Opening Statement from the December 2014 issue of Dividend Gems

Opening Statement from the December 2014 issue of Dividend Gems

First published on December 21, 2014 for subscribers to Dividend Gems

Over the past several months economic headwinds from around the world have materialized largely as we anticipated. From our perspective there have been very few if any surprises to speak of. Accordingly, the capital markets have generally behaved in a fairly predictable manner. Even in circumstances when the capital markets have responded irrationally, most of these responses were largely predictable. Thus, we feel it has been an easy road to profits over the past few years.

Looking past all of the details, we have kept our research customers in the US equities market close to 100% of the time over the past several years. This remains as the most important result because the stock market has soared over the past several years.

In addition we have accurately forecast every market selloff since 2009. Indeed this is a rare circumstance and one to treasure, as the capital markets are almost invariably fraught with uncertainty even for the most competent investment strategists, analysts and fund managers.

As we expected would be the case, over the past several months the US equities markets bottomed right where we forecast and have continued to make new highs. Regardless, investor trepidation continues to mount as many are just now beginning to realize that Europe will have no recovery anytime soon. We continue to see further weakening seen in Europe, Latin America, South Africa, Russia, Australia, Canada, many parts of Asia including the Japan which is now officially in a recession.