[Money-matters] FW: [Money Matters Newsletter] Market closes in on Dow 12, 000. Franc rises to new highs. Gold Falls. Update 1/25/2011
Marc Cuniberti/Bay Area Process/KVMR FM/KFOK FM Radios
bayareaprocess at att.net
Wed Jan 26 03:42:56 UTC 2011
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From: Money Management Radio [mailto:marc at moneymanagementradio.com]
Sent: Tuesday, January 25, 2011 7:42 PM
To: client
Subject: [Money Matters Newsletter] Market closes in on Dow 12,000. Franc
rises to new highs. Gold Falls. Update 1/25/2011
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Money Matters Newsletter: Market closes in on Dow 12,000. Franc rises to new
highs. Gold Falls. Update 1/25/2011
Margarita Dinner with me coming! Email me. meet with me, have dinner, all
the Margaritas you can drink and the dinner and ask me what you want. Slots
go fast so email me now. Cost is $199.00 per person and 50.00 to add one
person. Includes dinner and drinks. Email me now to reserve your spot.
Margarita Dinner
Marc's Notes:
Markets push forward toward Dow 12,000. Driven higher by all this money the
FEDS are creating inflation in all things including stocks. Except housing.
The Case Shiller Home price index is stil plunging. We probably have a long
way to go to return to pre bubble levels. Prices should eventually return to
1999 levels plus or minus inflation so I expect median home prices to drop
from the current high 200,000's to the high or mid 100,000's, another 30 to
40 % or more, barring any massive inflation of course. If that happens
housing will catch a bid when Starbucks hits 5 bucks a cup or more. A
possibility to be sure.
For now the big issues are the stock market, inflation, stagflation,
interest rates, unemployment, housing, sovereign debt problems and bonds.
Quite a few issues eh?
I agree but all have their reason for being on our radar. Inflation because
we are seeing it big time and if we continue to see it, that puts an end to
the FEDS money printing. Stagflation because in the face of INFLATION, the
economy is only being supported by government spending and when that stops
the economy will show its true colors. Interest rates because when they
start climbing like they are now, that also puts a halt to FEDS money
printing. Unemployment because we are not told the truth about the real
numbers and the fact is the US is not creating good jobs, but just more
service and financial jobs. Not a recipe for a healthy economy. Housing
because that is what is dragging the whole mess down. Sovereign debt
problems as entire countries are going broke because they gorged on house
debt and/ or bailed out their banking buddies and then finally bonds because
bonds are debt and there's way too much of that floating around.
On the subject of bonds and pensions, I have a friend on a CalStirs pension
and much like many people on Stirs and Pirs, they believe their pension is
guaranteed. He touted the fact that even if the state cant pay, it does have
the power to levy taxes. I guess he hasn't been reading the news lately.
Previously untouchable pensions from states and cities across the nation and
the world are now being reviewed and ideas like State Bankruptcy and City
Bankruptcy are now being discussed. With no way out and nowhere near the
money to pay what they have promised, states and cities are scrambling to
cut pensions by anyway they can. That means bankruptcy or restructuring, and
although legally not available to some of those entities now, when the
conditions change, they change the rules. Everyone now realizes these
"elected officials" promised more then they could pay and for far too long
and in amounts that stagger the reasonably minded. With literally billions
and billions in promises and coffers ringing hollow, there simply is no
option but a partial renege on pensions. The U.S. government has repeated it
won't bail out cities or states
(something I know they eventually WILL DO), but when they do, it wont come
without a cost. That means the FEDS will probably help but force haircuts
and insist people get fired. The wave of "disappointment" that is coming
will parallel the housing issue and the pleadings from the unfortunate,
those caught in the storm. As cities move towards the unthinkable (possible
bankruptcy or the talk of) muni BONDS, which are their debt (IOU'S) will
plummet in value and drag all bonds with them. Waves of selling will hit
bonds of all types (except US short term bonds) and that will cause interest
rates to spike. In fact, there are many things that will push interest rates
higher and the muni and state bond default orgy that is coming is just one
in a long line. Bonds are toxic and we are already seeing that in the bond
funds.
