War Drums Beat on Markets

Doug Fabian

Doug Fabian is known for his expert knowledge of ETFs, bear funds and enhanced index funds to profit in any market climate.

The latest soundtrack in the financial markets can best be described as the beating of war drums with Syria. Since tensions in that Middle East nation have escalated to the point where U.S. military action now is almost a certainty, the price of assets such as oil, gold, Treasury bonds and equities all have been materially affected.

Take oil, for example. The chart below shows that big spike higher in the iPath S&P GSCI Crude Oil TR Index ETN (OIL) to multi-year highs, as energy traders react to the potential of a supply constriction from the Middle East if the war in Syria morphs into a much more bellicose regional conflict.

OIL 082813

Meanwhile, traditional safe-haven assets such as gold and Treasury bonds both have been bid up as a result of the Syrian tensions. The charts here of the SPDR Gold Trust (GLD) and the iShares Barclays 20+ Year Treasury Bond (TLT) clearly show the flight to quality taking place in these two “risk off” trades.

GLD 082813


As for equities, we see the Dow trading well below its 50-day moving average, as traders move to lock in gains made throughout most of what has been a great 2013 bull run.

So, now the question is — what next?


As you likely know, for the past several weeks I’ve been warning you that we are entering the “risk season” for stocks. Just like in winter, when you get cold weather, snow and storms, you tend to see a huge amount of market volatility in August, September and October. September also happens to be the worst-performing month for stocks, at least from an historical perspective.

Exclusive  Five Cutting-edge Software Investments to Buy as Technology Rises

Given the big gains we’ve seen in stocks in 2013, this risk season could be particularly bad for the bulls. Of course, if the selling does get ugly, it just might turn out to be the best thing for the markets. You see, stocks are way too overbought here, and even with the latest pullback off the August highs, I think stocks have plenty more selling ahead.

When that selling does take place, I think smart investors will be staring at one of the best new buying opportunities of the year. Of course, we are not there just yet, but now is the time to get your buy lists ready for the next discount on quality stocks.

What areas of the market should you pay the most attention to for new buying opportunities? To find out what I’m watching right now, I invite you to check out my Successful Investing advisory service today.

On Skunks and Publicity

“What kills a skunk is the publicity it gives itself.”

–Abraham Lincoln

There has been a lot of malodorous publicity out there lately. From politicians to pop stars to sports icons, the cultural stench wafting through the air is both heavy and annoying. Yet it’s also likely to be self-correcting, as Abraham Lincoln reminds us in this brilliant insight. Remember that the next time you get worked up about something you see on CNN, MTV or ESPN.

Wisdom about money, investing and life can be found anywhere. If you have a good quote you’d like me to share with your fellow Making Money Alert readers, send it to me, along with any comments, questions and suggestions you have about my audio podcast, newsletters, seminars or anything else. Click here to ask Doug.

Exclusive  Thinking Outside the Proverbial Box

To read my e-letter from last week, please click here. I also invite you to comment about my column in the space provided below.

share on:
share on:


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader


Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor

George Gilder

George Gilder is the most knowledgeable man in America when it comes to the future of technology and its impact on our lives.  He’s an established investor, bestselling author, and economist with an uncanny ability to foresee how new breakthroughs will play out, years in advance.

Product Details

  • Technology Report
  • Technology Report PRO
  • Moonshots
  • Private Reserve
  • Millionaire Circle


DayTradeSPY was founded by head trader Hugh Grossman, a retired internal auditor for a Fortune 500 company. After years of first-hand experience trying out one trading strategy after another, Hugh instead developed his own trading system centered around day trading SPY options. That’s it... Nothing else.

Product Details

  • Trading Room
  • Pick of the Day
  • Inner Circle
  • Online Workshops