[Money-matters] FW: [Money Matters Newsletter] Welcome New Update Readers to the Money Matters Update! Update 11/1/11 (Had to do that!)

Wed Nov 2 01:01:57 UTC 2011

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From: Money Management Radio [mailto:marc at moneymanagementradio.com] 
Sent: Tuesday, November 01, 2011 5:53 PM
To: perf client
Subject: [Money Matters Newsletter] Welcome New Update Readers to the Money
Matters Update! Update 11/1/11 (Had to do that!)

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pg> 

Welcome New Update Readers to the Money Matters Update! Update 11/1/11 (Had
to do that!)

Welcome new readers!
Thanks for helping out our great station KVMR. Here is your first copy of
our newsletter, the Money Matters Update. You will receive this periodically
and more often if market conditions warrant explanation.
At the end of this newsletter you will find the four faults of investing.
This makes interesting reading and sets you on the right course to learn
about money and how to make more of, keep it, handle it and manage it.
Once again, thanks so much for your support, now on to the markets.
Marc's notes on the markets:
The Dow is diving again from the 12,000's into the 11,000 range, probably
driving you crazy if you have money in it. For a long time now I have been
advising people to have most of their money in NO RISK investments, which
are places where the zeros can never change, like banks accounts, Treasury
bills and NO RISK cds and investments.
These will never lose their numbers (but may lose their purchasing value
thru inflation). Since the "crisis" never really went away but just was
delayed thru massive money printing by that 1 % everyone is mad at, when
they stop printing, bad things happen. So for now (and for the last 7 years)
it's about the return OF your money, not the return ON it.
Hence keep most of your funds SAFE in NO RISK investments.
We have a new one for you that are US government insured and you can look
into them at www.treasurydirect.gov <http://www.treasurydirect.gov/> . They
are I BONDS and they pay 1.53 %  at this time with full principal
protection. You have to hold them for a 5 years or forfeit some interest but
it's minimal. Read the website and check them out. They pay better than a
savings account. There is a maximum of $5,000.00 per social security number
but right now you can double that by buying what they call a "Paper I Bond"
also up to a $5k maximum, so that's $10,000.00 per social security number. A
NO RISK investment that pays and I like that.
As far as the markets, The Euro Greek problem persists and plainly put,
Greece owes more then it makes and need loans. The IMF and the other nations
around them must pony up to help but those other nations don't like it much.
You also pay as the US is about a third of the IMF.  Yes, we pay for
Greece's bailout as well. How do you like them apples? Greece will
eventually default either entirely or partially anyway so this package is a
bunch of hooey.
The Dow looks to soften some with bad economic numbers not getting any
better. Manufacturing is down, consumer confidence is down and real estate
continues to plummet lower. I see no reason for long term stock growth at
this time. From a chartist standpoint (technical), a stock market fall looks
to occur soon.
No one can say for sure.
Gold and silver- Keep adding physical gold and silver for insurance only.
Don't plan to make money on it. You may but that's not why I hold it.
Contacts for gold and silver are at the end of this newsletter.
Dividend Paying stocks- Yes, up to 10 % of your wealth. Add slowly over
months, even years. Use only the biggest ones on the Super Dividend List at
this time. They are the household names you know and are the first 15 or so
on my list. You can lose money in these if the stock markets fall as most
stocks move together, up, down, sideways.
Swiss Annuities are an offshore option for those looking to move money
"outta hya!"
Punch on the Swiss Advantage Banner on the website for information. I am
buying another one right NOW based on Norwegian Currency as Swiss Francs are
closed at this time. I sent my check with my application last week.
Gold and silver stocks are speculations but should be held. See the Dream
Portfolio for a few suggestions or look thru past newsletters.
That's all for now. Expect markets to follow the news but I see no reason
for the Dow to push to new highs and many for it to fall. Expect more
"announcements" from the FEDS on housing, money printing programs, asset
purchases and more stimulus. More of the same. More debt. Blah Blah Blah.
Now onto the Turkeys.
         Turkey Matters, our "match your funds" food program is now ON! 
I will match your funds for the Nevada County Food banks to buy Turkeys for
the needy. Send all checks to:

Marc Cuniberti
PMB 101  (MUST SAY PMB, not post office box) 
578 Sutton Way, Grass Valley, Ca  95945. 

