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Adult Stem Cell Cure for MS – Treatment in El Salvador

This is round II in the search for the cure for my mom’s multiple sclerosis. Her first adult stem cell treatment was in Argentina, with stem cell pioneer, Dr. Roberto Fernandez-Vina.

This is the link to my first blog post about her therapy in Argentina using adult human stem cells.

The first procedure took place in July 2009 and the second in July 2010. The treatment in El Salvador was also provided by the doctors in the Ferenandez Vina Foundation (“Fundacion Don Roberto Fernandez Vina”). I have posted pictures of the doctors at the end of this post.

As I explained in my first post, my mom quickly improved after the first therapy in 2009. Around 5 months after that, she plateaued (read “Update on Mom’s Stem Cell Treatment for Multiple Sclerosis”).

To tell you the truth, I did not expect a one-shot-in-the-arm miracle cure after the first stem cell implant. That is what patients have been subconsciously programmed to believe is possible by the traditional medical community, which always under-delivers and seldom cures. What I expected was some type of improvement; a certain degree of physiological healing – a “partial cure” of sorts. Since my mom was diagnosed with MS in 1996, a partial cure for her multiple sclerosis was never a potential perk of the toxic treatments and traditional therapy she had received from her neurologists and other doctors in the US. But in Argentina, thing were different…

MRI Results – After the First Stem Cell Treatment

Since Dr. Fernandez Vina always requests MRI results that are less than 3 months old from MS patients before their treatment, my mom had an MRI taken on March 2010 (as we scheduled and prepared everything for the trip to El Salvador).

The most recent MRI results showed that there was a decrease in the size of some of the lesions or plaques that are seen as white spots in an MRI scan.

Now…I don’t know about you, but I strongly doubt that her improvement was brought about by the new organic Cuban espresso from Whole Foods she has been gushing down lately!

Even though my mom’s balance and coordination improvements declined a bit after the plateau phase, the MRI results are proof that the stem cell surgery partially healed some of the damage from her multiple sclerosis. Her health means the world to our family and we are willing to continue her stem cell treatment for as long as we need to, even if it just simply stops her MS from progressing. That’s something that mainstream medicine in the United States has never been able to achieve. Furthermore, since the therapy involves the use of her own adult stem cells, the health risks of embryonic stem cell treatment (such as donor-host rejection risk) are absent from the equation.

MS Treatment in El Salvador – No, We Didn’t get Shot!

To tell you the truth, I was a bit freaked out about going to El Salvador (out of all places!) for my mom to get her second stem cell implant; especially after having seen all the documentaries about the gangs and violence there.

But the reality is that all those horror stories are completely overblown. I was quite taken back when I saw how nice and peaceful (and different than the movies) everything was. My mom and I felt completely safe at all times.

First of all, the flight from Miami to El Salvador was a walk in the park compared to the endless 9-hour flight to Buenos Aires! (This view was shared by the 3 other patients who went to El Salvador to get treated at the same time; two were also from Florida and one from Venezuela). As a result, my mom arrived well-rested.

The drive from the airport to the Sheraton Presidente Hotel in San Salvador (see pictures at the end) was a quick 30 minutes. The hotel was very nice and the service was excellent. The food at the Sheraton was better than at the San Nicolas Plaza Hotel, where we stayed in Argentina. All the doctors were staying at the Sheraton as well, so we frequently ran into them in the halls and dining areas. That was really nice.

Because of some scheduling issues at the hospital, we got to stay the first two days “chilling” at the hotel while awaiting my mom’s treatment. We also got to sightsee a bit as well as as meet and socialize with the other 3 patients staying there (one was receiving stem cell treatment for diabetes, one for COPD (Chronic Obstructive Pulmonary Disease) and CHF (Congestive Heart Failure), and one for neuropathy – my mom was the only patient being treated for MS).

Differences Between the Stem Cell Treatment in Argentina and El Salvador

On the morning of the treatment, one of the Salvadorian doctors who assists Fernandez Vina group during their stem cell surgeries, drove my mom and I to the hospital. The drive was about 15 minutes long.

The hospital was similar in quality and cleanliness to the one in Argentina. The staff was very helpful, caring and professional. The rooms were a bit small, but clean, with cable television and free Wi-Fi (thank God for that!).

