"The idea that you can fix a period of excess borrowing and excess consumption by more borrowing and more consumption is just ludicrous"

This is ‘their’ current madness…just like giving a collapsed paralytic drunk a bottle of whisky…he then chokes on his own vomit (hyper inflation)


THERE IS NO SUBSTITUTE FOR EXPERIENCE

This year could prove to be one of the most exciting and profitable of years for decades. Few will benefit from the treasures to be unearthed so before we embark upon this pursuit a look at investors’ flaws would seem appropriate.

THE VIRTUE OF PERSISTANCE

So why will few benefit from this year of outstanding opportunity? With last year being such an extraordinarily difficult year a few will have exited the markets but probably far too late and certainly not at the top. Heavy losses will have been suffered leading to a vow never to return to the market. My experience tells me that in reality such investors are more than likely to return in several years time after the markets have once again reached their peak. Surprisingly the facts indicate that they will usually use the same Institutions, middle men and advisors who manipulated them to their previous demise.

I am therefore fully aware of how it feels to be humiliated in a bear market and then the pleasure from the inevitable later opportunities. However, having embarked upon self employment in 1964 I had swiftly learned that failures are inevitable and that if success is to be enjoyed then the old maxim ‘When the going gets tough the tough get going’ is the path to follow. After my ‘crushing’ on the market I then endeavored to use this ‘invaluable’ market experience to my advantage. I chose to find out how markets truly worked. After a period of extensive reading and development of self discipline I felt I had overcome most hurdles. This led to an understanding of how to profit from this most fascinating of all pursuits leading to a high level of control no matter what the markets were to throw at me.

Over the past 30 years this knowledge and physiological control is taught in the Zenith and Focus services radically shortcutting the agonizing process of the decades weeding out the nonsense from the truth.

THE CATASTROPHY OF ‘HOPE’

As always, the vast majority will be hanging onto the ‘hope’, nasty four letter word, that all will be well in the end. This view will be strongly endorsed by those who put the investor in his ghastly situation in the first place. They will champion the virtues of longer term investment conveniently overlooking the non performance throughout the new millennium and the zero return between 1929 and 1957 among many other instances of zero returns over long periods. The recent low valuation of the FTSE 100 equaled the value in January 1994…a 14 year period of going nowhere whilst trading medium term had exposed some tremendous trading opportunities. As in the recent past, there is no long term prospect of rising markets, only a series of brief highly profitable opportunities over the short to medium term.

THE CONTRARIAN APPROACH

Over the last half century I have followed a contrarian approach in making predictions which have proven immensely helpful in visualising the future. More particularly the contrarian approach has always proven to be far more effective when the so called ‘intellectual elite’ are ‘all’ agreed. In these circumstances there is almost a 100% chance that the contrarian will be on the winning side when he takes his positions against the consensus.

In view of the ludicrous answer to the worlds problems purported by the establishments of every national on earth this is particularly relevant at this juncture. We are witnessing practically every country in the world following an identical economic strategy based upon maintaining the status quo in an attempt to protect the self interest of the establishment classes.

Incidentally these are the self same people who caused the problem in the first place. What credentials does obnoxious Brown and his cronies throughout the world have to repair anything? Their strategy is to overload their economies with unearned cash to counteract the catastrophic mistakes made over many years by politicians. They have been ably assisted by an army of greedy, near criminal bankers who after defrauding their economies have now run to the hills with their ill-gotten loot. The only conclusion I can make from this, is that if they all agree, the carnage will continue until the tax payers cupboard is bare forcing eventually the turning on the tap to produce an overload of worthless money worldwide. There answer to this probability is that they will deal with this as and when it arises…history proves that once inflation gets out of hand nothing can stop it. There is no such thing as a little pregnancy.

The conclusion can only be a headlong dive into a worldwide disaster resulting in uncontrollable worldwide hyper inflation. The worst effects will be suffered by those economies that currently have or will have massive public deficits.

The first lesson to be learnt in 2009 will be to learn how to counteract the effects of hyper inflation. This will require a sound knowledge on how to trade currency movements and have access to foreign bank accounts out of the reach of your government…who as always will steal from the prudent to save themselves, their army of bureaucrats and their other identifiable profligate voters.

All this is terrible news for all, other than those who learn how to control their lives with knowledge on how to make money no matter what the markets throw at them. I believe that our service is one of the few services due to its worldwide coverage, which can anticipate problems ahead and then supply aswers to maintain wealth, no matter what the environment.

It is now time to develop disciplines which will allow control of developments that are likely to emerge during 2009.

To this end, our ‘Where to from Here’ will be available over the next few days which could well prove to be the most important I have every written since my entry into the investment world in 1954.

Fred Stafford




Learn More about a Legendary Trader
Why not attend one of our W D Gann Workshops held in London and cheshire. click here to book on-line or telephone 0161 285 4488.