80 is the new 20?!?

Last Friday, this headline ran across the newswire…

The Great Oil Bubble Has Burst

It was published by the British fish wrap The Telegraph.

You can read the entire article here: http://www.telegraph.co.uk/opinion/main.jhtml?xml=/opinion/2008/08/08/do0801.xml

But before you do that, I want you to read the first sentence of the last paragraph of the piece:

"But for the time being, a return to a relatively "normal" oil price in the $60 to $80 range would take the sting out of the current inflationary surge..."

The last time the price of oil was in the $80-range was in October 2007.

It's interesting that all of a sudden $80 a barrel is "normal." I say this because I just read a bunch of articles regarding the price of oil that were published last September-October. Take a look…

• "Crude oil closed above $80 a barrel for the first time today, breaking a longstanding psychological barrier just days after oil producers tried to bring prices down by promising to increase output." NY Times, Sept. 13, 2007

• "Oil prices at $80 a barrel should be a source of happiness to crude oil producing countries. But the OPEC is not happy.
  
  Abdalla el-Badri, Opec secretary general, said in its first response to the current record prices that oil prices were high and would not last, because they are not supported by oil market fundamentals." - Financial Times, September 13

• "To listen to Big Oil executives, there's no reason why a barrel of crude costs $80.
  
  'No one has to wait at the gas pumps of the world. There is no physical problem,' Jeroen van der Veer, head of Royal Dutch Shell, recently told reporters in Calgary. '[There's] a lot of psychology in the price.
  
  Van der Veer's comments echoed those of Exxon Chief Executive Rex Tillerson, who said earlier this month that he "cannot explain why we have $70 oil today. We are not having trouble finding oil. There is something else going on that I don't get."

For over a decade, $20 a barrel oil was considered the price of a healthy and normal oil market. It was akin to 120-over-80 blood pressure.

Today, that price level is in constant flux. Nobody really knows what the healthy-normal price of oil is. But according to everybody who's proclaimed the oil crisis is over, $80 is now the new $20.

But we think the true value of oil is much higher than today's $114 a barrel price.

In fact, we're telling everybody it's time to buy on the dip and invest in oil.

Here's a great analysis of the current oil situation by Barry Ritholtz who writes the Big Picture blog:

Back in July, I noted that we had exited many energy positions, and would like to see Oil pull back to $105-110 to re-enter them.

This was a tactical, not secular, repositioning.

Why not secular? Well, for a few reasons. Commodity rallies tend to run decades, not years. And the rise of China and India means huge new demands on global energy reserves are going to keep prices elevated far above the old days of $30 oil.

But the biggest reason is this simple chart, via ITF Interim Report on Crude Oil:

Sources: Federal Reserve, IAE, ITF

Note that these aren't projections, but are actually based upon data.

You don't have to be a technician to look at that chart and recognize something new is going on. Back in 2003, global GDP began pulling away from Oil production. Note that Oil broke out over $32 shortly thereafter, and never looked back. In the annual BusinessWeek forecasts (2004), I was one of a handful of strategists who picked energy as my top sector.

It's also pretty clear that all of the hullaboo on offshore drilling is just so much political nonsense. Yes, we should be drilling. No, it won't make much of a difference in prices. Here's the usually circumspect John Berry, explaining why:

"It's absurd to argue that ending the moratorium on drilling off parts of the U.S. coasts would quickly bring down the high price of gasoline.

This chimera is being touted by President George W. Bush and other Republican politicians, including the party's presumptive presidential nominee, Senator John McCain of Arizona, to deflect blame for what it's costing for a fill-up.

To get around the fact that it would be a decade or more before any oil would be likely to flow, a few partisan analysts have said that the cost of gasoline would fall right away. They argue that the prospect of additional oil supply in the future would lead oil companies to produce more oil immediately because they would expect prices for crude to be lower later on.

Well, wouldn't that depend on whether a producer had the capacity to pump more oil today, and whether it thought lifting the moratorium would add a significant amount of oil to future supply relative to future demand?

There are good reasons to question whether another 1 million or 2 million barrels of crude a day would make much difference in prices when world consumption is running at 85 million barrels a day.

About a fourth of all U.S. oil production is already coming from offshore wells, primarily in the central and western portions of the Gulf of Mexico that aren't covered by the moratorium."

Such silliness.

We should be doing more of everything... investing in alternative energy, nukes, conservation, tax credits, solar, etc. Focusing on this one issue is simply to the exclusion of all else is childish ignorance. In this country, we keep refusing to make the difficult decisions. Everything requires a quick and painless fix. (We better wise up fast).

Hence, the pullback in Oil may be viewed as a short-term opportunity to invest and prosper.

Pickens' Plan Means Profits for You

The Pickens Plan is now common fodder among those who follow the energy industry.

And the Plan is already generating as many profits as it is media headlines.

But this massive market event is just getting started.

In fact, it's taking on a life of its own.

The Pickens camp has initiated an August call-to-action, urging people to recruit five friends to join the push at his website. They've also set forth a direct challenge -- complete with a massive petition -- for Congress to pass significant alternative energy legislation during the first 100 days of their new session.

But it gets better.

California has already set forth a ballot initiative that would allow the state to invest in the burgeoning market for natural gas-fueled cars and trucks. The measure, which currently faces no opposition, would free up $5 billion to fast-track the deployment of a million natural gas vehicles on California's roads.

Now here's the best part...

We've come up with a way you can make money from every natural gas vehicle sold, and continue to profit every time they fuel their tanks.

You see, the Pickens Plan isn't just a strategy to help wean us off foreign oil. It's also a strategy to significantly bump your portfolio... just as billionaire T. Boone Pickens is doing. And the profit taking is already heating up.

The following report contains all the details on how to start profiting immediately. You don't want to miss another day of this easy money.

To a new way of life, and a new generation of wealth,

Jeff

"One undeniable beneficiary of the Pickens Plan would be Pickens himself. He has bet $12 billion on a massive new wind farm in rural Texas and his BP Capital hedge fund is heavily invested in the natural gas industry."

-The Guardian, UK

How T. Boone Pickens and
The "Pickens Plan" Can Make You Rich

Dear Reader,

T. Boone Pickens recently revealed a plan that he believes could be the only real solution to reducing our dependence on foreign oil.

I know, that's a pretty bold statement to make.

But this is T. Boone Pickens we're talking about--the former Texas oilman who's worth about $3 billion...and just so happens to be the 117^th richest person in the United States!

I can assure you, Pickens didn't become a self-made billionaire by being on the wrong side of the energy markets.

So when he says he's found the only real solution to reducing our dependence on foreign oil, you might want to see exactly what he's talking about.

The Pickens Plan:
A $1 Trillion Transition

You may have only recently seen the ads for the Pickens Plan.But the fact is, this thing's been building momentum for a few years now.

You see, Pickens Plan calls for an estimated $1 trillion investment to displace electricity currently produced from natural gas with clean wind power. This allows the excess natural gas capacity to power cars and trucks.

It's an excellent "transitional" plan that can help alleviate hundreds of billions of dollars currently spent on oil, while creating thousands of U.S. jobs.

But the truth is, this "transitional" plan didn't begin with Pickens. It actually began in California, with a little-known "Clean Air Action Plan" that Pickens capitalized on the moment it launched.

Back in November of 2006--in an effort to drastically reduce pollution--the ports of Long Beach and Los Angeles adopted a clean air action plan. Within three years, this action plan requires the ports to:

• Achieve a 47% decrease in diesel particulate matter (PM) emissions from port-related activity (shipping AND trucking).
• Cut smog-forming nitrogen oxide (NOx) by 45%
• Achieve a 52% reduction of sulfur oxides (Sox).

Now understand, this is an area where more than 16,800 Class-8 tractor trailers are the only machines strong enough to transport the heavy containers to their destinations. And they transport a lot of them.

In fact, combined, these two ports move more than $260 billion worth of traded goods per year. And that number is expected to reach $1.3 trillion by 2025.

With that kind of money in play, you know there's a major opportunity for investors. And T. Boone Pickens was the first to the party. But now we're getting in on the action too, and...

Profiting from Pickens Plan

You see, in order to meet the new emission-reduction requirements, the South Coast Air Quality Management District, the state Air Resources Board and the EPA called for the replacement of more than 5,300 trucks with clean-burning liquid natural gas (LNG) trucks.

Essentially, they decided to go with LNG because it could help the ports meet their reduction requirements--but without having to add a hefty price tag to the transition.

And guess who got an early piece of that action?

You got it!

The one and only, T. Boone Pickens.

Pickens owns 40% of a company called Clean Energy Fuels Corp. (NASDAQ:CLNE). This is a company that provides natural gas for vehicle fleets in the U.S. and Canada. It actually designs, builds, finances, and operates the fueling stations too.

Seeing the writing on the wall, we recommended this company to our readers back in July, 2007, when the stock was trading around $13.24 a share. By October of 2007, the stock hit $19.60 a share--giving us a gain of more than 48% in less than 4 months.

Of course, that's peanuts compared to what I'm about to share with you now.

You see, although Clean Energy Fuels Corp. supplies the LNG, someone still has to supply the engines that run on the stuff.

After all, it's not as if GM and Ford are cranking these things out. They can barely stay in business as it is.

But there is a small Canadian company (of which 12 percent is actually owned by Pickens) that has designed what could be the most advanced, efficient engine on the planet. And it's powered by LNG.

In fact, it's so revolutionary it was awarded the 2007 Industry Innovation Award for alternative fuel trucks.

Bottom line: This engine and this fuel source, which is cheaper and cleaner than diesel, has proved to be the best stop-gap available that can handle the heavy workload, wear and mileage required by the ports and the drivers.

It doesn't hurt that Clean Energy Fuels Corp. is already supplying the infrastructure in the way of LNG fuel and fueling stations too.

But the best part is, this engine can actually be swapped with existing diesel truck engines that are already in service.

So no need to purchase brand new trucks!

In fact...

This Revolutionary Engine Could Actually Save Truck
Drivers and Companies Over $353.8 Million per Year!

Let's face it...everything comes down to the bottom line. And that's why this particular engine manufacturer is going to make investors an absolute fortune.

You see, as I write this, diesel fuel in the port areas in California is already well over $4.96 a gallon...and steadily on the rise.

And with the skyrocketing costs of fuel set to go even higher in the near future, truckers are desperately looking for ways to save on energy costs.

For them, even a drop of $0.05 gallon would save each truck, traveling 80,000 miles per year and getting an average of six miles per gallon - over $650.

But this engine has proved even better.

Once retro-fitted to a current semi, the new engine could save over $21,000 a year in fuel costs!

And with more than 16,800 of them servicing the port area, companies and drivers (depending on how the fuel arrangement is met) are looking at a total savings of more than $352.8 million per year.

With that kind of money staying in their pockets, it came as no surprise when, just this past January, the Ports of Los Angeles and Long Beach approved a $1.6 billion Clean Truck Superfund.

Check it out...

In fact, even retail giant Wal-Mart, which operates one of the nation's largest fleets, has joined this company in their natural gas revolution... having picked up four test vehicles to measure the money saved by the switch.

While Wal-Mart, the leader in low cost providers, is claiming the move is for "Clean-Energy Purposes," the reality is... they're looking at saving several million dollars a year in transportation costs.

And as more LNG fueling stations appear across the country (thanks to the Pickens Plan), and with the proven environmental AND cost savings of the switch--investors are now lining up for their share of what this little-known company is about deliver.

In fact, it's already started.