There were obvious and very beneficial differences between the procedures employed by Dr. Fernandez Vina’s group in El Salvador and Argentina. During the Argentina stem cell therapy, general anesthesia was used. On the other hand, in El Salvador the doctors only employed local anesthesia. My mom’s treatment lasted less than 2 hours in El Salvador (including extraction of the bone marrow, harvesting of the stem cells, and implanting of the cells via catheterization), whereas in Argentina it took much longer than that. She was back to her hospital room rather quickly. She had no bruising as a result of the bone marrow extraction from her hip bone (iliac crest). The needle used for the extraction was a lot thinner than the one used a year prior, thus the need for local anesthesia only.

After the treatment, I asked my mom if she experienced any pain whatsoever and she told me that she didn’t.

All four patients who received adult stem cell therapy on that day were blessed with a successful surgery – and they were all released from the hospital in the afternoon.

On the following day, my mom and I went with Luis Rodriguez and his mom (Marta) to a few of the local malls in San Salvador, the Cathedral, and a few souvenir shops to pick up some gifts for friends and family members back in the US. Luis brought his dad to the Foundation so he could get stem cell therapy for his COPD and CHF (see pictures of Luis and his family at the end of my post). We were truly blessed to meet and hang out with Luis and his family during our stay in El Salvador. Luis is genuinely a great, warm-hearted and caring person who you naturally love to be around. He’s also extremely funny (I think he should have been a comedian), which naturally brings up the spirits of anyone he comes in contact with.

How to get Adult Stem Cell Therapy

After my mom’s first treatment with adult stem cells, I was so excited to have found something that could potentially cure or improve her MS, I wanted to tell the whole world about it.

And boy did I get my chance to do so!

After I wrote the blog post on our Argentina stem cell experience about a year ago, an amazing thing happened…

I started receiving hundreds of thank you emails and even more with questions from people that either wanted to have the procedure done or had a loved one suffering from a serious condition without a known medical cure.

At first, I started to respond individually via email or phone to all these requests, but this quickly became a challenge for me, since the time it required grew exponentially.

But that is why I created an alternate method to request more information. Please read on…

Am I a Candidate for Stem Cell Therapy? – IMPORTANT

From personal experience, I know that adult stem cell therapy is effective for multiple sclerosis. I also know other people who have even been completely cured from MS after receiving treatment from Dr. Fernandez Vina’s group (which is the main reason we decided to get my mom treated in the first place). Furthermore, I know that many diabetics, both young and old, have been successfully treated as well as children with autism.

But the reality is that, unfortunately, not everyone is a candidate for stem cell therapy.

For that reason, it is important for a patient to provide accurate information about their medical history and relatively recent tests results indicating the current state of their condition or disease. This would allow the doctors to determine if the patient qualifies or not to get treated.

Someone from the Fernandez Vina Foundation will be able to walk you through the initial process involved to determined if you’re a candidate for an implant or not.

Having said that, I have created a stem cell information request form to make it easy for them to be able to help anyone who has questions or is interested in potentially receiving the treatment. Below is a link to the form…

Click here to receive more info on the stem cell treatment or to get your questions answered.

How much does the stem cell treatment cost and does my medical insurance cover it?

When I wrote my first post on my mom’s stem cell treatment in Argentina, one of the most frequently asked questions I would get was, “How much does the stem cell treatment cost?

For that reason, I will add that information here.

Unfortunately, I’m not aware of any medical insurance that covers stem cell treatment, neither in the United States or abroad. Furthermore, stem cell therapy is not really an accepted procedure in the US and mainstream doctors typically frown upon it. Even my mom’s neurologist, who is a pretty friendly guy, replied as follows when I asked for his opinion on the use of stems cells to treat MS…

“Stem cells as a viable form of treatment are at least 100 years away. Neither you or your family will live to see it.”

I am obviously paraphrasing, but that sort of moronic response doesn’t really inspire you to hold your breath and wait for stems cell treatment to be available in the United States as a regular form of medical treatment!

I’m not really going to roll the dice and let my mom become crippled or die for failure to act. Stem cell treatment IS HERE NOW. The procedure is being done in various countries and administered by recognized doctors in the field (Dr. Fernandez Vina is one of them).

Even though the regular stem cell procedure for most diseases is $15,000 USD with Dr. Fernandez Vina’s group (and that’s on the low end compared to what other stem cell treatments cost in other parts of the world), what other options do the loved ones of a family member with an incurable disease have?

