What has been the total return to investors in the S & P 500 Index (the broadest measure of the U.S. stock market) over the past 12 years? The answer is ZERO.

Amazingly, the same S & P 500 index is up almost 70% over the past six (6) months in spite of the on-going global depression happening worldwide. How can the stock market be up so dramatically in such a short period of time especially since unemployment numbers keep worsening, retail sales keep collapsing, and the overall real estate market numbers don't seem very inspiring either here in California or nationwide?

The answer, my friends, is that the stock market is rigged. It is not a true capitalistic exchange entity as many of us were lead to believe. The government and a select few of private entities are actually the bulk buyers and sellers of stocks these days.

For example, five (5) stocks (according to Kitco) currently account for 40% of all trading activity these days on the NYSE (New York Stock Exchange). These stocks include Citigroup, CIT Group, Fannie Mae, Freddie Mac, and AIG. Essentially, each one of these companies is bankrupted as their debts far exceed their current overall assets.

Also, computerized trading via the controversial High Frequency Trading Programs (HFTP) control almost 70% of all current stock transactions as well. Once these manipulated computer trading programs stop buying and selling stocks on Wall Street, then I expect the Dow Jones to plummet in the very near term (i.e. September through the end of October).

A wise investor may consider liquidating their current stock investments in these primarily worthless companies NOW before the traditional September and October stock meltdown begins. My long-time readers may remember that I predicted the worldwide stock meltdown EXACTLY during the week of September 29, 2009 several months before it actually happened thanks to a lot of research.

The best investments these days are foreclosured properties for cents on the dollar. A savvy investor may consider selling their overvalued stocks now before the Dow plunges to 5,000 or 6,000 in the very near term as the numbers make no sense whatsoever to remain heavily invested in stocks.

Would you rather own a stock for $50,000 (which may plunge to ZERO), or a foreclosed home for $50,000 which was once valued at $300,000? You can always live in the home, or rent it out as opposed to owning potentially valueless stock certificates.