Perfect Storm

Having lived aboard a sailboat for 2 years I was stricken when I saw the movie "PERFECT STORM". I know these are things you want to avoid at all costs. Even little storms can play havoc with your life style on a boat.

From a world view it looks like we are headed into a perfect storm of world macroeconomics. That means every one in the world is going to be impacted economically by the developing global economics. The more economically developed the country the worse they will be affected. Those third-world countries just working their way to becoming second-world countries can easily be set back 30 to 50 years.

What am I talking about?

People need food and shelter and after they have the basic necessities they will buy nonessentials such as entertainment and toys (boats, cars, jewelry, bigger houses, second homes, etc.). These are all purchased because the person has extra units of credit called money with which to buy the extras. In order the get that extra money he has to have a steady job. World wide there is excess productive capacity. Approximately 25% of productive machinery is idle; we are working at about 75% of capacity where the normal rate of production is between 87% and 92%. That means that many who were at those machines are now sitting at home wondering not about a new toy to buy, but how to make the next mortgage payment.

Everything looks smooth. The waters are calm and the breeze is at our back. When that perfect storm was forming in the Atlantic Ocean there did not seem to be any danger, but the meteorologists watching their satellites and computers could see that all was not well and a terrible storm was forming. They realized when it hit that ships would be at high risk.

There are meteorologists of the stock market. They are a combination of technical and fundamental analysts and it is their job to predict the stock market weather. Like weathermen the job of prediction is not easy nor is it an exact science, Many get it wrong, Today the news of the stock market and the economy is dominated by the fundamentalists who see excellent weather and tranquil seas. Many technicians see it otherwise. They are predicting that there are formations that could produce a perfect storm that will wipe out many portfolios.

Historically the timing of fundamentalist (those who follow the reports of company profits and government statistics) usually lags while the prediction of technical analysts (those who follow chart patterns and historical data) has been much more accurate.

The key to the stock market is timing. The investor wants to own stocks and mutual funds while the market is advancing and to be in cash while the market is declining.

Today the fundamentalist weathermen say buy while many technician weathermen are recommending cash. In the next few months we will see if the weather is calm or stormy.

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.

Copyright 2005

Indian Head Park taxi to Midway .. Lockport Chicago limo O’Hare
In The News:

The Reachy 2 robot is designed to be friendly and approachable, inviting natural interaction and is perfect for research, education and experimenting with embodied AI.
Kurt "CyberGuy" Knutsson shares several easy ways to keep your credit cards safe from digital thieves while you're traveling this summer.
Arcturus sets up cameras around the edges of baseball stadiums to capture real-time action and generate a 3D digital clone of the game.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
The CyberGuy explains why healthcare organizations are vulnerable to hackers after there have been a half dozen data breaches this year.
Developed at two California universities, the innovative technology combines brain-computer interfaces with advanced AI to decode neural activity into audible speech.
Microsoft patches 12 critical flaws, but six have already been exploited by criminals. Kurt “CyberGuy" Knutsson says updating your system is only a short-term fix.
Tech expert Kurt “CyberGuy" Knutsson discusses how robots can milk, feed and clean cows on dairy farms, boosting efficiency and comfort.
Tech expert Kurt “CyberGuy" Knutsson says quantum internet ensures unhackable security and redefines online privacy and speed.
Kawasaki's CORLEO is a hydrogen-powered, AI-driven rideable robot. Tech expert Kurt “CyberGuy" Knutsson reports on this new way of thinking about off-road transportation.
The CyberGuy breaks down five mobile privacy terms that could make a difference when it comes to keeping your personal information safe.
A groundbreaking robot that's like a real-life Wall-E uses advanced artificial intelligence to replicate natural gestures and deliberate actions with striking accuracy.
If not properly managed, Windows Defender Application Control, a security feature with Windows, could be a potential security vulnerability.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
FlashBot Arm, a semi-humanoid robot, acts more like a human than traditional robots, and you may see it working at a restaurant, healthcare center or hotel.
There are multiple ways to find your missing Android phone after it goes missing. One method involves using a smartwatch to ping your phone.
The NeuroOne OneRF Ablation System is a new device with FDA-cleared technology designed for both diagnosing and treating neurological disorders in one procedure.
The CyberGuy provides tips to protect yourself from criminals who use various methods to make unauthorized transactions using your account information.
New drone technology maps land and water with stunning accuracy, giving researchers and conservationists a new way to understand our planet.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
X hit with massive data breach with 200 million records leaked, including emails. Tech expert Kurt “CyberGuy" Knutsson offers seven tips to help protect yourself.
Atlas robot by Boston Dynamics amazes tech expert Kurt “CyberGuy" Knutsson with its breakdancing moves.
Tech expert Kurt “CyberGuy" Knutsson talks about how Google kept Android SafetyCore details quiet until it scanned users' photos.
Hydrogen trucks debut in Georgia, sparking debates on costs and green freight gains. Kurt “CyberGuy" Knutsson comments on this promising chapter in green logistics evolution.
Tech expert Kurt “CyberGuy" Knutsson says ChatGPT learns from chats, but you should avoid sharing sensitive information to protect your privacy.

365/7/24

What does it take to be a stock trader? It... Read More

Low Tide

When you stand on the ocean shore and watch the... Read More

Buy and Hold Investment Strategy

"Buy and hold" is one of the most heralded investment... Read More

Take The Time

You must take the time once a month to review... Read More

Risk Control

Everything you invest in has risk so you want to... Read More

What Can Model Airplanes Teach You About Trading?

I was devastated!I just couldn't believe it. I was 10... Read More

Stock Market Investments

If there is one term over-used when talking about making... Read More

Commoditizing the world

Let's discuss commodities; with the latest Enron situation, it is... Read More

Are You A Stockaholic?

Today's society gives special recognition to alcoholics, sexaholics, binge-aholics, shopaholics,... Read More

Market Success

Who are the successful investors?There are those who follow the... Read More

VooDoo Training For the Stock Market

If you go to Haiti or other places in the... Read More

Catnip of the Stock Market

I have watched my cat play with a bag of... Read More

Stock Trading - Daddy, Why Arent We Rich?

One Saturday morning, while he was sitting at his computer... Read More

A Common Misconception about Stock Prices

I cringe every time I hear a novice investor tell... Read More

Buying Mutual Funds

It looks like the market is ready to start up... Read More

Pamplona, the Wild Investment Bulls

You remember (they show it on TV every year) the... Read More

Can?t Stand The Heat

It seems that every day I turn on the TV... Read More

The Problem With Hedge Funds

Are hedge funds a suitable investment for you? Hedge funds... Read More

Buying New Issues

Has your broker been calling you recently with the "great... Read More

Top 25 Growth Funds

On Monday, November 25, 2000 Investor's Business Daily listed on... Read More

Forecasting the Stock Market

Every day I see in the financial section of newspapers... Read More

Is Active Trading The Answer?

One of the main reasons many of us get into... Read More

Learn to Calculate a Stock?s Pivot Point

Stocks breakout from properly formed bases everyday but many investors... Read More

Stock Market Investing Odds

The greatest stock market myth is the idea that investing... Read More

Getting Even

I know there are a lot of you out there... Read More

Bonnie Chicago charter limousine ..