Market Thoughts for a Tuesday ...
During World War II, German submarines known as U-boats scoured the shipping lanes of the North Atlantic looking to torpedo merchant vessels bringing much needed war relief to England. Hundreds of ships, and thousands of brave men met their fate in the icy waters of the North Atlantic.
What have submarines got to do with the current sub-prime disaster? Well the key back in WWII was you couldn't see the torepedoes until it was too late. It seems to this market observer that the sub-prime like those WWII subs remains hidden and many companies don't realize that they have been torpedoed until it's too late.
E-Trade (symbol ETFC) is a perfect example and the latest sub-prime victim, as it's stock got hammered on November 12th.
Many analysts are openly speculating that E-Trade might declare bankruptcy!
The economic unknown to the markets and the big fear for everyone is how many more torpedoes are lurking out there in the portfolios of banks and institutions?
So what's an investor to do?
Well, the best way to avoid disasters like Structured Investment Vehicles (SIVs), Collateralized Debt Obligations (CDOs) is to learn how to avoid them.
This short, four minute video trading lesson, will show you the exact rules you need to follow to avoid meltdowns in the future. It will also show you how you can even profit from disasters like E-Trade.
Watch it as our guest. No registration required.