Make the check out to the food bank of your choice, either the Interfaith
Food Ministries or the Nevada County Food Bank. I will double your check
with my own money.
Let's help feed the needy with Turkey this Thanksgiving! Your dinner will
never be better knowing you helped feed literally thousands as we did last
year. Send in your check now.
Last year we bought over 700 turkeys. That's probably feeding close to 2000
people!

Finally, as promised, the four fatal flaws of investing:
Four Fatal Flaws of Investors and Advisors:

Fatal Flaws #1:
Buy and hold.
Buy and hold works fine in up markets, but so does a monkey with a dart and
a wall street journal. Statistically, it's been proven time and time again,
advisors and the best of money managers don't beat a dart board or the
market indexes in an up market. In an up market ALL STOCKS go up. Buy and
hold works fine in an up market but in a down market, DOES NOT. Don't
believe me? Look at your statement in the last crash. I saw and have seen
hundreds if not thousands of statements. They all hold mutual funds and
every kind of stock known to man. In the last market crash, they were ALL
DOWN. Buy and hold is like an umbrella that only works in the sun. In the
rain, it doesn't work, and if buy and hold doesn't work in down markets, IT
DOESN'T WORK!  You found that out with millions of other investors. So if
you advisor or firm is like any other advisor or firm, you bought and held
all the way down. Buy and hold doesn't work, doesn't protect you and is
MADNESS in the markets we have today.

Fatal Flaw #2:
Markets also go up over the long haul.
If you believe this you simply haven't looked at history, nor haven't
studied past markets nor have any idea what US DOLLAR purchasing power is. I
can show you decades of US stock market charts that show NO GROWTH over 10,
12  or 15 years. Just look at the last decade for your most recent example.
Dow 11750 in the year 2000, DOW 11700 or so in 2011. ELEVEN YEARS.
The most recent 10 years shows less than ZERO GROWTH and actually a 30 %
LOSS or more if you factor in US dollar purchasing value lost.  That doesn't
include losses from inflation, otherwise known as dollar purchasing value
loss.

Use inflation adjustments over the last century and the US stock market has
done little better then a no risk US BANK ACCOUNT. There is one difference
however and that is bank account are guaranteed NOT TO LOSE value, and also
no loss of sleep by you. Markets in true value do not go up over the long
haul and especially now, this thinking is a sure way to more losses down the
road.

