[Money-matters] FW: [Money Matters Newsletter] Market Readying. New Dividend Payers with MonsterCompanies ! Update August 7, 2010

Sat Aug 7 15:51:11 UTC 2010

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From: Money Management Radio [mailto:marc at moneymanagementradio.com] 
Sent: Saturday, August 07, 2010 8:50 AM
To: client base
Subject: [Money Matters Newsletter] Market Readying. New Dividend Payers
with MonsterCompanies ! Update August 7, 2010

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Money Matters Newsletter: Market Readying. New Dividend Payers with
MonsterCompanies ! Update August 7, 2010

Marc's Notes: 
Back from vacation and catching up, I first want to thank all those that
attended our KVMR  talent show. Over 150 people showed up to enjoy over 5
hours of fun and music. News analyst Chamba Lane's surprise appearance in a
pink tutu was the thing I was glad I missed but understand the rest of the
show was a grand ol' time. Food poisoning made it difficult for me to attend
so my regrets. The fund raiser was a great help to our finances. 

Back to business. The markets are stuck in a tight range of the mid 10,000's
and remind me of the markets right before the 2007-2008 meltdown where
fundamentals continued to deteriorate despite cheerleading by the Wall
Street pundits. Much like then, economic figures showed a declining
environment while the stock market enjoyed continuing rallies. Homebuilder
stocks rallied right into the eye of the storm and you had to ask yourself
how these companies stocks continued to go up in the face of worsening news.
Investors who bought into the CEO's bullish talk and CNBC's insistence of a
new economy (this time its different) got their heads hand to them when the
markets finally realized the realities of the times. Mainly housing was
toast and home builders as well as those that lent money to them and their
customers were essentially throwing money into a rat hole of a bubble and
what a bubble it was. Never before was so much money so badly spent on so
many questionable borrowers and on such an overinflated asset. So go asset
bubbles. They always end badly. 

With stimulus ending and more bailouts getting unpalatable, the economic
fundamentals are deteriorating badly. Advanced indicators, unemployment,
housing, retail and foreclosure stats combine with unimaginable soaring
deficits to make for little reason I can see for this market rally (6500 to
today's level) to continue. The most basic of indicators is the Baltic Dry
Shipping Index. This shows how much stuff is being shipped around the world
and therefore is a slam dunk indicator of how much stuff is being bought
worldwide. This index is down almost 50 % in the last 48 days! Right at 2008
levels during the meltdown! Wow, what a plunge. With this index plummeting,
it reflects demand is dropping off the cliff. Like I keep saying, don't
listen to what they say, look at the real numbers and draw sound
conclusions. 

Much like before the fall of 2007-2008, reality will bite soon and when she
does, it will be nasty. My guess is late fall or sooner will harbinger a
fast plunge, possibly to previous low levels and beyond. The FEDS will be
making more announcements soon as they see the same figures I do and the
only good news they could point to is the stock market not coming unhinged.
This is probably due to their buying of equities (manipulation) indicated by
hi mutual fund investor liquidations in the face of a rising market. This
contradicts logic. Investors taking money OUT of mutual funds should lead to
falling markets, yet they do not. This alone might not be enough to pinpoint
FED market manipulation but an interesting thing is happening in US DEBT
markets, commonly known as the Treasury market. The fact that the US is
issuing massive amounts of debt in the form of Treasuries yet interest rates
are the lowest on record is strange enough, Usually a brother in law writing
IOU"s all over town result in people refusing to take them which would RAISE
interest rates. Yet, in the face of this massive debt issuance, the
appetitive for them is greater then ever. You have to wonder what the bond
traders are thinking as these are the guys that buy all this stuff. Well,
most of the speculative bond traders have been burned so many times by the
FEDS manipulating the market by buying from overseas secret hangouts; these
traders have been all but wiped out betting against the US. Just what the
FEDS wanted. Burn anyone who dares to cross them. But there are many big
buyers of these bonds who are legitimate investors such as sovereign funds,
hedgies and other large money holders. The question is if a recovery is
happening and the stock market is primed to go up, why are these guys buying
Treasuries for almost no yield? Usually they buy low interest vehicles when
they can't get a better return elsewhere OR fear they will lose money
elsewhere. Hummm. what could they be thinking then? You have to wonder. If
the  big guys put their money in low yielding treasuries and NOT instead in
the stock market.. WHY?  With so much big money going into treasuries, they
must see something in the markets to make them stay away. This in not
conjecture as the fact is they ARE buying treasuries by the boatload and the
treasuries aren't yielding anything over a few percentage points. Hence
another indication all is not right in Kansas. One final point is the fact
that Treasury sales usually spike when markets fall (investors sell stocks
and buy safety) and treasury sales fall when markets are calm. But we are
not seeing the usual pattern. The markets are essentially calm but Treasury
sales are spiking. A precursor of things to come?  In my opinion, yes.
Things are definitely not behaving normally for us discerning analysts and
natures intentions will let us know what troubles her in due time. Trust me
on this one. We will see. My opinion is "Something Wicked This Way Comes".

