The Great Crash of 2017

28-Year Old Stock Market Research Firm with
History of Accurate Predictions Warns of…

Dear Reader:

My name is Michael Lombardi. You may have heard of me.

Back in 1986, I founded a publishing company with the purpose of showing individual investors how they could beat the stock market. Since then, Lombardi Publishing Corporation has served millions of customers in 141 countries.

We’re widely followed by investors because we have been recognized as a predictor of major economic events before they happen.

Speaking specifically about the stock market:

In December of 2001, when many investors were weary about the stock market in the aftermath of the 9/11 terrorist attacks, I told my readers to buy small-cap stocks.

This is an exact extract from an e-mail I sent to thousands of my clients on December 18, 2001:

“There are good reasons for small-caps to do so well with investors… If you want to be in the market on the long-side, small-cap stocks are the only game right now.”

The Russell 2000 Small-Cap Index rose about 100% from when I made that call until 2007 when I told my readers to get out of stocks.

And I was one of the first major advisors to turn bullish on gold. Throughout 2002, I urged my readers to buy gold stocks. Many of the gold stocks we picked in our financial advisories in 2002 to 2005 doubled and even tripled in price by the time I told my clients to get out of stocks in 2007.

Yes, 2007 was the year I really turned negative on the stock market. On November 29, 2007, I sent this e-mail to my thousands of clients:

“The Dow Jones Industrial Average, the S&P 500 and the other major stock market indices finished yesterday with the best two-day showing since 2002. I’m looking at the market rally of the past two days as a classic stock market bear trap. As the economy gets closer to contraction, 2008 will likely be a most challenging economic year for Americans.”

Months after I wrote the above, it was widely recognized that October 2007 was the top for the stock market.

I correctly predicted the crash in the stock market of 2008 and early 2009. I even wrote an obituary on the stock market in the fall of 2008 that made me somewhat of a forecasting legend.

Here’s an excerpt of the e-mail I blasted to over 100,000 of our customers on October 6, 2008:

“A Stock Market’s Obituary: It is with great sadness that we announce the passing of the Dow Jones Industrial Average. After a strong and courageous battle, the Dow Jones fell victim to a credit crisis and finally succumbed on Friday, October 3, 2008, when it fell decisively below the mid-point between its 2002 low and its 2007 high.”

The Dow Jones Industrials fell approximately 40% after I wrote this now famous “Stock Market Obituary,” finally hitting bottom in March 2009, when the Dow Jones Industrial Average hit 6,440.

And finally, it was in March 2009 that I started telling my readers stocks were oversold. On March 2, 2009, I sent an e-mail to my thousands of personal followers with the subject line, “Stocks at a 12-year Low; Time to Jump In?” In that e-mail, I stated:

“There are great stock bargains developing in the small-cap market where many stocks are now trading at single-digit price/earnings multiples.”

The Russell 2000 Small-Cap Index gained about 175% from when I wrote that e-mail in 2009 to today.

I’ve spent the last few minutes telling you about my past predictions on the stock market so you have an idea of the kind of investment research and forecasts we’ve made for our customers through the years.

It’s important that you know who we are—and what we have done to accumulate a following of millions of investors—so you take what I have to say next very seriously.

“Today’s Stock Market Is Set Up for a Huge Collapse”

Our prediction is that today’s stock market is setting up for a huge tumble…a collapse that will make the stock market crashes of 2008 and 1929 look like a cake-walk.

I know. It’s a dire prediction. But we believe the makings for this collapse have already been put into place. You see…

As the greatest financial crisis since the Great Depression hit America in 2008, the U.S. government and the Federal Reserve pulled out all the stops to save the economy from the abyss.

The government put money into private “too big to fail” corporations and borrowed trillions of dollars to help jump-start the economy.

The Federal Reserve did its share by taking four major steps to “save the economy at all costs.”

The Fed:

  1. Brought interest rates to historic lows;
  2. Made money available to big banks that were in trouble;
  3. Bought U.S. Treasury bonds for the first time in history; and
  4. Created trillions of dollars in new money out of thin air.

While the Federal Reserve has pulled back on its money printing, the damage has been done. By keeping the money “flood gates” open for so long, five years now, we believe the Fed has inadvertently created a stock market bubble.

