[Money-matters] FW: Money Matters Update April 4 2009

Sun Apr 5 15:59:41 UTC 2009

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From: Marc Cuniberti/Bay Area Process/KVMR FM/KFOK FM Radios
[mailto:bayareaprocess at att.net] 
Sent: Saturday, April 04, 2009 3:20 PM
To: 'money-matters-l at jtan.com'
Subject: FW: Money Matters Update April 4 2009

  _____  

From: Marc Cuniberti/Bay Area Process/KVMR FM/KFOK FM Radios
[mailto:bayareaprocess at att.net] 
Sent: Saturday, April 04, 2009 11:08 AM
To: 'money-matters-l at jtan.com'
Cc: 'Jen T.'
Subject: Money Matters Update April 4 2009

Marc's Notes:
We indicated many times in the last week, we said the "Mark to Market"
accounting rules would be changed soon and this week they were. I wish for
once they would do something unexpected!
So much for surprises from the FEDS. I always say I nor anyone else doesn't
know where the markets will go, where gold will go, where oil will go, nor
anything else FOR SURE, but we do know one thing and one thing only. The
FEDS will continue to print money. Do you agree with that one? Of course.

So whats been happening in the markets.. 

The" RALLY" is here and is continuing. This is rallying commodities like
oil, making us more money. Our dividend payers are rising for the most part,
making everyone a bit happier.
This is of course what the FEDS  want and shows you first hand the
seductiveness of printing money. It makes everything rise in price and you
feel richer.
Unfortunately is paves the way for much worse things down the road. For now
enjoy the rally.
As I contemplate the mass of money being created by the FEDS now estimated
at over 14 trillion, I can't help but believe a Hyper inflationary scenario
will take place sometime in the future. I feel very strongly that investors
must do multiple things to insure you can say:  "they may get some of my
money, but they cant get it all".

Bank CDS now are paying close to nothing but we are still worried about the
return OF our money and not the return ON our money. That being said, with
inflation readying its flight, we must also pay attention to the return ON
our money as prices heat up, destroying our purchasing power of the dollars
we hold.

A multi level asset plan must be adopted to insure whichever way it goes, we
are protected as best we can be.

For me, that means a large percentage of investors money should be SAFE in
bank cds even though they pay pitifully. You can boost returns by our semi
safe funds which also hold US debt like the funds:  SHY VIPSX  TIP ... these
have weathered the crash unscathed for the most part and pay regularly. You
can get anywhere for 3.5 % to 6 % in these, boosting your returns on your
bank cds. Because we hold US dollars in a sense with these, we have to hedge
against a possible US dollar debt collapse and we can do so holding RRPIX.
Some accounts don't have enough to buy this fund so you can hold TBT
instead, but realize these 2 funds WILL MOVE up and down so they are not as
safe as a bank CD.

Once you are parked in these assets, I hold dividend payers like energy
trusts and others that pay me monthly, or quarterly or yearly.  IF the FEDS
are successful and inflate this stock market like they inflate every other
price, then our stocks will go UP and also pay us on the way up, and that's
a nice way to make some money to offset inflation.

Gold and Silver are historic hedges and every investor should consider
holding at least some part of their portfolio in these metals and do so by
holding them in your possession.
If you want to hold gold STOCKS, then you are not buying GOLD or SILVER for
insurance, but for gambling. I don't hold gold and silver for gambling but
for insurance. Much like my gun and my Swiss Annuity, These are insurance
policies which I hope never to have to draw on. If your worried about gold
or silver going DOWN in price, you are holding them for the wrong reason in
my opinion. I get emails occasionally from listeners stating they are upset
their gold or silver or Swiss Annuity is down in price and ask me if they
should sell.
I can't help but wince at these emails because it shows me they do not know
the true reason why they hold these assets. They are insurance. Like the
market price of my gun. I don't care about the market price of my shotgun. I
don't hold it to make money on it but to protect me. It is the same with
gold, silver and Swiss Annuities. If you understand THAT, then you
understand why we hold them.

If you wish to gamble for higher risk, then I always give a list of
"gamblers" specials, like the ones I use. These include stocks like our
OBAMA plays on infrastructure, Real estate funds, banks funds, oil stocks,
gold stocks, index funds and the like. Most of these are rising with the
market and I will tell you to take profits soon.

But these are only for a SMALL Portion of your money and ONLY for investors
who know what they are and WATCH their portfolios daily. If you are a long
term investor with an IRA, these areas are NOT FOR YOU.

