Blog : How to Profit from 6 Events:

by Peter Leeds on February 23rd, 2016

• $112 Oil
• Rampant Inflation
• The Presidential Race is Already Over (sorry)
• Gold Roaring $60 Higher in a Day
• The Q Ratio Predicts Recession

Months ago, we told you some pretty compelling and important things.  Fortunately, not everyone follows the Peter Leeds team, so you can still find dozens of profitable opportunities among all the uninformed investors.

Read on to see what happens next, and ways in which you can cash in.  However, let's first discuss some of our most recent prognostications:

The Oil Pop:  

One week ago, we sent out an alert to Peter Leeds Stock Pick subscribers, which said:

"Special Oil Alert:  It will soon be time to look into oil and related stocks for investment.  The sentiment could not be worse, which is typically the most profitable time to get involved."

That was followed two days later by a huge 8% pop in the price of oil.  

Then yesterday, as oil spiked again, we bet it would drop back down, since the rise was:

• out-sized
• unjustifiable
• based on irrelevant comments from the Saudi minister

Monday was also the contract expirations for oil, which typically leads to:

• volatility
• increased activity
• unjustified gains

We explained yesterday's 6% (or so) price increase in oil was likely to reverse today.  Turns out we hit the nail on the head.  

We sent details to subscribers about ways to profit from the downside move, just as Peter did with his $USO put option trade.  

Here is what we believe happens next, based on extensive analysis:

• oil goes down in short term
• oil remains range-bound in medium term, or perhaps goes lower
• oil increases markedly (towards $112/barrel) in long term

This is interesting, but you probably want to know how you can profit from it all.  Well, maybe our opinions can help:

Gold and Silver:

Gold is at $1,222, and will:

• decrease in price in the short term
• increase above $1,500 in the medium term
• break much higher in the long term, approaching $1,850 and beyond

Silver will track gold.  This is not just an American phenomena, but rather a global event.  China, Russia, and India are buying up precious metals like we scooped up Dot Com stocks 15 years ago.

The Overall Stock Markets:

Lower, lower, lower...  This is why it is so important to pick the specific companies which will do well in the current environment - which is exactly what we do.

We take all the factors discussed here into account with our analysis, and focus on penny stocks which have:

• rock-solid financial positions
• proven management teams
• massive upside potential
• disruptive technologies
• ballooning revenues

Today's penny stock pick, for example:

• trades at $2.50
• has nearly $200 M in backlogged orders on the books
• has an unreal price to sales ratio of less than 0.15!!! 

It won't be a penny stock for much longer!

The Economy:

Recession.  You can't say we didn't warn you.  In fact, we wrote on February 26th, 2015 (almost exactly one year ago) on the official penny stock blog that the Q Ratio proves the economy was stalling.

So expect consumer discretionary items to take a huge hit.  Anything that isn't absolutely necessary will see their sales decline.  Luxury retailers will get destroyed.

Money will flow into safety (like gold), and stocks which are "required," no matter the state of the economy:

• medical and health care
• military
• Homeland Security
• industries which save businesses money and increase efficiency

At the same time, businesses which compete on price will take market share away from more-costly competitors.  Think McDonald's gaining all the customers from the fancy steak house.

Rampant Inflation:

Perhaps Venezuela can serve as the example of what happens during inflation.  Most of the world (including you) will get a big dose soon enough.  

Combined with negative interest rates, and worldwide money printing, it is time to join the flight to safety and acquire some gold.  The recent $60 pop in gold prices in a single day is just the pre-game for what is to come.

Ok, back to Venezuela - with 200% to 500% inflation, everyday items will take 2 to 5 times as many bolivars to purchase a year from now...

...so people rush out to spend their money while it still has some value...

...and the "consumer stampede" results in empty store shelves.

It is almost impossible to find anything for sale in Venezuela anymore, since it's all been bought.  Meanwhile, president Maduro devalued the bolivar by 37%  and raised gasoline prices for the first time in 17 years.

The point is not "Venezuela."  The point is that nations, from Ukraine to South Sudan to Russia to Egypt, are dealing with rising inflation.  

America will get their fair share soon enough.  This is all the result of aggressive Central Bank money printing, from here to Japan to Europe to...

You will see rising inflation (but probably after a period of recession-induced deflation) here in America.  

You are also going to start hearing a heck of a lot more about stagflation.  No growth, and inflation at the same time... wheeeeee!

We might as well join Japan and their lost decade.  (Two and a half lost decades, actually).

Besides stagflation, you will soon see plenty more currency devaluations worldwide.  Right now the global economy is still seeming resilient, but China may become the nation that really kicks it all off.  The world hasn't fallen into full panic mode yet, but if China devalues, that will be the sign to position for financial cover.

The Election:

We hate to take the fun out of it.  Irrelevant of who we "want" to win (which is pretty much none of them), here is your next President.  It is BASED ON MATH and the uncontested States.  We explained in the penny stock blog that the election is already over.  Here is why.

If you agree with any of this, please share this blog with your friends.  If you disagree, that is too bad, because you are incorrect.

If you want to see our penny stock picks which will thrive in this new world order, you can join the thousands of others for 55 cents/day.