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Why is this crisis occurring now? Blame it on the computer and Internet explosions. US demand for electrical power is 62% greater than it was in 1980 -- and as much as HALF of this country's electricity is now being used by computers and Internet equipment!
But America's utilities have completely failed to anticipate this booming demand. And in many cases have been actually prevented from building new power plants by draconian EPA regulations.
As a result, electricity prices are rising in more than California, New York, Florida, Montana, Minnesota, Wisconsin, Illinois, Louisiana and many other states ... consumers are already reporting a dramatic increase in brown-outs nation-wide ... and major black-outs have already hammered cities from New York to Oregon.
And now, Allied Business Intelligence -- a top technology research firm -- is publicly predicting that major, chronic nation-wide power shortages will plague US homes and industry for many months and years to come.
Today, more than 99 percent of all investors - even managers of massive hundred-billion-dollar mutual funds -- are completely oblivious to these locked-in trends, and the investments that will soar are selling cheap.
Get Your Money to Safety NOW!
This is just the beginning. A financial hurricane is getting ready to rip through your investments. Your number one priority must continue to be the protection of your principal. Just a few months of losses in these markets can take years, sometimes decades, to recover.Here's what to do NOW:
- If you're not already out of the stock market, get out. Remember: Stocks that have quickly lost 50% or more can easily lose another 50% just as quickly. Amazon.bomb plunged from $106.7 to $46.87. Then, it swooned another 19% to 29%, and then another 3% to $8.37. So don't fall for the idea that "they're so low they can't possibly go any lower."
- Stay in cash, especially in shorter-term Treasury Bills.
- With the economy slowing, SAVE as much as you can. Pay off as much debt as possible ... your credit cards ... mortgages ... even car loans. In your household, trim your expenses. Hunker down. There's no telling how long this Great Money Panic can last, but it's sure to wipe out millions of investors and families.
- Do the same in your business. Cut debt. Slash unnecessary expenses. Hunker down. Do not accumulate unnecessary inventory. Keep you excess cash in a short-term Treasury fund or Treasury bills just as we recommend for your personal portfolio.
- Steer clear of real estate-related investments. First, avoid mortgage backed securities. Second, avoid investing in commercial real estate. Wait until the prices have reached an absolute bottom. By patiently sitting out the crisis and holding liquid assets, you'll be ideally positioned to pick up bargains later on.
- Monitor your bank and insurers financial safety like a hawk. My company, Weiss Ratings, is America's 100% conflict-of-interest free monitor of bank and S&L safety.