How good are you at reading between the lines?

When Lehman’s CEO announced in 2007 that “the subprime implosion is a contained, isolated, and temporary event with little risk of wider fallout”, did you know that he meant exactly the opposite?

In April 2007, the heads of Morgan Stanley and Goldman Sachs claimed, “The worst of the credit crisis is behind us. The collapse of the subprime market in the U.S. has reached its eighth inning, or maybe top of the ninth.” It seems like financial CEOs know just as much (or little) about baseball as they do about running a successful brokerage.

On March 28, 2008, Citigroup upgraded Lehman Brothers to a “Buy”.
If you had invested $10,000 in Lehman Brothers then, you'd be left with less than $100 today.

In February 2008, Morningstar considered the Dow to be fairly valued at 14,000.
In December 2008, Morningstar adjusted the Dow's fair value to 12,500.
The Dow ended 2008 at 8,668. 

Recent ETF Profit Strategy Forecasts:

Subscribers of the ETF Profit Strategy Newsletter have been a step ahead.
Below is a brief list of updates received by the ETF Profit Strategy Newsletter audience:

September 12, 2008: "Watch out for more financial bombs"
September 12, 2008" "Financials are in a downward spiral with no stop-loss provision"
October 2, 2008: "The bailout won't work"
The Dow dropped 32% in 45 days

* * *
October 17, 2008: "The Dow will find a tradeable bottom below 7,500 followed by a Nov/Dec rally"
The Dow reached 7,392 on November 21st and rallied into Nov/Dec.

* * *
December 15, 2008: "The Dow should claw its way towards 9,150"
The Dow topped at 9,175 on January 6.

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December 15, 2008: "Dow 9,150 should be followed by Dow 7,500"
The Dow reached 7,500 on February 18, 2009.

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January 15, 2009: "The best target for a low is Dow 6,000 - Dow 6,700"
The Dow bottomed on March 6 at 6,443.

* * *
January 15, 2009: "Once the lows are reached the market should stages the biggest rally since October 2007."
TREND CHANGE ALERT: March 2, 2009:" The biggest rally since the October all-time highs should life the major indexes some 40%."
The Dow rallied over 50% from the March lows, the biggest rally since October 2007.

* * *

March 18, 2010: "There are no major resistance levels to speak of until S&P 1,220 and Dow 11,255."
The Dow and S&P peaked on April 26 at 11,308 and 1,219.

* * *

April 16, 2010: "The message conveyed by the composite bullishness is unmistakably bearish."
April 16, 2010: "The pieces are in place for a major decline. We are simply waiting for the first domino to fall."
April 16, 2010: "There has rarely been a more pronounced sell signal."
May 14, 2010: "The market is giving us all the right reasons to be bearish, so bearish we are."
April 28, 2010: "The potential exists that Monday's high marked a significant top."

* * *
WHAT'S NEXT?

* * *
The November 2009 issue of the ETF Profit Strategy Newsletter contains an analysis of the four most powerful long-term indicators: dividend yields, P/E Ratios, Investor Sentiment and the Dow measured in the only real currency, gold.
Historically, the stock market does not bottom, unless all four indicators reach specific levels.
The results are truly astonishing.

Each newsletter includes a detailed short, mid and long-term forecast for U.S. stocks and other asset classes. The complimentary Technical Forecast provides bi-weekly updates.

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