Blog : Velocity Proves the Economy is Stalling
by Peter Leeds on February 26th, 2015
It's all about velocity of money, and the figures are looking pretty bleak.
Velocity means the number of times the same dollar gets used. (Simple Version)
ONE: Person A buys an apple from you for a dollar, then...
TWO: You take that dollar and buy an orange from person B, then...
THREE: Person B uses the same money to buy a banana from person C.
In that example, the single dollar had a velocity of 3.
It
won't sound like it at first, but this actually does have to do with
penny stock investing. More to the point, certain penny stock
investments will be set to really soar if the economy stumbles.
But what if person A didn't make that first purchase? The velocity would grind to a halt, and potentially stall the economy.
If and as the economy stalls, people become more conservative and less likely to spend. This re-enforcing cycle could actually bring the economy to a stand-still.
We are starting to see the early stages of this, as consumers either spend less, or do not have money to spend.
On a corporate level, major multi-billion dollar businesses are sitting with billions on the sidelines, partly out of uncertainty. This is equivalent to driving a car without steering, because you don't want to risk steering into a crash.
If economic events play out as they seem to be, there are only certain, specific investments which will help you and your family. Luckily, many of these are the types of penny stocks we are profiling to subscribers of Peter Leeds Stock Picks.
We take into account possible eventualities for the economy, and suggest positioning yourselves in the investments and penny stocks which will actually benefit.
Peter's personal stock pick released Wednesday would soar if the stock market collapsed. Meanwhile, both the selections published Sunday and Thursday are more immune to overall economic shocks, since these penny stocks are involved in the medical industry.
Even in the Great Depression, sick people still needed their treatments and medications, often forsaking food when they had to choose.
The great news is that anyone willing to put out $19 to see Peter's trades and also get his team's picks in penny stocks will get dramatically more value than the tiny investment. Your subscription will pay for itself many times over.
As of January 2017 we no longer publish the blog and it has been removed from the webiste menu.
You are reading this old blog entry because we still like to reference it. :-)
You are reading this old blog entry because we still like to reference it. :-)
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