Billionaire Warns: Yellen Collapse 'Will Be Unlike Any Other'
Tuesday, 22 Jul 2014 04:00 PM
Another horrific stock market crash is coming, and the next bust will be “unlike any other” we have seen.
That’s the message from Jeremy Grantham, co-founder and chief investment strategist of GMO, a Boston-based firm with $117 billion in assets under management.
Grantham pulls no punches when assigning responsibility for the coming financial carnage. In a recent interview with The New York Times, he calls Federal Reserve Chair Janet Yellen “ignorant” and says the Federal Reserve all but killed the economic recovery.
Grimly, he adds, “We have never had this before. It’s going to be very painful for investors.”
Grantham isn’t the only one worried about a market collapse.
“We have no right to be surprised by a severe and imminent stock market crash,” explains Mark Spitznagel, a hedge fund manager who is notorious for his hugely profitable billion-dollar bet on the 2008 crisis. “In fact, we must absolutely expect it."
Billion-dollar investor Warren Buffett is rumored to be preparing for a crash as well. The “Warren Buffett Indicator,” also known as the “Total-Market-Cap to GDP Ratio,” is breaching sell-alert status and a collapse may happen at any moment.
So with an inevitable crash looming, what are Main Street investors to do?
According to Michael Carr, the founder of Peak Profits and acclaimed author of Smarter Investing in Any Economy, you can make tactical investments that will perform well in any market.
Carr explains, “The $21 trillion stock market is an ocean of opportunity with hidden profit patterns everywhere. So, even in a market correction, there is always a bull market somewhere. The key is to effectively mine the data and find stocks that are entering a proven profit pattern.”
As proof, Carr displays a spreadsheet on his computer and quickly points to a section marked “2008.”
Carr notes that in 2008, during the worst part of the Great Recession, the overall stock market was decimated and plunged over 30%, wiping out the 401(k) and retirement accounts of millions of innocent, hard-working Americans.
Yet during the crisis, Carr’s Peak Profits system correctly identified 29 winning stock trades. More impressively, none of the trades were shorting the market or individual stocks. Every single trade was betting the stock price would rise, which is exactly what happened.
Carr states that this is proof that no matter how bad the next stock market collapse is, his system can identify the stocks that will deliver consistent winners time and time again.
His ability to precisely identify these winning trades is due to his unique background.
For nearly two decades, he held a top-secret post as the communications officer for Strategic Air Command, where he was charged with designing and programming the computers that coordinated America’s nuclear missile arsenal.
“In the military, I developed complicated equations to predict the flight patterns of nuclear missiles,” Carr comments. “Today, I use these same complicated equations to predict the price patterns of stocks.”
Just like mapping out nuclear missile trajectories with thousands of variables . . . Carr’s program screens more than 8,000 major stocks and thousands of relevant financial data points to identify what he believes are the best stock trajectories in the market . . . stocks that he believes will rise no matter what the market is doing.
Just last year, the Peak Profits system actually identified 242 winning trades! Most of them were conservative wins of a few percentage points here and there.
“The key is to get small wins, again and again. If you can get 1 percent a week, that works out to about 52 percent in profits every year,” Carr points out.
But clearly, Carr is being modest, because his system isn’t just for small gains.
For example, take the high-flying stock Tesla Motors (TSLA). His system identified two back-to-back, peak profit patterns in the stock, and trading these patterns would have given you an enormous 263 percent gain.
The military precision of Carr’s investment system has also identified big wins like . . .
- 148 percent on SanDisk
- 315 percent on Akamai Technologies
- 180 percent on DaVita HealthCare Partners
- 182 percent on Gannett
- 191 percent on Alexion
- 306 percent on Equinix
Recently, Aaron DeHoog, the financial publisher of Newsmax, teamed up with Carr to make his unique investment system available for anyone to use.
“We wanted to retool Mike’s system so anyone could profit from it, no matter their age, income, or investment knowledge," he says.
In fact, DeHoog was so impressed with the system that he immediately jumped on Carr’s top “buy” recommendation during his first meeting with Carr — a company called ViroPharma.
He bought in at $31 and sold five weeks later at $39, for a quick 25 percent gain!
“The only problem with the trade was that I sold it against Mike’s instruction. I sold it on my own and did it way too soon,” DeHoog confesses. “The profit pattern Mike’s system had identified wasn’t done forming yet. If I’d held on to that position just a few weeks more, I would have been sitting on gains of 62 percent.”
In a new video called the Peak Profits System, Carr describes his system in detail and how anyone can use it to protect their wealth from the next stock market collapse (Click Here to Watch the Video)
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