What to watch for when investing:

When we look to invest, our focus is global. Most investors are too focused on their domestic economy and fail to understand how global capital influences all markets. If we look at what is happening globally, we get a true sense of potential investment winners.

Global debt is soaring and currently totals $244 trillion, which is unpayable, meaning we are heading for a global debt crisis.

Our investing strategies for 2019:

Governments continue to pile on more debt and after 10 years of forcing low interest rates, they are still afraid to allow them to rise. In fact, Switzerland at -.75%, Japan at -.10%, and the ECB at 0% will not even let their central bank rates move above 0%.

Bonds

What these central banks have done is destroy their bond markets and that means we will be seeing a global bond market crash, meaning defaults. In Switzerland, Germany, Sweden, France, Portugal, Spain, & Japan, 2-year gov’t bonds pay a negative yield, meaning bond holders actually lose money every year. The US 2-year bond meanwhile pays bond holders a 2.3% yield.

Question: If you are a Swiss, German, Swedish, French, Portuguese, Spanish, Japanese, Greek, or even Canadian investor with money that you want to invest ‘safely’, which bonds would you buy?

Answer: US bonds. Why? – because they pay more yield and they are in $US.

That is exactly what the smart global investors are doing. They know their domestic economy is in real economic trouble, so they are moving their capital out of Europe, Japan, and most other countries, and into US bonds, equities, and the $US.

Currencies:

Martin often says…’if you get the currencies right, everything else follows.’

Global investors are moving their money into US markets, which means they must buy $US which is why the $US has been rising and was up over 10% in the last year.

The Euro has lost over 10% to the $US in just over a year.

The $CAD has lost 9% to the $US in the last year.

We have advised Canadian and European investors to convert their $CAD and Euros to $US whenever there is a favourable correction in the trend. For Canadian investors, look for rallies in the $CAD near .80 and buy $US. We will continue to recommend trades for our Trend Letter subscribers to use US ETFs to short the Euro, and Japanese Yen when our model triggers a BUY Signal for those trades. See example here where we are currently short the Euro using an ETF.

That trade is up over 32% in just over a year, plus the currency gain.

Stocks

Here is the Trend Letter’s latest projection. Note that our model (gold line) tends to lead the markets.

It projected the current decline and sees a bottom in mid/late May at the low 2700 range. We will be looking to send Trend Letter subscribers fresh new BUY Signals if that low 2700 support level holds. Note: If that 2700 level does not hold, then we could be in for a much bigger correction.

NOTE: This will likely be the last melt-up of this long 10-year bull market. We believe there are still  substantial gains to be made with a potential target of over 3400 for the S&P 500. We expect that technical stocks will do even better than the S&P 500 or Dow Industrials.

Our Trend Disruptors Premium service is likely to produce some big winners in a final melt-up scenario. This service identifies opportunities for getting ahead of the curve in new technologies. It covers Artificial Intelligence (AI), Virtual Reality (VR), Augmented Reality (AR), 5G, Blockchain, and many other new technologies that we see as having a profound impact on how the world does business, similar to how the internet re-shaped our lives in the 1990’s.

BEWARE: Once we get that last melt-up, we expect to see a massive melt-down, a bear market that could very well be the worst stock market collapse EVER!

That is why we have our hedging service Trend Technical Trader (TTT). TTT is designed to profit during stock market declines, and the bigger the decline, the bigger the gains TTT trades can generate.

Gold:

Gold is often used as ‘insurance’ for a stock market crash, so we will be recommending more gold trades as this cycle plays out. Our expectations of a strong $US due to the global flow of capital into US markets, means that gold will need more time before it really takes off.

Trend Letter was first published by Martin Straith in 2002 and has an incredible record of making accurate projections, identifying key market trend reversals, and providing subscribers a true edge in becoming successful investors.

The first recommendation was to buy gold (2002), buy uranium (2003), call the US real estate top (2005), and issue a final warning to subscribers to get out of the stock market ( May 2007) – just weeks before the final top and crash into 2008.

Since then the string of uncanny calls have netted subscribers’ great gains in equity, commodity, precious metals, bond and currency trades.

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