Financial Advisor Dennis Tubbergen Finds the Fed May Now Agree with Him

Online, August 20, 2010 (Newswire.com) - Noted financial advisor Dennis Tubbergen frequently discusses the U.S. and world financial markets in his economic blog and his monthly Moving Markets newsletter, with debt as one of his most common topics. But recently, it appears the Fed has started agreeing with Tubbergen's views on the economic recovery.

Tubbergen, who is CEO of USA Wealth Management, LLC, a federally-registered investment advisory company, has warned that the excessive amount of debt has to be dealt with before a true economic recovery can take place.

"I've been saying all along that the so-called economic recovery simply can't happen until more of the accumulated debt is dealt with," explains Tubbergen. "The U.S. consumer-spending dependent economy is on life support. A sustainable, long-term economic recovery cannot occur until (consumer) spending levels increase or the economy is restructured to make it less dependent on consumer consumption."

In his blog published August 11, 2010, Tubbergen refers to a Bloomberg article of the same date in which the following was stated: "Stocks and U.S. index futures dropped and Treasuries rose, sending the two-year yield to a record low, after the Federal Reserve said the recovery is decelerating."

Tubbergen, who has questioned the true depth of the recovery and has entertained the possibility of a double-dip recession (a recovery followed by another downturn), also quoted Markus Ernst, a credit strategist at UniCredit SpA in Munich, in a note to investors: "It is clear the Fed no longer sees the economy to be well on track. The move certainly will spur investor speculation on the danger of a double-dip recession in the U.S."

"Unfortunately, I believe the July market rally may have run its course," concludes Tubbergen. "Economic fundamentals remain weak. I stand by my view that economic conditions may get worse and the U.S. major stock market indices may have already seen their highs for the year."

For more information on Dennis Tubbergen's views, visit www.dennistubbergen.com.

The opinions expressed herein are those of the writer and not necessarily those of USA Wealth Management, LLC. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Therefore, no forecast should be construed as a guarantee. Prior to making any investment decision, individuals should consult a professional to determine the risks, costs, benefits and fees associated with a particular investment. Information obtained from third party resources is believed to be reliable but the accuracy cannot be guaranteed.