Blog : State of the Market

by Peter Leeds on August 11th, 2015

Do not let Monday's aggressive rally fool you.  

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Yes, most major markets spiked up over a percent, but that gain still fell short of levels from a week earlier.  Besides, it was due - many investors have been waiting for an opportunity to buy in.  They were too soon.

Now is the time to prepare to make your fortune as people go broke - today's pick is:

• a great hedge against weak markets
• rises during inflation, market meltdowns, and money printing
• becomes worth more when everything else falls in value

This is why more millionaires were created during the Great Depression than any time in history.  They bought out-of-favor, undervalued investments like the penny stock pick we'll be releasing to subscribers of Peter Leeds Stock Picks within hours!

Why are the markets looking bleak in the short term?  

• Late August and September are historically poor months for stocks.
• The feared Federal Reserve rate hike (which will make everything more expensive) is looking more likely in September.
• And then there's the Q Ratio - which is spitting off warnings like crazy (see below).

Meanwhile, China surprised global markets by devaluing its currency last night.  By lowering their daily interest rate, they have effectively dropped the value of their Renminbi (official currency of China), making their goods less expensive for other nations to purchase.  

The hope/intention is to increase their national growth rate.  Unfortunately, the actual result will be a deeper slide into the global currency wars.  We've been seeing currency wars growing for years, and now they are picking up steam fast.  Other nations will need to devalue to make up for the move in China.  It will be a global-scale race to the bottom - each currency will need to be cheaper than the next, to maintain and encourage exports.

For anyone who is subscribed to Peter Leeds Stock Picks, you would have learned from my comments that it's all about the "Q Ratio," which is the total price of the market, divided by it's replacement cost of all it's companies.  The Q Ratio is NOT sustainable above 1.0, and right now it sits at 1.08.  

Four times in history the Q Ratio rose above 1.0, each time followed by a serious market correction.

However, we take all of this into account with our weekly stock picks.  Today's selection will:

• act as a hedge against market weakness
• benefit from devaluations, inflation, and money-printing
• will rise as the markets fall

You are going to want to buy this penny stock, then hope for a market melt-down.  You would be sitting pretty.

This penny stock selection has a great current ratio (how many times over they have their debts covered), and could not be much more oversold and undervalued than it is currently.  We love this $2 penny stock, and the time to position into it is now.  You can see this pick when you subscribe for a year to Peter Leeds Stock Picks - which works out to 55 cents per day!