Since the announcement of the $1.6 billion "superfund," this little engine manufacturer has watched its share price skyrocket more than 96.2%

And this is in the wake of one of the most volatile markets in recent memory!

But for readers of the weekly Alternative Energy Speculator, this is just the beginning. Because now that the Pickens Plan is in full swing, we're expecting to tack on at least another 143% within the next 8 to 10 months.

I want you to join us.

In fact, I've already prepared all the exclusive details about this stock in my report, From Ports to Pickens: How to Profit from the Natural Gas Transition.

And I want you to have it - For FREE!

All you have to do is accept this invitation to test out my latest Energy Research Advisory, The Alternative Energy Speculator.

As soon as you do, you'll instantly receive access to this report, as well as a username and password for the Alternative Energy Speculator website. Here you can view past research reports and keep track of every stock in the AES portfolio.

In addition, every week you'll receive detailed updates on the companies in the Alternative Energy Speculator's portfolio. You'll learn how they're doing, the latest in their research, and any breakthroughs that come through in the sector.

Plus, the second we decide to add or sell a company, we'll contact you - instantly.

You'll know at what price to get in, how much you should expect to make, and most importantly, when to sell.

These instant alerts are too important for the weekly issue.

And that's not all!

We know that there's more to "easy" money in the world than strictly energy. In fact, while people think oil's the most important resource that makes the world go round, it can't touch our other area of expertise...

The number one resource you absolutely can't live without... water.

It might sound strange to some, but fresh water is in seriously scarce supply in many parts of the world. In fact...

• Only 2% of the world's water is freshwater.
• By 2025, nearly two-thirds of the world's population will be water stressed.
• 450 million people in 29 countries currently face severe water shortages.

And right now, out of the hundreds of water companies in existence, my team has located the five best on the planet. Each one services, and profits, from a different angle of the water industry - and in countries all over the globe.

You can read all about these companies and start collecting MASSIVE dividends today with your second bonus report, Water: Profiting from the Disappearance of the World's Most Valuable Resource!

The Cost for All This?

Here's the deal. Considering all the time that goes into uncovering these little-known but highly profitable energy plays found in the Alternative Energy Speculator, as well as the substantially larger gains involved, we had no choice but to make it somewhat pricier than our flagship Green Chip Stocks service.

In other words, we had to cover our own cost of unearthing these gems. Since we do a great deal of travel, meet with CEOs, and inspect many of the companies with our own eyes, it tends to get pricey... especially when you consider how many opportunities we turn down before we actually find one worth getting excited about.

That's why the normal membership fee to the Alternative Energy Speculator is $495 a year.

But listen. Because this is our introductory offer, I'm offering a one-shot deal:

Pick up the Alternative Energy Speculator, including your Bonus Report, From Ports to Pickens: How to Profit from the Natural Gas Transition, and the second water report, Water: Profiting from the Disappearance of the World's Most Valuable Resource, for only $199 a year!

That's more than 70% off the regular annual price - and you still get both reports, weekly emails, urgent buy and sell updates, and full access to the Alternative Energy Speculator site!

Extra Income Without the Extra Job

In just three simple steps, you could be eligible for 75 "work-free paychecks."

Each deposited directly into your account, automatically over the next 24 months.

This is "get paid while you sleep" money.

You don't work for a dime.

And you don't have to stop there.

You can keep tapping this stream of passive "paycheck" income for as long as you like.

Some people who do this retire early. Others pile the money on top of what they've already socked away, speeding up the growth of their nest egg.

It doesn't matter which you decide to do.

Either way, you start getting paid.

In fact, you can arrange for your first check to arrive just weeks from today. Possibly sooner, if you act quickly on what I'm about to show you.

How you spend your windfall is up to you.

Put the money aside. Or put the extra cash toward a new car... a vacation you've always wanted to take... tech toys for your den... or save it up to buy a second home.

Use the money to help put your grandchildren through school... or go back to school yourself and study something you love... make a fat donation toward a cause you believe in... or just leave the automatic deposits untouched, while you enjoy the security of knowing they will be there when you need them.

But whatever you do, you have to start somewhere.

Which is why I'm writing you today about a very unique opportunity that most Americans have ignored until very recently. It's a chance for you and anyone you care about to tap into what could be a lifetime of endless income.

Money you earn without thinking about it.

Using the same simple secret that some of America's wealthiest families have used not just to get very rich, but also to stay rich and get even richer, no matter what's happening in the grand economy or even on Wall Street.

This is not a "hot tip" headline secret.

It's not something most Americans even think much about. Or at least not something they've thought about much until recently, now that so many other options have run out.

What I'll do for you below is give you a glimpse of the three simple steps you can take ― steps many of America's financial elite take ― to open up a flow of this endless stream of income, directed straight into your bank account.

And then there's something I'll ask you to do for me. Something that could make you even more money, on top of the steady stream of checks you could soon see landing in your mailbox.

All this could start very soon for you, with your first checks arriving on these dates...

• August 15, 2008*
  
• September 15, 2008*
  
• September 30, 2008
  
• October 1, 2008
  
• October 15, 2008*
  
• October 26, 2008

* "Double Payout" dates.

How easy is it to get this started?

This may be the best part...

"[This strategy] is the hidden key... [if more people
did this], you would see a nation of happy
investors whistling their way toward retirement."

― Lowell Miller, 3-time author and CNN commentator

One of the best aspects of this is how easy it is to set up.

About five minutes on the phone with your broker. And that's it.

No running to your computer screen at every market blip. No taking notes or getting a ball in your throat every time the mainstream media flog amateur investors with the latest headlines.

No lying awake at night, staring at the ceiling. No anxious ticker tracking, phone dialing or running back and forth to the fax machine or your e-mail inbox.

All you do is wind up what I like to call the "paycheck portfolio" approach I reveal to you below... and let it do its thing. The checks should start arriving weeks after you take the three steps I reveal in this report.

In a recession. During a market crash. Even during a recovery.

And starting very soon.

And don't think you need a fortune to make this work. Because I can prove to you that's not the case.

How so?

I'll show you how to use this same strategy not only to collect regular work-free "paychecks"... but to quickly make the size of those checks grow over time, automatically.

But let me back up and show you how this is already working...

And for millions of Americans very much like you.

The $615 Billion Cash Hoard Companies Would Love to Park in Your Bank Account

Right now, you'll find there's at least $615 billion in cash out there, just waiting to get carved up and sent out in the form of passive "paychecks."

Millions of Americans have already discovered this secret.

And they're already starting to collect...

• Just this past spring, Richard M. collected two passive "paychecks" worth $3,314 each. He's collected many more just like them. And he'll collect more, on top of that, over the weeks and months ahead
  
  
• Steve R. got paid $3,600 on April 9... collected another check for $4,200 less than a month later... and took another $3,481 two weeks after that. Without lifting a finger
  
  
• Former chauffer Vern J. used to drive rich people around to make money. He just got a check recently for $7,700 ― money he "earned" in his sleep
  
  
• Gary C. almost died on Sept. 11. Today, not only is he doing fine, but he just received an automatic passive "paycheck" worth $25,610 ― with more just like it on the way
  
  
• What would you do with an extra $8,809 windfall? That's what Daniel F. got paid in the check he automatically received on June 6, 2008. He'll have gotten more just like it by the time you read this
  
  
• Jeff E.'s passive "paycheck" deposits are worth an estimated $27,636 each. And he's eligible to get several of those checks sent to him automatically, each year
  
  
• 50-year-old Marty M. doesn't really need extra cash. But that won't stop him from banking his next passive "paycheck," for an estimated $53,331, just weeks from the day you read this letter
  
  
• Ian R.'s most recent passive "payday" topped $88,719
  
  
• Then there's Jeff K. His passive "paycheck" on April 8, 2008, totaled around $98,057. That's just one of many passive "paychecks" he'll collect this year.

How are they doing it? With a process much simpler than what most amateur stock traders, options players or even gold, property or other kinds of investors use...

Three Simple Steps to Lock in a Lifetime of Endless Income

It's true ― some of the fat-cat investors who do this have special access to this cash pool.

And get paid handsomely for it.

Like retiree Henry M., from Canada.

Thanks to his personal "paycheck portfolio," he's eligible to collect several of these passive "paychecks" per year ― with at least four of them worth more than $630,000 each.

But after discovering just how many rich families and well-known investors did this with their money... to successfully build wealth in all kinds of markets...

I put my own analytical skills to the test and boiled down the whole process of finding the same kinds of opportunities to just three simple steps. They're filters, really.

To help you find the safest, most reliable, yet highest-paying streams of passive income. Money you can count on to keep working for you, even if the rest of the financial world is tanking. Even if other investments look like they're stuck in the mud.

Just doing this, you'll tap into one of the most powerful passed-down wealth secrets of the richest families in America.

Yet the steps that make it possible are so simple, I'm almost embarrassed to share them:

• Step One: Lock in income streams that build your wealth faster than inflation
  
  
• Step Two: Focus on income streams that will grow even bigger with time
  
  
• Step Three: Look for a passive income stream that won't "retire" when you do.

I've written a brand-new research report that shows you how to make each of these steps very easily. This new report is called The Ultimate Paycheck Portfolio: Double-Digit Yields... Even in Flat Markets. It shows you how to apply each step quickly, allowing you to start collecting income checks within just a few weeks of reading this letter.

Once you get the ball rolling, this can start happening surprisingly fast. Hundreds of dollars each month. Thousands of dollars. Even hundreds of thousands of dollars, just piling up in your account.

As you'll see in my new report, it's up to you how involved you want to get in the beginning. You can get started with very little. And you can take this to any level you need.

Some who do this might make $1,500&ndash2,000 extra per month... early on. With that amount growing by as much as $5,000... $8,000... $10,000 or even $15,000 extra. Doing what I show you in the report.

It can be an extra "safety net" for you.

It can even be a "lifestyle upgrade."

As you'll see, your copy of The Ultimate Paycheck Portfolio: Double-Digit Yields... Even in Flat Markets leaves the decision up to you.

Even better than just the steps, however, are the six specific "paycheck portfolio" opportunities I lay out for you in the report. See, not all income-cranking moves are created equal.

The six I show you in The Ultimate Paycheck Portfolio: Double-Digit Yields... Even in Flat Markets represent months of research to help you find the best possible moves you can make right now to increase your steady flow of passive monthly income... with the least amount of risk.

You'll read about each of these moves. Then I'll show you in the report exactly how to turn each of them into "paycheck" paying plays... that will feed directly into your account in the weeks and months ahead.

It's that simple.

Here's a glimpse of what you'll find inside...

Automatic "Paycheck" #1: An $838.4 Million Giveaway You Can Still Tap This Year

Here's a great example...

Since 1997, this first move has quietly doled out $838.4 million to people just like you and me, in the form of these passive direct-to-cash "paychecks" I'm telling you about.

Why would it do that?

See, here's what's happening.

These handsome payouts get doled out regularly by companies loaded with "extra" cash.

I know, in these days of soaring debts and wild spending, the idea of having too much cash to spend might strike some people as strange.

But if you knew more about markets, you'd already know that there are a few great reasons for companies to share cash directly with individual investors.

First of all, the checks we're talking about are shared with only these cash-paying companies' shareholders. And who usually owns the most shares of all in any given company?

The board members and insiders.

Doling out cash incentives to shareholders is a great way for them to take extra cash flow out of the business at a lower tax rate. When they get salaries or bonuses, that money gets taxed as income.

But not these passive "paycheck" payouts.

Of course, you get the same lower tax benefits on these payouts, too.