What good is a lifetime of traditional, almost “free” treatment covered by medical insurance if that treatment doesn’t provide a cure? What is the value of the life of a mother, father, son, husband or wife who you love?

The amount of money someone saves by subjecting a loved one with an incurable and often deadly disease to traditional medical treatment that’s covered by insurance, doesn’t even come close to a fraction of the size of the loss associated with the death or disability of that loved one.

Think about it. As a family, we thought about it too, and realized that my mom’s health is too important for us to just take a sit-back-and-wait approach.

The Importance of Physical Exercise after Stem Cell Treatment for MS

Since my mom’s first treatment with stem cells, the doctors pointed out that it was crucial for her to remain physically active on an almost daily basis.

I have to admit that even though she started exercising almost every day after the first treatment, she eventually slacked off and seldom exercised.

That’s why, after the second surgery, we placed her in a regular workout program with a trainer that’s a dear friend of ours. He’s actually my kids’ swimming instructor and used to train the Cuban national team back in the days. That has been a blessing in disguise, because people tend to have a greater chance of sticking to a workout plan if there’s someone there to push them through it.

My mom has been gradually improving after the second treatment in El Salvador. Her balance and coordination have also improved. I can’t wait to see the next MRI!

I will be providing regular updates about her exercise plan in the future, so stay tuned! Now I leave you below again with the link to contact the Foundation, as well as some pictures from our trip to El Salvador.

God Bless you all!

Link to ask questions or request more info on the steps to take to get treatment.

Pictures from our El Salvador Stem Cell Experience

Sheraton Presidente in El Salvador, where Dr. Fernandez Vina and the other stem cell doctors stayed
Dining with mom at the Sheraton Presidente Hotel in San Salvador, where all the stem cell doctors stayed, including Dr. Fernandez Vina.

Sheraton Presidente Hotel, El Salvador
Nice Picture of the Sheraton Presidente Hotel (actually got this one off the web).

Arriving at the Sheraton Presidente ready for some stem cell treatment!
Arriving at the Sheraton Presidente from the Airport in El Salvador (ready for my mom’s therapy!).

Hall leading to room elevators in Sheraton Presidente in El Salvador
Inside the Sheraton Presidente – Hallway leading to room elevators.

View of the pool in the hotel we stayed for my mom to have her treatment with stem cells
Sheraton Presidente – View of the Pool.

View of hotel yard with wildlife. It was a nice to sight see and relax before the surgery.
Sheraton Presidente – Yard with Wildlife (including Quail).

Sightseeing at hotel prior to the stem cell surgery.
Sheraton Presidente – Beautiful Flora.

Breakfast at Sheraton Presidente with Chef Cruz
Sheraton Presidente – Chef Walter Cruz making our breakfast!

Eating Pupusas - Traditional Salvadorian Cuisine, a must before getting the stems cells implanted!
Pupusas – Traditional Salvadorian Cuisine – Yum!- We had our share of these – It’s actually a requirement before stem cell therapy! LOL!

Breakfast the day before my mom's stem cell surgery - Eating Rainbow Crepes
Rainbow Crepes – I had at least four of these on the day before my mom’s surgery!

Traditional Salvadorian Dessert made with Pears
Traditional Salvadorian Dessert made with Pears – I recommend it to anyone staying in the Sheraton Presidente in El Salvador.

Room service at night on the day of the surgery
Club Sandwich and Fruit – We ordered room service at night on the day of the surgery.

Pigging out on desert after my mom's stem cell treatment
The best part of the meal was the Tiramisu. It was so pretty, we didn’t want to eat it. Not!!! (another morsel required to increase the stem cell effectiveness. LOL!).

Cruising in El Salvador on the day after the treatment
Sightseeing in San Salvador the day after the treatment – view from tour guide’s van. Luis Rodriguez in passenger seat. Luis’ mom, Marta, was sitting in the back with my mom and I.

On the way to the Cathedral in San Salvador
More Sightseeing – Street Vendors – On our way to the cathedral.

At the Metropolitan Cathedral in El Salvador
View from the Metropolitan Cathedral of the Holy Savior (Catedral Metropolitana de San Salvador).

Burger King in El Salvador - No we didn't eat there!
Random Picture of American Corporations Polluting the Salvadorian Landscape. He, He!

Supermarket in San Salvador - where we had some coconut water
Super Selectors – Supermarket similar to Publix in El Salvador – Had some delicious, natural coconut water there. Refreshing!

