Markets love round numbers. Today it’s “Dow 14,000!”

Only a year ago it was “Dow 13,000!”

I wrote to paid-up Boom & Bust subscribers on February 23, 2012 about the “Crack Addicted Equity Markets,” as the Dow Jones Industrial Average was busting through the 13,000 level. At the time, we knew two things…

1) Nothing in the economy is “fixed”
2) Equity markets are loving the Fed’s cash

So despite our commitment to sounding the warning sirens –“…incomes are flat! …taxes are rising! …the euro zone is a mess!” – I recognized it would be a futile, money-losing effort to fight against the Fed’s massive wave of monetary stimulus. And that meant just one thing…

Buy stocks.

In the time that the Dow has moved from 13,000 to 14,000, Boom & Bust subscribers have done quite well. I provided specific recommendations on the strongest companies operating in healthy sectors.

That’s why the Boom & Bust model portfolio is enjoying gains of 39% on a specific agricultural commodity producer…

And a gain of 25% on a unique investment that takes advantage of the dismal home-buying market…

A gain of 20% on a multinational high-tech infrastructure giant…

And a gain of 39% betting against the world’s most vulnerable currency

So is the party over?

Here’s a chart of the Dow Jones Industrial Average, going back to 2004…

See larger image

While “Dow 14,000” grabbed mass media headlines last week for “touching” this psychologically important level… we still have not broken the October 2007 high of 14,198.

Not yet. But it will happen.

Not much has changed since I wrote about the crack-addicted equity markets in February 2012. The economy is still broken. The Fed is still easing. And the market is still addicted to the stimulus that pushed it from 11,000 to 12,000… 12,000 to 13,000… and 13,000 to 14,000…

I’ll continue to give Boom & Bust subscribers the best ways to play this Fed-manipulated market while the music’s still playing. By no means does this mean I’m complacent. Anything but that! You’ll be the first to hear me make a call for the exits when the time is right!

And while we’re enjoying this ride while markets are on a tear, we see trouble ahead. That’s why Harry calls 2013 the year the next great financial meltdown begins. We’re watching with eagle eyes for signs of the turn, which we’re forecasting for middle of this year.

Stay tuned. We’ll keep you ahead of the curve.

If you haven’t done so already read the Survive & Prosper issue on “Down the Rabbit Hole… Bizarro Market Hits 14,000.



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Adam O'Dell
Adam O'Dell has one purpose in mind: to find and bring to subscribers investment opportunities that return the maximum profit with the minimum risk. Adam has worked as a Prop Trader for a spot Forex firm. While there, he learned the fundamentals of trading in the world’s largest market. He excelled at trading the volatile currency markets by seeking out low-risk entry points for trades with high profit potential. An MBA graduate and Affiliate Member of the Market Technicians Association, Adam is a lifelong student of the markets. He is editor of our hugely successful trading service, Cycle 9 Alert.