Another reason cash-heavy companies love to share cash with shareholders is that it's a great way to reward loyal stock buyers and keep the shares stable, or even rising, during rough markets.

It's that simple. The companies that can afford to give away the cash do better by doling out cash to you than by lending the cash or spending it themselves.

And that's exactly what this first "paycheck" payer I've found for you loves to do. Especially now that it's piling up cash in one of my favorite hard-asset, inflation-beating industries... timber.

That's right. Wood.

Here's the thing. Timber stocks tumbled as housing construction slowed. But Asian timber demand has remained massive... which is a fact many hair-trigger market amateurs have completely overlooked.

Meanwhile, because of the nature of the business, this company also works something like a REIT ― the real estate trusts that get taxed at a minimal corporate level ― maximizing even more cash to dole out to you, as a shareholder on the company "payroll."

But with this specific move, here's the best part...

You Get Paid no Matter What

When timber demand is high, the cash rolls in.

And indeed, this company just had a knockout year.

But even when demand slacks off ― unlike with most other businesses ― the timber assets just get more valuable. Even sitting still, they can grow in value as a company asset by as much as 10% per year.

Can you imagine if your house... your bank account... the value of your car or any stocks you might own... could all automatically grow 10% more valuable, year after year?

This, plus the continuing surge in Asian demand, leaves this company flush with piles of cash to divide up among shareholders, in the form of personal checks, sent to you directly in the mail.

Act before this company's next deadline and you could be one of the lucky few collecting checks from this company throughout the year.

Here's something else...

Your Automatic Payout Opportunity: This first move pays you back a fat 9% return on the value of the shares you hold in this company. That's already nearly three times what some people collect on CD accounts. And I expect it to jump over 10%, based on estimated distributions for next year.

This is one of a few companies doing this that loves to fatten up "paychecks" even more when the money is really flowing. For instance, that's what the board of directors of this company did in October last year.

After having a banner month, they got together and decided to double that month's payout.

Could you double your "paycheck" payout this time around, too?

There's always that possibility, provided you take the steps I show you before the coming deadline on this first opportunity.

Read The Ultimate Paycheck Portfolio: Double-Digit Yields... Even in Flat Markets for full details

Here's another one...

Automatic "Paycheck" #2: Every Month, a Juicy 12.4% "Paycheck" on One of Wall Street's Safest Bets

Make this second move and collect a fat "paycheck" payout worth an automatic 12.4% annual return on anything you put into the play. You'll get checks for this second move sent out to you, payable as cash, on the 15th of every month.

Why so much?

There are other income-paying plays out there that offer much more. But they're dangerously risky. There are others out there that are clearly safe, but pay radically less.

Where does a high-paying play like this fall?

Right in the middle, with a nice juicy monthly payout... but surprisingly low on the side of risk. How so? Because it's narrowly focused on another of the most reliable long-term trends on Wall Street ― the soaring supply-and-demand cycle of energy.

See, this second move is a simple energy trust.

I'm sure you've heard something about these.

They're pools of cash created by well-heeled investors for the sole purpose of finding and controlling fat deals on oil and gas properties. Usually in Canada.

And that's exactly what this second move does, too.

It owns a string of rich drilling sites across the oil-rich Alberta Basin.

But here's why it has a double edge over other energy trusts...

First, it has a unique investment in extracting, producing, storing, marketing and shipping what's called "LNG" ― liquid natural gas. Usually, the LNG market has its biggest demand in the winter. But this company has just lined up to service a lasting surge of big LNG trade with Asia.

The deals this company has in place already stretch into 2009 and beyond.

What's more, this company gives you a second advantage: longevity. Remember, we said one of the key steps to a solid "paycheck portfolio" is making sure it keeps on paying long after you retire. And this one ― unlike many other energy trusts ― looks as if it will.

Your Automatic Payout Opportunity: This company has paid shareholders at least 12.25% gains automatically on the value of its shares since the company first opened its doors in March 2001. That means it's held true on its promise to take care of income first for 87 payouts in a row. With energy still hitting record highs, this could easily be a long-haul income stream for you, too.

Every year, its cash pile keeps getting bigger. From $128 million in 2003 to $468 million in 2007... with an even bigger pool on target for the end of this year... and no plans to stop shelling out payouts to shareholders over the years ahead, even with much talked-about changes coming in Canadian tax laws (which don't apply to investors outside Canada at all, naturally).

Send for my new research report, The Ultimate Paycheck Portfolio: Double-Digit Yields... Even in Flat Markets.

You'll read all about this second "paycheck" paying move and how to start getting paid regularly by this opportunity, on the 15th of every month.

Use a move like this to sleep better. Use it to "upgrade" your way of life. Or use it just so you can make sure you don't ever have to worry about running out of money in retirement.

And here's a third way you can make this "paycheck portfolio" strategy work for you...

Automatic "Paycheck" #3 The Family Business That Makes Billionaires

I love this third "paycheck" producing move.

And you're going to love it, too.

For one thing, it may be one of the world's most reliable ways to get paid for just holding shares in a company, big or small. See, this third "paycheck" paying company has stuck around since 1977... and it's made a profit every single year.

Even some of America's biggest and "best" companies can't make that same claim.

Something more: This third "paycheck" paying outfit is family owned.

The family controls 44% of the shares.

Does the family put its money to good use?

Since 2002 alone, it's handed out over $230 million in shareholder "paychecks." You can easily qualify to collect a share. In fact, I believe it's getting ready to hand out more than it usually does.

How so?

First, let me name the "mystery" opportunity I'm talking about.

You'll find this company operating in the one "silent" industry that drives almost everything you know about the world economy. An industry that moves over two billion tons of oil per year... along with most of the world's wheat, rice and grain... steel... iron ore... coal... cars... flat-screen TVs... raw minerals... soybeans... you name it.

I'm talking about shipping.

A good shipping company can take in as much as $40,000 per day on each ship it has in the water. And this "paycheck" paying shipper I name in my report has 42 working ships in its fleet.

That already makes it one of the world's most dominant players.

And like most other shippers, it's loaded with extra cash. And itching to dole that out to its shareholders. But here's an extra edge that makes this one cash-paying company that I'll name even more attractive than all the rest...

The April 2010 Law That Could Double Your Money

See, for all international shippers, there's an international mandate coming that's about to change everything. After too many spills, too many accidents and too many close calls... by April 2010, every shipper must have double-hulled tankers.

No exceptions.

As you can imagine, that means huge expenses for hundreds of shipping companies. But unlike many of its competitors, this company already has double hulls on all of its ships. What's more, its entire fleet is about half as old as the other ships running the trade routes.

What does that mean for you?

As that 2010 deadline gets close, business ― and cash flow ― for this company should skyrocket.

That means a lot more cash to dole out to you, in the form of "paycheck" payouts.

Your Automatic Payout Opportunity: Insiders have just snapped up 392,000 of their own shares. While still paying a handsome 7% automatic return to shareholders, in the form of cash "paychecks." That's double what it doled out in 2005. And it says nothing about how much your money could grow just in the value of the shares themselves. This could be the best combined growth and income stock you'll come across anywhere.

In fact, this third company just had a record jump in profits. Plus, it's got another six ships joining its fleet over the next 18 months. With each ship taking in about $15 million in shipping fees every two years.

You'll find this move, along with the first two, detailed in full in The Ultimate Paycheck Portfolio: Double-Digit Yields... Even in Flat Markets.

I'll tell you how to get your copy in just a second.

But before I do, I should introduce myself...

What You Can Learn With $200 Million

My name is Chris Mayer.

Maybe you've heard of me.

I show up every now and then on financial shows like Fox's Bulls & Bears... Forbes on Fox... and the CNBC financial reports.

I've also written a popular book, Invest Like a Dealmaker: Secrets From a Former Banking Insider. I say this not to brag, but just to show you just how seriously I take everything we've talked about so far.

See, I'm not your average analyst.

And I'm not a broker. Frankly, I don't care for Wall Street.

I'm a banker. And something of a market "geek."

I've loved studying finance and commerce for as long as I can remember.

Even before I hit 30, for instance, I was vice president of one of America's oldest and prestigious lenders, Provident Bank. I read essays written by Austrian economists during breakfast.

How big a difference is that from what you might expect, say, from a broker who cut his teeth on Wall Street? We couldn't be more different. For one thing, your average Manhattan market jockey rarely has his own neck on the line.

He's trading "other people's money."

Not the same for me. One of the things I did for the bank, for instance, was manage a portfolio of about $200 million of the bank's own money... while making the final call on multimillion-dollar lending deals for companies worth $400 million or more.

I didn't have the luxury ― or desire ― to gamble with the bank's money the way some brokers do with private investors accounts. Banks take protecting their own cash pile seriously.

Whereas your broker might glance at a shareholder brief before calling clients on the phone, I had to get under the skin of a company to do my evaluations... burrowing deep into the numbers... digging out hidden liabilities... beyond price-to-earnings ratios and the other standard smoke-and-mirrors myths Wall Street brokers love to swear by.

I learned quickly that to really know where your money is going, and to get a return on that money, you have to do a full exploratory exam of a company's books so thorough it would embarrass even an IRS auditor.

I use exactly those same techniques now when looking for investment opportunities. Just like the ones we've already talked about. And just like the rest of the six opportunities I name for you in the copy of The Ultimate Paycheck Portfolio: Double-Digit Yields... Even in Flat Markets I'd like to send.

For instance, here's another one...

Automatic "Paycheck" #4: The Safest Double-Digit Payout In America

What's the safest thing you can own during rough markets?

You want to sock your money safely away in the things people can't do without.

Bridges, roads, airports, food, water, power... infrastructure.

For instance, you might never give a second thought to the miles of power lines that feed electricity into our cities. But no matter how bad the economy gets, we need them.

And this next company I'll show you dominates that market.

Not just here in the U.S. It controls over 5,000 miles of transmission lines in Chile. Plus another 1,300 miles of lines in Brazil. And 340 miles in Canada. All told, more than $494.4 million worth.

It's also got 634,000 acres of Vancouver timberland. And another 588,000 acres of timber in Oregon and Washington. That's built-in protection against soaring inflation. That's a lot of security, in a time when most Americans could really use some.

Your Automatic Payout Opportunity: Right now, this doles out automatic "paychecks" worth 5.3% of anything you put in, which you can leave there untouched. But here's an extra bonus: Even as I write, this solid company has grown shareholder money by a handsome 26.3%. Tie together the payouts and the growth and you could be looking at making a safe, solid 10&ndash15% per year, on this one move alone.

What's more, because this stock has such a well-spread stake outside the U.S., it's less than 30% correlated to the Dow. That means this company can still thrive, even when the U.S. markets are tanking.

You can see how this adds up when you roll each of these moves together.

One "paycheck" after another, feeding directly into your accounts.

Here's one more...

Automatic "Paycheck" #5: What Could Be Better Than Making 280%... "Tax Free"?

From March 2000 to the end of June 2008, this next company ― which you'll find right along with the others, when you let me send you a copy of my report, The Ultimate Paycheck Portfolio: Double-Digit Yields... Even in Flat Markets ― grew every shareholder dollar by close to 280%.

That's good already.

Here's why I expect it to get even better...

See, some of the best and most reliable "paycheck" payers you can own are companies that run pipelines. Especially when energy demand is high. And rising. Why?

Because owning a pipeline is like owning a highway. You get to collect a "toll" from other power companies for every cubic feet of energy that courses through your network.

