Posted by Eric Solis on February 6, 2010 under Banking, General, Investment Strategies, Prophetic Visions, Saving and Investing, Stewardship/Spiritual/Finance, Stock Market, U.S. Treasury Markets, financial crisis | 
Eric wrote this article while sitting at his desk in 1997, staring out the window gazing upon the San Jacinto Mountains in Indian Wells Ca. God gave Eric a vision for what was to come in the future of our country. Read with amazement the accuracy of the vision and get ahead of the curve as we are only half way through the events to come. Eric had his entire client base load up on gold at under $300 an ounce (to be stored in their homes in a safe), he steered them into commodities, had them pay off their mortgages and eliminated all credit card debt as a result of this vision. He also saw that the only way to stop this coming economic catharsis was for Americans to save more. He launched www.savedaily.com and www.save252.com in 1999 and 2005 respectively in pursuit of creating solutions to this coming disaster. fall-of-capitalism-092319971
Posted by Eric Solis on January 28, 2010 under Stock Market |
A dead cat bounce is a market that retraces half of its decline before retesting lows. When a market falls at the speed and the magnitude that this market fell, the resulting dead cat bounce can and in fact does look like a renewed bull market. But the fact is that a lot of Dow points to the upside does not change this probable reality of a continued bear market.
Simple math: If a market has rallied 3500 points or 50% off the bottom relative to a 7000 Dow coming off of a high of 14000, one needs to keep in mind that 3500 points relative to the actual starting point of 14000 is only 25%. So the markets 50% rise off the bottom is a perfect retracement to fill the gap and is a dead cat bounce. The “rally” we have experienced over the past year and a half has been a technical correction based on the traders understanding of charting and back filling gaps.
The FUNDEMANTALS (ex government spending) of the economy have not improved and the market is way over extended based on real economic activity which has actually deteriorated further. The way to protect investment capital going forward into 2010-2013 is to substantially reduce your exposure to equities.
Posted by Eric Solis on October 20, 2009 under Stock Market |
Long standing monetary and fiscal policy are the catalyst for the current commodity inflation and the bubble cycle that has been hop scotching from one market to the next since the mid 1990’s. And the “recovery” that market pundits will be promulgating will be the result of a financial bubble that will serve as a vacuum of wealth from Middle America into the pockets of the rich. This will not be a capitalistic bull market, but rather a hyper-inflationary re-pricing of financial assets. It will look and smell like a Bull, for a short time and then the devastating impact will be felt by working families all across the country. In fact we are in the early stages of it now.
This is why we MUST get every American into the market and out of fixed stored savings. ING has opened 6.6 million accounts on the promise of high interest rates. Bank of America 5.5 million accounts into Keep the Change on the same promise. People want to save; they are feeling the need and these institutions have figured that out. But, the supposed “high interest” they pay on these stored savings vehicles and the principal itself is becoming worth less and less with each passing day.
The media, MUST let go of the distraction about “costs” and the inefficiency of mutual funds and other means that make equity investing possible to the mass consumer. This is harming people not helping them. The cost is nothing compared to the harm of economic segregation. The message we should be telling Americans is that they CAN NOT afford to be out of the market. They MUST be in at all costs!!! The equity markets are by nature the only beast blood thirsty and wicked enough to combat the glutton minded fiscal and monetary policies of the past decades.
“Smart money” wants to keep the dumb money in stored savings vehicles, because this is non dilutive to the pyramid scheme that is being funded by our own Federal Reserve and government. Trillions of dollars are being pumped into the system in order to feed the beast. The beast begs to be fed in order to live (Fed and fed…interesting). So, Middle America MUST feed the beast too in order to fend off purchasing power poverty.
It is not a perfect solution and it is a “high cost” system using rich mans math. But when we compare what is happening to the purchasing power of stored savings, it is a MUST.
Posted by Eric Solis on under Stock Market |
Written June 2007
A Bear in Hibernation
First let me explain the general concept of a “bull market” versus a “bear market”. A bull market describes an overall market condition that is increasing in value and a bear market describes one that is decreasing in value.
Over the past several years, the U.S. stock markets have experienced a bull market that has driven prices to unprecedented levels. The Dow Jones Industrial Average has broken above 13,000 for the first time in history. This has created a lot of excitement amongst speculators who are buying stock in hopes of raking in oversized short term gains.
The purpose of this letter is to prepare you for what will inevitably come to pass. I am not a market timer, fortune teller or doom and gloomer. But I am a realist and a professional with 20 years experience in the financial markets and my goal is to impart to you what I have learned.
Here is what I want you to “bare” in mind (pun intended). The Bear will awaken and when he does he will devour those who have wandered off of the trail of good investment planning. The timing of when the bear will awaken is anybodies guess, but rest assured he will awaken. This means that the stock market could drop 20% or more and if you are not prepared you may be tempted to bail out and potentially lose money unnecessarily.
Be true to your vision and plans for the future and be committed to your goals. This will produce peace and abundance and less stress and fear as the markets fluctuate. For example, let’s say that your goal is to invest $10 a day. If the share value of your investment is $10, you will buy one share with your $10. If the share value drops to $8 you will buy 1.25 shares with the same $10. Your average cost in this example is now $8.88 instead of $9. If you keep buying as prices decline, you continually lower your average cost. This is called Dollar Cost Averaging and it is a highly effective antidote to “Bear Markets”.
The good news for those using the DailyIRA dollar cost averaging system is that it allows you to put money away every day that the stock market is open, . You can start with as little as $1 and you can adjust your contributions up or down with the click of a button.
Think of it this way, seeing a bear on a hike in the woods can add to the excitement IF you have the right equipment to defend yourself. But if you are not prepared and have no plan to protect yourself, you are asking for trouble. The same principle applies to investing. So have a plan and stick to it.
Posted by Eric Solis on August 10, 2009 under Investment Strategies, Public Policy, Saving and Investing, Stock Market, financial crisis |
With all of the chaos in the world of finance, I was recently asked to appear on Fox News kttv_s2521, to discuss financial principals that would work for the average American in today’s uncertain world.
I spoke on issues regarding the impact that the global financial crisis and economic meltdown can have on you, your family and your wallet. I postulate a strong belief that now is the time to reclaim our country; together we can “buy America back one dollar at a time, one day at a time, and one person at a time” through an increased National savings rate and personal stewardship.
I am an unwavering champion of the “little guy”. My goal is to create sustainable financial solutions for all of man kind by thinking differently and being willing to do the hard work of breaking down barriers (and believe me it is not easy).
This interview demonstrates how a highly complex financial breakdown can be utilized as an opportunity to improve on your personal vision and financial goals.
Now watch the interview kttv_s2521 and pass it along to family and friends. Also, remember to post a comment when you are done as your feedback is important to me.
God bless,
Eric
Posted by Eric Solis on November 17, 2008 under Banking, General, Housing and Mortgage, Housing and Real Estate, Investment Strategies, Saving and Investing, Stewardship/Spiritual/Finance, Stock Market, U.S. Treasury Markets, financial crisis |
I recently appeared as the featured guest in a 10-minute segment on KTLA’s Morning News. We discussed some solutions for braving these rough economic times. Have a look at the video below …
KTLA Morning News appearance
