Transcription of last Friday’s “Market Situation Report”

This email is a full transcription of Friday's "Market Situation Report". We all synthesis information differently…and for some text is best.  I hope you enjoy Friday's transcription. If you would prefer the video format, you can find it here


The Market Situation Report


The theme of the week is money printing, which really has been the theme for about four years.  But what's different about it now is that we have money printing in concert.

We have the US printing (nothing new). We have Europe coming in and saying they are going to print and do whatever it takes.  Then you have Japan saying they are going to print and do whatever it takes.  And then you have China about to embark on another  infrastructure building bonanza, this time being about $150 billion in size.

And then you have the rest of the world that will not allow its currency to get too expensive…relatively speaking.

The question is, can you step aside and not invest?

The Situation Report this week will answer this question for you.

I want to show you this price chart of the S&P 500.  If you look at the top of the chart there is a black horizontal line. That black horizontal line is where the market peaked in October of 2007.


If you look to the very bottom of the chart, where the price is the lowest, that is March 6, 2009.

The move from 666 to 1460 today is a pretty impressive move. And it all happened on the back of trillions of dollars of money printing.

When I look at this chart, I clearly see that the market goes up on the back of Federal Reserve money printing.

Now Bernanke has come out and said the Fed will print more money forever, okay not forever, but until the unemployment rate is "acceptable". So, what is acceptable? Hmmm. No one is really saying.

This is pretty brilliant of him.  He can print $40 billion a month, or he can print nothing in a month.  He can do whatever he needs to do and it's no longer an event.  Bernanke no longer needs to have a press conference about it, he can just pull the levers…or not.

The market is not sure what to make of Europe, China, Japan and the US all printing. Three years ago the market would have loved it. But today, the market is not so sure.

What is most interesting is that the S&P 500 is only 7.5% below its lifetime highs. Lifetime highs often create a substantial barrier to break. Maybe the market is saying, enough. Stop the manipulation.

And since there has been so much manipulation the market is having a hard time discerning what to make of information.

Take unemployment for example.

If the unemployment rate falls, does the market read this as the economy is getting better or money printing will stop? Both will have different actions on the market.   The market could be excited about this and go up or the market could be sad (because printing will stop) and fall. And until the market moves and we look back on it, all suggestions are just  financial astrology.


This market action reminds me of the 70's and how the Dow Jones Industrial Average could not get above 1,000 for 18 years.  The Dow made something like 15 attempts in 18 years to break the 1,000 point mark and they all failed.

It seems like the market is repeating itself again, but this time it's S&P500 not being able to break 1570.

So back to my question from above, Is there a way for you to step aside and not invest?

I'm sensing a lot of people are wanting to "step aside".  They want to step aside from the market and not invest.  But step aside from what market?  The stock market? The bond market? The currency market? The physical asset market?

What does it mean to step aside (and not be invested)?

Look at the price chart of the US Dollar below.  You can see that the dollar has been falling since the beginning of 2002 from around 118 until today's reading of 78.


People who say,  "I'm going to step aside into US Dollars" aren't really stepping aside. They are moving from one asset class to another. In this case from stocks to currencies…US Dollars specifically.  And if you look back at the US Dollar chart, that has not been a good investment. The Dollar has fallen 30% over the last 10 years.

This is my point of the Market Situation Report this week. There is no such thing as "stepping aside."


You can't set aside your money anymore.

If you do not want to be in the stock market that is fine. But where are you going to put your money? In Bonds?  That's investing. You could go buy a company or a franchise.  That is still investing.

Your money is always invested in some asset. ALWAYS. No exception.

Please read that sentence again.


You know people often think that if they just know WHAT to invest in they will have a secure future.

But actually, its knowing HOW to invest.

HOW do you figure out what assets to be invested in. HOW do you buy them. HOW long do you hold them. HOW do you sell them…and so on.

And this is what Fearless Wealth is all about…getting the HOW right and not the WHAT.

And part of you already knows this. Look, when you watch an interview of any billionaire investor like Bill Gross or Jim Rogers on TV or the Internet, they tell you WHAT they are buying.

But somehow after five or ten years they got richer from HOW they invested and not WHAT they invested in. So the secret hidden in plain sight is HOW are they doing it?

"They" have the same four asset classes to invest in like you do (Stock, Bonds, Currencies, Physical) but how they are doing it is different. Their investment platform is different from yours probably.

The difference is knowing HOW to be invested in each asset class.

And that is the main reason why the Fearless Wealth Platform has gotten right for the past 15 years. 15% compounded annual growth for 15 years during the worst investment period in five generations.

And all because the Platform is asking HOW to invest first.

Until this Friday…


The next Monthly Strategy Gathering is October 9th.  That is where I pull all of my charts and information out on stocks, bonds, commodities, currencies, precious metals and real estate and see where the money is flowing into and out of.

If your curious about plugging into a Platform that can work in the background and consistently grow and protect money in any market (or economic) condition, you can check it out here.


Together, we are growing and protecting your wealth,

RC Peck, CFP 

Fearless Wealth | Investment Independence
Helping Individuals Reach Financial Independence Sooner, Faster, Safer.