THE GLOBAL MELTDOWN OF 2007-2008
Bert Dohmen predicted the “worst financial crisis since the Great Depression” in his WELLINGTON LETTER in 2007. The April issue of the award-winning WELLINGTON LETTER was headlined: “THE PERFECT FINANCIAL STORM.”
Not only that, he wrote a book in late 2007, PRELUDE TO MELTDOWN, predicting the crisis. He was reluctant to spend the time to write the book but decided to do it because in his view it would be a crisis to be discussed for the next 50 years. People would wonder why so few saw it coming.
2008: Surviving and prospering during the Crash
In 2008, just about all investors, whether individuals, pension funds, mutual funds, or hedge funds, suffered greatly. Losses of 40-60% in professional managed portfolios were common. The results of the damage incurred will burden our economy for a decade or longer.
However, clients of Bert Dohmen were more fortunate. The written record reveals that in his PRIVATE PORTFOLIO service, which enables the average person to manage his own portfolio with the Dohmen’s guidance, were advised to have positions in the ETF’s that are designed to rise in price as the stock index or sector decline. Here is a graph of how these positions did during the critical five week crash:
PRIVATE PORTFOLIO CRASH PERFORMANCE
The gains are real, not typographical errors. The ETFs are the leveraged kind. They soared as the markets plunged. The 5-week profits are similar to what money managers hope to achieve over a 10 year period. This is why ignoring popular opinion is so important if you want to make money in the markets.
The book, FINANCIAL APOCALYPSE, is not only an excellent historical record but also a great teaching tool on how to identify an approaching crisis, how to ignore comforting words from the perpetrators and the politicians, and how to detect the next crisis before it destroys your wealth.
Here is a chart of the major market calls by Bert Dohmen during the 2007-2009 period. These are actual recommendations made in Bert Dohmen’s various advisory services to his clients. Note how his analysis caught tops and bottoms, often within 1-2 days.
Of course, as the regulators like to say, “past performance is no guarantee for similar performance in the future.” But anyone who makes market calls like these, probably knows what he is doing.