes you "behind the scenes" of his established investment news website for a closer look at the action. Members get all the expert analysis and exclusive scoops he can't publish... and some of the most valuable picks that turn up in Bill's closed-door sessions with editors and experts.

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  1. Trev Adams | September 13, 2011

    Why is silver up an down like a fiddler's elbow? There seems no coherent reason (to me) for the seesawing price. Can you please enlighten me?

  2. CP | September 13, 2011

    I have a feeling that Mutual Funds are probably not a good investment right now.

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