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Cycle Charts

Profiting from Government Chaos

by Mike Burnick | March 24, 2017

Currently, the world’s entering a new era of serious social and military conflict all across the globe: Bloody regional and civil wars overseas and unprecedented repression wherever you turn.
We are entering a time when people are at war with their own governments – and in which foreign governments launch attacks on other countries as a means to distract their people from the misery that their policies inevitably cause.
And there are plenty of likely threats to worry about, such as…

• North Korea launches a strike against South Korea or Japan.
• Iran detonates one of its nukes over Tel Aviv or in the Strait of Hormuz.
• Escalation of Middle East conflicts – in Syria, Yemen and Afghanistan.
  

And we’re not immune here at home – not by a long shot …
In the U.S., cases of government overreach crop up with greater frequency, propagating more division in the process. Here are just a few examples of what I’m talking about…

==> U.S. government spying on citizens.

==> FBI wiretapping government officials.

==> Government agencies, like the IRS, targeting taxpayers and organizations for their political beliefs and leaking that information.

U.S. Navy ships head into harm’s way, patrolling the strategically vital Strait of Hormuz.

Likely result: The market will go into overdrive. And the savvy few who prepare now will make vast fortunes.
Consider …
Larry Edelson’s extensive war cycle research indicates that during most of the wars of the 20th century, money poured into the safe haven of the U.S. equity markets.
And that sparked unprecedented rallies — some that lasted for years.
Take the aftermath of the September 11, 2001, terrorist attacks: After the market reopened 10 days later, the Dow rallied 29.1 percent in just five months.
When the war cycles are rising and revolutions are in the air, markets are often turned inside out and upside down, leaving the majority of investors either frozen or on the sidelines. Or worse, caught on the wrong side of the markets, costing them a ton.
That’s why most investors will start selling the stock market, expecting a bear market in times of war and social chaos.
But this chaos means that money will leave the public sector (government bonds) in droves and then reinvest for safety and a return of capital in the private sector (stocks).
And that means the U.S. equity markets will explode higher, more than doubling in the next few years.
And that’s going to create investment opportunities that will blow your socks off.
So, fasten your seatbelts: In the months and years ahead, you will see some astounding moves in many markets, moves that defy logic. To understand these moves and to profit from them, keep in touch with me. And like Larry used to tell us: Study, study, study! And then be ready to react at a moment’s notice.
Good investing,
Mike Burnick