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In May of 2009, I wrote an article ““Safe Haven Status of U.S. Delays Recovery”. In the article I explained the logic on why the U.S. Dollar would eventually go to all time highs against the EURO regardless of the size of the U.S. budget deficit. I also explained, that should this scenario unfold, it would wreak havoc on the U.S. stock market and put significant downward pressure on commodity prices including gold and precious metals. What I predicted is now begging to unfold as the U.S. Dollar has advanced by over 10% against the Euro since late December. For a more in-depth understanding of why, I suggest a review of my report “The Damage to the Euro has Been Done”.

Given that I expect that next shoe will soon drop (a significant decline in U.S. stocks) I am advising all of my family, friends and subscribers to financial information web sites that I am affiliated with including http://www.stockdiagnostics.com/, http://www.bearmarkettracker.com/ and http://www.onlinefinancialsector.com/ to get into a 80% cash position in their stock portfolios, mutual funds and retirement plans.

Investors should give serious consideration to my concerns and predictions about the rising Dollar and the impact that it will have on global stock markets and the Global economy. In my September 2007, Equities Magazine article “Have Wall Street’s Brokers Been Pigging Out” I said that “there will be a day of reckoning … and that day will be ugly for the five largest brokers” and to avoid the shares of each of the five including Merrill, Lehman, Bear Stearns, Morgan Stanley and Goldman Sachs when they were trading at or near to their all time highs. On October 2, 2008, I posted a blog on GE, “GE and its Shares are Skating on Thin Ice”, warning investors to sell GE shares when they were trading at $22 when even Warren Buffet was buying them. They subsequently fell to below $6.00. In my October 7, 2008, posted blog, “Look Out Below”, I said that the “stock market will continue in its free fall” and that proved to be the last day in which the Dow 30 traded above 10,000 for more than a year while falling by 40% to its March 2009, twelve year low. In my January 12, 2009, blog “Bank Stocks Led by Citigroup will Soon Send the Stock Market to New Lows.”, I predicted that the shares of Citigroup and the financials would lead the market lower. Citigroup’s shares promptly fell from over $6.00 to under $1.00. In October of 2009, I concluded a research study, which culminated with me writing an article “Tracking Revenue to Find the Bottom of the Bear Market” and publishing a video, on my findings that revenue for most industries in the U.S. was contracting at an alarming rate. Most recently, on January 15, 2010, I posted a blog, “The Era of Consumerism has Ended” which was one day before the major indices including the Dow 30 and the S&P 500 reached their highest points since the crash began in September of 2008. In my blog, I had said that the stock market had become frothy and would be much lower by the end of 2010. For more information on my predictions I suggest a review of my top ten historical predictions.

Investors should be more proactive than ever right now. Many, who watched in horror as their investments and 401ks declined by more than 50% between October of 2008 and March of 2009, have become lethargic and they will likely be numb to the soon to be increasing volatility and sell offs in the stock market. This is because the significant rally of the stock market in 2009 bailed them out. For more on why the stock market in 2009 was able to stage a magic act that created what will prove to have been a huge temporary rally in the face of deteriorating economic conditions in 2009, I suggest a review of my January 25, 2010, article “Financial Regulator Reform is a Game Changer”.

Investors should not trust their financial planners and investment advisors to protect their portfolios, which consist of mutual funds and stocks. A majority of them have a conflict of interest because they are annually paid a fee, which is based on the amount of mutual funds and stocks owned which are held by their clients. THEY DO NOT GET PAID A FEE ON THE CASH, WHICH IS IN A PORTFOLIO.

Finally, I recommend that investors do not fret about the possibility of my predictions coming true. Instead of being scared they should instead become fully conversant on how to invest during a bear market or for extended periods of economic contraction. Those who are knowledgeable on those types of companies and industries which thrive during periods of economic contraction and bear markets will be able to generate returns that are as high as those that were obtainable in the previous bull market which ended in 2007. I can say this because I began my career in the stock market in 1977, which was during the previous secular bear market. For more information I suggest a review of my article or report, “A Super Bear is Upon Us” and my other free research reports and videos which are available at http://www.bearmarkettracker.com/.