You Might Miss Out On The Profit Opportunity Of A Lifetime

Starting around now, it's looking like it will be an exciting time for people with the skill and guts to invest back into the stock market.

Yes - it will take guts. We know many people have seen their super funds and their share portfolios absolutely walloped over the past 12 months. They are understandably wary of investing back into the market, especially given the state of the economy.

Yet we think they could be about to miss out on the profit opportunity of a lifetime.

Successful stock market investing is all about buying great companies at cheap prices. To do that, you have to buy during times of pessimism.

While many investors today are struggling with where the stock market is headed in the short term, the fact remains that for value investors with a medium to longer term time frame, value and bargain opportunities are beginning to emerge.

The Fail Safe Investing Strategy For This Market

In the short term, the stock market is likely to remain somewhat volatile. It will have big up days and likely big down days too. Whilst the economic news remains negative, markets will remain nervous.

One of stock market investor's worst fears is of buying too early. You probably know the feeling already. You buy thinking a share is cheap, but yet it falls even further. You kick and curse yourself for jumping in too early.

If you do it enough times, and let's be frank, if you've been buying over the past few months you've probably already done it a few times, you eventually give up buying and give up on the stock market.

It's a bad strategy.

Instead, here is what you should be doing...

• Set aside an amount to invest each and every month. It could be $500 or $1000 or even more. Investing regularly in the market ensures when the market is low you buy more shares, and when the market is higher, you buy less shares. What could be simpler?
  
  
• When buying shares in a company, split your new purchases into three. Buy a third initially, buy another third a month or so later, and buy your final third a month or so later again. If the shares have risen since your initial purchase, you are happy because you've bought a third at a low price. If the shares fall, you are also happy because your next third is bought at even lower prices. It's a win-win situation.

So Where Exactly Are The Value & Bargain Companies?

There has been one shining light amidst all this economic chaos and stock market carnage. To the average man on the street, the rise and rise of this metal has gone largely unnoticed.

But not here at Fat Prophets. We've long been recommending our Members buy GOLD. We hope they've heeded our advice, because in Australian dollars, GOLD is now trading at an all time high of around $1365 an ounce*.

The chart paints a lovely picture...

One of the classic mistakes investors make is to sell their winners and hang onto their losers. So whilst you may be thinking this is a good time to sell gold, we think you'll be wrong.

In times of economic trouble, investors turn to the safe haven of gold. Because gold is a scarce precious metal, you can't simply 'make' more of it when demand is high. Gold is frighteningly difficult to find, and very expensive to get out of the ground.

More and more investors have turned to gold as a hedge against falling share prices. But that's only part of the story.

They are also turning to gold because it's a hedge against a massive bout of forthcoming inflation. Now you may think we've gone utterly mad mentioning inflation when right now, the global economy is witnessing a bout of unprecedented deflation.

3 Undeniable Facts About This Recession

Think again. Take these undeniable facts...

1. US interest rates are as good as 0%. The US Treasury has already signalled it is willing, able and prepared to print more US dollars to effectively encourage financial institutions to lend to businesses and consumers.
   
   
2. President Obama has announced a close to US$1 trillion stimulus package to try and boost the ailing US economy, pumping money into the economy, and pumping it into the hands of millions of grateful US citizens. Money, money, money...
   
   
3. Mortgage rates across the globe are in freefall. Many homeowners will effectively be given a massive and ongoing pay-rise because their monthly mortgage repayments will have halved or more.

All this additional money has to go somewhere. Sure, some of it will end up in the bank account, earning a paltry rate of interest, but eventually, it will end up back in the economy.

It all adds up to a massive bought of inflation. Not this year, and maybe not even next year. But mark our words, inflation is coming.

Can You Believe The World's Richest Man?

You don't believe us? How about if the world's richest man told you inflation was coming? How about if we told you the world's richest man was also the world's greatest ever stock market investor?

Would you believe us then?

"...the policies that government will follow in its efforts to alleviate the current crisis will probably prove inflationary..."

Those words were penned by none other than Warren Buffett back in October last year.

Smart investors know that when inflation looms, there is only one place to turn, and that's to gold. You see, because of its scarcity, gold is the absolutely perfect hedge against the ravaging forces of inflation.

Most investors have not cottoned on to the gold story yet, meaning although it is hitting record highs in Australian dollars, we think there is plenty of room for the gold price to go much, much higher.

Why haven't they cottoned on yet? Their portfolios have taken a hammering. Hedge funds have been selling to meet redemptions and to repay margin loans. Most people are sitting on the sidelines, too afraid to invest.

Things Are About To Change

It's been a sell, sell, sell world...up until now. But things are soon to change.

Very soon, those same people are going to be buyers. How can we be so sure? Again, take a look at the facts, and you decide...

• Savings rates are low and getting lower. Quite soon, the highest interest rate banks will be willing to offer you could be just 3% per annum.
  
  
• All those mortgage savings have to go somewhere. Sure, some people will use the extra money to pay off their mortgages quicker. But the smart investors will look at the dividend yield on blue chip shares, in some cases offering you a fully franked yield of 6% or more, and decide shares are the better bet.
  
  
• There is a wall of cash sitting on the sidelines, just waiting to be invested in the market. Each and every day, millions of Australians are pumping money into superannuation funds. When the market turns, and believe us it will turn, all those super funds are going to be charging back into shares faster than a Shaun Tait bouncer.

The One Commodity To Follow In 2009

We firmly believe the world will have to deal with rising inflation over the next five years, and for us, that all points towards a fabulous run for the gold price.

Don't just take our word for it. This week's Australian Financial Review said...

"...there is general agreement that one commodity worth following in 2009 is gold."

Here at Fat Prophets, we've been closely following a whole raft of high-quality gold stocks.

4 Big Reasons To Like Big Gold Stocks

We particularly like 3 big gold stocks at today's prices, companies that should be set to benefit from...

1. Increased gold production.
   
   
2. The rising gold price.
   
   
3. Lower costs: energy is one of a gold miner's biggest costs. With oil down from US$147 a barrel all the way to around US$40, gold companies are set to benefit.
   
   
4. Cheap acquisitions: there are a host of smaller gold explorers out there on the market, sitting on outstanding discoveries, yet lacking the funding to go ahead take the next step to producer status. Big gold companies will be able to snap up some absolute bargains amongst smaller gold explorers.

Yet if you were thinking you might have already missed the boat, think again.

Think...

• Global stimulus packages.
  
  
• Plunging interest rates.
  
  
• Wall of money.
  
  
• Rising inflation.
  
  
• Warren Buffett.
  
  
• Rising gold price.
  
  
• Takeover potential.
  
  
• One of the lowest-cost undeveloped gold deposits in the world.

Finally, to put the size of the gold resource this company is sitting on into perspective, a chart recently produced by the company showed that between 1999 and 2006, there have been a grand total of only 24 one-million plus ounce gold discoveries.

With gold so scarce, and inflation set to rise in the years ahead, no wonder the price of gold is near record highs, and we think is headed significantly higher.

How To Become An Exclusive Fat Prophets Member

Each Fat Prophets Report usually costs $764.50.

If you subscribed individually to each report, your annual cost would be $1,529.

But for a strictly limited period of time, we are offering an annual subscription to BOTH of our reports for the amazingly low price of just $995. That's a saving of 35% or $534!

Let's spell that out again...

Fat Prophets Australasian Report - Usually $764.50 per annum
Fat Prophets Australasian Mining Report - Usually $764.50 per annum

Subscribe to both reports for a year at just $995, and save $534, or 35%.