You’ve just missed the second blockbuster video of our five-part series airing THIS WEEK ONLY with one of the world’s greatest investors.
But you can still register for the rest of the series by clicking here. And in a moment, I’ll give you a full, unedited transcript of the video you missed today.
The No-Nonsense, Investor-Friendly,
Commercial-Free Value of Today’s Video
If one of the world’s greatest investors was willing to show you exactly how he does it ...
How he was able to recommend seven winning trades in every ten since 2004, plus ...
How those recommendations could have produced a total return, including winners and losers, of 1,133% — enough to turn $100,000 into $1.2 million in less than seven years ...
And if he was also willing to show you — step by step — how he plans to continue to achieve similar gains throughout the rest of 2011 and in 2012 ...
Would you be willing to listen?
Well, that’s precisely what Kevin Kerr is doing in this 5-part series!
In today’s fast-paced session, Sean Brodrick joined me as we explored the strategies and investments Kevin is using to profit from the weakening U.S. economy, and it was a huge hit with our readers. Our inboxes are already filling up with their “thank-you” notes.
There was nothing to buy: Just valuable, investor-friendly information you could use to go for the same kind of profits Kevin has produced month-in and month-out for nearly seven years!
Unfortunately, you haven’t yet registered for this series. So you weren’t able to join us for the video session earlier today.
But because I believe the investment intelligence Kevin is sharing with us is absolutely essential to your success, I’ve included the transcript of today’s session in this email.
In the transcript below, you’ll discover ...
>> The two megatrends that Kevin is most excited about now — and the investment vehicles he believes could help you double your money in the weeks and months ahead ...
>> Why bank stocks are plunging ... why this disturbing trend is only just beginning ... and how you can multiply your money as weak banks implode ...
>> How to grow richer in 2011 whether the U.S. economy sinks into a double-dip recession or not ...
>> The secret Kevin uses to win nearly seven trades out of every ten ...
>> And much more.
IMPORTANT: To make sure you don’t miss any of the money-making insights Kevin’s sharing with us this week, be sure to take the following two steps right away:
FIRST, be sure to click this link to gain access to tomorrow’s session at 12 noon Eastern Time (5 PM GMT) ...
And to be on hand for the rest of the videos in this series, including the grand finale session this coming Friday — the session in which Kevin Kerr reveals the unusual investments he’s buying right now.
SECOND, to help you prepare for tomorrow’s all-important episode, be sure to review the transcript of today’s session, below.
Good luck and God bless,
Here’s Today’s Transcript ...
Master Investor Series — Part II
Martin Weiss: Welcome to part two of our five-part Master Investor Series, in which Kevin Kerr, one of the world’s most astute investors, will give you the strategies and investments he’s using to help generate consistently large gains even in these tough times.
Kevin has been a frequent guest with Cavuto on Fox, Kudlow & Company on CNBC, Nightly Business Report on PBS and many others. But what makes him so unique is not what you see of him on TV. It’s his track record. And it’s the investment recommendations he’s been giving to a small, private group of investors, using instruments that he has never mentioned before in any public appearance.
In fact, Kevin’s record is so good, we decided to spend several months meticulously examining each and every one of the trades he has recommended since 2004. We found that investors who followed his recommendations could have achieved a total return — including winners and losers — of 1,133 percent. That’s enough to make them more than twelve times richer in less than seven years. In other words, if you had started with $25,000, you could have over $308,000 today. Or if you had started with $100,000, you could have more than $1.2 million today.
Also joining us is Sean Brodrick, whom you know from his great work here at Weiss Research. And it just so happens that Sean has been working closely with Kevin for ten years. Sean, I want to thank you for continually nagging and prodding me and our research team to look seriously at Kevin’s work.
Sean Brodrick: Well, it was a pleasure. I kept telling you Martin, “You gotta look at Kevin Kerr’s track record. You gotta tell our subscribers about him. You have to give them the chance to at least meet him here on Money and Markets TV.”
Martin: Yes, and thank you very much Sean. I appreciate that.
