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This Man Predicted The 2008 Crash (and He Now Works For Us)

How many experts predicted the dot.com bust of 2000, the global financial meltdown of 2008, and the rise to world dominance of China? Dr. Stephen Leeb can rightfully claim anticipating all three watershed events… and a lot more. Don’t take my word for it; the proof is in his published articles and books, as well as numerous television appearances.

Now Dr. Leeb is a member of the Investing Daily team. He brings with him his staff of editors and analysts, all dedicated to one goal: helping you make money.

Steve is no stranger to me; I’ve known the guy for more than 25 years.

I first met Steve in 1992, during the “dead tree” era of media, when newspapers, newsletters and magazines were print-based. (Back then, the Internet only communicated 1% of the information flowing through two-way telecommunications networks.)

Over the subsequent years, as rapid technological change swept the financial markets, Steve’s observations were consistently insightful and prophetic, infused with interpretive analysis and an overlay of healthy contrarianism.

If the name Stephen Leeb is familiar to you, maybe it’s because he’s a sought-after guru who is regularly quoted in The Wall Street Journal, USA Today, Forbes, and Businessweek. Perhaps you’ve caught one of his frequent appearances on Fox Business News, Bloomberg, CNN, Neil Cavuto, and NPR.

Or maybe when browsing your local bookstore (or Amazon), you’ve seen one of his books. Steve has written eight books on macroeconomic trends, finance and investment.

Steve’s book, Red Alert: How China’s Growing Prosperity Threatens the American Way of Life (Business Plus, 2012) predicted China’s fast ascendancy as a superpower. An earlier bestselling book, The Coming Economic Collapse: How You Can Thrive When Oil Costs $200 a Barrel (Warner Books, 2006), accurately predicted the 2008 crash.

Steve’s other bestseller, The Oil Factor: Protect Yourself and Profit from the Coming Energy Crisis (Warner Books, 2004), underscored the linkage between oil prices and stock market performance and foresaw the subsequent surge in oil prices.

His earlier bestseller, Defying the Market: Profiting in the Turbulent Post-Technology Market Boom (McGraw-Hill, 1999) predicted the crash of technology stocks and the growing importance of oil and hard assets during the 21st century.

The rise of the Middle Kingdom…

Steve’s Red Alert asserts that the Chinese are shrewd strategic thinkers and grasp the challenge of resource scarcity much better than shortsighted Americans. As “China Inc.” accumulates ever-greater stockpiles of vital resources, Steve warns that the West may soon find itself in a highly vulnerable position.

Steve has a history of uncanny prescience. Just by glancing at his resume, you’d expect him to be highly intelligent. He earned a B.S. in Economics from the Wharton School of Business, and a Masters in Mathematics and a Ph.D in Psychology from the University of Illinois. His graduate degrees were obtained in only three years. He also authored research papers on psychology and statistics in the peer-reviewed journal Psychological Reports.

What has always struck me, though, is Steve’s wit, humanity and commonsense. Wall Street is rife with bullies and blowhards, but Steve… well, he’s a nice guy, in an industry where nice guys are in short supply. Steve’s humility not only makes him a joy to work with, but over the years it has prevented him from making ego-driven investment mistakes.

Media distractions…

Steve is a master at sifting through the media noise, to provide context for deeper understanding.

Worried that the Trump scandals will provide the trigger that finally kills the bull market? Steve offers this level-headed perspective:

“Of course, political events derailing Trump’s presidency could have some real economic repercussions — for instance, if the distractions knocked out his proposed tax cuts or any infrastructure spending. But it’s not even clear that would be a negative for the economy.

For the first time in a long time the IMF has been raising its estimate of world growth rates. Typically rising growth would be a positive. But as I have mentioned many times the economic books have been rewritten — in some cases turned on their head — since the beginning of the new century.”

Infrastructure: a source of national greatness…

And if you genuinely want to help “make America great again,” consider these wise observations from Steve:

“One cannot separate economic strength from economic security at this point. Consider infrastructure, which shows how closely knitted are security and strength.

President Dwight Eisenhower, the leader of allied troops in WWII, made that clear with his focus on the build-out of the interstate highway system. Any major war effort requires the ability to transport vital goods and information at will.

Everything from waterways to roads to the electric grid to rails must be top notch. To invest in top-notch infrastructure would also prove the most constructive way to attack America’s most pressing economic problem, the nation’s woefully declining productivity.”

While many traders execute impulsive, knee-jerk decisions according to the latest dire headlines, Steve offers calm counsel. Consider his reaction to Trump’s firing of FBI Director James Comey, which temporarily panicked investors:

“The market finally blinked in reaction to a Trump controversy, but we think talks of impeachment are way too premature. The frequent White House drama continues to serve as distractions, but we think the market has realized that the president’s promises of economic stimulus are probably not coming anytime soon.

Provided the U.S. economy, and perhaps even more importantly, the Chinese economy, avoids major hiccups, oil prices don’t skyrocket, and there isn’t some unforeseen political shocker, the stock market should avoid a protracted decline.”

The doctor is in the house…

Working with Dr. Stephen Leeb is good news for me, for Investing Daily… and for you, too.

As part of our team, Stephen will serve as the chief investment strategist of The Complete Investor, Real World Investing, and Aggressive Trader. Over the years, Steve has racked up a remarkable investment track record that has enriched his followers.

As a reader of my daily newsletter, you’ll start receiving in your inbox the latest research from Steve and his team, as well as their most urgent investment opportunities.

Got any questions? Drop me a line: mailbag@investingdaily.com — John Persinos

 


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Stock Talk

Peter

Peter

Call options on ETE and WMB due in January 2019 are currently trading at what seem to be very low prices. E. g. a call on ETE with a basis of 17 can be had for $ 3.70 so that you´d pay only $ 20.70 altogether for the stock if you exercised your option. Given you buy-up-to price of $ 22 I wonder whether it wouldn´t make sense to sell my ETE stock and rather buy this option. I´d miss out on the dividends (which come with 39,4% withholding tax for me as I´m not a US resident) but get a huge leverage to the upside. Would this be a good idea in your eyes?

BobH

BobH

I remember him when he was editor of PF. He was the one that predicted high inflation and high interest rates in the early 2000’s. And then there was to be “Boomflation” that also never happened.

John Saputo

John Saputo

JVS7

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