Local mall in San Salvador
Visit to one of the local malls in San Salvador. I was truly impressed.

Stem cell doctors including Dr. Roberto Fernandez Vina
Stem Cell Doctors on the day of the surgery. Three doctors from the Fernandez Vina group (including Dr. Roberto Fernandez Vina with sport coat, Dr. Vasquez from El Salvador (standing next to me), and the Director of the hospital (green outfit).

Luis Rodriguez, stem cell coordinator and support person, next to his father, who got treated for COPD and CHF
Luis Rodriguez next to his father (Luis Sr.) after the stem cell treatment for COPD and CHF.

Mom in hospital bed after adult stem cell implant for MS
My mom in the hospital room after her adult stem cell implant for Multiple Sclerosis.

Dinner with Luis' mom and dad, who received stem cell treatment for COPD
Dinner with Luis Rodriguez’s parents (Luis Sr. and Marta) the day after the surgery.

Update on Mom’s Stem Cell Treatment for Multiple Sclerosis

Since my first post on my Day Trading Tutor Blog about my mom’s stem cell treatment for multiple sclerosis in Argentina, I have received hundreds of questions and letters of appreciation from all over the world.

Here’s the link to the first post about our experience in Argentina with stem cell expert Dr. Fernandez Vina.

It has almost been five months since my mom had her stem cells implanted by Doctor Fernandez Vina. Her balance and coordination improved quite a bit rather quickly after the treatment. Nevertheless, I feel she’ll need a second stem cell treatment eventually – maybe about a year after the first one, since her improvement has already plateaued (she actually had her second treatment in El Salvador, click here to read about it). At least the first treatment helped her considerably, something that traditional medicine with their toxic medications and inability (or unwillingness) to cure has never been able to accomplish since she was diagnosed with MS about 13 years ago.

Doctor Fernandez Vina has requested my mom have new blood work done, as well as an electromyogram and an MRI to see what physiological improvements have occurred since the first procedure. As soon as we have the results of those tests, I’ll write another blog post to update everyone interested in stem cell treatment for multiple sclerosis, Dr. Fernandez Vina, and my mom’s condition.

Click here if you have any questions about Doctor Fernandez Vina’s treatment.

Good Bless you all!

Trip to Argentina – Doctor Fernandez Vina and Mom’s Stem Cell Treatment for MS

To be able to day trade and make money, a trader also needs to focus on his health and that of his loved ones. Money means nothing if those you care about are not healthy. That’s why I wrote this blog post.

Doctor Fernandez Vina and Stem Cell Treatment

In 1996, my mom was diagnosed with multiple sclerosis (MS). Since then, her health has gradually deteriorated, picking up speed during the last few years. As a result, I embarked on a trip with her to Argentina to see Doctor Fernandez Vina, a world-renowned pioneer in the field of human stem cell therapy, based on the referral of another MS patient. We returned from our trip on July 14th (all pictures are at the end of this post).

Outside of the United States (which severely lags the rest of the world in stem cell therapy), there are various medically recognized stem cell treatment centers; Fundacion Don Roberto Fernandez Vina in Argentina (or “Fundacion Fernandez Vina” for short) is one of them. Doctor Fernandez Vina has had a lot of success treating Diabetes, MS, and other conditions (click here to contact me if you would like more information on any of this).

Not only was our trip to Argentina great, the attention and treatment we received from all members of the Fernandez Vina foundation was excellent. Everything was extremely well-coordinated, since the moment the contracted driver (from Confort Car) picked us up at the airport.

The Stem Cell Procedure at the Fundacion Fernandez Vina

The drive from the airport in Buenos Aires to San Nicolas de los Arroyos, the city where the stem cell treatment took place, was around two and a half hours. We arrived at the San Nicolas Plaza Hotel, which was already included as part of the treatment package, for a few hours of rest before our multi-day stay at the hospital where the treatment was supposed to take place (around 3 blocks from the hotel). The Plaza Hotel was very nice and clean, and the staff was very courteous and helpful.

We were picked up late in the afternoon and taken to the hospital for preparation for the treatment on the following day. I was very impressed by the quality of the hospital and its cleanliness. The nurses and staff were great; always very helpful and supportive. The room was equipped with cable TV with plenty of channels (as well as funky Argentinian shows).

On that same day, we met Doctor Fernandez Vina and his assistant, Doctor Janina (see picture at the end of post).