Its actually very easy to allocate your money yourself and you do not need
an financial advisor that charges you fees every year to lose your money
with the rest of the market.
IF your advisor has lost you more then 10 % in the last year, they are not
students of the market and you should dump them. I took on one client right
before the crash and she insisted most of the money be in dividend payers.
So be it. I warned her.
She is now down 10 % while the market is down 50 % . I worked hard to keep
her losses limited and she still lost 10 %, but all in all, considering she
got in RIGHT BEFORE a 7000 point loss period, we did not do badly. She also
made about 3 % back in dividends already so her losses are minimizing
everyday.

I tell you this to make you realize you must be diversified and mostly SAFE
right now. No one can tell you where the market may go but if you rode it
down 30 or 40 % or more with an advisor, you don't have an advisor, you have
a follower and you would have done better just buying an index fund tied to
the broad market and saved the fees.

With a limited amount of money in some high dividend payers, you protect
yourself for the most part AND juice the return on your whole portfolio. By
also holding foreign currency funds, Swiss Annuities, gold and silver and
some oil and commodities, IF the FEDS manage to bring about inflation, (
which they will eventually) you will participate in the upside price
movements and at least keep somewhat even in purchasing power. 
On the other hand, those all in CDS or mutual funds or "regular" stock
holdings will NOT do well and be badly hurt in the markets that are coming
our way.

That being said, here is what I  expect:
Unemployment will continue to rise as we have said since last fall. More
banks will fail but some will reap rewards from bailouts.
Expect RAMPANT fraud in the use of the trillions of our bailout money. Some
of the fraud you will hear about, most of it you won't. Mismanagement to the
benefit of a select few will permeate the programs. Billions will be made by
some but not by you. Those on the receiving end of these billions will be
the well connected, the friends of government, the management of hedge
funds, insurers, brokerage firms and banks.
If you knew how much will be squandered and stolen, your blood would boil.
For the most part, the government is too big and to involved itself to
police it nor will they be willing to prosecute the evil doers. After all,
Barrack keeps saying we must not "look backwards" but forwards, literally
refusing to bring to justice or punish the guilty. He is becoming an active
participant of problem. 
The housing bailout will GET EVEN BIGGER as stats coming out are not
encouraging with defaults rising, even on renegotiated loans. Expect even a
BIGGER bailout on all fronts.
Expect MORE bank bailouts. Expect pension bailouts and another auto bailout.
A  GM bankruptcy is a farce and just screws the vendors. GM will still be
given government money within the bankruptcy. The bankruptcy is a
smokescreen.  
AIG and Fannie and Freddie will need more money.
Expect twice the amount of government money to be squandered in the next 12
months as the amounts needed still are in the trillions. US debt will
skyrocket and more talk about replacing the US dollar as the worlds currency
will be heard. The talk about Barrack cutting the budget in half in 4 years
is absurd and borders on being completely insane. If you believe that, I
have another bet to make and a bridge to sell you.
The fall will probably bring a new market turndown and possibly nastier then
the last one. For now, a rally is a Godsend for all of us to take some money
off the table and get liquid.
The fly in the ointment and potential Tsunami to hit will be a failed US
auction of its debt. The sign will be rising interest rates on US
treasuries. Gold will probably sniff this out before it happens. A US dollar
crash is a remote but fatal possibility that I hope does not happen as it
will spell a new era is coming and it will not be kind to the uniformed or
ill prepared.

Remember the boy scout moto- "BE PREPARED".   Do it, don't talk about it.
The future you save will be your own.

Upcoming Shows:
This Thursday-  You've got to be kidding me!   More bailout and bad debts
12.00 PM  PST     April 9th

Upcoming Website: 
www.moneymanagementradio.com      ( now it takes you to our KVMR website
where you can get podcasts and show titles- The new website will be online
soon and more interactive with past shows and other items available.

Consulting going well- email me if you need to talk with me and we will
schedule you in.

All for now,
Marc

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Where I buy some of my gold:   What I call "Possession Gold" .  
 I usually buy Gold Eagles, Buffalos, Kruggerands, Silver Maples. Gold
Pandas   Generic Rounds. Peace Dollars or Morgans. You may contact who I
use:
 <http://www.kfok.org./> Monex Deposit    David Feldberg  x 2216
4910 Birch St., Newport  Beach  Ca  92660
1 (800) 949 4653  (GOLD)   ext 2216     You may refer to Marc Cuniberti and
Money Matters and David will know what Marc recomends.
Take delivery and store in a safe place.  You may have 25 % of this amount
in silver and the remaining 75% in gold. I usually buy only generic 1 ounce
rounds or ounce bars, no collectibles. You may buy any 99 % pure gold or
silver assets but pay no more then a few percentage points over spot. Again,
buy NO Collectibles, No Margin account, No Commodity accounts. Take delivery
of standard coins only.
 <http://www.kfok.org./> 

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