Dear Reader, The chances are good you’ve worked hard—probably very hard—to make enough money to invest in the markets. That cash literally represents years of your life. How would you feel about watching it drain away like sand in an hourglass? That’s what can happen in recessions. Stocks go down. Some of them go down a LOT. But some don’t. Some stocks actually do quite well when times are hard. At our recent Strategic Investment Conference (SIC) in Dallas, legendary Swiss hedge fund manager Felix Zulauf had this to say about what’s coming: For the next 10 years, all you can expect for US or global stocks is the total return of the dividend yield. We’ll have wild swings and end up with no price progress. This requires completely different skills than in the last 10 years. In the last 10 years, you could be a passive index buyer. You could buy and sit and hold and this worked marvelously. That game is over. I think you have to be a market timer and a good picker of individual stocks and sectors because what will be lacking in the next 10 years is economic and profit growth. I agree with Felix. Now consider that Zulauf Asset Management has managed as much as $1.7 billion, and that Felix was a regular member of the Barron's Roundtable for almost 30 years. He’s no ordinary investor. In fact, my bearish outlook was echoed by many prominent SIC speakers. The game really is about to change. So, do you have a plan for what’s coming? If not, then I strongly recommend you… Join the conversation and get answers about defending your portfolio from the coming recession, including how to generate income when the markets head down. Because that’s exactly what we’re discussing on the special blog I set up. It’s all about putting together a strategy to defend your financial future BEFORE the next recession hits. So go ahead and ask me a question. Add a comment. Chat with your fellow readers. It’s time to get prepared! Until next time, Robert Ross
Senior Equity Analyst
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