After the Federal Reserve officially recognized the slowdown in the U.S. economy, Wall Street fell sharply, and many of our growth stocks and funds declined in sympathy.

The Dow Jones Industrial Average has eked out a 2% gain for 2010, but our Forecasts & Strategies ideal portfolio has gained an average 5.6%.

My long-time friend and superbear Bert Dohmen, editor of the Wellington Letter, talks about a "Killer Wave" that will strike Wall Street this year. What would cause another bear market?

I hope you all had a good 4th of July. Jo Ann and I were in the nation’s capital and spoke on Benjamin Franklin and our role in completing his famous Autobiography ((click here). Regarding the 4th, Franklin said, "When I read in all the papers of the extravagant rejoices every 4th of July, the day on which we signed the declaration of independence, thereby hazarding our lives and fortunes, I am convinced of the universal satisfaction of the people with the revolution and its grand principles."

The G-20 nations held a special "emergency" meeting in Toronto during the weekend and promised to cut their deficits in half by 2013. The markets aren't buying it, by the fact that gold, the ultimate vote against big government, is rising again.

I have a special announcement at the end of this broadcast (see below).

Last week, I met Warren Buffett, the world’s most successful investor, at Sing Sing penitentiary. (See photo.) The sage of Omaha was there to attend the Sing Sing graduation ceremony at the invitation of his sister, Doris, who is a big supporter of the privately funded college degree program. Jo Ann and I teach at Sing Sing as part of its four-year college degree program through Mercy College. She teaches English and I teach economics. The program is privately funded and has been so successful that it has attracted the interest of Mr. Buffett and a number of celebrities and Hollywood stars. (I’ll have a full report on my interview with Mr. Buffett in the July issue of Forecasts & Strategies.)

The negative news keeps pouring in -- euro hits new lows against the dollar, the BP oil spill won’t be repaired until August (BP stock is down 12% today), summer jobs are disappearing fast (thanks to the new minimum wage law), foreclosures are at an all-time high, fear of a double-dip recession worldwide…

Negative news overwhelmed the markets last week and still weighs on the markets this week: The ongoing Greek tragedy and European socialist malaise that threatens the viability of the euro... the BP oil spill that has unleashed 6 million gallons into the Gulf with no end in sight... the passage of a massive new regulatory bill on banks and Wall Street (shades of Sarbanes-Oxley)... a new $600 reporting requirement that will cost small business billions... Congress even wants to impose price controls on ATM machines! When will this madness end?

Last week at the Las Vegas Money Show, I had dinner with one of the world's largest precious metals traders, and he told me that gold and silver were about to break out on the upside. He was right. Gold is now at a record $1,234 an ounce, and silver is more than $19 an ounce. He thinks gold could hit $1,500 and silver over $30.

There’s an old saying on Wall Street: "Sell in May and go away." I suspect a lot of you felt that way after last week's stock market panic, causing most of our favorite stocks and income plays to fall by 10% or more... but this morning's big rebound has the markets making up some of last week's losses.

Last week, I took a call from an old friend, Joe Bradley, the retired editor of Investor's Hotline, and he expressed dismay that with all the problems facing this nation (massive deficits, new taxes, new regs on Wall Street, expensive entitlements like ObamaCare, and the sovereign debt crisis in Greece), how could Wall Street keep moving higher? How could I be so upbeat and forecast 12,000 on the Dow this year?

I just received an update on our entire Forecasts & Strategies portfolio, and we are beating the market by a substantial margin, with 21 out of 23 positions profitable.

I will be appearing tonight on PBS's "Nightly Business Report," giving a nationwide audience my outlook for Wall Street, politics and my favorite three stock picks.

Today is Patriot's Day (the official day the War of Independence started in 1775) and my 36th wedding anniversary. And we have plenty to celebrate here at Forecasts & Strategies.

Last week, I spoke at the Vancouver Money Show, and immediately felt a positive change in attitude. While there seems to be universal pessimism about the future of the United States, Canadians are upbeat about their nation, and not just because they won the gold medal in Olympic hockey. Unlike the United States, Canada has its act together. Its major banks did not fail during the financial crisis of 2008, and the Canadian dollar is now selling again at par against the U.S. dollar.

Dan Duncan, the genius behind Enterprise Products Partners LP (EPD, $32, 6.5% yield), died last week at the age of 77. He built the country’s largest pipeline operation from scratch, and died a very wealthy man. But he also made his shareholders wealthy, too, and Enterprise Products has been a big winner for us.

Talk about March Madness! Last week, two major events took place, neither of them good...