This is going to fly directly in the face of the “TALKING HEADS” on tv but I believe unemployment is about to surge upward. Even though President Obama rolled out his “jobs recovery plan” several weeks ago, I doubt it will have much of an impact.
Take a look at the following chart:
What it demonstrates is that there is a very close correlation between the S&P 500 index (when inverted) and the level of jobless claims. When the market tanks, unemployment surges. Take a look at the market collapse that stated in 2008…unemployment exploded!
With the economy barely growing at 1%, manufacturing indexes approaching contracting levels, housing in the toilet and Europe in complete disarray, all indications point to a big market selloff.
If the market does fall off a cliff, the resulting increase in jobless claims will lead to a massive increase credit card charge offs due to the close correlation between unemployment and charged off receivables…resulting in a steady supply of inventory for our investors for years to come!
So, while everyone else is HOPING for a market rebound and an improvement in unemployment numbers, we’re PLANNING to profit massively based on the evidence in hand.
Do Good and Make Money!