All I can say is that they were wonderful, with a genuine concern for their patients and their well-being. My mom really felt at ease with them and that helped a lot with her nervousness (she’s a bit of a sissy when it comes to doctors…He…He!).

During the next morning, bone marrow was extracted from my mom’s hip bone under general anesthesia. From this marrow the stem cells were later extracted and a few hours after that, Doctor Fernandez Vina implanted the cells through one of my mom’s leg arteries. The implant procedure took less than an hour.

My mom had to spend the day after the procedure in the hospital under medical supervision and one day on bed rest at the hotel. The day after that, Luis Quintana, the owner of Confort Car, took us on a tour of the beautiful, nearby city of Rosario (see pictures and Confort Car’s contact information at the end of this post); and then on a few hour tour of Buenos Aires on the day of our departing flight to Miami. Luis was truly helpful and took us to different places looking for gifts for our family members and friends. He was also an excellent tour guide. If you or anyone you know ever goes to see Dr. Fernandez Vina, I strongly recommend that you use Luis Quintana’s personalized tour guide services.

After the Stem Cell Treatment

It’s been around two weeks since my mom had her treatment; so it’s too soon for the stem cells to complete their repair function, but we’re already seeing some dramatic changes. The MS had affected mainly my mom’s balance and coordination. She could not really walk without a cane anymore and constantly swerved to the sides, bumping against objects in her path if unassisted. To my amazement (and that of all our other family members), she was rather quick on her feet yesterday (the day prior to this post) when we paid her a visit. She wasn’t swerving to the sides and didn’t use a cane at all while we were with her.

It’s a truly amazing change given her previous condition. I can’t wait to see what other changes lie in store for her and thank God for all the blessings bestowed upon her so far.

For those of you who have family members suffering from multiple sclerosis, diabetes, or any other condition for which the traditional medical community doesn’t have a cure and probably no financial interest to find one, I strongly suggest that you contact the Fundacion Fernandez Vina in Argentina. I’ll be more than happy to discuss my experiences and suggestions with you in more detail, so feel free to contact me as well.

God Bless you all and your loved ones!

More Pictures from our trip to the Fundacion Fernandez Vina in Argentina

San Nicolas Plaza Hotel in the City of San Nicolas, where the Stem Cell Treatment took place
San Nicolas Plaza Hotel in the City of San Nicolas, Argentina

Doctors Fernandez Vina and Janina from the Fundacion Fernandez Vina in Argentina
Doctor Don Roberto Fernandez Vina and Doctor Janina

Mom and Confort Car owner Luis Quintana, an awesome tour guide and great human being
My Mom and Luis Quintana, owner of Confort Car, in the City of Rosario, standing in front of the Parana River – the second longest river in South America. Luis is an excellent tour guide and a great human being. To contact Confort Car for any tours, call tel: 03461-456-893, cel: 03461-15416422, Nextel: 54*590*7987, or email

Monumento Nacional a la Bandera - National Flag Monument in Rosario
The Monumento Nacional a la Bandera (National Flag Memorial) in Rosario. We couldn’t go up the elevator because it was undergoing maintenance, but the rest of the memorial was very nice.

Inside the Argentinian National Flag Memorial, standing in front of the Argentinian flag with my mom
Mom and I standing in front of the Argentinian flag, inside the National Flag Memorial in Rosario.

Fish market in Rosario with daily catch of native fish species from the Parana River
Rosario fish market displaying an assortment of fresh fish from the Parana River.

La Estancia, Argentinian steakhouse in Rosario
Breaking the diet at La Estancia, a well-known Argentinian steakhouse, in Rosario. The filet mignon was awesome and so was the Benjamin Nieto Senetiner Cabernet Sauvignon!

On the way to Ezeiza International Airport in Buenos Aires
On the way to Ezeiza International Airport in Buenos Aires. Background shows the Obelisco de Buenos Aires (Obelisk of Buenos Aires), one of the main icons of the city.

McDonald's Restaurant in Buenos Aires
McDonald’s Restaurant in Buenos Aires. I wonder if they serve churrasco there.

Shot of city of Buenos Aires, Argentina
Busy city of Buenos Aires. It reminds me a lot of New York.

How “Efficient” is the Stock Market?

On “Market meltdown refutes ‘efficient markets’ theory,” Kate Gibson of MarketWatch interviews market strategist, Nicolas Colas, who questions the validity of efficient markets and other common notions upon which our modern financial theory is based.