Fatal Flaw #3:
No exit or sell point.
Most investors and advisors, believing markets always go up over the long
term and always come back, don't have an exit point.
In other words, at what point do you sell out?
They do not have an absolute point of loss, or SELL conviction point.
It should be either percentage wise or a preset DOW level.
Most investors and advisors think that when they are down 5 or 10 %, they
are not down far enough and refuse to sell. That mindset continues until
they are down about 30 % or more.
Then the mindset changes from you are not down far enough to you are down to
far to sell. Let me tell you one thing right now. You're lucky the markets
stopped where they did in 2009. If the government hadn't stepped in and
literally poured trillions into the market, your firm or advisor or money
manager, believing markets always come back, would have ridden it AND YOU
all the way down.
Then the SELL point does arise in an investors mind by default and under
duress.
That "capitulation" point is usually down around a 75 or 80 % loss.
Investors then panic and want to get out with at least something and a
climax selling point is reached.
That's when everyone sells. It's called the climax bottom, and strangely
enough, that's where you should actually be buying.
Like I said, your lucky the market stopped where it did.
So I want you to ask your self, did your advisor call you and say sell? Did
your firm sell all your holdings somewhere down the slide? Did you sell?
Because if they didn't, or you didn't, then you fit this fault to a "T ". 
You NEVER HAD an exit strategy, they never had a fire door out, they never
really had a plan, and you never had a chance. And that's  where all your
money is, your retirement is, based on a game of chance. Don't take that
chance again. Plan an exit point and stick to it.
.
Fatal Flaw #4:
Owning a basket full of mutual funds is diversified.
Do you believe owning a basket full of mutual funds and or bonds or a
combination of both is diversified? If your portfolio owns only mutual
funds, money market funds and bonds, you are about as diversified as a wall
painted white.
If you own a basket full of mutual funds, why is that not diversified? Well
what do you all own?
All stocks! 
And which way does the market have to go for you to make money?
UP.
And if you own all US stocks, the US market has to go up. And remember, even
if you own foreign stocks, ALL STOCKS except contrary stocks, stocks that
move in opposite of the market, go DOWN.
If you own one stock or one mutual fund or a HUNDRED, if the stock market
falls, ALL STOCKS GO DOWN, no matter what company they are, no matter
country they are in, no matter how big the mutual fund is.
In the last market downturn, and indeed in major future market wipe outs,
ALL STOCKS GO DOWN.
So even if you own a zillion mutual funds, if the stock market crashes, YOU
CRASH WITH IT. True diversification should be balanced.
If something goes down, something goes up right. After all, diversification
MEANS BALANCED. And it doesn't mean owning a basket of mutual funds, that
all depend on a rising stock market, that all depend on an UP market.
If your portfolio from John Jones or Merrill Lehman or Infidelity or John
Smutz or your financial advisor holds all bonds and stocks, then again, you
are EXACTLY in what I am specifically warning you against. 
You are so NOT diversified. If what you hold sounds like exactly what I just
mentioned, you don't have a financial advisor, you have your life savings
invested with  someone that not in the least bit understands what investing
is really about, what protecting you is about, what diversification is
really about.
And one more fatal flaw in their investing strategy:  You know how much I
recommend and like dividend payers. Well first off, I am advising that you
only have a very small portion of your money in stocks, and its not because
of the market specifically, but because you should not have a big portion of
your money in any one asset. True diversification means owning many other
things BESIDES stocks. Think of a centipede with many legs. Only one leg
should be a stock leg. The other legs are just as easy to own but protect
you in so many other ways. These other "legs"  don't listen to, nor care
about a stock market crash.  You should also be in foreign currencies, some
savings accounts, some overseas bonds, some gold and silver, real estate,
some stocks that go UP in down markets, some foreign bonds, some overseas
accounts: basically many, many different areas, and again, only a small
portion in stocks. Furthermore, when you DO own stocks, almost ALL your
stocks should pay you interest or dividends in my opinion.
Why? If investor A owns a stock that pays 10 % interest or dividends, and
investor B owns a mutual fund that pays you nothing, (like most mutual
funds), which way does the market have to go for investor B to make money?
UP!
But if you are getting paid interest or dividends of 10 % (for example), you
make 10% while the other investor makes nothing. Compound that over 10 years
and investor A makes 2.5 times the money investor B makes, even if the
market goes nowhere!

And remember, since all stocks move together, dividend stocks will likely go
up just like the non dividend payers will if the market takes off.
18 % dividends will quadruple your money in 4 years while others sit waiting
for the market to go up.
Did you double your money in the last 4 years? Did you quadruple your money
in the last 8? If you are sitting in non paying mutual funds waiting for the
market to go up, your probably going to be waiting a long time. That's why
this DREAM PORTFOLIO may hold the key to much greater success, safety and
returns then any other investment plan and why its worth considering.

The four fatal flaws once again.
Buy and hold works - it does not.
Stocks always go up in the long run - no they do not.
No exit strategy- make one.
Holding a basket of mutual funds it diversified- no it is not. See the DREAM
PORTFOLIO.

And don't forget our WOMENS ONLY Money Class to be held November 29th .
Email me for details or see the SEEJANEDO Website!

Good Hunting,
Marc

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affiliated stations. 
Where I buy some of my gold and silver: What I call "Possession Gold". 
Monex Deposit David Feldberg   x 2216 
4910 Birch St., Newport Beach Ca 92660 
(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. 
Blanchard and Company, Inc.
P.O. Box 61740
New Orleans, La 70161-1740
Direct toll free number: (888) 727-7537
Rick Baugnon- (Please ask for Rich only as he knows what Marc recomends) 

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. 
Follow Marc Cuniberti on Twitter <http://www.twitter.com>  for daily Money
Matter updates. 

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