And this company owns over 565 miles of energy pipelines running from Oklahoma to Missouri. Plus another 7,900 miles of gas pipelines running from gas fields to power utilities.

Here's the best part...

Tax-Free Money, Paid Directly to Your Account

Imagine if you could slash the taxes on the income you collect.

Even better, imagine if you could legally get away from not paying income taxes at all.

That's exactly what this company I'll name for you gets to do. How so? It's part of the clever way it's set up its partnership, allowing it to snap up assets and shelter them under a kind of tax-proof umbrella.

I can give you the full details inside your copy of The Ultimate Paycheck Portfolio: Double-Digit Yields... Even in Flat Markets.

What it adds up to is that none of the partners on the inside have to pay income taxes on the money they pull out of this pipeline company, either.

And neither do you, until you sell off your stake in the "partnership."

The only catch? You file an extra form at tax time. That's it.

Of course, I will explain to you exactly how this works in the report. But it can add up to a lot of extra money for you. Just because of the unique way this next "paycheck" payer set up its business.

How big is your share of the payout? Better than 10%, paid automatically on every dollar you put in. And that's something you can count on, too. How so?

Your Automatic Payout Opportunity: Anything that pays better than 10% automatically, year in and year out, is already a great return. But this one move has also beefed up its payouts by 10.4% every year for the last five years. So you could be looking for a lot more with this one move, with each "paycheck" that's deposited in your account. And the tax benefits make it all the juicier.

Not only has the partnership beaten the minimum it's supposed to pay for the last 23 quarters straight... it's also raised that amount for the last seven quarters in a row.

Of course, you can read all the details in The Ultimate Paycheck Portfolio:Double-Digit Yields... Even in Flat Markets

But remember...

With every one of these moves, you'll need to act quickly...

Act Before the Next Deadline or Your "Paycheck" Goes to Someone Else

Over the next eight quarters, we're looking at as many as 75 "paychecks" doled out by the companies you'll find named in your copy of The Ultimate Paycheck Portfolio: Double-Digit Yields... Even in Flat Markets.

The next "paycheck" payout date you could be eligible for is August 15th, 2008.

Act in time and qualify. Or wait and miss out.

Why miss the opportunity when you don't have to?

Personally, I'd hate to see that happen.

So I'll tell you what I'm going to do.

Just to help you decide to act on this quickly...

I'd Like to Give You the Rest of My Moneymaking Stock Research to Try at no Charge, for a Full Year

Earlier, I told you about the $200 million I managed during my tenure as a bank vice president and commercial lending analyst. I'm proud to say the bank never lost a single nickel on any of the multimillion-dollar lending deals I helped write.

I take pride in that record.

Just as I take pride in a whole new kind of record I've started piling up. With a whole new string of winning recommendations I'd like to start sending you, with your permission.

See, even back in my days at the bank, it wasn't long before I realized all the deep analysis I did there... analysis that piled up fortunes for the bankers... could work just as well helping private individuals grow their fortunes, too.

So ultimately, I decided to walk away from my banking career to break out on my own.

That's when I launched an elite analysis service I call Capital & Crisis. At the start, I meant it only for top industry players. And including about 150 of the sharpest minds on Wall Street, they lined up to get it.

I could have stopped there, but something even more monumental happened.

I met the head an international market research service... with over 119,000 paid-up members... who had an estimated combined net worth of over $14.7 billion.

And a whole new chapter of my story began.

How 24,000 People Discovered the Secret to "Hands-Free" Investing

Addison Wiggin, the head of the internationally renowned Agora Financial research team, begged me to bring Capital & Crisis into its inner circle of quality services.

Quickly, my "insiders" newsletter exploded to include over 24,000 readers. And you can bet I'm even more proud now of what we've been able to do together, with a whole new stable of international research resources at my fingertips.

My network of top-level contacts has exploded. I've taken my readers to opportunities deep in unexplored pockets of the market... across America... and overseas, even to China.

And we've managed to cram our pipeline with one solid, safe gain after another. Not just of the kind we've talked about here today. But with diverse winners like...

Leucadia National +109% Brookfield Asset Management +115% CNX Gas Corp. +44% ABX Air +38% Walter Industries +44% AVX Corp. +12.4% Ameriprise Financial +77% Grupo Aeroportuario del Sureste SA +100.3% Agrium +232% Plum Creek Timber +28% Goldkist +39% Arch Capital Group +45% Presidential Life Corp. +65% Rosetta Resources +11.2%

Intrawest Corp. +72% Orient-Express Hotels +109% Companhia Paranaense +121% Imperial Sugar Co. +145% Catellus Development Corp. +24% FEMSA +29% Chiquita Brands Intl. +52% Bandag +18.3% Industrias Bachoco +19.75% Questar +113% San Juan Basin Royalty Trust +144% Guitar Center +151% Sovran Self Storage +155% Popular Inc. +165%

We're not doing this in fits and starts.

My strategy lets us see gains more consistently.

I'm telling you this because I'd like you to share in this success.

I'd like to start sending you Capital & Crisis.

At no charge, for up to a full year. Free.

Why? Because I want more people like you among my subscribers.

They're not gamblers with their money.

We're not banking their futures on the next highflier.

Instead, my readers and I would rather lock in smart gains safely. Without sacrificing performance, but without taking risks we don't need to take, either.

I see lots of other services that don't bother with that approach. And I wish them and their readers all the luck in the world. But to be perfectly honest, there are very few companies strong enough to make it into my model portfolio.

And I sincerely believe you're the kind of person who will appreciate that. Just as so many of my other readers do. They write me to say as much. Take a look at some of the things they've said...

"The Best Newsletter I've Found So Far"
"I just want to say that I have subscribed to quite a few investment newsletters before, and this is the best one that I have found so far. You have turned me from a trader into an investor with your investment insights. I would just like to thank you for this newsletter. Keep up the good work."
― R.D.

"Chris Has Grown My Investment by Fivefold in a Month"
"You recommended a short sale of Japanese bonds through Chris Foster at Friedberg Mercantile in Toronto. I followed your recommendation, and through careful and constant attention, my small $5,000 investment has grown by over fivefold in a month... I enjoy and look forward to your monthly communiqués. Keep up the good work!"
― J. Redmond

"I Will Be a Long-Term Subscriber"
"I just subscribed to Capital & Crisis this month. I've been reading through the back issues of your newsletter, and I just wanted to tell you how impressed I am with your writing style and content (and your track record too, of course). Reading through the archives is like getting a university-level education on sound investing principles. I am very much impressed with your letter and think it is very likely I will be a long-term subscriber."
― L. Prokop

"I Wish I Had Been Reading Such Thoughtful Analysis 24 Years Ago"
"After spending 24 years in the investment business (and building assets under management to $350 million), your insights are probably the best I have seen. Your study of the great money managers, past and present, and your ability to succinctly distill, explain and relate their philosophies to your specific recommendations is a true talent. I only wish I had been reading such thoughtful analysis 24 years ago."
― S. Ostlund

"It's Probably the Smartest Letter I've Ever Seen"
"I'm quite a new subscriber, but I must say that I really love it. It's probably the smartest letter I've ever seen, and believe me, I've seen a lot of them in more than 10 years. Congratulations for the good job."
― M. Dejolier

What I'm saying is simply this.

I believe we share the same ideals.

And that's more than enough reason for me to have you on board with the rest of us. See, Capital & Crisis is not just a newsletter to me; it is a reflection of my ability to provide successful investment recommendations to my readers on a consistent and reliable basis.

I take pride in the opportunity to bring big returns to readers who believe in my work.

And I'd love an opportunity share that work with you, too.

It's really that simple.

The undiscovered bargains... the rock-solid "lifetime stock" performers... the shockingly safe big growth opportunities... heavy-hitting income producers... you'll find them all in one issue and update after another.

And as I said, I'd like you to have all that free of charge for up to a full year.

Why Give It Away Free?

Think of it as a backstage pass... that lasts all year.

And doesn't cost you a penny.

That includes an issue every month, packed with my best new research and all my latest recommendations. Along with research updates every single week. And around-the-clock access to the private members-only Capital & Crisis Web site.

Normally, that would cost you the published price for Capital & Crisis, which is $159 per year.

But with this special invitation, your cost to sign up is $0.

For up to 12 months.

Is there a catch? Absolutely.

But it's one I'm sure you'll also appreciate...

How to Lock in a Lifetime of "While-You-Sleep" Wealth, Starting Today

My publisher hates it when I give stuff away for nothing.

So I had to make him a deal.

To get your full year of Capital & Crisis as a gift, all you have to do is send for the brand-new report we talked about, The Ultimate Paycheck Portfolio: Double-Digit Yields... Even in Flat Markets.

Inside this report, you find out how to become immediately eligible for up to 75 extra income "paychecks"... that could start arriving in your mailbox weeks from today, and continue uninterrupted for the next 24 months. Or longer, if you decide that's what you'd like them to do.

In return for this... plus the extra gift of the monthly Capital & Crisis issues, the weekly updates and 24/7 access to the private members-only Capital & Crisis Web site... you pay just four installments of $14.75 every three months for one year.

That's it. For everything.

Let's take a look at how that adds up.

You're getting...

• At least one full year of my popular Capital & Crisis monthly research letter (published price value of $159, but yours free to try along with this report, for 12 full months)
  
  
• Updates every single week on every important piece of news on the markets and all the picks in both your report and the Capital & Crisis members-only portfolio (a $79 value, but yours free)
  
  
• Complete online access to the entire bank of Capital & Crisis issues and update archives (an $97 value and normally reserved for paying members only, but yours free)
  
  
• Plus, if you're not a subscriber already, I'll also make sure you get a FREE subscription to the highly praised and widely read Daily Reckoning. And finally you'll get elite access to the Agora Financial Executive Series, a members-only dispatch of two profit-laden e-mails, the Rude Awakening and the 5 Minute Forecast. Both will alert you to specific investment research and recommendations from across the markets we cover.

Altogether, that's $335 of research right there.

Yet you pay for only the report.

Either in four easy installements or even better choose to cover the whole cost of the report upfront, and I'll throw in an extra brand-new research report, Buy and Hold This Stock for Unlimited Upside.

That's just 16 cents per day, spread over a full year.

And everything I mentioned is included, along with your order.

If you'd like to try everything for two full years, I'll give you two more special reports ― India Rising: The Three Best Ways to Profit From India's Explosive Growth and Four More Blockbuster Stocks You Can Get at Huge Discounts to True Value ― plus double the number of Capital & Crisis issues and weekly updates, and everything else we just talked about above.

You can find the full details by clicking the button below.

One more thing...

Love All This for a Lifetime... Guaranteed

Collecting the 75 income "paychecks" I tell you about in your copy of The Ultimate Paycheck Portfolio: Double-Digit Yields... Even in Flat Markets is so effortless you can literally do it while you sleep.

But I want your trial experience with the rest of the research I've promised you to feel just as effortless, too. That's why I insist on making you this unconditional guarantee...

Along with your copy of my new report, try the rest of my research and see if it's for you. If you decide it's not, you're invited to cancel anytime up to 12 months for a full refund. Even if it's the last day of your final issue. You get to keep everything I've sent, no questions asked.

Why would I make such an unrestricted promise?

First, because I know that the bigger a guarantee I make, the harder I have to work to put my money where my mouth is. And that's perfectly fine with me.

But second, because I know something you don't.

Which is that, so far, my research service Capital & Crisis has one of the highest "renewal" rates in the newsletter industry. That means my readers like what they see enough to sign up again and again ― year after year ― at a higher rate than you'll find with just about any other service you'll come across.

That's why I'm happy to give you a chance to see what we do.

Because all I want is the chance to earn your loyal readership, too.

Let me hear from you soon, so I can rush you your materials.

Economic Tectonics

Some of the greatest economic shifts in history are associated with big political swings, if not with politicians by name. Think of Hooverism, Roosevelt's New Deal, Reaganism or British Thatcherism. But those are just labels. Things are not as simple as they imply.

They're like plate tectonics in the field of geology. An earthquake can often be quite a serious event. But one earthquake is just an indication of the presence of a fault, if not a complex fault system. And that fault system may be part of a vastly larger structural zone at the edge of a shifting continent.

When it comes to major changes, you have to keep something clear. Earthquakes don't move continents. In the big scheme of things, moving continents cause earthquakes. Something similar occurs with economic events.

The Great Depresion, Hooverism and the New Deal

For example, the Great Depression in the U.S. is associated with the administration of President Herbert Hoover. The term "Hooverism" is commonly used to describe government mismanagement of the economy while things slide from bad to worse.

But the truth is that the market excesses that led to the stock market crash in October 1929 (only seven months after Hoover took office) occurred in the mid- to late 1920s, with Calvin Coolidge in the White House. And many of the monetary excesses of the 1920s had their roots in excess U.S. spending by the Wilson administration during the "Great War," as World War I was called before there was a second.

And looking back at the 1930s, the growth of big government in the U.S. is associated with the presidency of Franklin Rosevelt.

True enough, the New Deal was a Roosevelt campaign slogan.

But Roosevelt's plan to close the banks after his inauguration was drawn up during the last six months of the Hoover administration. And many of the great public works projects of Roosevelt, such as the Tennessee Valley Authority or construction of dams on Western rivers like the Colorado or Columbia, were drawn up under the Hoover administration. (Why do you think that they eventually renamed Boulder Dam after Herbert Hoover?)

Reaganism and Thatcherism

Much later, the seeds of Reaganism were planted during the preceding administration of President Jimmy Carter, who appointed Paul Volker to run the Federal Reserve. Indeed, it was Volker's sharp increases in interest rates that broke the backs of the Vietnam-era inflation and the stagflation of the 1970s.

Volker's policies allowed the Reagan-era tax cuts and supply-side policies to gain traction. Without Carter's appointment of Volker, we would probably never have heard the term "Reaganism" or "Reaganomics." The economic boom of the 1980s might never have occurred.

And let's take a look at Britain's "Thatcherism." This concept has become almost synonymous with strong growth monetarism in the U.K. Looking back, Margaret Thatcher is often credited with defeating British inflation and ending an era of heavy-handed government spending and control.

Of course, there is no denying the important and bold policies that Margaret Thatcher pursued. Or Thatcher's good fortune to be prime minister during the early and successful exploitation of the oil resources of the North Sea.

The Easiest Way to Play Options… Ever

It's easy to be turned off by even the idea of options investing. Sure you can make huge gains…but is it really worth the risk?

Well, in this exclusive report, we'll explain how you can throw away most of that risk…and keep your huge gains.

But monetarism in the U.K. dates from 1976, three years before Thatcher came into office as prime minister. That was when a Labor government accepted a loan from the International Monetary Fund, paving the way for Britain to prosper under Thatcher.

Deep Roots, Visible in Hindsight

The point to keep in mind is that major economic trends do not just appear and disappear with the coming and going of politicians in office. (We should be so lucky!) The roots of things are usually quite deep, perhaps apparent only in hindsight.

Thus, you want to be careful of assuming that the upcoming U.S. presidential election will usher in some new era of economic policy. Epic changes in economic trends do not simply appear when voters dismiss one bunch of politicians and ask a new bunch to do things differently. In many respects, the dice are already loaded for whichever of the two candidates prevails on Election Day.

It is not overstating the case to say that large-scale change tends to happen abruptly ― and not uncommonly ― when the previous policies collapse under their own weight. As history shows, it is often the politicians on their way out (for example, Hoover or Carter) who are forced to change things once it becomes clear they have failed.

Monetary Excess, Tectonic Policy Shifts

The excess credit creation by the U.S. over the past 10 years has been a policy failure of historic proportions. We witnessed serial bubbles in technology, dot-coms, housing and now energy and commodities. These bubbles were related to horrible distortions within the larger financial system.

Thus, within the past year, the lame-duck Bush administration has presided over a huge expansion of the government's role in finance. The Bear Stearns bailout brought about a sea of change in policy. Now investment banks, not just commercial banks, may borrow directly from the Federal Reserve.

More recently, the Fed announced that it would lend to Fannie Mae and Freddie Mac. These two nominally independent firms guarantee or own half the mortgages in the U.S. And not to be outdone, the U.S. Treasury also stated that it would intervene to buy the agencies' stocks if they stayed under pressure from short sellers.

Perhaps this is not quite the scope of FDR's New Deal. Then again, the New Deal was about building roads, bridges and dams, not bailing out failed banks.

But the new government intervention to bail out large financial players signals a remarkable change in national economic policy. And it has not come about at the behest of the voters.

This new set of government guarantees to investment banks and Fannie and Freddie will be difficult ― perhaps impossible ― to reverse. Thus, the new situation will simply be "the way things are" when either President McCain or President Obama takes office.

What will this mean to the future of the U.S. dollar? Among other things, it means that the federal government will be spending tens or hundreds of billions of dollars to bail out bad investments by investment banks and Fannie and Freddie. And in turn, the government will not be spending dollars to fix national infrastructure like roads, bridges or water or energy systems.

And long term, it is probably bad for the value of the dollar. Which is why you should be sure to preserve some of your savings and purchasing power in precious metals like gold and silver.

Inflation on the Run

What happened to stagflation?

Big news yesterday: gold dropped $36.50 � to $828.

Oh la la...and our "Trade of the Decade" � long gold, short stocks � still has a year and a half to go. Looks like we should have ended this trade a few months ago, when gold was pushing up to $1,000.

What's going on?

Well, it appears that the feds are losing the battle. We have the 'stag'...but no 'flation.' All over the world, in almost every sector of the economy, prices are falling. Inflation is on the run � or so it appears today.

Housing prices are on the decline in America, Britain, Australia, Ireland, and Spain. We don't know about other markets. They are said to be still rising in Brazil and other emerging markets. But we wouldn't bet on it.

Commodity prices have been going down for about two months. After hitting a high of $147, oil has slipped all the way down to $114.

Stock markets are down all over the world. Most indices are off 15% to 20% for the year, except for China, which has been cut in half.

Even the dollar is showing signs of deflation � it's going up! Not only are the things it buys becoming cheaper, it is also gaining ground against its archenemy, the euro. Yesterday, the euro fell below $1.50.

"The inflation rate is going to come down," said an economist at Lehman Bros. Most economists agree. And so do investors. TIPS are U.S. Treasury notes that are adjusted to inflation. Investors pay a premium for them in order to get the protection of the feds' inflation adjustment. Thus, the yield spread between these notes and regular 10-year Treasuries is a good measure of how much inflation investors expect. And currently, the yield has dropped to its lowest point in nearly five years.

What is the reason for this stunning defeat of inflation? How come the central banks and financial authorities aren't better at what they do best? The latest numbers we have show them trying hard. Money supplies worldwide are increasing at about 20% per year � five times faster than the rate of economic growth. According to theory, if the supply of money increases faster than supplies of goods and services inflation will result. Is the theory wrong? Or is something else is going on?

Yes, something else is going on. The world economy is cooling off. After running so hot for so long, a chill wind is blowing. It began almost exactly a year ago � on August 9, 2007 � when the subprime story broke. First, the homeowners got in trouble. And then, the builders. And then the lenders. And then the investors who lent to the lenders. The problem mounted up the financial ladder like a crusader scaling the walls of Constantinople.

For a long time, it looked as though the go-go economies of the Far East...and the commodity producers...would be able to hold them off. The world economy had "decoupled," it was said � with the emerging economies continuing to grow while the old economies of Europe and North America were in a slump. With this huge new demand in front of them, commodities markets continued to move higher...even as stock markets and housing sank.

But now, it looks as though nothing will be spared. Everything is going down. Gold, stocks, property, copper, inflation, GDP growth rates, consumer spending, car sales, student financing, employment, house sales, housing prices � everything.

And against all this...the dollar is going up.

But what does it mean? Well, no one knows...(still, we offer a "what if" below...)

Expansions are typically inflationary. Contractions are typically deflationary. But we knew that. What we didn't know was whether there would be enough juice in the emerging markets to keep the world economy growing...

...and whether the feds could effectively re-inflate � with their bailouts, handouts, and monetary cop-outs. The answer to those questions seems to be 'no.' But the matter is far from settled. No economist has ever seen a world money system such as the one we have now. No one knows how it will react to the stress of a major contraction. So, we'll hold onto our gold a bit longer...and wait to see what happens next.

*** Greenspan's "Age of Froth" is over, sayeth the columnists. The Bubble King is no longer at the Fed. And the bubbles seem to have come to an end. Now the headlines are depressing; the losses are mounting; and the lawyers are circling.

At least, that's the word on the street.

"Economic Slump in US to Worsen as Consumers Get Squeezed," says a headline at Bloomberg.

They're probably right about that. The longest-running increase in consumer spending, which began in 1992, is coming to an end. And the unemployment rate is expected to reach 6% before the end of the year. Consumers � with lower income, less credit, and falling house prices � must feel like they've been caught in a vise. They'll wiggle and complain; but what can they do but cut back? And a cut back in consumer spending marks the end of the booming consumer-driven, credit spiked economy of the last 16 years.

But does it also mark the end of the bubbles? Of the sturm and drang in the financial markets? Is the dollar now as good as gold � or better � now that the froth is gone?

Our intuition tells us that it ain't quite so. The feds are still inflating � or trying to. Speculators are still speculating. People still believe in the dollar...and in the dollar-based monetary system � even though it's the very same system that has created so many problems for so many people. And even now, after 10 years of negative real returns, most investors still believe in "stocks for the long run."

We anticipate a major change in consumer/investor attitudes � but it hasn't come yet. Consumers � especially baby boomers � must stop spending and begin saving. And since they are so far behind, they must begin saving as if their retirements depended on it � which they do.

And investors need to change their way of looking at things too. You can't have another great bull market in stocks until investors have given up on them. Speaking more broadly, you're not likely to have another big run of profit from investments until investors stop looking for them...

These changes of attitude don't come easily...or painlessly.

Another sign of the times: "prime" borrowers are defaulting on their home loans at increasingly high rates. Last month, reports CNN.com, JP Morgan Chase CEO "called prime mortgages 'terrible' and suggested that losses connected to prime may triple. For the second quarter, the bank reported net charges of $104 million for prime rate delinquencies, more than double the $50 million recorded three months earlier."

WaMu reports similarly disturbing losses and it is clear that this latest trend is doing nothing to help the already struggling housing sector on the road to recovery.

*** But let us imagine that the bubbles are over...what would the world economy and the world's markets look like?

A few years ago, along with Addison, we wrote a book called Financial Reckoning Day . Our guess was that the United States would follow Japan into a long, slow, soft slump. Prices would fall. Consumers would stop consuming. Families would begin saving again. Investors would be wary of the stock market. And speculators would go broke.

We were wrong. Instead, the Greenspan Fed set its key borrowing rate at 1% and left it there for over a year. Anyone who wanted to borrow money could get it � on the easiest terms ever. No credit? No problem! This money giveaway set the world on the most reckless period of borrowing and speculation the planet had ever seen.

But we are at the end � or near the end � of that period now. And what if the great slump that we saw coming in 2001-2002...came six years late? And what if it weren't limited to the United States, but gripped the whole, globalized world economy? What if prices fell across the board? What if consumers in the West stopped consuming...putting workers in the East out of jobs? And what if the world didn't really need so much oil, or so much copper, or so much other 'stuff' after all?

What if the whole world entered a long, slow, soft Japan-like slump?

It's just a possibility, dear reader...just a possibility. We tend to prepare for the worst...because if the worst doesn't occur, at least you've made some money in the process. Our friend and colleague Chris Mayer has recently discovered a three-step strategy that will allow you to tap in to a relatively unknown cash pool. Find out how you can unleash a steady flow of work-free income by clicking here .

*** "Grandma wants me to print out the baby photos," said Jules.

"What baby?" Henry replied.

"I don't know...one of our new cousins."

The two boys tried to find the website where photos of the newborn baby were posted.

A few minutes later they were 'oohing' and 'aahing' over the photos...and Grandma was crossing the room for a look.

"Wait, Grandma," said Henry, "we were just looking at a porno site...where did you say those baby pictures were?"

When they finally found the site, they typed in the name and photos of a black baby appeared.

"I don't think that's the right one," said Grandma.

"What's the matter, Grandma, are you prejudiced?" Henry teased. "Times have changed. We're even going to have a black president. That's just progress. Get with the times, Grandma."

"Oh Henry, don't be silly. I even like Obama...he seems like a very nice colored man. So, you see, I am with the times, as you put it."

"Uh, Grandma � maybe not completely."

You could still make major gains in the coming stock market bust... Even after billions more in bank losses...even as foreclosures continue to soar...even as stocks on Wall Street fall apart. In fact, in spite of those things. With a lot less risk. And plenty of confidence that you're doing the right thing. All you have to do is follow seven steps. Click on the link below to learn how to protect your wealth (and turn a very nice profit) in the stock market meltdown: The Key to Financial Survival

The Daily Reckoning PRESENTS: Lets face it, the era of easy money and cheap oil has come to an end. And if Puru Saxena's assessment is correct, this transformation will have a significant impact on the global economy. END OF AN ERA? by Puru Saxena There is no doubt in my mind that since the early 1970's the global economic boom has been largely financed by an ever-expanding quantity of money and credit. Once gold was removed from the monetary system in 1971, central banks were free to create as much paper currencies as they wanted. This reckless monetary inflation and credit growth has caused the value of "money" to diminish significantly over the past three decades and created a gigantic boom in global asset prices. Each time an asset "bubble" has burst in the past 35 years, central banks have responded by reducing interest-rates, thereby encouraging even more credit growth, which has spawned further speculative manias down the road. This time around, in the aftermath of the Anglo-Saxon housing bust, Mr. Bernanke and his comrades are desperately trying to do the same and the trillion dollar question is whether they will succeed. In the current circumstances, I suspect it will be extremely difficult for the central banks to further expand credit growth, thereby inflating their way out of trouble. Below I present the reasons why I am doubtful about the continuation of the credit bubble: First and foremost, in the current credit crisis, the entire banking system is being brought to its knees. This is very different to the previous crises when perhaps a handful of financial institutions or hedge funds got into trouble. Unfortunately, the financial alchemy (creation of structured products, over the counter derivatives, collateralized debt obligations, credit default swaps etc.) over the past few years has been so severe that the entire banking system is now on the verge of a total collapse. So, even if the central banks tried to further inflate the credit bubble by keeping interest-rates low for an extended period of time, I doubt if the commercial banks are in any position to expand their balance sheets. With billions of dollars of write-downs in the past year and humungous "Level 3" liabilities still undisclosed, the commercial banks have no other option but to try and repair the damage to their balance sheets by tightening credit standards. So, I doubt very much if they (for the foreseeable future) will participate in the central banks' sponsored credit and inflation agenda. Secondly, I also happen to think that as a result of so many ridiculous tax-payer sponsored bail-outs of Wall Street banks, the U.S. government and regulators will tighten their grip over the ministry of inflation (the banking industry). Therefore, tighter regulation in the months ahead will also prevent the commercial banks from inflating the credit bubble further. Another reason why I believe we have reached the inflection point in this credit cycle is the state of the U.S. dollar. With the U.S. dollar trading at record-lows against major world currencies and soaring energy and food costs, I doubt very much if the Federal Reserve is in a position to lower interest-rates further. In fact, I would argue that the situation is totally out of the Federal Reserve's control and the entire global economy now depends on the mercy of the owners of U.S. Treasuries. I have to admit that so far, given the amount of bail-outs and the state of the U.S. dollar, holders of U.S. government bonds have been rather well behaved. However, it may only be a matter of time before foreign holders of U.S. Treasuries start liquidating their holdings. When that occurs, long-term interest-rates in the United States would rise rapidly and the Federal Reserve would have no other option but to raise its Fed Funds rate. Finally, given the level of indebtedness of the U.S. consumer and falling asset prices, I wonder how the average American household would be able to take on even more debt. Once the technology bubble burst at the turn of the millennium and the Federal Reserve lowered interest-rates, Americans were quick to borrow and speculate in real-estate. However, this time around in the aftermath of the housing bust, even though the cost of borrowing has been reduced, Americans are not going deeper into debt. U.S. bank credit peaked earlier this year and is now in a decline. So, if American households are really tightening their belts and repaying their outstanding debt, there is no way the credit bubble would continue to inflate. It is my observation that we have now entered a new era of credit contraction and deleveraging. The abrupt bursting of the credit bubble is likely to have a profound impact on asset prices in the West. If my view is correct, we are likely to see a period of poor economic growth and deflating asset prices in the developed world. The U.S. economy is clearly struggling, Europe faces its own problems and Japan cannot seem to turn things around. So, I would not advise you to invest your capital in stock markets or real-estate in the industrialized nations. There can be no disputing the fact that U.S. financial assets have provided disappointing returns since the beginning of this decade. It is worth noting that even though the Dow Jones index is flat in nominal terms since 2000, it has lost more than half of its value against gold over the same period. At the turn of the millennium, the level of the Dow Jones could buy over 40 ounces of gold. Eight years later, the level of the Dow Jones can only buy roughly 12 ounces of gold! Clearly, gold has been a much better investment than U.S. stocks over the past eight years. In the years ahead, I expect to see further underperformance of financial assets and maintain my position that hard, tangible assets will continue to provide superior returns.

Why There's Still Time to Buy Warrior Energy

Weeks ago, we recommended buying into Warrior Energy (TSX-V: WEN) in Pure Energy Trader. But we didn't want you to miss the opportunity either. While, to date, we're up more than 25%, we do expect further upside.

This is a junior company focusing on the exploration and development of oil and natural gas in the Green River basin.

 

And we don't expect these guys to drop in the short term, not after announcing major operational milestones with two successful wells in the Strike project area.

As you may know, the Strike project is in the Green River basin of Wyoming. And, according to the company, the area is a "multi-play, unconventional gas resource play with outstanding economic potential characteristics." To date, the company has identified 77 new well locations on the project area.

That announcement was about the company's first well, the Strike State #11 (in which Warrior has a 20% working interest). The well was spud on May 20, 2008 and drilled to a depth of 11,145 feet. The initial production rate includes 152 barrels of oil per day and 1578 Mcf/day. That equates to a total of approximately 2,490 Mcfe (thousand cubic feet of gas equivalent).

At the second well, the Strike State #12 (Warrior also holds a 20% working interest in this well) was also completed with initial producing sales at 515 Mcf/day.

Due to the success of these two wells, Warrior believes their current net production will double. Additionally, the company intends to drill four more wells in 2008, spending about $4.2 million. It expects to begin drilling within the next 20-30 days.

Now there's news that the company acquired more oil and natural gas leases in the Green River Basin of southwestern Wyoming. This will increase the company's total leasehold position in the Basin to more than 5,000 net acres.

If you're new to Warrior Energy...

What makes domestic oil production companies even more attractive as long-term investments are the oil and gas discoveries, and the fact that these explorations are more appealing, given geopolitical tension.

You know as well as we do that prices would come down sharply if we started producing on our own. And it'd be a strong global signal that we're not willing to be hostages of oil rich companies.

Even the President agrees.

"Our problem in America gets solved when we aggressively go for domestic exploration," Bush said.

And we need all the oil we can get.

While the International Energy Agency's oil supply forecast won't be released until November 2008, there's growing fear of a sharp downward revision in supplies. That means supply could be much tighter than previously thought, a nightmare scenario if proven true.

Any pessimistic IEA view will shock the market, spawning oil super spikes. We've already seen prices rocket to $130, doubling year over year. And it'll only get worse on a dismal IEA forecast.

For years, the IEA has said that crude supplies and other liquid fuels would keep up with rising demand, topping 116 million barrels a day by 2030. But now there's fear that the IEA, basing findings on aging oil fields, could revise sharply lower and warn of a struggle to keep up with 100 million barrel a day demand over the next 20 years.

But IEA pessimism is nothing new. Just last summer, the IEA warned that spare OPEC capacity could fall to "minimal levels by 2012."

Even the U.S. Energy Department is embarking on its own supply studies, which could be finished by summer. But they, too, may have nothing positive to say. They already suggest that daily 73 million barrel daily output will level off at 84 million barrels. To then reach 100 million barrels a day by 2030, we'll need a sizeable boost from other fuel sources.

And if you need more of a reason for a rise to $150, $170, even $200, look no further than the Middle East.

Israeli-Iranian tensions over nuclear projects aren't doing much to help. There's a growing fear that in the event of war with Iran, the Strait of Hormuz (passageway for 90% of oil exported from Gulf producers) would be jeopardized. If that happens, we'd see an immediate oil super-spike.

Iran's Revolutionary Guards has already said it would impose controls on shipping in the Persian Gulf and Strait of Hormuz, which accounts for about 40% of the world's oil, if it were attacked.

Green River Oil: Warrior Energy (WEN.V)

This is a new natural gas company we're keeping an eye on with a focus on large undervalued assets in the Green River Basin (Wyoming).

We can tell you that the energy companies are drilling and applying for drilling permits like there's no tomorrow.

And Warrior Energy is no different. It's buying land on the cheap with expectations for considerable upside. They just paid $8 million for producing property with active development.

Warrior's current project - called Strike - consists of 3000 net acres with 11 producing wells that are already kicking off cash flow.

And the stock only trades at a scant sub-3 with long-term $10 potential upside.

Better yet, the future doesn't look too shabby.

Over the next two years they hope to demonstrate year over year growth of proven reserves, production and cash flow through acquisitions and development to justify $500 million in asset values.

The investment firm Macquarie gave Warrior a $50 million line of credit, which is huge for an early-stage energy company... and a testament to the company's game plan to increase production within a short period of time.

Again, this is a $10 stock now masquerading at $4. It was $3 just weeks ago.

Profit Report Returns After 6 Years...

Doing nothing while collecting royalties has to be one of the best ― and easiest ― ways to get rich. For instance, David Sengstack does nothing and collects royalty paychecks of $2 million per year... just because his dad was smart enough to buy the commercial rights to a song you've sung a hundred times, "Happy Birthday to You."

Michael Jackson does nothing and collects royalties every time a Beatles song plays on the radio (he bought the rights years ago). But Paul McCartney ― now a billionaire ― does nothing and collects even more on the 3,000 song rights from other artists that he owns.

