This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Climbing a 'Wall of Worry' and Catching a 'Wave of Wealth' with Stocks

NEW YORK ( TheStreet) -- The prophets of fiscal doom are at it again, and who's to say that they are completely wrong. A recent headline in The Wall Street Journal capitalized on the current angst by proclaiming "As Stocks Rally, U.S. Companies Worry."

The article spoke of the Dow Jones Industrial Average nearing its record high. "But a different mood is pervading U.S. companies, where executives are less optimistic about the global economy and their prospects, and many are lowering financial forecasts."

It also claimed that 63 S&P 500 companies (so far) "...have lowered their forecasts for first quarter earnings, according to FactSet Research, while 17 have raised them, the largest disparity since the firm began tracking the data in 2006."

This rhetoric reminds me of how the ocean tides go out before the next big waves come rolling in again. Many see the action by central banks around the world to stimulate the global economy as a harbinger of a "tsunami of wealth" which will cause stocks, real estate and commodities to be inflated to new heights.

Porter Stansberry, writing Wednesday in Dr. Steve Sjuggerud's DailyWealth online publication continues to warn that profligate fiscal stimulation and monetary policies that re-inflate investments are leading to another disastrous bubble.

"Sadly, the best way to protect yourself from this looming catastrophe is to benefit from the same policies that are causing it. That means making sure you have your wealth not in paper money, but in blue-chip businesses, productive real estate and gold. Make sure you buy them before it's too late," he concludes. This is a reminder that when you can't beat them it may be better to join them.

A number of companies see this "wave of wealth" heading our way. They took note of President Obama's State-of-the-Union speech Tuesday night where he emphasized the need to "build and repair infrastructure, spur alternative-energy sources, expand early education and raise pay for workers."

Where's the money going to come from for those proposals to become realities? "So, to underwrite his programs, he proposed in some cases recycling existing money or asking Congress again for funds previously denied. In other cases, he said he would seek his goals not with dollars but with regulations and tax incentives to prod the private sector to do Washington's bidding" today's WSJ commented.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
GD $139.80 0.00%
LMT $203.02 0.00%
PII $155.75 0.00%
AAPL $129.09 0.00%
FB $79.75 0.00%

Markets

DOW 18,288.63 +155.93 0.86%
S&P 500 2,117.39 +12.89 0.61%
NASDAQ 5,008.0960 +44.5690 0.90%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs