[Money-matters] Money Matters Update Feb 22 2009

Sun Feb 22 22:41:28 UTC 2009

Marc's Notes:
The markets continue to convulse downward and a test of 7100 or so may be in
play. We anticipated the breakthrough down past 7900 then mentioned 7500 in
our last few updates and indeed these breakdowns occurred. I expect SOME
sort of bounce soon albeit technical in nature, then a big test of the 7100
level sometime soon. If it cracks thru 7100 and down into the 6000's, it
will indicate the BEAR is in full control and new levels of support to be
tested will be 6900, 6500 then 6100, with a major test at 5500. (are you
hearing me?)

If the market goes into the 6000's it will indeed be a major event but not
one totally out of context. They say the markets look 6 months ahead. If
that is so, 6 months from now will be WORSE. Figures support this with
retailers bleeding red ink, banks flopping, balance sheets being ravaged.
The FEDS continue to pour trillions into the markets hoping to return to the
good old days of the 90's and early 2000's. Those days are gone and will not
return. A major repudiation of debt is taking place and it needs to unwind
big time before ANY recovery is to happen.
By trying to prop up housing, and "stimulate" the economy, the FEDS are
insuring a decade or so of lack luster performance on most asset fronts,
with a probable major setback taking place in the US dollar. The only thing
that could worsen our situation in the next few months (if not years) would
be for inflation to rear its ugly and persistent head. Watch for inflation
data. If you see it, hold your ears- a major blowup will be in the making.
Interest rates will also indicate a problem in US debt is appearing, and I
expect it to be so.

How are your finances doing? If like most, your have lost anywhere from 25
to 50% or more. It did not have to happen. By now you know "Buy and Hold"
doesn't work. It never did. They made you think it did. But the markets were
rising. As I said in my last update, my toaster also worked during these up
years. But not the strategy. Buy and hold only works in UP markets, so in
essence,  IT DOESN'T WORK if it doesn't work in DOWN markets. Welcome to the
"casino". 

A "MARCISM": 
"The stock market is designed to take your money, not make your money. It is
run by professionals. This is all they do. For them to win, somebody else
has to lose, and I will let you guess who that is".

What you should do: 
Strategy does not change. Put most of your money in SAFE - NO RISK assets
like CDS  insured by the FDIC. The point being right now the markets are
sucking money OUT of the system. You must be out of the SYSTEM to keep your
money from being sucked in. Out of the system means basically OUT of the
market. It is not about the return ON your money right now but the return OF
your money. 

Cant buy Cds in an account? Consider holding these 4 funds in equal amounts:

SHY       based on last 12 months payments- yields 3.43 %
TIP        based on last 12 months payments- yields 6.34 %
VIPSX   based on last 12 months payments- yields 5.28 %
RRPIX   based on last 12 months payments- yields .59 %

These yields are based on what they PAID and may not reflect what they will
PAY in the months to come. RRPIX hedges the others. I suggest you hold equal
amounts of all 4.

Most brokerages offer CDs from banks however. Current yields are around
1.55% from Schwab for one year cds ( don't go farther out then a year) , but
these are not stellar returns to say the least. Check the Wall Street
Journal Weekend editions for the best bank CD rates offered in the country.

Another "MARCISM": 

"There are 2 ways to increase your net worth. 
1)  Increase the dollar amount of your assets OR  
2)  Maintain your wealth while everyone else loses theirs. Either way
increases your purchasing power". 

And right now it is increasingly difficult to accomplish # 1, so you must
opt for # 2.

After placing most of your money OUT of the casino, hold gold and silver,
oil and commodities. These will offer some protection against our debt,
printing crazed government.
Gold and Silver may make you a lot of money to boot. They are rising now
almost daily.

Dividend stocks can still multiply your money many times over but are
susceptible to a drastic market fall, so hedge yours with contrary funds
(Funds that go up when markets go down).

Get some money offshore anyway you can. This keeps at least a portion of
your assets hopefully out of reach of US authorities. If things get ugly,
they MAY go after what you have and you will have no way of stopping them.
They will say it is for the good of the people and the necessity of the
system.
I prefer Swiss Annuities. You may prefer something else. 

Gold funds- UNWPX- Precious minerals funds- Pays a dividend occasionally.
Look into other gold or silver funds (I do not use many individual gold or
silver stocks, just funds).

Contrary funds- Go up when the markets go down and go DOWN when the markets
rally.  We have suggested many. See past updates.

Advanced Traders
You may "gamble" if you are an advanced trader. This is RISKY and not for
amateurs. Here are some that I am doing:

Obama Plays- These are fading fast but I hold these just in case we get a
rally. PKB  infrastructure play. URE  Real estate play  UYG   Banking play.
These all bet on a RISING market. I balance these by holding ULTRA SHORT
Funds and selling the covered calls against them. ( Show # 33) Right now the
calls on the ULTRA FINANCIALS are sick-rich. Trading these a few months in a
row can double your money no matter which way the market goes if done
correctly.

