Account Information

  • My Account

    Manage all your subscriptions, update your address, email preferences and change your password.

  • Help Center

    Get answers to common service questions, ask the analyst or contact our customer service department.

  • My Stock Talk Profile

    Update your stock talk name and/or picture.


How To Collect Your Share of My Million Dollar Giveaway

How To Collect Your Share of My Million Dollar GiveawayWe recently kicked off the most outrageous initiative in the history of investment research. It’s called the Income Millionaire Project. And the goal is simple: create 1,000 income millionaires. That’s a $1 billion goal! No one has ever tried it before, but that doesn’t bother me. I’m so sure you can use this program to make a million bucks… I’ll pay you $1,000 to start your journey. Go here for details.


Will a Nuclear Bomb Trigger the Next Stock Market Correction?

By Jim Pearce on August 11, 2017

There’s an old saying on Wall Street: “Buy on the rumor, sell on the news,” implying that reality often falls short of fantasy.

However, this summer the stock market likes the economic news it’s seeing and instead of selling off, it’s racing higher to record territory. On August 2, the Dow Jones Industrial Average closed above 22,000 for the first time ever, while the broad-based S&P 500 and tech-heavy NASDAQ Composite Index also hit record highs in recent weeks.

It’s easy to understand why. The July employment report couldn’t have been much stronger. The 209,000 gain in total non-farm payroll jobs (compared to 183,000 expected) combined with a 4.3% unemployment rate leaves little room for improvement. Inflation also is low and didn’t increase at all in June, after rising only 0.1% in May. The Consumer Price Index (CPI) has increased 1.6% during the past 12 months, a third less than the 2.7% annual growth rate it posted just six months ago.

That puts the Federal Reserve in a difficult position. Should it raise rates to stave off potential inflation stoked by rising employment and escalating asset values, or leave rates unchanged since inflation appears to be under control? Higher interest rates would drive up borrowing costs, hurting the construction and automobile industries that rely heavily on debt to finance purchases.

Consumer advocacy groups complain that home ownership is unattainable for many Americans, yet new home sales in June of this year were 9.1% higher than in June 2016 and 50% greater than they were five years ago.

The problem with a “Goldilocks” economy like this one, where everything seems just right, is that no matter which way you turn the outcome is most likely less desirable than what you already have. Inflation can’t get much lower, employment can’t get much stronger, and asset values are higher than they’ve ever been. In this type of idyllic environment, the old adage “no news is good news” seems to be the safest way forward.

There will always be more news, both good and bad, as evidenced by this week’s escalating tensions between the U.S. and North Korea. Hopefully, the two sides can resolve their differences without resorting to war. But if they cannot, then the financial markets will surely react to the possibility of a regional conflict including China, Japan, South Korea and Russia. 

A quick look at the VIX, or volatility index that measures fear in the stock market, shows a sudden spike from a “nothing interesting is going on here” reading below 10 two days ago to an “okay, now I’m beginning to get worried” level above 14 on Thursday, revealing the degree to which a single news event can roil the markets.

Over the past couple of months, I have been predicting a stock market correction for later this year but was unsure of what would trigger it. It remains to be seen if the North Korea conflict turns out to be that thing, but if it is then you may not have much time to take action to protect your portfolio. If you’re not sure what to do, read our “Crash Protection Package” special report to see what stocks you should own if bad news sends the stock market reeling.


You might also enjoy…


Here’s What’s Really Going to Crush the Market

Most folks understand the basic concept of inflation… things cost more money. But tragically, most don’t understand the real implications of what it means for their financial future. 

Or just how dangerous it’s becoming right now. Today.

And there are two reasons for that…

First, the U.S. government’s calculations barely take into account two of the things you and I are paying more and more for every day: energy and food.

Second, since inflation really hasn’t been an issue for the past 30 years here in the U.S., most analysts won’t dare to say it’s on the rise because they’ll suffer professionally. 

But I’ve made a name for myself by always saying what needs to be said. Which is why I’ve prepared a new special report that’ll give you simple instructions on how to protect yourself from the coming storm.

And better still…

It gives you the full story on the six types of investments that are destined to soar 275%… 375%… even up to 575% over the next few years as the winds of inflation flatten the U.S. economy.

You can get your free copy here.

Stock Talk — Post a comment Comment Guidelines

Our Stock Talk section is reserved for productive dialogue pertaining to the content and portfolio recommendations of this service. We reserve the right to remove any comments we feel do not benefit other readers. If you have a general investment comment not related to this article, please post to our Stock Talk page. If you have a personal question about your subscription or need technical help, please contact our customer service team. And if you have any success stories to share with our analysts, they’re always happy to hear them. Note that we may use your kind words in our promotional materials. Thank you.

You must be logged in to post to Stock Talk OR create an account.

Create a new Investing Daily account

  • - OR -

* Investing Daily will use any information you provide in a manner consistent with our Privacy Policy. Your email address is used for account verification and will remain private.