Members should log into the web site to view special reports.  We expect more of the same.  50 points up one day, 100 to 150 down the next.  We gave members the first warning back on January 21, 2010.  We gain no pleasure from giving people bad news.  Investors need to avoid “hoping” that reality is going to be different and things will turn around.  Re-read the special reports on the web site and view the tools suggested in the reports in Power Investor.  

We were driving in the car today going to lunch and flipping channels.  A broker/advisor was on the radio saying “this was just a normal 7% pull back we were going through.”  Sure dude.  We wish.  This is sort of like saying, “this is a normal U-6 unemployment rate of 17.3%.”  U-6 is the broader measure of unemployment in the United States used by the Bureau of Labor Statistics.  Stock markets generally do not react favorably when real unemployment is pushing 20%.  Corporate profits are usually not that strong when 1/5^th of the country does not have a job.

The problem for brokers and advisors is if they sell you out, they may be churning and if they guess wrong and the market goes back the client will be very angry.  Either way they may be looking at an arbitration case.  The other thing is the boss and the company does not want you sitting in a money market because the company makes no money. If the broker tries to use an inverse or short ETF to hedge the account and he is wrong, the client will claim it is a risky investment.   So how do they deal with it? They tell you that you are “investing for the long term and it will come back.”

This afternoon our email boxes lit up after the market close with newsletter gurus claiming the bear market is here now.  You are a bit late guys.  The reason is no one wants to stick their neck out and be wrong.  So they wait.  By waiting until after the close today, it is pretty obvious that the MA’s are going the way we have been suggesting for two weeks.  Investors Alliance members should re-read the special reports on the web site for members.

Do not do a “deer in the headlights folks.”  This is what people did in 2008.  This time it may be ever worse.  There are ways to hedge etc.  The old saw that if you are worried, sell half and go to cash is something to think about.

If you are not a member, click on the ORDER button on the top right of the web site.  We provide education, research, investment software, models, our EWS or Early Warning System market modeling engine for mutual funds and ETFs or exchange traded funds.  Our membership costs are modest and the tools are powerful.