[Money-matters] FW: [Money Matters Newsletter] Markets Disconnect to Reality. What are these guys thinking? Update August 17, 2010

Wed Aug 18 02:05:24 UTC 2010

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From: Money Management Radio [mailto:marc at moneymanagementradio.com] 
Sent: Tuesday, August 17, 2010 7:04 PM
To: subscribers 
Subject: [Money Matters Newsletter] Markets Disconnect to Reality. What are
these guys thinking? Update August 17, 2010

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Money Matters Newsletter: Markets Disconnect to Reality. What are these guys
thinking? Update August 17, 2010

Marc's Notes: 
Talk about market disconnect.

Economic statistics from housing to unemployment to European debt to
inflation are all coming in badly yet the market continues its journey into
fairyland. It is said the markets can stay irrational longer then you can
stay solvent. This means irrational markets can go on for months without
fundamentals supporting such levels until such a day when they correct. With
government deficits off the charts and more spending on the way, it's really
an anomaly to see this market in the 10,000 range.
Yet here we sit with another UP day today. Wow, talk about investor
complacency.

Unemployment is stubbornly high and inflation is rearing its ugly head
around the world in foodstuffs, energy, and other necessities. I find few
reasons to be optimistic except the fact that despite the money the US is
borrowing, interest rates are the lowest in history!
Another anomaly.

If you would like to read what I had to say about this interesting
phenomenon, see today's UNION article called "Treasuries Anyone?' 
Here is the link:
http://www.theunion.com/article/20100817/NEWS/100819800/1024

Summer doldrums may have a lot to do with this funny market as volume is
light as one would expect during these months, but with school starting and
fall upon us, you can expect market volatility to pick up very soon, and
when it does, I suspect a market downturn will transpire. 

Bottom line: Stocks are still expensive, debt is off the charts everywhere,
the banking system is at more risk now then before and little has been
addressed when it comes to what caused the problems we saw during the
downturn.
One bright light besides interest rates still being low is that gold and
silver have held up remarkably well with spot gold over $1200/oz as we speak
and silently sneaking higher.

Investors world wide are quietly adding to their gold and silver hoards and
I suspect Central Banks and Sovereign Funds are adding to their positions as
well. A storm of buying is brewing in gold and silver me thinks and those
adding now will be glad they did as this thing slowly implodes as I know it
will eventually. NO COUNTRY can amass this amount of debt and spending
without eventually paying the piper and the mighty US will not escape the
invoice when it comes due, trust me on this one. 

What to fear? 
RISING INTEREST RATES. The absolutely WORST THING and the one thing we do
NOT want to see. If you see rates start to rise, bar the door, kiss your
kids and your wife and batten down the hatches. It will be the ONE sign that
things are about to get real bad. For now, we hold all positions with a
summary below:

Gold and Silver in your possession: ADD. If you hold a ton of it already,
you might SELL a few coins in here somewhere for cash. Over $1200.00/ oz is
a good price to off a coin or 2 to pay some bills and buy ammo.

Dividend Payers: Add a bit along the way but wait until after the
correction. I added some more new funds on the Super Dividend Payers List
last month so subscribers get your copy if you haven't already.

Gold and silver stocks- See our Dream Portfolio for our funds. HOLD.

Oil Stocks- Do not add at this time except our dividend payers on our Super
Dividend Payers list. Long term oil will run but will correct with market
downdrafts much like Nat Gas.

Interest rate funds- Add these as insurance for your bank accounts. These
protect your US DOLLAR holdings. These funds are down hard with the interest
rates so they are performing their insurance function as your US DOLLARS now
have more value. Hold and add these funds as you maintain your bank
accounts. One day these will rise helping offset the interest rate risk.

US BANKS ACCOUNTS: Most of your money should be here in FDIC insured or
Credit Union Insured accounts. NOT MONEY MARKET FUNDS if you can avoid them
as they don't have to pay you your money in times of market stress and I do
not like someone telling me I can't get my money.

Foreign Currencies: See Dream Portfolio for holdings. Basically hold Aussie
Dollars, Canadian Dollars and Swiss Francs for protection against a falling
dollar, much like your interest rate funds. All these help insure your US
DOLLAR bank accounts. I still have yet to see an EVERBANK product I like. I
will keep looking for you.

Swiss Annuities: I can't emphasize enough the need to get money OUT OF THE
US and these annuities can be a way to do it simply and into one of the
historically most safe countries of all time. Big money is in Switzerland so
you want to be along side them. Nobody messes with Switzerland because they
have their money there too!  Order up the easy to read booklet on the right
side of the website under Swiss Advantage and read it. It's a great booklet
and really easy to comprehend!

Gamblers plays: Natural gas- its time is not yet arrived and will fall with
markets but long term, you will thank me. HOLD AND ADD. 
Ditto with Uranium, Oil, gold and silver stocks and funds. 
Our China short FXP is down a bit from our 38 buy in but this play is
betting on a China Fall. It will happen when our Dow falls and that is
probably soon. HOLD AND ADD.

Contrary funds- These have been down hard with the markets rally and much
like the interest rate funds provide insurance. Since they are down, that
means the market is UP and your dividend payers are fine. Hence the
strategy!  See how it works? Some up and some down, but as long as we get
paid our dividends, we are happy.

These newsletters have been sparse as summer calls me to family vacations
and coupled with the markets dull performance necessitates little more, but
hang on. With the fall coming and me back in the saddle, we can expect real
fireworks soon and many more of these newsletters. 

Next Thursdays show on the 26th will cover market action and what happens
next.

Money Margarita Dinner is happening in September so email me for a
reservation.

Mini Consults take 1.5 hours and run $250.00 only until October when a new
station membership drive will book up my time so email me for these minis
now. Full consults take 3 hours and run $575.00. 

Turkey Matters starts in 6 weeks!  Send me a check and I match it with my
own money and buy Turkeys for Thanksgiving food banks. Last year we bought
over 700 Turkeys with your help. Stay tuned for details. Don't have money
too give? How about volunteering your time? Email me and perhaps I will
match that too. Since those Wall Street guys won't help the poor, you and I
have to. 

All for now, keep the faith. 
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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