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

housekeepers near Buffalo Grove ..
In The News:

Analysts at Silent Push have uncovered a widespread scam that uses counterfeit retail websites to steal the credit card information of online shoppers.
Chrome users need to update their browsers immediately as Google addresses a critical vulnerability that hackers are actively exploiting. Additional security measures are recommended.
A study found teens glance at phones for dangerous two-second intervals while driving, using devices primarily for entertainment, texting and navigation despite crash risks.
Security researchers uncovered a flaw in Windows 11 that allows attackers to disable Secure Boot using Microsoft-signed tools, requiring manual updates to protect against bootkits.
Carnegie Mellon's noninvasive brain technology allows users to move robotic fingers by thinking about the motion, offering new possibilities for people with motor impairments.
Multi-factor authentication (MFA) adds an extra layer of protection to your accounts. Instead of relying only on a password, MFA requires you to verify your identity using two or more methods.
Scientists from Duke, Harvard, and the University of Otago have unveiled a game-changing tool called DunedinPACNI. It uses a single AI brain scan to reveal how fast a person is biologically aging.
A disturbing wave of fake agent phone scams is sweeping across the United States, catching people off guard and draining their savings.
Emojis aren't just playful add-ons; they're powerful tools for building stronger connections in our increasingly digital world.
Google has taken a major step toward the future of clean energy by partnering with Commonwealth Fusion Systems (CFS), an MIT spin-out working to build one of the world’s first commercial fusion reactors.
If you create and share art online, you might have seen messages warning that Facebook's parent company, Meta, claims the right to use or even sell anything you post, whether it's pictures, poems, or artwork.
Cybercriminals hit Qantas in a major data breach that exposed information from up to six million customers.
Having reliable, loud, and timely emergency alerts on your phone or device is important because when severe weather strikes, every second counts.
Here's how your daily brew is becoming the foundation for greener buildings.
Artificial intelligence (AI) and large language models (LLMs), such as ChatGPT, are transforming how we learn. But what does this mean for AI and learning retention?
Modern AI data centers use much more electricity than traditional cloud servers. In many cases, the existing power grid cannot keep up. One innovative solution is gaining traction: repurposed EV batteries for AI data centers.
Microsoft 365 and Outlook users are being targeted by a tactic that injects fake billing alerts directly into their calendars.
Researchers are now showing us that old smartphones as data centers could be the next big thing in sustainable tech.
Scientists have created micro-robots for sinus infection treatment that can enter the nasal cavity, eliminate bacteria directly at the source, and exit without harming surrounding tissue.
Let's examine how your data is collected in everyday life, who is buying and selling it, what happens to it afterward, and, most importantly, what you can do to protect yourself.
Researchers at the University of Sheffield in the U.K. developed small robots called "Pipebots" that can travel inside water pipes to find and potentially repair leaks, all without any excavation.
A groundbreaking new study has uncovered disturbing AI blackmail behavior that many people are unaware of yet.
Four teams of autonomous humanoid robots competed in China's first AI soccer tournament, demonstrating advanced capabilities in ball detection and independent decision-making.
The ID. Buzz autonomous van features self-driving technology with 13 cameras, nine LiDAR units and five radars after Volkswagen partnered with Hamburg and Uber for 2026 deployments.
Social Security phishing scams use urgency and impersonation to steal personal data. Learn how to spot fake SSA emails and implement 10 protective measures.

How To Be A Winner

Everyone who invests in the stock market wants to be... Read More

Shorting Stocks ? The Basics, Part II of II

After the publication of the first part of this two... Read More

Buy and Hold Investment Strategy

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

The 1% Solution

You probably know the story of Sherlock Holmes and the... Read More

Understanding a Stocks PEG Ratio

A PEG ratio cannot be used alone but is a... Read More

Protect Your 401K

Checked your 401K lately? Going back to about a year... Read More

I Love To Lose Money

Well, not really. What I mean is I don't mind... Read More

Forces that Move Stock Prices

Among the largest forces that affect stock prices are inflation,... Read More

Trading For A Living

How many times have you said to yourself, "I'd like... Read More

Does Japan Matter?

For the last 12 years we have seen the Japanese... Read More

The Shadow

The Shadow knows. There used to be a radio program... Read More

The Stock Market Investor?s Worst Enemy

Every stock market investor faces one primal enemy. An enemy... Read More

Being Wrong Buying Stock is Okay

Being wrong is OK, but let's not carry it to... Read More

Hot Stock Trader: How to Pick Momentum Stocks with Ease and Simplicity

Most stock traders know that momentum trading can be a... Read More

Laws and Efficiencies and Theories of Diminishing Returns

The basis of diminishing return discussions surround such simple notions;... Read More

Emotional Involvement

I'll bet with almost anyone that has stocks or mutual... Read More

Your Job

There are so many kinds of work that needs to... Read More

You Don?t HAVE To Be Trading

As a novice trader, you'll often feel the need to... Read More

Financial Crime

Congress recently passed another new law that is supposed to... Read More

Discover the Biggest Trading & Investing Online Mistake

Any online investor / trader seeks an excellent off or... Read More

10 Tips For Creating Wealth From the Stock Market

1. Do not spread your money too thin.My friend has... Read More

Stock Trading Success

The ABC's of Stock Trading SuccessStock trading success...why is it... Read More

Option Trading Basics

Options trading can increase the profits you make when trading... Read More

Dont Spend Another Dollar on Business Opportunities Until You Read This

With an insecure job market, overworked employees, insufficient retirement savings... Read More

Again With the Bubbles?

A few years back ? it seems like an eternity... Read More

custom home cleaning Mundelein ..