The Dow Jones Industrial Average moved from 6,440 in March of 2009 to over 17,000. That’s the biggest uninterrupted point gain for the Dow Jones in history—a whopping gain of more than 10,000 points.

But take the rising stock market out of the picture, and all the sudden, the economy doesn’t look that great.

In fact, current economic statistics are outright pathetic.

Corporate earnings growth has fallen back to the lowest pace since 2009.

And while the government gives us a manipulated “official” unemployment rate that sounds like it’s improving, the real unemployment rate, when you include people who have given up looking for work and who have part-time jobs but want full-time jobs, has been sitting over 12% for years.

People dependent on government handouts now outnumber people with private-sector jobs in 11 states.

The number of Americans on welfare is now higher than the number of Americans who have full-time jobs.

Take Social Security out of the picture and one out of every four Americans, 25% of the population, now lives below the poverty line, according to U.S. Census Bureau statistics.

Yes, poverty in the U.S. has reached a 50-year high.

When we look at the rest of the world, all major economies are in trouble. Japan is back in recession. China’s economy is growing at its slowest pace in years. Many eurozone countries are in a depression and not coming out of it.

The bottom line: this is the biggest disconnect between the economy and the stock market in history…and it all has to do with the stock market being artificially inflated by the Federal Reserve’s prolonged massive monetary stimulus.

Understanding the Three Phases of a Bear Market

The great majority of investors can’t fathom what’s about to happen to the stock market, because they don’t understand the historic three phases of a secular bear market.

Phase One of a bear market brings stock prices down sharply. That’s what happened when the Dow Jones Industrial Average fell from 14,164 in October 2007 to 6,440 on March 9, 2009—a tumble of 54%.

Phase Two of a bear market is when the bear lures investors back into stocks. The bear gives investors and analysts the false sense that the economy is improving and that it’s okay to own stocks again. The bear has done just that—a masterful job at convincing investors it’s a great time to own stocks again.

Once the vast majority of analysts and investors believe the stock market is safe again (that’s exactly where we are today), the final phase of a bear market, Phase Three, gets underway and ultimately brings stock prices back down again.

Six Indicators Pointing to a Stock Market Collapse
and What You Can Do to Protect Yourself

Our research and analysis has led us to six proven and time-tested stock market indicators that are all signaling the stock market rally that started in 2009 is about to end abruptly.

The good news is that you could protect yourself from the stock market collapse headed our way. The better news is that, if you position your portfolio properly, starting today, you could actually make money during the next devastating down leg of the market while others struggle like never before.

I present those six proven and time-tested indicators one-by-one here, right now, so you can see for yourself why this stock market is teetering on collapse and how you can profit from its demise.

1. Corporate Insiders Dumping Stocks at Record Pace

Executives and insiders are selling stock in the companies they work for at the fastest pace since 2007—the same year the Dow Jones Industrial Average peaked at 14,164 before crashing all the way down to 6,440 by March 2009.

According to Maryland-based data compiler Washington Service, there are more corporate insiders dumping stocks than anytime since 2007. In fact, corporate insiders are more bearish now than they have been in 25 years.

Historically, when corporate insiders have become such major sellers of stock, the stock market has fallen sharply lower in the weeks and months that follow.

Yes, corporate insiders selling stock at an accelerated pace is worrisome, as it signals we are at a market top. But there is one way you can actually profit from this action as the general stock market comes down again.

How to Profit as Insiders Dump Stocks is a special research report we’ve put together to show individual investors how they can make money as corporate insiders liquidate stock in the companies they work for.

The report gives you a history on just how reliable the indicator of following corporate insider actions has been over the years, focusing on a little-known ETF you can use to make money right now as corporate insiders continue to dump stock.

For a report like this, where we have hours invested in researching, compiling and writing it, we usually charge $95. Later in this presentation, I’ll show you how to get this report for free when you try my Crash Survival Letter.

2. Stock Advisor Bullishness Hits Multi-Month High

Stock advisors are more bullish today than they have been in two years. Throughout history, the stock market has done the opposite of what the majority of stock advisors expect it will do—and that’s why this contrarian indicator is so important

According to data compiler Investors Intelligence, stock market advisors are as bullish today as they were in April 2011.

And what happened after bullishness ran so high with stock advisors in April 2011?

The Dow Jones Industrials experienced a major drop of 2,500 points from the end of April 2011 to October 2011.