Sean: I hate to say I told you so, but I did tell you so. And just in the months since then, look at all the missed opportunities to make money with Kevin’s signals.
Martin: Hey Sean, give me a break. We’ve been busy verifying and validating his track record. We dug up every trading signal he published in real time. We bought the historical data from the exchanges. We checked every one of his signals to make sure they were actually executable in the real market. And we tallied all the losses and all the gains. And listen, you can’t make these kinds of claims without ...
Sean: 1,133 percent!
Martin: Right. You can’t make that kind of a claim without hard proof. But that said, since you’ve been working so closely with Kevin for over a decade, I want to give you a chance to grill him about what he does and how he does it.
Sean: That’s what I’m here for. Hi Kevin, how are you?
Kevin Kerr: I’m just fine, Sean, how are you?
Sean: I’m great. I wasn’t here for your session yesterday, so please tell me everything you covered in two minutes or less.
Kevin: Well I know you’re a fast guy, so I can do it in one minute or less.
First, the U.S. economy is sinking again. All the numbers now tell us that it’s confirmed. It’s a double dip, it’s confirmed.
Second, the sinking economy is going to hit the bank earnings, and hit them hard.
Sean: It’s already hitting them hard, you know.
Kevin: Third, the Fed has no choice but to continue its mass money printing. And fourth, the mass money printing is going to continue driving up the price of tangible assets.
This gives you not just one but two major profit opportunities right now.
Sean: Okay, let’s hear what those are.
Kevin: Well first, you can ride the decline in one sector, the stock sector of the banks. They’re going to get hit the hardest. I think that can give you a quick injection of cash into your account.
And second, you can go for a long string of profit opportunities in one tangible asset that I think will go up even in the recession — FOOD.
Sean: Ah. But are these future opportunities, or are they past opportunities?
Kevin: Well they’re both, Sean. I mean we’ve just been through a similar cycle and now we’re coming around again. This cycle is bound to be even bigger and more profitable actually.
Sean: Okay. So please tell me how much you could have made in the last cycle, and then tell me why you think this next cycle is going to be bigger and more profitable.
Kevin: Well, in the last cycle, if you just bought and held a regular broad-index ETF — no leverage, no stock selection, no fancy in-and-out trading — you could have made 82 percent with the decline in bank stocks in 2009. Then, when the Fed stepped in and started printing money like crazy, if you just bought and held an ETF tied to food, you could have made 130 percent. And that’s just capturing about half of the move.
Sean: Okay Kevin, so tell me — do you use ETFs?
Kevin: No. I use an even more powerful instrument. I’ll tell you about it in the fifth part of this series on Friday.
Sean: Okay. But even just with simple ETFs though, I mean, those are some very nice numbers, right? 82 percent, 130 percent.
Martin: Guys, that was then. What about now?
Kevin: Well Martin, I think that was just a warm-up for what’s coming next. Look, before we sank into the last recession, the official unemployment rate, and you guys reported it, was about what, 5 percent?
Kevin: And now, as we sink into this next recession, and I believe we are, it’s 9.1 percent. That’s almost twice as bad. Remember, the last time, the Fed, they were crying out loud, they said we have to, because of surging unemployment, we have no choice, we have to print trillions of dollars. Well now, they’re going to have to print even more. It’s a staggering number.
So I want to go back to what I said yesterday. You have two huge opportunities as an investor. First, take advantage of the sinking bank stocks, as you’ve pointed out Martin. And second, to ride that surge in food prices, which we know is inevitable.
Sean: So is that it? Just those two things, banks and food?
Kevin: No Sean, you know me better than that. Of course not. There are all kinds of ways to make money in this kind of turmoil. I mean, it’s everywhere. For example, there are some very intriguing ways to make big money from the debt crisis that’s exploding here in Europe, especially in Greece. There are great ways to make money from the revolutions that are hitting the oil-rich countries — Saudi Arabia, Egypt, all throughout the Middle East. There are great ways to make money from a whole host of other markets that are about to go wild in the days ahead I predict.
Sean: Okay. But today, let’s just focus on the opportunities in banks. Then tomorrow, let’s you and me talk about food and the other commodities.
