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The Great Buying Opportunity in Stocks Is ComingBy Dr. Steve SjuggerudFriday, February 27, 2009
The moment we're all waiting for is coming...
^ If you adjust this number for inflation, it's negative.
My generation may end up like my grandparents... swearing off stocks forever. But that will be the wrong way to go. Chances are excellent that my kids' generation will have the luxury of a seventeen-year bull market, an epic tailwind.
Further Reading:
Read This If You're Confused About What the Government Is Doing
HOW TO TRACK THE WORLD'S BIGGEST DISASTER In the past decade, one China story has dominated the world's newspapers, magazines, and investment advisories. That story is the "bull case."
What you rarely read is that China is also the world's biggest potential economic disaster. The "bear case" goes like this: China has a centrally planned economy... which has allocated hundreds of billions to unproductive enterprises. And China's dependence on low-margin manufacturing is a killer in a world cutting back on televisions, cars, and appliances. It's a huge potential story that will play out over the next few years. We'd be fools to tell you what will happen. But we can give you an easy, no B.S. way to track the situation: the price of copper. The Chinese government lies about its job and GDP statistics. But China is the world's workshop... so it's also the largest copper consumer. If the country starts to "blow up," you'll see it in a plunging copper price. Here is our rough guideline: If copper holds above its December lows around $1.35 per pound, China's glass is half full. If copper violates $1.35, China's economy is going to hell in a hurry. |
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