I’ve been following this sentiment indicator for years. Whenever stock advisors get too bearish and believe stocks are going lower (like they did in March of 2009), the stock market does the opposite and rallies.

And whenever stock market advisors get so bullish, like they are today, the stock market always tanks. It happened in October 2007. It happened in April 2011. It’s going to happen again now.

To show investors how to specifically profit when stock market advisors turn overly bullish, as they are today, we’ve prepared a report called Two Best Money-in-the-Bank Trades Investors Can Make When Stock Advisors Turn Mega Bulls.

We have hours invested in this special investor research report. We plan to sell it for $95. You can get it for free when you try my Crash Survival Letter.

3. VIX Says This Stock Market Reminiscent of October 2007

The Chicago Board Options Exchange Volatility Index, often referred to as the “fear index,” sits today where it was in 2007, just before one of the worst market sell-offs in history.

The CBOE Volatility Index measures the implied volatility of the S&P 500 index options. When this fear index is down, it’s saying investors are not worried about risk in the stock market. Historically, whenever investors think there is no risk in the market, that’s when stocks turn against them.

Of all the six indicators I’m disclosing today, the VIX, as it is also often referred to, has captured every major market turn in history. And right now, the VIX is trading at the same level it did in 2007, just before the stock market collapsed.

To give individual investors some history on just how reliable the VIX is as an indicator and how to play it for profit, we’ve just put the finishing touches on a special investor research report called Ten Times My Money Playing the VIX Fear Index.

In this report we give you a specific security you should buy today before the stock market starts its road back down. This security sells at $14. Last time the stock market tanked, this security sold for $90!

Hence, you can see why we call this report Ten Times My Money Playing the VIX Fear Index. This is another report we would regularly sell at $95. You get it for free just for trying my Crash Survival Letter.

4. Companies Propping Up Earnings with Record Buybacks

Stock buybacks are a clever way for companies to prop up per-share earnings.

In 2014, we saw more stock buyback programs than we’ve ever seen in history, with 70% of the S&P 500 companies buying back stock.

As an example, a company can make the same money this year as it did last year, but if it buys back 10% of its stock this year, last year’s earnings of $2.00 a share will become $2.20 a share this year—an ingenious way to paint a picture of earnings growth.

So, to prop up earnings, companies are buying back their company’s stock at a record pace.

The board of directors of International Business Machines has authorized IBM to buy back a staggering $11.2 billion of its stock.

Meanwhile, Apple Inc. has announced it was buying back $50 billion worth of its shares!

Bottom line: earnings growth for corporate America has stalled, so companies are buying back their stock to prop up per-share earnings.

Our firm closely monitors companies that buy back their shares, as these particular companies have a history of seeing their stock prices rise after they announce new stock buyback programs.

One ETF we follow, in particular, goes up in value as more companies announce stock buyback programs. This stock is up 25% over the past five months alone, and we expect the stock to double in price from here as the coming collapse in the stock market that we are predicting forces companies to announce even more stock buybacks to support their stock prices.

You can learn all about this ETF in a report we’ve prepared called Double My Money on Public Company Stock Buyback Programs. This report is priced at $95; you get it free when you try my Crash Survival Letter.

5. Bond Funds Buy Stocks Too?

As crazy as it sounds, bond funds have gotten into the stock market action and are buying stocks too!

Under SEC rules, a mutual fund has to invest 80% of its assets in the asset type described in the mutual fund’s name. Hence, a bond fund has room to invest 20% of its fund into assets other than bonds. And while one would think bond funds, which are conservative in nature, would put any extra money they have into Treasuries or money market funds, they are buying stocks instead!

In fact, the number of bond funds that now own stocks has just hit an 18-year high.

According to data compiler Morningstar Inc., an unprecedented 352 bond mutual funds now hold stocks in their portfolios.

Just as night follows day, you can bet that once the stock market starts moving lower, the net asset values of bond funds that have invested in the stock market will drop too. And if you know anything about bonds, you know once they fall, unit holders get nervous and run for the door, putting more pressure on bond prices.

A new report we’ve completed, called Triple Profit Play from the Bonds That Won’t Survive, focuses on an ETF we believe will skyrocket in price as the collapse of the stock market takes bond funds that are heavily invested in stocks down with it.

