The Confidence Problem

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	Monday October 3, 2011 Email Me | Visit our Blog | Subscribe | Unsubscribe Trouble Reading this Email? - Click Here The Worst Quarter Are Stocks Expensive The Confidence Problem Fellow Investor, Stocks just ended their worst quarter since the financial crisis. The Nasdaq and S&P 500 each lost more than 12%. Of course, we know the recipe for what's weighing on the stock market: the continued Euro-debt saga, with a pinch of slowing China thrown in. China has been one of the few engines of growth for the global economy, even as Chinese officials work to slow inflation. You can see the result in copper prices, which have been devastated over the last two months. Since August, gold and copper mining giant Freeport-McMoran (NYSE:FCX) has been very nearly cut in half, and copper prices are off 25%. Similar action from Caterpillar (NYSE:CAT), down 33% in 2 months, tells the same story -- slowing Chinese growth is a big worry right now. It buys around 40% of the worlds' copper. Inflation has been running above 6% in China for a few months now. The assumption is that China will continue to slow its economy, thereby lessening its demand for copper, coal and other commodities. But it's worse than that because we really don't know how much we can trust data from the Chinese government. And it could take some sort of economic collapse in China for us to get the real picture. While this may be a low-probability scenario, it's why fears of a Chinese slowdown can look exaggerated. And for some investors, simply going to cash is the best defense. Oil, a reliable measure of investor growth expectations, was crushed Friday and closed below $80 a barrel. The stock market is pricing in much slower growth -- and perhaps global recession. Investors are moving to cash as a reaction to the uncertainty. That's the only way to interpret the recent action. Now it's not like growth expectations are outlandish. Economists are calling for just 2.2% growth next year, after 1.6% growth this year. I'm not sure how comforting that is considering that these same estimates have been consistently lowered. Bloomberg offers some interesting statistics on earnings in recessions... [continue reading at WyattResearch.com]       Click to view the remainder of the article... Where to Get Silver for $3.90 an Ounce With silver prices hovering around $40 an ounce you'd think someone was crazy for suggesting that there's a way to get it for just $3.90... However, we've got the next best thing: a company locked into a 20 year supply of silver -- at $3.90 and ounce. The terms of this deal mean this company will receive 12 million ounces of silver every year at the same locked in price, no matter if production costs go up or silver prices skyrocket. Then they turn around and sell it at current prices and investors make a profit. Click here to find out how you can cash in starting today...       Previous Issues of Daily Profit Occupy Wall Street A Bullish Number In This Rally Just Hope? For more issues click here »   Market Snapshot U.S. Markets - Sept 30 Close Dow Jones 10,913.38 -241 (-2.16%) S&P 500 1,131.42 -38.98 (-2.5%) Nasdaq 2,415.40 -65.36 (-2.63%) Valuable Investment Ideas From Wyatt Investment Research The Next Precious Metal Royalty Company... The company I am talking about is headed by a very special and rare CEO. Why is he so special you ask? more» The Best Trading Strategy for a Rangebound Market Did you know: Stocks spend an estimated 80% of the time doing absolutely nothing. more» Is the Sell-Off in Oil Overdone? Oil continues to be the fuel of necessity for Americans. 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