Blog : Lost Decade

by Peter Leeds on September 24th, 2015

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Our Condolences:
Our Condolences Go Out to Saudi Arabia, and the hundreds killed in the Hajj pilgrimage stampede.
 
 
Truly Barbaric:
 
No need to add to that death toll by crucifying and beheading a young man, who as a teen was part of the "Arab Spring" protests, but that is exactly what Saudi Arabia plans on doing.  Not sure why America keeps sending them so much "strings-attached" money.
 
 
Tuesday's Stock Pick is Spiking:
 
Since being posted 2 days ago, when shares were trading at 78 cents, this stock has already traded as high as 93 cents (within a day of our profile).  We believe it will head as high as $1.75.  
 
You can subscribe to read the full report and Leeds Analysis review.
 
 
Deflation is Coming:
 
There is a very specific way to profit from deflation, and we let all our subscribers in on it.
 
Perhaps investors are distracted by the Federal Reserve right now, or maybe they are watching the Presidential campaign, or are binge-watching House Wives of Manhattan.  No matter the reason, most people are focused on the wrong issues.  
 
What you should be monitoring closely is deflation, because that is what is likely to happen next.
 
Take a look at Japan's Lost Decade.  From 1991 until now (it's become the Lost Quarter Century), the economy of Japan sputtered and stalled, and has yet to convincingly escape from the deflationary cycle.  
 
Granted, the Island nation is in a very different economic situation than America, but many of the causes are (or will be) the same:
 
  • economic strength leading up to economic bubbles (housing, debt, commodity, stock market bubbles).
  • failed stimulus attempts
  • decrease in the quality and caliber of jobs
  • crushing debt loads
 
Deflation in 5 Clear Steps:
 
1.  Deflation is when prices for things decline over time.  
 
2.  Since items are expected to continue to get cheaper, people hold off on purchases.  
 
3.  As consumers slow down, the companies they buy from sell less.  
 
4.  As they feel the pinch, they often lay off workers. (As we've seen with Caterpillar's announcement today - they are releasing 5,000 workers).
 
5.  As people lose their jobs, they are forced to spend less.  This further spurs and fuels the deflationary cycle.  Go back to step 1, and do them again, and again, and again...
 
And oh yeah, there won't be many raises or stories of people making more money at their job every year.  More likely, the available workforce balloons, increasing the competition for all jobs.  Employees are fortunate to have their position, while employers have a massive, hungry, desperate workforce to fill their needs.
 
We've told you before that Opportunities are Born in Blood.  Well, this is one of those cases, and each of our high-quality, low-priced stock picks takes such factors into account.  You can subscribe to see our latest pick (which has already spiked 20% in a day) here.
 

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