This ETF trades at only $6.75 today;—we expect it to triple to $21—you should buy it now.

We invested hours in researching and writing our $95 research report Triple Profit Play from the Bonds That Won’t Survive; it’s yours free when you try my Crash Survival Letter.

6. NYSE Margin Debt Surpasses Pre-Financial Crisis Record

To maximize their leverage and make as much money as possible from the stock market when it is rising, traders often buy stock on margin—that means they borrow money from their brokers to buy even more stock.

The New York Stock Exchange publishes statistics that show how much money investors have borrowed against the stocks they own. In July 2007, NYSE margin debt reached a record high. That means that just before the stock market crashed in 2007, investors borrowed more money than ever before to buy stocks.

Fast-forward seven years to today, and we’re there again. The amount of money investors have borrowed against stocks they own on the NYSE has reached a new record of $484 billion—surpassing the previous record set back in July 2007—and we all know what happened after that—stocks fell 40%.

Right now, investors are so convinced stocks will continue to rise, they have borrowed to the tune of $484 billion to leverage their long positions on stocks. As history has proven, whenever investors leveraged so much, stocks have fallen badly. This is an ominous and frightening indicator of what’s ahead.

Our research report, Single Best Profit Trade to Capitalize on Overextended Stock Market Investors, gives you a specific stock you can buy that goes up in value as overly leveraged stock market traders head for the exit on the next market downturn.

We set a price of $95 on this report; you get it for free when you try my Crash Survival Letter.

Why It Will Be So Bad This Time Around

Thanks to the historic actions of the Federal Reserve, the stock market has become a bubble again. The six proven and time-tested indicators I have just talked about all point one way—to another stock market collapse.

But this time around, the after-effects of the next leg of the bear market could be much worse than what happened in 2008 and 2009, and even the Great Depression, because the Fed has run out of monetary tools to support the economy and the stock market.

The reality is that the Fed can’t lower interest rates below the zero they are at today, and the more paper money the Fed prints, the greater the risk of inflation and the higher long-term interest rates will rise, stifling the economy.

Just like 1929 and 2009, as the stock market collapsed, American consumers pulled back on their spending and the economy got back into recession. The same thing will happen now.

But this time, the government won’t be able to help us with the economic downturn because the government has no money left to bail us out!

The government is overextended. If it was a business, it would be bankrupt. The reality is the government is existing on the money the Federal Reserve prints and gives to the government to survive.

Hence, as farfetched as it may sound, the stock market crash that is about to happen will put us in a recession that will be much worse than the 2007–2008 recession.

Putting It All Together

At this point, you’re probably saying: “Okay, Michael. Everything you’ve said so far about the stock market being set up for its next big collapse makes sense. Now, how do I get my hands on the six new reports you and your analysts have just completed so I can protect myself and even profit from the stock market’s demise?”

How to Profit as Insiders Dump Stocks

Two Best Money-in-the-Bank Trades Investors Can Make When Stock Advisors Turn Mega Bulls

Ten Times My Money Playing the VIX Fear Index

Double My Money on Public Company Stock Buyback Programs

Triple Profit Play from the Bonds That Won’t Survive

Single Best Profit Trade to Capitalize on Overextended Stock Market Investors

Well, I’m not going to sell them to you. I’m going to gift them to you. All six of these special investor research reports, yours free and in your hands via e-mail within 48 business hours, just for trying my Crash Survival Letter.

These reports are very valuable. In the next few months alone, they can make or save you thousands of dollars, maybe even hundreds of thousands of dollars depending on how big of an investor you are.

Fortunes will be made as the rally in stocks that started in 2009 comes to a screeching halt. You need to position yourself to be among those precious few making fortunes from this event.

Holding Your Hand All the Way

More important than the six reports, I want to send you our new Crash Survival Letter.

There is no doubt about it. I’m convinced the biggest stock market crash in history is about to happen and that it will devastate the economy.

That’s what our Crash Survival Letter is all about—helping our customers make money as the stock market, and the economy, fall apart once again.

With our Crash Survival Letter, you’ll make money by buying ETFs and stocks that rise in value as insiders dump stocks, as the VIX fear index soars, as public company stock buyback programs go into overdrive, as bond funds invested in stocks take a big hit, and as overleveraged stock market investors exit the market like a herd running from slaughter.