Paul Newman made plenty acting. But licensing his name piles up even more donations for his favorite charities ― over $200 million so far ― from royalties on the Newman's Own food line.

Even boxer George Foreman does better doing nothing than he did fighting in the ring, thanks to the $137 million royalty checks he gets for lending his name to a grill.

No wonder the world's richest investor calls collecting royalties the best business in the world. It's literally one of the easiest ways to do nothing and "make money while you sleep."

What might shock you is that there actually IS a way for anybody to tap into a pool of growing royalties... wealth that piles up by itself... that, ultimately, could be worth more than the entire Beatles catalog, all the commercial rights to "Happy Birthday," and the total value of the top 25 most expensive works of art in the world... combined.

And you can set it up in less than five minutes.

I call it the "Chaffee Royalty" program, after a former schoolteacher and wealthy American millionaire, Jerome B. Chaffee. Just like people who make a living collecting royalty checks, you don't need to do anything once you've tapped into the program.

You just sit back and watch the money pile up.

8 Americans Who Just Cashed in
on "Chaffee Royalties"

Even though I'm almost positive you've never heard of "Chaffee Royalties," some of America's wealthiest families have ― though by another name. In fact, it's a secret that's made more than a few Americans exceedingly rich.

• Robert Friedland made millions of dollars when his "Chaffee Royalty" holdings jumped in value from $4 to $167 in just two years
  
  
• George Hearst borrowed the $3,000 he used to buy his way into "Chaffee Royalties" in Nevada. Within months, his stake had grown to $91,000 ― money he used to buy even more royalty rights, which ultimately launched his empire
  
  
• Jim Fair, a former Illinois farmer, got so rich with his "Chaffee Royalties" he was able to hand his daughter a $1 million check as a wedding present
  
  
• William O'Brien earned enough from his "Chaffee Royalties" to make him one of the 100 richest Americans of all time
  
  
• Former California carpenter John Mackay scraped together $500 to buy his first share in a "Chaffee Royalty" program. He made enough to build a mansion surrounded by 70 acres of land and formal gardens for his son
  
  
• E.J. "Lucky" Baldwin parked his last $800 in "Chaffee Royalties" while living in Virginia City, Nev. By the time he was through, he'd piled up royalty wealth worth over $5 million
  
  
• James Flood, who came to the U.S. with next to nothing, got so rich on "Chaffee Royalties" he was able to build a beautiful sandstone home on top of San Francisco's famous Nob Hill. It's still there today
  
  
• Then there's Stanley Dempsey. A lawyer who quit law and put his money into "Chaffee Royalty" contracts now makes his living collecting on 23 different streams of royalty income. Forbes even featured Dempsey and called his fortune "virtual gold," since he barely has to do or run anything to keep the money rolling in.

But there's no reason you can't collect anytime you like.

In fact, now that these "Chaffee Royalty" programs trade directly on the stock exchange, you can get in anytime you like. And with the right timing, you can get in at a very good price. And then start seeing gains from "Chaffee Royalties" immediately.

This is the situation we're in right now.

Which is why I'm writing you today.

See, in 2002, one of the most impressive "Chaffee Royalty" opportunities of all time closed its doors to new funds, just after delivering a 50-to-1 payoff for its earliest "members."

Today, that opportunity is back.

And for reasons I'll share, the timing now is better than ever.

What's more, today, there's more than one way to lock into "Chaffee Royalties." And one of those options, according to research that took me nine months to pull together, could pay out even better than what was once the most profitable "Chaffee Royalty" opportunity of all time.

We'll get to those details.

But first, let's start at the beginning...

The "Chaffee Royalty Program"
That Changed America

Jerome B. Chaffee didn't make enough as a schoolteacher. So he took a job as a sales clerk in a dry goods store. Then he took that money and started a dry goods store of his own.

When that wasn't enough, he packed his bags and went to Colorado in 1860.

See, Colorado then ― as right now ― was mineral rich. And even though Chaffee knew next to nothing about mining, he saw the possibilities. And started snapping up the "royalty rights" on as many gold and silver claims as he could afford.

Every time one started to pay off, he bought more. Until he had a business making between $300,000�500,000 per year ― or as much as $17.3 million today.

Suddenly the ex-schoolteacher was very rich. And powerful.

Chaffee took up politics, pushing for laws that would lock in the same kinds of opportunities for everybody. He even went to Washington and became a senator ― and a friend of the president, Ulysses S. Grant.

Chaffee's own daughter even married the president's son, Ulysses S. Grant Jr.!

In 1872, Grant expanded on protecting the resource rights that Chaffee championed by signing the General Mining Act, a law that still safeguards mineral rights today... has already created countless American millionaires... and helped blow open the gateway to the American West.

"Chaffee Royalties" let you tap into rich mineral rights more easily than so many others did years ago. You don't need a lot to get started. In fact, you do practically nothing. Even as the rich resource wealth piles up.

I've done all the legwork already. It's written up in my newest research report, Big Mining Money Without the Big Risks: How to Build Resource Royalty Wealth While You Sleep.

You cannot buy this report anywhere. However, at the end of this letter, I can show you how to download your own copy very easily. Inside, you'll find details on why now is easily the best time in history to make money tapping into "Chaffee Royalties."

I then go ahead and name for you my top five favorite ways to get started, including the No. 1 "Chaffee Royalty" opportunity available today.

And getting in right now won't cost you more than about $6 per share.

Almost Nothing to Get Started. . .
Provided You Act on This Quickly

The better known these "Chaffee Royalty" opportunities become, the faster the entry price goes up. That's just the way they work. Simply because new capital lets them add even more rich royalty streams, increasing the value of the program for shareholders.

For instance, in my report, I tell you about one royalty-collecting group that let in new "members" for just $3 per share as recently as June 2005. But as royalty assets grew, so did the cost of entry ― up to $19 per share today.

That's a 530% return if you got in early. I see it going still higher, but the longer you wait, the more of these gains you'll miss out on in the future.

Then there's another one of these unique "Chaffee Royalty" opportunities I name in the report that first hit the open market at just $1.10. As of this writing, it's already asking new "members" for $32 per share. That's a solid 2,809% return so far ― turning every $5,000 into well over $140,000.

While I see still more ahead, this, too, is far from the best gain I expect you to have the opportunity to make. In fact, one of the most famous "Chaffee Royalty" plays of all time ― which I'll tell you about in detail in just a second ― soared from just a few dollars per share to more than $180 per share before it was through.

Anyone with the luck to get in early had the chance to make as much as $50 for every $1 invested ― or $250,000 for every $5,000. And then, in 2002, this particular "Chaffee Royalty" miracle closed its doors to new investors.

As you'll see, it's back again. And already piling up new royalty stream income for the new wave of shareholders. You can easily move on this right now. But before you do, let me show you a way I believe you can do even better than by revisiting any of these already time-tested "Chaffee Royalty" moves.

Again, it's all in my new report, Big Mining Money Without the Big Risks: How to Build Resource Royalty Wealth While You Sleep.

So why haven't you heard of "Chaffee Royalties" before?

Because most mainstream headlines don't look deep enough into the deals to discover them. At least, not until the early opportunities are long gone.

As an ex-commercial banker who used to handle $400 million contracts for breakfast, looking deep behind the scenes... for Special Situations like this... is my specialty.

That's what first got me looking into "Chaffee Royalties" as a unique new way for investors to get very rich. It's also what has me convinced, along with some very smart and very rich investors, that this may be one of the best undiscovered ways to "make money while you sleep" available today.

But there's something else...

Because today, with the massive global credit crisis... soaring energy costs... and the systematic destruction of your dollar-denominated savings... this is also the best market ever to start looking at these "Chaffee Royalty" programs as a way to build wealth.

Why? I lay it all out for you in my new report, Big Mining Money Without the Big Risks: How to Build Resource Royalty Wealth While You Sleep, which can act as a valuable "primer" on exactly how to tap into this new wave of royalty-backed riches.

Here's a glimpse of what you'll find...

Big Mining Gains Without the Usual Big Risks

All the value in "Chaffee Royalties" is backed by real resource wealth.

Oil. Gas. Gold and silver. Copper. Nickel. Diamonds.

But the beauty of these royalty streams isn't just the hard asset value that's behind them.

Instead, it's the fact that... as you watch the wealth pile up... you do it with none of the major risks that most mineral and hard asset investors face.

How so?

That's the unique opportunity with "Chaffee Royalties."

They're designed to deliver all the upside of the world's rich mineral wealth. But without passing on any of the major exploration, management or environmental costs of mining or drilling to the end shareholders.

Imagine, for instance, if you could own a "piece" of Apple's iPod sales... without paying a nickel toward the operating costs, research or advertising.

Imagine if you could collect Google's ad sales... or Exxon Mobil's oil revenue... without forking over for employee salaries, building and maintaining headquarters, or any of those other costs that typically nickel-and-dime shareholders out of gains.

"Chaffee Royalties" let you do that, backed by pure gains on some of the most valuable mineral and other raw resource deposits in the world.

No Better Time Than NOW to Take
Advantage of "Chaffee Royalties"

Right now, resource companies are lining up to swap some of their gross profits for these royalty programs. Why would they do that?

It's simple.

See, right now, the global credit crunch is just one of the forces destroying the U.S. dollar. And that, plus unstoppable Asian demand, has sent the value of gold... silver... copper... nickel... zinc... lead... and just about every other mineral asset you can name... soaring.

That's great for anyone who produces or sells those resources.

Trouble is, as energy prices go up, so do the operating and production costs for the miners. So if they want to expand to capitalize on the resource boom, they need money.

Usually, that money comes from the banks. But the banks don 't want to make any new loans today. And the resource companies themselves ― like Barrick Gold and Newmont Mining ― just don't have the cash flow to take up the slack.

So they turn to the royalty companies instead, trading big loans for future profits on the huge piles of resources they're drawing out of the ground.

As long as the minerals keep coming up... and the market keeps begging for more... these royalty companies and their program "members" get rich, without ever owning an inch of dirt or worrying about running the actual mining business.

It's that simple. And right now may be the best time in history to be a part of the "Chaffee Royalty" trend. Even the Financial Post recently reported:

"Today, the last thing many investors want is operating control. Mining companies are fighting staggering capital cost increases due to soaring demand for labor and equipment, as well as fuel and power. The beauty of the royalty model is that it gives investors all the exposure on the revenue side and none on the cost side."

The Financial Post went on to say, "[Chaffee Royalties] are the low-risk way to play the mining game" and the "ideal way to get lower-risk exposure" to gold, energy and other resource wealth.

No work. No major worries. No management.

Just royalty riches.

Here's a great example...

Up to 50 Times Your Money. . .
Without Getting Your Hands Dirty

The Goldstrike mine ― in northeastern Nevada ― is one of the best producing and most profitable gold mines in the world.

Millions of dollars are spent pulling out and processing as much as 35,000 tons of rock per day. Year after year. More than 1,600 employees work the site.

That's nearly the same size as the whole population of nearby Carlin, Nev.

Anyone who owned a piece of Goldstrike made a fortune.

Pierre Lassonde was one of them. But Pierre never actually owned the mine. He never actually hired a mining team, either. Or spent every day on the mining site.

Instead, he had a better plan.

See, at the time, Pierre was one of the top gold analysts in Canada, with more than 25 years of mining experience. And, though he knew early about the potential at the Goldstrike site, what he also knew was that he could get rich without having to do the work.

Because he'd worked out a way to let someone else do it for him while he collected the "Chaffee Royalties" we've just talked about. And he did. To the tune of many millions of dollars.