Other gambles- Oil- I use USO and DXO.  Going nowhere right now but will
spike eventually. 50 % downside risk on USO, 100 % downside on the leveraged
and highly risky DXO. Upside on USO 300 %, upside potential on DXO -   2000
% 

DGP - Double gold long fund- leverage gold fund. 

SLV- Silver ETF   up almost 50 % since mentioning it a few months back. Now
a 75 % downside risk with 1000% upside potential.

What do you hold? 
Mutual funds that pay nothing? Terrible strategy I'm sorry to say and you
now probably agree.
All risk, no payment, all betting on an UP market. Whoever sold you those-
say goodbye to them and move your money. You CAN manage it yourself.
Bonds? NO unless they are US GOVERNMENT bonds. Bond funds like our FAX fund
are moderately at risk, but private bonds are TOXIC and at SEVERE risk.
Individual stocks? Not unless they pay you 10% or better yet, 20 %, like our
SUPER DIVIDEND PAYERS LIST. Holding a non paying stock is like the mutual
funds you hold. All at risk with no payment- terrible strategy.

Markets:
Negative bias rules, with a possible technical bounce only. IF markets
continue down, it may be the start of a nasty spiral into the 6000's and
beyond.
Gold and Silver- too far too fast but the markets can stay irrational for
longer then we expect. Gold will test 1025, silver may also continue up.
Interest rates and the US dollar- a suspect a slow erosion of the dollar
while interest rates climb. Expect the FEDS to buy Treasuries soon, called
"monetizing", we call it MONEY PRINTING.
Oil- Irrationally low right now. Can it go lower? Of course, but I am buying
for a long term hold and will buy more if is goes lower. The Saudi's are NOT
going to let it go to 10 bucks.
Your upside is tremendous but you could be in it for a while.
Retailers- Keep shorting. I am not holding any retail shorts on individual
stocks right now but hold SCC which has been rising nicely.

Other news:
No shows in the near future as I did 3 shows in 2 weeks. Newscasts WILL air
as usual on Tuesday nights around 6.30.
Website- progressing. Expect its finish in March. I will email you the site
when done.
No word yet on big network interest. We will see.
Consults- filling again with the last pledge drive- If you pledged, someone
will contact you. Want to meet with me? Email us.

All for now- shoulder has had all it can take.
Marc

Do Not Reply to this message directly.

The views expressed here are opinions only.

Direct all questions or comments to Moneymatters at kvmr.org.  
All comments or questions must be less then 3 sentences in length and must
not contain any links or articles.

You can access past updates at:
http://mailman.jtan.com/pipermail/money-matters-l/

This article is strictly for informational purposes only. It is not a
solicitation to make any exchange, buy or sell any precious metal products,
commodities, securities, stocks, warrants, options or other financial
instruments. Marc Cuniberti, author of this article, does not accept
culpability for losses and/ or damages arising from the use of this
publication or any information contained herein. Investing involves risk.
You can lose money. Please order up the prospectus on any and all securities
you may be planning to buy and do your own research before investing. Mr.
Cuniberti may or may not hold the securities listed.

If you wish to send Mr. Cuniberti an email, please keep your emails to less
then 3 sentences and do not ask about specific holdings YOU may have nor ask
him to comment on YOUR specific situation. You may submit general market
questions or concerns. He answers EVERY email sent to him within the
confines of these rules. Someone will respond to your email regardless of
what it contains. You may be assured we care about your participation in
Money Management Radio and Money Matters.

Produced and Hosted by Marc Cuniberti
Money Management Radio and Money Matters is the sole property of Marc
Cuniberti and all rights are reserved.
"Money Matters"  and "Your Money Matters" is aired throughout Northern
California and the State Capitol.
Northern California's  # 1   "alternative"  economic show.
"Know the Truth and the Truth Shall Set You Free"                  John 8:32
89.5  105.1  95.1  103.7   FM Radios throughout Northern California and the
State Capitol.
Worldwide on the web at WWW.KVMR.ORG and on KFOK FM RADIOS

Where I buy some of my gold and silver:
"Possession Gold"    - Standard Gold Eagles, Buffalos, Kruggerands, Silver
Maples. Gold Pandas   Generic Rounds. Peace Dollars or Morgans. 
Monex Deposit    David Feldberg  x 2216
4910 Birch St., Newport  Beach  Ca  92660
1 (800) 949 4653  (GOLD)   ext 2216   
Refer to Marc Cuniberti and Money Matters for best pricing/service. 
Take delivery and store in a safe place.  You may have 25 % of this amount
in silver and the remaining 75% in gold. 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 dollars over spot. Again, buy NO Collectibles, No
Margin account, No Commodity accounts. Take delivery of standard coins only.

-------------- next part --------------
An HTML attachment was scrubbed...
URL: http://mailman.jtan.com/pipermail/money-matters-l/attachments/20090222/65fd30da/attachment-0001.htm