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

Stocks in this article: PII GD LMT

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.

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