Our Crash Survival Letter is a simple eight-page newsletter, our goal of which is to protect the wealth of our readers from the stock market’s gyrations, while showing our readers how to actually profit as the stock market comes down. Short selling of individual stocks, by the way, is banned from the mandate of Crash Survival Letter.

In each issue, we review our positions outlined in our six special reports:

How to Profit as Insiders Dump Stocks

Two Best Money-in-the-Bank Trades Investors Can Make When Stock Advisors Turn Mega Bulls

Ten Times My Money Playing the VIX Fear Index

Double My Money on Public Company Stock Buyback Programs

Triple Profit Play from the Bonds That Won’t Survive

Single Best Profit Trade to Capitalize on Overextended Stock Market Investors

You get our Crash Survival Letter two ways: We e-mail it to you; and you get a secret password for a web site you can visit to see the issues posted online anytime you’d like. E-mail alerts, which are separate from the newsletter, are sent to you between the newsletters. Hence, we’re in contact with you at least twice a month, 24 times a year.

An Unprecedented Opportunity

For a publication of this nature, we usually charge between $995 and $1,995 for one year of service. The six special research reports we are sending you, we’ve priced at $95 each: $570 total.

Since I believe we are headed for the biggest stock market crash we’ve ever seen, and the most turbulent financial times America has been in since the Great Depression, I wanted to make our Crash Survival Letter as affordable as possible.

Hence, I’ve slashed the regular subscription rate for one year of Crash Survival Letter—12 monthly newsletters, 12 monthly e-alerts—to $295, and you get the six special, hot-off-the-press research reports I’ve mentioned for free just for trying our Crash Survival Letter.

In this special offer, we’ve slashed another $100 off the regular rate and brought this introductory offer down to the exceptionally low price of only $195 for one year of service.

Be One of the Fortunate Ones: Protect Yourself and Profit from the Stock Market Crash Headed Our Way!

Act now to secure your place, get your six special research reports, and lock in a tremendous discount.

To recap, you’ll get:

  • 12 monthly issues of our Crash Survival Letter newsletter
  • 12 separate, monthly e-alerts from Crash Survival Letter

These six special research reports for FREE just for trying Crash Survival Letter:

How to Profit as Insiders Dump Stocks

Two Best Money-in-the-Bank Trades Investors Can Make When Stock Advisors Turn Mega Bulls

Ten Times My Money Playing the VIX Fear Index

Double My Money on Public Company Stock Buyback Programs

Triple Profit Play from the Bonds That Won’t Survive

Single Best Profit Trade to Capitalize on Overextended Stock Market Investors

And, of course, everything comes with a money-back guarantee: If there is ever a time you are not happy with Crash Survival Letter, you can cancel for a refund of your undelivered issues. The six special research reports…they’re yours to keep no matter what.

I’ve told you about my previous stock market predictions and how they’ve already come true.

I’ve given you details on six time-tested and proven indicators all pointing to a stock market top.

And I’ve given you the answers on how you can protect yourself and profit from the stock market catastrophe headed our way.

The next step is yours.

Click the order button below to join us today!

Yours truly,
Michael Lombardi                                                                                                                                                                                  
Michael Lombardi, MBA
Lombardi Publishing Corporation
Celebrating 28 years of service to investors

Dear Reader: There is no magic formula to getting rich. Success in investment vehicles with the best prospects for price appreciation can only be achieved through proper and rigorous research and analysis. We are 100% independent in that we are not affiliated with any bank or brokerage house. Information contained herein, while believed to be correct, is not guaranteed as accurate. Warning: Investing often involves high risks and you can lose a lot of money. Please do not invest with money you cannot afford to lose. The opinions in this content are just that, opinions of the authors. We are a publishing company and the opinions, comments, stories, reports, advertisements and articles we publish are for informational and educational purposes only; nothing herein should be considered personalized investment advice. Before you make any investment, check with your investment professional (advisor). We urge our readers to review the financial statements and prospectus of any company they are interested in. We are not responsible for any damages or losses arising from the use of any information herein. Past performance is not a guarantee of future results. All trademarks and registered trademarks are the property of their respective owners.Copyright 2015; Lombardi Publishing Corporation. All rights reserved. No part of this document may be used or reproduced in any manner or means, including print, electronic, mechanical, or by any information storage and retrieval system whatsoever, without written permission from the copyright holder.