Stock Market Disaster: Is This 2008 All Over Again?

The Man Who Called the 2008 Market Crash Warns:
“The Economy is Breaking Down”

In fact, the next few weeks could provide the most dangerous environment for investors that the United States has seen in years.

It’s critical that you take action – right now – to prepare yourself in the event of a devastating stock market collapse.

This warning comes from one of the world’s most successful – and most accurate – stock market observers.

This market expert – whose predictions have been celebrated by mainstream media sources such as Marketwatch.com…and whose trading record has been certified by the fiercely independent Hulbert Financial Digest – recently issued an urgent bulletin that I’d like to share with you now:

“The technical underpinnings of the stock market continue to deteriorate rapidly. The broad market topping pattern has made a head-and-shoulders formation, with market prices slipping down to the neckline.”

-- Dennis Slothower

This warning was issued by Dennis Slothower – the stock market guru who not only warned individual investors of the 2008 stock market collapse…

He actually helped his readers make money that year – during one of the market’s worst-ever years.

And now, it’s not only possible – it’s actually quite likely – that the disaster of 2008 is about to happen again.

“What I have been warning you about is coming to pass. The economy is breaking down due to “oil shock.” The evidence continues to mount that the economy is fast falling into recession. “When the bubble breaks all asset classes are vulnerable as we saw in 2008…are we there again?”

-- Dennis Slothower

I’ll tell you more about just how accurate Dennis Slothower has been – time and time again – at predicting large swings in the market in just a moment.

And the first week of August saw a drop in the S&P 500 Index of 92.9 points – its worst performance since November 2008.

Well…the staggering deficit being run up by our federal government is a huge part of the problem…

As I’ll show you…the downgrade of U.S. debt by Standard & Poor’s was not without justification.

Take a look at this chart – the trend in U.S. debt as a percent of GDP since 2008 is terrifying:

As you can see – as bad as things are spending-wise for the United States right now…this is really just the tip of the iceberg.

And what’s worse – this widening gap in spending vs. revenues is virtually inevitable because the largest category of increased spending in the next few decades comes from Medicare and Medicaid spending.

Medicare and Medicaid spending is projected to grow from 5.5% of GDP in 2010…to more than 10% by 2031!

Listen…the Standard & Poor’s downgrade caused a swift and powerful reaction by the stock market.

“The fundamental problems associated with U.S. government debt and other world-wide sovereign debt problems (are) now at a level never before seen on such a grand scale.”

-- Dennis Slothower

In addition to those very serious debt-related problems, there’s still more to consider, including the fact that:

For the last several months, Dennis has warned investors about what would happen to the economy when oil prices moved higher.

In fact, since February, when oil prices moved above $85 per barrel, Dennis has been telling investors how the economy would contract in spite of Wall Street’s rosy 4% growth predictions.

According to the Federal Reserve itself, economic activity in eight of twelve regions is markedly slowing, which the Fed largely blames on droughts, flooding and still-lean inventories due to the Japanese supply-chain disruptions.

Wall Street economists want us to believe this is only a “soft patch”—a period of slow growth, but not quite a recession.

They also say that once we work through the natural disasters, the economy will recover in the second half of the year.

Brent crude oil averaged north of $115 a barrel in the month of July, which crushed the global economy.

And remember – even with a pullback in oil prices, the impact of the high prices is still felt…as it takes higher oil prices a while to filter down and impact the GDP.

And this summer’s high gasoline and food prices have already fractured the U.S. economy. It will become more obvious in the third and fourth quarters how much damage QE2 has really caused.

The numbers show not just the “soft patch” Wall Street wants you to believe…but instead, a fractured economy that is only now just beginning to feel the effects of extreme commodity prices.

You know this already, but…higher energy prices is only ONE place where consumers are feeling the strain.

The USDA warns that U.S. supermarket meat prices in 2011 are expected to post the largest increase in seven years.

Yet according to the U.S. Department of Labor, our “official” inflation rate is just over 2%.

According to a report from the FAO and OECD, “Commodity prices…in real terms are projected to average up to 20 percent higher for cereals and up to 30 percent for meats over the 2011-20 period compared to the last decade.”

Anyone can see that these real-world price increases will have an enormous impact on U.S. consumers – and Wal-Mart CEO Mike Duke confirms this fear.

Duke recently told the Wall Street Journal that rising gas prices are hurting its main customers, who are having an even harder time stretching their dollars to the next payday than they did a year ago.

Duke explained that customers are now cutting back on discretionary items as their spending power erodes.

And if this impact is being felt at Wal-Mart – a business where Americans spend $36 million dollars every hour – the impact on the U.S. economy will be devastating.

That’s why it’s so important that you prepare yourself now for this volatility.

As I said before, I’d like to introduce you to a stock market guru who has made a career out of helping individual investors avoid danger AND profit during turbulent times.

Marketwatch.com has referred to Dennis’ amazingly accurate forecasts on several occasions.

And just a few weeks before that, the fiercely independent Hulbert Financial Digest had this to say about Dennis:

That’s high praise coming from someone whose job it is to keep a close eye on investment analysts all over the globe.

But it’s nothing compared to the acclaim Dennis will receive when he helps investors just like you avoid the disaster ahead of us…

A potentially devastating period that could wipe out hundreds of thousands of individual investors here in the United States.

Remember…Dennis was one of the few advisors whose readers completely avoided ALL losses during the disaster that was 2008.

Besides calling the market collapse of 2008 - and steering investors to safety - Dennis also predicted the sudden drops in the stock market in January, February and May of 2010.

And right now – Dennis is warning his readers that his technical indicators are suggesting that a devastating, long-term bear market could begin at virtually any time…so it’s important you take action now to prepare yourself.

Don’t Get Burned By a Sudden Market Downturn:
Here’s a Simple Way to Protect Yourself – Right Now!

Right now it’s imperative that you arm yourself with the best information so you’re prepared for any additional massive stock market sell-offs.

I’d like to help prepare you for what’s coming…keep you aware of everything happening in the markets…and help you keep your hard-earned money safe.

Dennis will continue to identify carefully-selected profit opportunities – even in the most volatile market periods.

I’ve arranged for you to receive – starting today – a FREE 30-DAY PREVIEW of Dennis Slothower’s Stealth Stocks Daily Alert investing service.

Remember – this investment service recently rated in the top 10 by Hulbert’s Financial Digest for our performance in the market.

And Stealth Stocks readers were among the few investors who were able to completely avoid ALL LOSSES in 2008 and actually ended the year positive.

This 30-day preview will help you steer clear of the enormous threat to your wealth that could begin at any time – and help you avoid kind of losses that wiped out so many investors in 2008.

I’d like to welcome you in advance to Dennis’s ultra-safe “inner circle.”

You’ve taken an important step toward protecting yourself during what could be a historic market downturn.

And as Dennis has proven – you’ll be able to not only protect your hard-earned wealth but also make money during even the market’s worst years.

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