[Money-matters] Money Update Nov 19 2008

Thu Nov 20 01:11:36 UTC 2008

Yields on speculative-grade corporate bonds surpassed 20 percent for the
second straight day as a declining economy increased the risk of default. 
The average yield on high-yield, high-risk debt rose to 20.81 percent today,
from 20.14 percent on Nov. 18, the previous record, according to Merrill
Lynch & Co.'s U.S. High Yield Master II index. The level is the highest
since Merrill began collecting overall yield data in January 1986. 
--
<http://search.bloomberg.com/search?q=Warren+Buffett&site=wnews&client=wnews
&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfield
s=wnnis&sort=date:D:S:d1> Warren Buffett's
<http://www.bloomberg.com/apps/quote?ticker=BRK%2FA%3AUS> Berkshire Hathaway
Inc. fell the most in at least 23 years, dropping for the eighth straight
day since reporting a 77 percent decline in third- quarter profit.

Marc's Notes
As indicated, interest rates on bonds are soaring. US Debt is sort of a bond
and the death bell would be if interest rates on T BILLs and the US dollar
start to rise. This would be what we have been warning about. IF  U.S. Debt
is perceived as risky as these "junk" issue above and interest rates start
to rise on US debt, then the nightmare I am warning about will start- a
crashing US dollar and all out rout of all things financial. We may fast be
approaching financial Armageddon. Pray the US dollar holds, it is the last
wall holding up the financial world.  
Those wondering if Warren Buffets call to buy stocks was a good suggestion?
I said no. Don't you dare get back into stocks. Now the market seems to
agree with me and Warren will eat crow. The Bear Trap caught him too. Look
at his returns. 77 % decline !  Like I said. Bear traps can fool even the
most experienced investor. I am kind of surprised Warren got caught however,
but he is getting alittle long in the tooth.

Markets:
RED ALERT continues. The FEDs are losing control. Another ANNOUNCMENT even
more ridiculous may be forthcoming, like buying stocks with tax money or
some damn fool thing. Dow 7900 will be tested again, for the 4th time. Like
bouncing a ball off a windshield over and over. It will break eventually.
This week may be the blow through past 7900. When (not if) that happens, the
next level is a scary ride down to 7500 or below. A 1000 point drop may
occur in the weeks to come. It may retest 7900 and bounce again. Don't be
fooled. I suspect we are setting up for another fast ride down. HEDGE HEDGE
HEDGE. Our contrary fund BEARX is up 30 % in 8 weeks or so. It is performing
and why we own it. 
Gold and silver acting comparably better. Oil    so  so.     Both these are
better then the Dow right now. Get physical gold and silver in you
possession-please.
Dividend stocks- some hammered again, some holding reasonably well and still
paying. Tanker stocks will be hit with plunging shipping rates. 
Uranium- holding fairly well. We will see. This is an "alternative' energy
sort of speak.
Foreign currencies - so   so     HOLD for US dollar crash protection. The
current US Dollar rally will end soon.
Swiss Annuities- ADD   you will be glad if the US dollar falls and the
government comes knocking to take your pension plans like Argentina just
did.
CGMFX- continues to plunge as the manager switched to financials and out of
commodities. Like I said last week.  A bad call on Kens part. He is reaping
the rewards of his folly.  SELL
RRPIX - Hold     ADD      protects against rising rates. Look at the bond
yields soaring above. This fund protects against that should the US dollar
start its descent into hell.
UNWPX.  Performing poorly but I think this fund is a must when gold and
silver runs. Pays a NICE dividend to boot.

Tomorrows Show:
Dividend Paying Strategies. (if the market doesn't tank that is). These
shows are getting harder and harder to plan. Seems like everyday is a new
emergency.
THURSDAY NOON     Tune in.   89.5  105.1  95.1    Fm depending on where you
are.

Thanks for the emails and suggestions about my back. Great to know you'all
care about such a rogue like me. THANKS AGAIN- It really encourages me to
get better.
All for now,
God Bless
Talk tomorrow.
Marc

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