On the housing front, rumor has it that Fannie and Freddie, the 2 mortgage
giants now wards of the state will soon be offering refinances that will
include PRINCIPAL REDUCTION!
HA!  No surprise there. I TOLD YOU!  The reduction of principal (major
bailout) will be the real deal and will the next offering. Washington denies
it as of today but me thinks as housing craters BADLY in the fall (it is
starting to now) the FEDS will ramp up the home bailout programs to include
this option. Like I said, these programs will never end. Like the
"quantitative easing program" they stopped a few months back but just
announced they are considering another round of it soon should the markets
continue to falter. As always said on Money Matters, it won't be enough!.

Looking for dividend payers with some possible safety in market crashes?
Look no further then some monster companies that are household names. These
behemoths may not pay as much as the Alpine Dynamic Dividend fund, but they
probably won't go to zero either. Take a look at   PFIZER  (PFE),   AT&T
(T),  ELI LILLY  (LLY),  VERIZON  (VZ),  SOUTHERN COMPANY  (SO) , BRISTOL
MYER  (BMY), CONSOLDATED EDISON  (ED),   ALTRIA  (MO) or other large
household names. All these companies are elephants and usually don't fall as
badly in a market crash then smaller companies . Most of these pay over 5 %
and could be a way to earn dividends without the greater risk some of our
higher yielding equities may exhibit. There are no guarantees of course but
many of these bigger stocks are regarded as defensive plays and you could do
worse. Yahoo finance.com has a good screener page which can lead you to all
the company information by clicking around on the links. Enter the symbols
in the quote square.

Next week is a LIVE SHOW you can witness at the Nevada County Fair on
Thursday. It will be at noon or maybe one PST. I will email you as soon as
they tell me. I will be there after the show for questions. KVMR's booth is
in the food area near the back towards the racetrack. They have maps at the
gate to locate us. Topic will be the usual market coverage and "Beware the
Ides of Fall". 

Other items include a Money Matters Margarita Dinner on September 1st (email
me for details), mini consults are open now (don't wait until the market
crashes cuz I book up fast then),
My recommended Portfolios are on the website www.moneymanagementradio.com as
well as past newscasts and shows and T SHIRTS.

Holdings remain the same as previous newsletter (see archives on left menu)
and no news from Everbank on any Foreign Currency CD of interest.  

"Should You Stop Paying Your Home Mortgage"  the free show for this quarter
is on the site under FREE SHOW. Take a listen and pass it around to your
friends. 

All for now,
marc

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Where I buy some of my gold: What I call "Possession Gold". 

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 recommends. 
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. 

JH MINT
13241 Grass Valley Ave. 
Grass Valley, Ca 95945 (530)273-8175

(Near the Grass Valley Airport off Loma Rica Road)

Tell the salesperson you are a Money Matters Listener and you will get
special discounts,(market conditions permitting). Normal Gold prices are
anywhere from 6 to 11% over New York Spot price. If you are selling, you
should get close to spot when you sell. Buy only standard, or popular gold
or silver coins. I do NOT prefer the generics but would rather have you buy
Silver Eagles or bars. When buying silver, the mark up will be a bit higher
than gold. JH Mint posts prices on its board over the sales counter so you
can see spot at any time. I have dealt with JH MINT myself and found them to
be easy to work with.  You can pay in cash and you will remain anonymous.
I usually buy Gold Eagles, Buffalos, Kruggerands, Silver Maples. Gold Pandas
Generic Rounds. Peace Dollars or Morgans. You may also use my web contact: 

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