Meanwhile the gold and silver correction I warned about over the last 2
months is finally upon us. I bought some gold stocks last week and am buying
more during this correction. It may go lower but this is your opportunity to
start garnering some metals at depressed prices. Those of you that were
complaining it had run up too far to buy can now rest easier. Remember,
nothing goes straight up or straight down. Gold could test 1250.00 or even
lower but this only makes for a buying opportunity. I am adding now for
trading on the next bounce. See the Dream Portfolio (the "more aggressive"
section towards the last page) for gold stocks you can speculate with.
Physical gold and silver should be added anytime regardless of price as it
is insurance only.
The Swiss Franc is breaking up through 105! Insane. Those with Swiss
Annuities denominated in Francs will not only get a great profit listed on
your statement soon, you made MORE money in the last week! This really only
means the US dollar is dropping in value and not a healthy sign but at least
those that followed the advice are protecting themselves.
Other holdings include our interest rate funds which are slowly rising, US
bank accounts and Treasuries and CD's which are SAFE. No word from EVERBANK
on a NO RISK CD so patience please. Gamblers plays include short China fund
FXP which is down about 10 % so hold, natural gas which is down about
significantly from our mention of it but HOLD as inflation will grab it too.
Uranium is slowly rising as is oil. Our commodity funds DBC and DBA are
above their 2 year high but still below their high in 2008. HOLD. Tanker
stocks and dividend payers are paying still so HOLD until the cows come
home. Put mental stops on all your stocks where you hold a significant
portion of your wealth in at 20 % or less below today's levels. Since the
flash crash, remove all automatic stops. Those with the recommended
percentage of dividend payers should hold until you hear from me or mental
stop out 20 % on today's levels. Those waiting for another EURO short, stay
tuned. Our last Euro short yielded quick gains so we wait to re-enter.
Contrary funds should not be leveraged but continue to hold to protect your
dividend payers.
All else as usual. We wait for action. Keep in mind insiders are still
selling stock at ratios signaling a crash is ahead, albeit perhaps not a
major one quite yet. A brief selloff is coming but not the big one me
thinks. There is still way too much money flooding out of Washington. Look
for interest rates spiking, muni bond default news, a new gold rally, and
more EURO news for market movers. Another sovereign default is coming soon.
The KVMR FM pledge drive is taking place this week on Thursday for 2 hours
at noon, PST. We are doing another Marc's Margarita Money Dinner, where I
buy all the Margaritas you can muster, your dinner, and we can sit and talk
money. This was a huge hit last year so we are offering it again!
Also available will be access to the Money Matters Website with all my
premade portfolios, all shows, everything at your fingertips. Personal
Consults are offered this show and wont be offered again probably until next
year so grab your spot to meet with me on this show. This may be your last
chance to meet with me in 2011 as I take the summer off.
You must listen live, no tapes or cds later, but you can email me if you
would like to schedule the dinner or membership all this week at
moneymatters at kvmr.org. Sign up now!
Donate to KVMR (tax deductible) and here are our thank you gifts.
One ounce gold coins or one ounce silver coins. Market price plus donation.
Dinner- $199.00 or 2 people for $249.00 (includes Money Matters T Shirt,
Dinner, all the margaritas you can drink, and lasts about 3 hours)
Membership to website until the next pledge drive and is called a Money
Matters Member: Includes Access to Web, access to Dream Portfolio and Super
Dividends Payers List thru Website and unlimited access to all Money Matters
Shows $250
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Marc's Newsletter $49.
Can't listen? Email me now a pledge now and reserve your gift before all the
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Where I buy some of my gold and silver: What I call "Possession Gold".
Blanchard and Company, Inc.
P.O. Box 61740
New Orleans, La 70161-1740
Direct toll free number: (888) 727-7537
Rick Baugnon
I have probably purchased the most ounces of gold and silver from Blanchard.
Not only do they sell regular coins and bars, they are the only contact on
this e-letter that also can provide you with graded coins and collectible
coins. Although I usually recommend only standard coins, I do own
collectibles as they may help against a confiscation scenario and we need to
be prepared for everything. Please call Rick Baugnon and tell them you are a
Money Matters Listener and he will give you special consideration and he
knows my preferences. Use his direct line above. Rick and I have discussed
Money Matters needs and he knows what to provide.
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.
I usually buy Gold Eagles, Buffalos, Kruggerands, Silver Maples. Gold Pandas
Generic Rounds. Peace Dollars or Morgans.
Follow Marc and Money Matters on Facebook
<http://www.facebook.com/topic.php?uid=225256048565&topic=11908#/pages/Money
-Matters/225256048565> .
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