A Reckoning Is Coming

The Biggest Investment Opportunity... Since Julius Caesar? Later this year, a historic event will transform money supplies worldwide. It will impact every major currency all at once. Dollars... Yen... Euro... Rubles... Yuan... According to scholars, this event will mark the biggest monetary shift since the rise of ancient Sparta, more than 2,699 years ago. It promises to make some investors very rich. Others could lose nearly all, overnight. Already, the world's most powerful investors are preparing. For details on this $633 trillion mega-event, please go here now. Monday, April 14, 2014 | Issue #2270 Why Entitlement Reform Is Inevitable Alexander Green, Chief Investment Strategist, The Oxford Club A Note From the Editorial Director: It started with a simple a question. Why shouldn't investors be afraid of a market collapse, wondered a reader, when it's clear that world governments, including ours, are running up impossible debts? In response, Alex argued powerfully that while our debt is atrocious, it's not insurmountable. Yet many readers remain fearful, and told us so in our Mailbag and via the comment link below. So today, Alex explains further why our spending problem, bad as it is, will be reformed. And why, if the markets fall, it won't be the fault of our nation's vast debt. - Andrew Snyder This five-year bull market will continue for a while... or it may soon peter out. (Flip a coin.) Every bull market is followed by a bear market. Just as every bear eventually turns back into a bull. This is the normal course of events and investors are wise to prepare for both in advance. That means now is a good time for a reality check: Is your money diversified among not just among high-quality stocks but also among bonds, real estate investment trusts, inflation-adjusted Treasurys, metals and cash? (Yes, low-paying cash allows you to put money to work when the values get irresistible.) Are you running trailing stops behind your stocks to protect your principal and your profits? Are you psychologically prepared for the inevitable: the appearance of a nasty downturn? However, this bull market is not going to end - as the merchants of doom like to claim - because the nation is on the verge of insolvency. The Stock About to "Rock" Your Financial World Thanks to a newly discovered "super substance," you could turn $9,000 into a small fortune. In short, a tiny American company is about to revolutionize all smartphones and HDTVs using this material. They hold key patents on it, yet oddly it's based on a common rock! At around $9 a share today, even a small stake in this company could catapult into a windfall. Details here. U.S. corporations are enjoying record profits and sitting on more than $2 trillion in cash. The Federal Reserve reported that U.S. household net worth just hit a new all-time high: $80.7 trillion. (Yes, that's assets minus liabilities.) Dangerous Debts The danger, of course, is the large and growing federal deficit. It is truly ugly and I make no excuses for the pols in Washington who have promised voters the moon in return for their votes. The deficit - at 100% of GDP - is not fatal if Washington gets its act together. Rest assured, however, that won't happen before November's elections. Politics are polarized right now because there is a fierce battle of ideas going on in the nation. The debate? Are we going to be a nation with a robust social-welfare network like Western Europe, or are we going to be a nation that relies less on government and more on individual initiative and personal responsibility? Whatever your preference, it's a foregone conclusion. The numbers simply don't add up and can't be made to. European nations benefit from a multitrillion-dollar U.S. defense umbrella, and fabulous American innovations - thanks to Apple, Google, Twitter, Intel and hundreds more U.S. companies - while imposing stifling taxes on their citizens, yet still run deficits almost as large as ours on a GDP basis. Leaving aside Obamacare, we couldn't meet our future liabilities for Social Security, Medicare, Medicaid and the Part D prescription drug benefit even if we taxed the net income of every individual and corporation in the nation at a 100% rate. Reform Is Inevitable Ergo, the system will be reformed. Raising taxes alone would be like shoveling sand against the tide. The bipartisan Simpson-Bowles Commission - whose sensible recommendations President Obama promptly ignored - gave us a general blueprint. Specifically, the commission proposed cutting $5 trillion from the deficit by eliminating loopholes and simplifying the tax code, cutting discretionary spending, eliminating waste and fraud, and reforming entitlements. It's mathematically easy... but not politically easy. Every line of the tax code benefits some special interest. Although American longevity has never been greater, no one wants to wait longer to begin receiving Social Security or Medicare benefits. And so on. Yes, the men and women in Congress are buffoons who value incumbency more than oxygen, but faced with the choice of reforming the system or letting it collapse, they'll fix it. But not until time, circumstances and voters force them. Along those lines... please make sure you're registered. Good investing, Alex Click here to post a comment on InvestmentU.com The Best Biotech Stock You Can Buy? We've just identified what could well be the best biotech stock you can buy right now. The treatments this company has in the works could eradicate some of our most dreaded diseases... giving us literally a new lease on life. In just the next few months, we're expecting an announcement that could send its share price skyrocketing. Get all the details on this medical breakthrough - and the incredible potential for early investors - right here. Recent Articles: Investment U Five Steps to Lower Your Taxes in 2014 by Marc Lichtenfeld Wednesday, April 9, 2014 If you live in this society, you should pay taxes. After all, you benefit from having a military, roads, schools, fire, police, etc. On the other hand, you shouldn't pay a penny more than you're legally obligated to. Read On... This Bull Market Isn't Just Running On Easy Money by Alexander Green Friday, April 11, 2014 Over the last five years, U.S. large cap stocks have more than doubled. U.S. small cap stocks have more than tripled. But is this heady performance due to nothing more than massive accommodation from the Federal Reserve? Hardly. Read On... Fighting Fire With Drones by Karen Canella Friday, April 11, 2014 This time of year in Southern California the hills are usually green from the winter rains. That's not the case, though, as I look out my window. The brush remains brittle and dry, which makes me cringe to think what fire season will be like in a couple of months. Read On... You are receiving this email because you subscribed to Investment U. To unsubscribe from Investment U or to manage your account, click here To cancel by mail or for any other subscription issues, write us at: Investment U Attn: Member Services 105 West Monument Street Baltimore, MD 21201 Keep the emails you value from falling into your spam folder. Whitelist Investment U. 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