An “efficient market,” according to the traditional financial and academic community is supposed to “efficiently” factor in all available information in its price. This obviously wasn’t the case with the recent market meltdown, as investors and financial experts had all the information (in company filings and reports/news about the housing and mortgage markets) right under their noses, yet ignored the news until companies started failing.

The recent debacle also throws out the window the notion that holding stocks for 5 to 10 years will produce almost sure returns.

Colas wraps up with an important comment: “What I’ve tried to say is don’t baseline your expectations on the notion that markets are as efficient as the academic world wants to believe, think for yourself.”

We’ve been preaching that for years! It’s time to change and upgrade investors’ way of thinking.

Start by attending our free training.

CNBC and Ex-Trader Jim Cramer get Hammered

If you haven’t seen Jon Stewart hammer ex-hedge fund trader and CNBC commentator, Jim Cramer, on The Daily Show last week yet, I strongly suggest you watch this video.

Jim Cramer is the loud clown that hosts CNBC’s Mad Money at nights. I’ve never really understood why anyone would pay attention to this joker, let alone listen to the over-hyped crap he has to say about stocks. I often pondered at CNBC’s decision to air his investor-dumbifying nonsense. It is obvious that the network’s objective is to entertain and boost ratings rather than inform and educate the investment public.

During this video, Stewart criticizes Cramer for his shameless admission of manipulating stocks and using various techniques to profit from short selling. He also bashed Cramer and CNBC for failing to warn investors of the pending banking crisis and for indirectly promoting it by letting officials from many of the companies that got us into this mess to lie to our faces on air.

Even though we knew for years where this blatant market manipulation and greed would take the stock and real estate markets, it still makes me sick to my stomach to watch this interview. This should be a wake up call to all those who have swallowed the “invest-for-the-long-term-and-trust-your-financial-advisor” lies that our country has been brainwashed with for decades.

Madoff could keep Baby Boomers out of Stocks?

Madoff keeping Baby Boomers out of the stock market? At least that’s what this Market Watch story suggested.

I cracked my ASSets off when I read that. Was Madoff really the culprit in the desire of Boomers to shun equities? Common! Get real!

It is true that what this Jewish con man and ex-Nasdaq Chairman did does not really inspire confidence in traditional stock investors; milking many wealthy and non-wealthy alike dry without placing even a single trade in his alleged “investment fund.” Nevertheless, this is far from being the main reason.

The fact of the matter is that excess greed and rampant speculation have truly brought the astronomical risks of the stock market to light – and investors [Boomers and non-Boomers alike] have lost over half their wealth in stocks; bleeding trillions and trillions of dollars in losses.

How’s that for discouraging?

The key going forward will be whether or not investors will stand firm, stay positive amidst a negative global environment, and – most importantly – look for DIFFERENT ways to invest their hard-earned money.

Like Einstein once said, “The definition of insanity is doing the same thing over and over again and expecting different results.” Investors who personify this definition will continue falling prey to the stock market machine.

The Stock Market – How Bad is it Really?

It’s pretty bad.

I’m glad that in our world of forex trading, stocks just aren’t welcomed! In fact, I have been in favor of alternative investments instead of stocks and the economically-sensitive real estate sector for years.

Since my post, “Stock Market Trades Below Key Support Level,” the Dow has fallen further. Just look at this cool chart to compare the magnitue of our little, never-ending stock market roller coaster ride in the US:

US Bear Market Charts
Click on the chart to enlarge it, then hit the Back button to return to this blog post.

The current bear market, which began in late 2007, is still alive and well. So far, only the extremely painful bear market of the Great Depression era (grey graph) is greater in magnitude. It actually took the stock market during that time a painstaking 25 years (from 1929 to 1954) to recover and exceed the peak it established before the bear market began.

Even though no one knows how long the current bear market in US stocks will last, a VERY SLOW recovery (also known as an L-shaped recovery) is a likely outcome.

I strongly believe that traditional investors who haven’t already realized the colossal risks inherent in stocks, will certainly do so during this slow-motion recovery period; especially those who give in to the “buy-at-dirt-cheap-prices” recommendations of many of today’s traditional investment advisors and financial planners.