Most people think the only way to invest in banks is to buy a CD or the bank’s shares, right?
Kevin: Well, not true. In this climate, you can make a heck of a lot more money — and more quickly — by betting on the decline of the bank stocks.
Sean: Also, most people think that you have to be an expert stock picker, or a short-seller, to target the weakest banks, which is a challenge for a lot of people.
Kevin: Not true again, Sean. You’ve known me a long time, and I never claimed to be a big expert on anything. The bottom line is as a trader you don’t have to be doing any of that. In the last cycle, all you had to do was buy some simple instruments that anyone can put into any basic brokerage account, online, offline, it doesn’t really matter. You’ve got a solid bet on these powerful forces. These are huge bulldozers, about to implode, and they’re about to hit the nation’s megabanks. I’m talking about mortgage defaults, home foreclosures, and well ...
Sean: The sovereign debt crisis.
Kevin: Yeah, you said it. You took the words right out of my mouth actually. Not just Greece but also dominoes like Ireland, Portugal, Spain and Italy. Probably in that order.
Martin: I’d like to jump in here and add something to this. As you know, our Weiss Ratings division has been covering the nation’s thousands of banks since the 1980s. And throughout that period, we have consistently been able to pinpoint, ahead of time, which banks are the most vulnerable. But there’s a big difference between the 1980s and today. Back then, almost all of the failing banks were smaller institutions. I can recall only a couple of rare exceptions like Franklin National and Bank of New England.
But now, in addition to thousands of smaller institutions in a weakened state, we have scores of medium-sized banks and super-regional banks loaded with commercial and residential real estate loans that are going bad. And more importantly, in addition to the super-regional banks, we have a couple of the biggest megabanks that are also vulnerable — JPMorgan Chase, Bank of America. So this is big.
Sean: Okay, so why don’t the other rating agencies agree with you?
Martin: Well, good question, Sean. Exactly how they arrive at their ratings is kind of murky to me.
Sean: The conflicts of interest are huge! They get paid by the same banks that they give ratings to.
Martin: Right. Plus they figure that these banks are just too big to fail. They assume blindly that Uncle Sam will always come to the rescue. Even if he does, the fact is they’re overlooking big, gaping holes in the banks’ own financial statements. Even if they don’t sink the banks, they’ll sink the bank stocks!
Sean: Kevin, what’s your solution?
Kevin: My solution? That’s above my pay grade! I’m a trader, I just make money. Look, foreclosures are already a tsunami in the economy. And home prices in the top twenty U.S. cities have just plunged below their worst levels at the height of the debt crisis. That’s already hitting bank earnings like a sledgehammer. The recovery is evaporating, gentlemen. And we know that’s going to hit bank earnings hard. I don’t care what the Fed does at this point.
Sean: And even when they bailed out banks last time around, what did it do for bank stocks?
Kevin: Well exactly Sean. The bank stocks still plunged, even with the bailout, to brand new lows.
Sean: So you think that it’s a slam dunk to bet on these falling bank stocks?
Kevin: Well look, you’ve known me long enough to know I never say anything is a slam dunk. If it were, I’d never make a losing recommendation, and no one can do that. I’ve had lots of losing trades in my day.
Sean: Okay Kevin, I appreciate that you’re being frank about that. But based on your record, I see that over the past seven years, you’ve had nearly seven out of ten winners. And I see that your winners are nearly triple the size of your losers.
Kevin: Well, thanks for pointing that out, Sean. I appreciate that. Look, my point is, and very honestly, nothing is guaranteed. And losses come with the territory. That’s trading. But if you could have good money placed on a bet on falling bank stocks last time around the block, I think you stand a good chance of making even better money this time on the bank stocks.
Sean: A lot of what you’re saying seems to be riding on the forecast that the economy is sinking into a double-dip recession. Why don’t you tell us what happens if that forecast is wrong.
Kevin: Wishful thinking. Wrong? No. Well sure, all arguments aside, it could be wrong in two different ways. It could be wrong in the sense that it’s not as bad as we fear. And then, well ...
