May, 2011
We recently discovered a concerning “unintended consequence” of the 2008 financial disaster – and wanted to share it with you right away.
…because it could affect your bottom line in the next few weeks in a major way.
For some people, this news may be very alarming.
But for people with access to the right intelligence, this revelation could be very good news indeed.
So what am I talking about here?
Believe it or not… despite the fact that unemployment still hasn’t recovered… despite the fact that the Dow is still down about 2,000 points from its pre-crash highs… and despite the fact that our entire banking system was on the verge of collapse not so long ago…
The five most powerful banks are 20% bigger than they were before the crisis.
In 2008, they controlled roughly $6.8 trillion. But today, less than three years after the worst financial disaster in a generation, these institutions control a combined $8.6 trillion in wealth.
That equals 60% of our GDP as a country.
Think about it for a minute though…
Thanks to the financial crisis, Bank of America absorbed Merrill Lynch… JP Morgan Chase acquired Washington Mutual and Bear Stearns… Wells Fargo bought out Wachovia.
So now, on any given day, these “bigger-than-ever” banks control 70% of the action in the markets.
Make no mistake, they are single-handedly moving stocks and controlling prices.
Is it alarming?
Well… not once you realize that these mega banks are creating enormous opportunity for shareholders.
They’ve grown so powerful they create “instant” demand for certain companies, producing “abnormal returns over a 6-10 month horizon,” according to a University of Virginia Business School report.
Here are a few quick examples where this can be observed after the fact:
 |
On January 29 of last year, BlackRock suddenly declared ownership of $107 million worth of United Continental stock – resulting in 238% gains for shareholders in 11 months. |
|
Not long after, on March 9, BlackRock continued its spree, this time growing its position in Netflix to 2.1 million shares. If YOU owned Netflix, today – just over a year later – you’d be sitting on 342% gains. |
|
After Fidelity Investments built its position in Apple, Inc. to 33.5 million shares – worth $31 billion – shareholders scored a fast 380% in gains. |
And as this $8.6 trillion “aftershock” continues to be unleashed in the weeks and months ahead, Wall Street’s biggest institutions could begin buying up even bigger blocks of shares – and creating even more dramatic price spikes.
According to a recent MSN Money report, “When mutual fund managers and other big investors… buy and sell stocks, they move share prices. How’s a small investor supposed to stay ahead of such moves? By figuring out how the heavy hitters think.”
The real question is: How can you possibly know which companies are receiving such earthshaking demand in time to buy them before they shoot up?
The key is gaining access to the small “inner circle” of power players who actually control this 70% of the stock market.
And Alexander Green is one man who’s tapped directly into this exclusive network.
Page 1
