EuroZone Collapse to Turn Wall Street Upside Down Again

Fellow Investor,
Please—what ever you do—don’t buy another stock until you read this Special Report.

That’s when the government’s most important economic reports are due to be released and the chain reaction affects US growth for the next 12 months.
I speak, for example, of Consumer Confidence (Feb. 23), new Home Sales (Feb 24) Jobless Claims (Feb 25), Housing Price Index (Feb. 25), GDP (Feb. 25), and Existing Home Sales (Feb. 26).
Individually, the outcome of these reports could push the dollar to new lows. Together, they could drive the price of gold past $2,000 an ounce.

As last week’s economic reports showed, economic growth in the European community has hit a brick wall and the chain reaction to this news is about to turn Wall Street upside down again.
Here’s why:
Next week’s economic reports will show that the U.S. is about to find itself in the same position, with unemployment rising, housing stagnant, and inflation is about to rear its ugly head.
The situation is only going to get a whole lot worse over the next two weeks because:
The European community seems loath to rescue Greece from financial collapse which is not only threatening the Euro but the long term European recovery, PLUS,

A flurry of devastating new U.S. housing, unemployment, and building reports will send the dollar falling even further.
The end result will not only kick off one of the biggest rises in inflation we may see in our lifetime but also crush the hopes and dreams of millions of Americans who fail to understand the dangerous situation that’s now unfolding.
Investors Who Fail to Understand That Gold Could Blast Past $2,000 an Ounce Will Lose Their Shirts!

Despite the rosy picture the White House wants you to see, the economic reports over the next two weeks will show beyond doubt that America’s easy-money policy has failed to jump-start the U.S. economy, failed to create meaningful jobs growth, and failed to create sustainable growth…
…but this easy money policy has increased the national debt, added trillions to the deficit, and laid the foundation for the gold panic we’re seeing sweep around the world now.
The EuroZone Collapse is making matters worse!
This is why central bankers in Russia, India, and China have purchased billions of tons of gold at record levels over the past 12 months.
This is also why the world’s leading hedge fund managers have loaded up on gold amid concerns that Obama’s efforts to stimulate the economy are going to undermine the major currencies and fuel rampant inflation.
The inevitable shockwave will drive more investors out of U.S. stocks and into China, where they will profit from currency appreciation as the dollar continues to fall and internal Chinese economic growth and domestic spending.

What the Government Isn’t Telling You
Could Send You to the Poorhouse…
…Or Make You Wall Street’s Next Millionaire
The shocking truth is that Bernanke’s monetary policy and Obama’s spending spree have flattened the U.S. dollar like a mud hut in the middle of a hurricane—triggering a gold panic of historic proportions.
The long-term results are so disastrous for U.S. markets that China, Russia, and India are creating their own “gold standard” by selling dollars and buying gold.
This is why the smart money is not only loading up on gold but also flooding at light speed into China, where the currency is rising and investors can buy world-class Chinese companies for pennies on the dollar.
And if the $122 billion that flowed into China last quarter is any indication of what’s headed your way, this is a situation you can’t ignore.
Which is why…
You Must Reposition Your Assets Now
Let me sum up the dangers and the opportunities:
The Obama/Geithner/Bernanke easy-money policy is sending the dollar into the tank. The giant sucking sound you hear is foreign investors who are fleeing the falling dollar and moving into currencies and commodities that are destined to rise as the dollar falls.
The result has not only triggered a gold panic but also made the U.S. stock market even less attractive to foreign investors…as the combination of low interest rates and the falling dollar continues to erode their wealth.

While all international markets have taken a hit due to the trouble the PIIGS (Portugal, Ireland, Italy, Greece, Spain) have gotten themselves into, the markets that will snap back the fastest and highest will be those with sound finances and powerhouse growth. Like China!

And as the U.S. dollar continues to fall and the gold panic escalates, shrewd investors like you and me are going to make a bundle as China’s yuan rises, investment in China surges and the country uses its newfound capital to build more roads, bridges, and infrastructure at record pace.You needn’t take my word; a recent report by the McKinsey Global Institute will tell you the same thing:
“In 20 years, China’s cities will have added 350 million people—more than the entire population of the United States today.”
“By 2025, China will have 221 cities with more than 1 million inhabitants—compared with 35 in Europe today—and 24 cities with more than 5 million people.”
“By 2030, 1 billion people will live in China’s cities…170 mass transit systems could be built…40 billion square meters of floor space will be built in 5 million buildings—50,000 of which could be skyscrapers.”
In other words, as China continues to transform itself from a nation of farmers to a nation of urban dwellers, the equivalent of 10 New York Cities will need to be built, and doing so will richly reward U.S. investors who invest now.
All thanks to the infusion of cash from foreign investors who are fleeing from the falling dollar right now.
Tragically, the financial media are missing this investment story by a country mile. That’s because they’re blinded by gold’s huge rise and simply can’t see beyond U.S. borders.
As a result, not only are Wall Street’s analysts missing this story, but U.S. investors are missing out on huge profits that are headed this way.
But even these great gains will pale in comparison to what lies ahead as China continues to build more factories, more roads, more bridges, and more skyscrapers, as the rest of the world sits in recession.
When you consider that the U.S. economy is projected to grow 1% while at China will soon hit 10%, you don’t have to be Einstein to know that the surge in China stocks will form the foundation of a new wealth boom of historic proportions.
The bottom line is this:
In a world that’s pegged its fortunes on the strength of the U.S. dollar, repercussions of this collapse will be quite dramatic, not only putting powerful upward pressure on the stock prices of commodities-based companies that are fueling China’s new growth…
…but also changing the face of Wall Street forever.

Profit from Global Gold Panic:

As the U.S. easy-money policy sends the dollar spiraling south, the price of gold will continue to shoot through the roof.

The Biggest Move Will Come
in the Next 15 Days
As you know, nobody rings a bell to tell you when the big buying wave will begin, but I can tell you this:

Now with China poised for a second wave of growth, even these great gains could look like a drop in the bucket.
Frankly, no other investment newsletter advisory in the world knows the China market like we do, spends as much money on research as we do, or makes as much money in China as we do.
Which is why I can tell you with unmatched certainty that our research shows there’s a major buying wave in the works, and it will hit now that President Obama has signed his new stimulus program.

Robert Hsu
Editor, China Strategy
P.S. please remember this:
China will continue to grow at a rate of 10% in 2010…
Despite the collapse of the U.S. dollar
Despite rising U.S. unemployment
Despite sinking consumer confidence and spending

Is the Correction over?

After the market hit 1308 points on 21 Jan 10 , it started to correct. This is also a previous high in Apr 09 which is 1305, thus formed strong resistance. From Technical Analysis (TA) view point, there is possibility of KLCI testing a lower point unless it manage to stay above the EMA 50. The reason I suggest this is due to (refer to chart below):

1) Price is below EMA 50
2) MACD is below 0
3) MFI is below 50



If it did go below, next support is expected at 23.6% which is around 1195 and coincidentally meeting EMA 200. However price is still above EMA 200 which is long term indication of the bull is still in tact. Therefore it is good time to accumulate before the next bull run.

The above sharing is for reference purpose and not a recommendation to buy or sell. Kindly check with your broker for advise.