Sean: Wait, slow down there a sec. What happens then?
Martin: Guys, let me answer that question. What happens is that all the bad mortgages and all the foreclosures continue to flow through the system. They’re in the pipeline already. And what also happens is that nice little recovery that the banks were counting on to help buffer them against all those losses, that fails to materialize. Even the most optimistic economist today is not expecting the kind of economic growth they were expecting just a few months ago. They’ve all downgraded their forecasts.
Kevin: I agree, Martin. But the recession forecast we’re talking about could also be wrong the other way.
Martin: Yeah, right, it could be worse than we expect!
Kevin: Exactly. No one knows how bad it’s going to get! Look, if the financial companies are sinking, or what happens if Congress can’t cut a credible deal on the federal deficit, the ceiling? Or how many dominoes are going to fall when Greece defaults? I don’t say if, I say when. So let’s not get fixated on just one scenario. I mean, we’re traders here.
Sean: Or on just one profit opportunity either, right?
Kevin: Right, on one predetermined profit target. I mean, the way I like to trade Sean, and you know this because we’ve known each other a long time, is to put on two positions at a time. When I have a decent profit on the first position, I grab it. I take those profits off the table. But then I let the second position ride to capture as much of the move, when I’m right, as reasonably possible.
Sean: And man-oh-man, some of the moves lately have just been breathtaking. Look at silver. Look at the euro! But all right, we’re covering commodities tomorrow. Our main topic today is the big opportunity in the falling financial stocks. So how much money do you think people could make as the bank stocks fall in this new cycle?
Kevin: Well, you know me Sean, I don’t want to speculate about how much you could make in the new cycle. I mean, there are just too many variables. But I can give you some hard data on how much you could have made in the last cycle.
So let’s break it down. Citigroup, which by the way, I think, in reading through all your material, Weiss had panned as a likely candidate for bankruptcy.
Martin: Yes, yes we did.
Kevin: That’s an incredible statement to have to make after all these years, but Citibank, bankrupt, before it peaked, and you guys predicted that. Saw its shares fall sharply. March 6, 2009.
Martin: That was the bottom.
Kevin: Bank of America, also on the Weiss weakest list, I believe, if I’m correct.
Martin: It was, yes.
Kevin: It also tanked during that time. Even if you’d caught only the second half of those moves, you could have seen up to 124 percent profit.
Sean: Now, are those the same banks that are going to be slammed this time around?
Martin: Well, it really doesn’t matter.
Kevin: I agree with Martin, I don’t think it’s going to matter. The investments I’m going to give you use huge leverage, right Martin? And they don’t require stock picking. So it doesn’t matter the specifics. I just ride the trend. And the risk control is automatic, it’s built into the instruments we’re going to use.
Sean: And I understand you’re going to tell us a lot more about those investments in the grand finale of this five-part series.
Kevin: I definitely am.
Sean: And we’re going to be back here same time tomorrow, right?
Martin: Yes, and don’t forget to tell the folks about the importance of the registration.
Sean: Absolutely, I will in just a minute. So, tomorrow the big topic is ...
Kevin: Well, the big topic tomorrow Sean, is the one sector that’s not only rising because of the Fed’s endless money printing, but also rising because of massive, secular changes in global demand that you and I have both discussed.
Sean: Well, by that I assume you mean essential commodities, right?
Kevin: Yes, especially food. Tomorrow, I’m going to show you how food can put money in your account month after month, year after year, without ever touching any exoteric investment or fooling around with any complicated strategies.
Sean: Remember, this is just the second in a series of five intensive sessions like this one. Plus you’ll want to definitely attend the grand finale, when Kevin will tell you about the kinds of things that are on his radar screen for upcoming recommendations. And he’ll give you the chance to join the small, elite group of investors that get Kevin’s signals right now. But whether you join them or not, there’s huge value just watching this series.
We’ll see you here tomorrow at noon, and every day for the rest of the week, also at noon. I mean, noon for us here in the Eastern time zone in the United States. In London, it will be 5 pm. We’ll see you then.
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