This realization of the “true risks” of stocks might cause investors (both domestic and foreign) to “reprice” equities in their heads for decades to come, paying relatively lower multiples for each dollar of a company’s earnings. Consequently, annual stock market returns going forward could drop significantly – way below the historical 10%-mark.

Even if we assume a 5% annual rate of return for stocks from this point on, it will take the market over 15 years to recover to the peak value established in 2007 (near 14,200 on the Dow). Is the wait really worth it?

Due to the significant risks and opportunity costs I feel traditional investors will face going forward, I plan on writing a series of blog posts to address these issues in greater detail. My objective will be to educate investors and help them understand the true risk of the investment decisions they make, as well as the advantages of alternative investments.

I think this information is priceless and will help investors pull away from the traditional stock-market-and-real-estate-masses group; a must to survive any future crisis.

Stock Market Trades Below Key Support Level

The hits just keep on coming as the Dow Jones Industrial Average (Dow), the most popular US stock market index, closed below the 50%-retracement level.

Traders familiar with technical analysis know that when the price of anything falls 50% from a peak, it tends to be “supported” from falling further – but if this level doesn’t hold, the price could accelerate quickly to the downside.

The all-time high for the Dow was 14,198.10 on October 11, 2007. If we take half of that level, we come up with almost 7,100. Last Friday, the Dow closed around 40 points below this level – leaving many wondering what would happen on Monday. Well; on the first day of trading this week, the market was basically on a downhill slide from start to finish, causing the Dow to close at 6,763.29.

Now that we’re obviously past the 50% mark, what may lie in store for the most popular financial market in America? Probably nothing pretty.

Hold on to your hats ladies and gentlemen. My guess is that the wild ride will continue, as the US keeps rewarding crooked giants like AIG and speculators who gambled their ASSets away in real estate.

When will investors learn that the world does not revolve around stocks?!?!? Do I hear anyone say “forex?”

Stock Market Destroys American Wealth – What Else is New?

The stock market got hammered again today. The Dow Jones Industrial Average (Dow) was down over 3% to a close of 7114.78. That’s about 50% off from its high near 14,000 in 2007. Trillions of dollars of wealth continue to evaporate with the perpetual decline.

But this is nothing new. I have been warning others about this for years – since late 2004; bugging the hell out of everyone I knew. Since the first Forex managed account webinar we had in early 2005, we tried pounding it over and over into investors’ heads. “Get out of stocks! Get out of real estate! They are freaking bubbles!!!”

Even since late last year, as some thought stocks would recover, and as the idiotic stock analysts and portfolio managers on CNBC preached to continue investing in equities, I told everyone I knew to get out of the market (please read “The Ugly Side of Traditional Stock Investing” in the Day Trading Tutor blog).

But unfortunately, people have an almost mystical attraction for the wonderful world of stocks; continuously trying to catch falling knives as they drop and drop and drop….

It’s quite ugly already, but it could get uglier – believe me!

Another by-product of this widespread, exponential wealth reduction phenomenon is the destruction of even more wealth in various Ponzi and pyramid schemes that suffer blow-ups due to a shortage in cash. Just look at the recent ones like Allen Stanford’s and Bernie Madoff’s. There will probably be a lot more.

Most of these problems (including the astronomical losses in stocks and real estate) could have been avoided if investors would have put their greed hats on the shelf and used a bit of common sense; but, unfortunately, they never do. Greed and ignorance always take them over.

Even though the damage has already been done, I will write a few articles soon to help educate both investors and traders going forward; education that will hopefully stop the bleeding and prevent future hemorrhages. Hopefully!!!!

Start by learning about alternatives. Register for our free, live training here.

FX Day Trading Brokers and Account Protection

During today’s global banking crisis, more and more day traders are worried about the safety of their funds if their forex broker goes under.

In the United States, the NFA (National Futures Association) does not protect against insolvency of forex brokers. Nevertheless, I believe that FX (foreign exchange) remains one of the best asset classes for active traders.

That’s one of the main reasons why many traders and investors are switching brokers. Different jurisdictions offer access to brokers and banks that offer account protection in Forex. Some of these firms offer the MT4 (MetaTrader) platform, which has become sort of a standard in the retail forex trading arena despite some critics. The execution quality many of these trading firms are providing has also improved – and many claim there’s no intervention from a human dealing desk.

So the next time someone recommends for you to open an account with a brokerage firm just because of NFA membership, think again. You need to do your homework and find out just how “safe” your trading or investing account with each brokerage firm is.