Not just for himself.

But for the shareholders who helped "back" Pierre on the deal...

The Laziest, Low-Risk Road to Mining Riches

You might still remember Pierre's company. It was called Franco-Nevada, and at the start, it was pretty tiny. Some mining companies have as many as 30,000 or more employees worldwide.

Pierre's company started with just two ― himself and a partner.

And his plan was not to own an actual piece of the rich Goldstrike property ― but to dedicate Franco-Nevada's assets to buying only the "Chaffee Royalty" rights to Goldstrike instead.

And when Goldstrike hit big on gold, the royalty money started pouring into Franco-Nevada. And all Pierre and his team had to do was rake it in.

In those early days, you could have picked up Franco-Nevada shares for just a few dollars... and then watched them soar to well over $180.

By the time Franco-Nevada got snapped up in 2002, it had ballooned from a tiny $2.3 million firm... to a company worth the $2.9 billion shelled out by Newmont Mining... which saw the writing on the wall and bought up Franco-Nevada's whole portfolio of royalty deals in one grab.

With the buyout, your chance to get in on the original Franco-Nevada pool of "Chaffee Royalties" ended. Pierre Lassonde took over as Newmont's new president. Until recently, he even chaired the World Gold Council.

But Pierre never forgot what a low-maintenance income bonanza he had with Franco-Nevada. And just recently, at the tail end of 2007, he tried to quietly bring Franco-Nevada back onto the public market. News still traveled fast, and Franco's IPO hauled in a record $1.2 billion.

Here's the beauty of this new arrangement.

Franco-Nevada held onto a pile of royalty contracts, even while under Newmont's shadow. And now, with its IPO money, it's perfectly positioned to snap up even more.

This is just one reason why "Chaffee Royalties" could very well be the safest way, right now, for you to play this ongoing global scramble for commodities. And by the way, the new Franco-Nevada could also be one of the better ways for you to play this opportunity, too.

However, I'm convinced I've found one that's even better.

Right now, it's still very small. Just as Franco-Nevada was at the beginning. And you can still get in at that early, easy entry stage.

Because it's so small, I can't possibly name it here. That wouldn't be fair to the small group of individuals who pay to follow my research on these specialized, lesser-known opportunities.

There is, however, a way I can share this with you.

Which I'd like to tell you about right now...

The Next Franco-Nevada

In my new report, Big Mining Money Without the Big Risks: How to Build Resource Royalty Wealth While You Sleep, I give you everything I've found ― after nine months of deep research ― on the best of the "Chaffee Royalty" opportunities open to you right now.

But the one I recommend first to my readers and friends is one I can't resist telling you a little more about right now.

If you've ever flown across the Atlantic, there's a good chance you've seen it.

Or at least, you've see the "crown jewel" assets that make this still undiscovered "Chaffee Royalty" opportunity so rich. It's called Voisey's Bay. And it's one of the most valuable piles of ice and rock ever discovered.

From a plane window, it looks like a map made of elephant skin. Nothing but frozen rivers and gnarled earth, stretched out as far as you can see.

But underneath, you'll find as much as $50 billion worth of mineral wealth. Discovered in 1993, it's already making fortunes. Not on gold or silver, but on some of the world's richest deposits of copper, cobalt and ― mostly ― nickel.

And it's the nickel that should to continue to make many more people very rich. Including anybody who holds a "Chaffee Royalty" deal on those same vast nickel deposits.

Let me just show you why...

• You need nickel to make steel. And China churned through 7.5 million tons of stainless steel last year. It'll produce 9 million tons before the end of this year
  
  
• Over 65% of world nickel demand goes into the making of high-grade stainless steel
  
  
• Even in a slowdown, China needs to build railroads to transport energy and cities to house their exploding population. For both, China desperately needs stainless steel
  
  
• China alone uses up six times more nickel now than it did in 2000
  
  
• In the last five years, Chinese nickel demand surged from 50,000 tons of nickel per year... to over 200,000 tons. No other country consumes as much.
  
  
• Global nickel demand could surge another 10% before 2009
  
  
• As with all metals, nickel prices fluctuate. But top metals analyst still see nickel prices spiking as high as $20 before the end of 2008.

You can see how this shapes up.

And buried deep in Voisey's Bay, you'll find one of the world's largest and highest-grade nickel deposits ― and easily the richest Canadian mineral discovery of the last 40 years.

There's easily enough nickel here to make this one deposit a cash cow mine for the next 20�25 years. If you want to own just the direct mining shares, you can look to a Brazilian company ― Companhia Vale do Rio Doce (CVRD) ― which owns and works the property.

But before you do, let me show you an even easier way...

Getting Paid for Just Breathing

Because CVRD does all its own exploration at Voisey's Bay, it pays for it. And so do its shareholders. They pay for the digging. They pay to process the tons of rock. They pay to get all the copper, cobalt and nickel ready for sale on the open market.

Sure, they make money. But they spend money, too. A TON of it.

So far, more than $1 billion just on developing CVRD's properties in this one area. That's nothing to sneeze at, even if the price of nickel is soaring. But I can show you how to tap the "Chaffee Royalties" tied to those same minerals so you can take profits without the costs of running a mine...

Without the major cost concerns.

Without even worrying whether or not the price of nickel will go up.

You see, right now, there's another company in Voisey's Bay doing what Franco-Nevada did so early in its own legendary march toward blockbuster 50-fold gains.

This company, like Franco, traded some early investment capital for the unique "Chaffee Royalties" rights connected with Voisey's Bay nickel. And now it's offering a piece of those royalties to you, as a potential shareholder.

This is a very rare opportunity.

It's not so difficult today to find other companies offering "Chaffee Royalties." But it's not as easy to find one in as early a stage as this one. With a share prices that's still this low... and nearly 100 royalty contracts either already producing or about to produce potential gains for new shareholders.

Remember, one of the "Chaffee Royalty" companies I told you about jumped from $3 per share to $19 very quickly... another soared from $1.10 to $32... and Franco-Nevada itself went from under $4 to more than $180 per share before it closed its doors to new "members."

This next future blockbuster royalty opportunity is already on the move.

On this Voisey's Bay deal alone, it should collect royalties between $16�20 million. And yes, that's if nickel prices today don't budge another inch.

What happens if nickel surges again to the record levels it hit last May?

If that happens, count on another $24 million in royalties going straight to this little company's bottom line. That might not sound like much for a big, well-known company. But for a company like this ― still undiscovered and valued at only just over $400 million on the stock market ― this is enormous. And just based on that, I already calculate that this could be an easy way to triple every dollar invested over the next two years.

But it doesn't stop there.

Because, you see, this little "Chaffee Royalty" outfit ― like the early Franco-Nevada ― has a lot more going for it that just the sweetheart royalty deal on Voisey's Bay nickel.

As I said, it carries nearly 100 royalty deals ― any one of which could start producing as well or better ― and all of which give you even more opportunities to pile up royalty wealth on five different continents... and in 10 different countries... in 18 different commodities.

Gold Gains With Much Less Risk, Too

On top of the Voisey's Bay "lock" this company has on Canadian nickel... it's also taking in piles of royalty cash for itself and its shareholders on some of Canada's richest gold deposits.

Not to mention even more gold royalties on one of the most productive gold mines in Chile... another huge "Chaffee Royalty" stream on more than 1 million estimated ounces of Nevada gold... and even more gold royalties on a large mine in Australia.

I haven't even mentioned the royalty streams on platinum properties... uranium properties... and even more copper and cobalt properties... just to name a few. Some pay huge royalties now, and some promise huge potential royalties as they steadily come online.

This company provides more than just access to some of the best gold, silver and diamonds... uranium, coal and oil... natural gas... nickel, copper, cobalt and zinc... in the world. It also gives you the diversity and balance that you just can't get from most straight mining shares.

Without sacrificing the rare opportunity for triple and quadruple gains.

And just as good as the royalties this company already takes in is the promise of future royalties on deals it's already made. Take this company's royalty rights on a hugely profitable gold mine in Chile.

Mining giant Barrick does all the work to get the metal out of the ground. And that mine alone should churn out as much as 775,000 ounces of gold per year... at a cost as low as $130 per ounce. In fact, this Chilean mine should be Barrick's third largest operation by 2010.

Owning Barrick directly isn't a bad move. It's one of the best mining stocks in the industry. But it's not cheap. And Barrick, as I said, faces some rising costs and shrinking cash flow.

This little company, however, owns the "Chaffee Royalties" on the same gold mine. It paid only $11.4 million, very early on. And I expect it to make that back many times over during the life of the mine.

Barrick and its shareholders love the deal, because it means they get money to expand exploration and production. This royalty company and its "program members" love it because it's yet another stream of resource royalty income.

As long as Barrick keeps bringing gold out of the ground, this little company rakes it in. And so do you, if you hold this company's still affordable shares.

Plus, while this company already makes very good money on its five best royalty deals... let's not forget what you get out of its huge portfolio of nearly 100 other royalty deals.

Right now, another 11 of these new royalty arrangements are scheduled to come online over the next several months. That's more royalty income without the major mining costs. And more value in this little royalty company's shares.

I told you before that the Voisey's Bay income alone was enough reason for this little royalty company to give you an easy triple on every dollar invested. But with these extra royalty agreements, including the 11 new ones that should come online over the next few months... this isn't just an easy triple... it could, conservatively, be a "ten-bagger" stock.

But even then, I STILL think saying you could make 10 times your money on this is also conservative...

How This Beats the Best Royalty Play of All Time

Wouldn't it be nice to know that without lifting a finger, you're accumulating the kind of money that could free you from work... fund your retirement... and pay for your future?

That easily could have been the case if you'd have known to move early on Franco-Nevada.

But let me just walk you through how that unfolded. Because, you see, Franco-Nevada going from zero to $40 million per year in royalty income took about 12 years. And that was ultimately enough to take its shares from $4 to over $180 per share.

Not bad, right?

Another of the "Chaffee Royalty" opportunities you'll read about in my new report, Big Mining Money Without the Big Risks: How to Build Resource Royalty Wealth While You Sleep, took 15 years to get to its first annual $30 million in royalty income. That was enough to get it from $1.10 per share to over $32. For a gain so far of 2,809%.

While I believe that last company could go still higher, I urge you to pay attention now to this little company I've been telling you about ― which I like to call the "next Franco-Nevada" for a very good reason.

You see, this little company recently managed to jump from about $400,000 in annual royalty income... to over $13.7 million... in less than two years! That's many times faster than even some of the best "Chaffee Royalty" companies I've ever seen.

What's the key difference?

The track record of this small company for picking the best royalty deals is impeccable. What's more, it just recently picked up another 16 new royalty deals... including royalty draws on four new gold mines... four new diamond properties... two new uranium deals... and three more new nickel royalties... plus royalties on rich new deposits of zinc, lead, silver, cobalt and molybdenum.

With nearly 100 royalty streams, your chances of the "next big hit" or major discovery could be huge. And remember, you need only one to pay off ― the way Goldstrike did for Franco-Nevada ― to see even MORE upward pressure on the value of this royalty company's shares.

If just one of these nearly 100 royalty deals pays off big... I'm confident that this isn't just a triple or a ten-bagger opportunity, but quite possibly the next 50-to-1 payday for anyone who acts on this quickly.

Maybe even better.

It's like owning an option on what could become the best resource play of the century. If it doesn't pan out, you still do extremely well. And if it does, you get rich.

Just in case you think I'm overstating the evidence, the fact is that at least two of these new royalty deals already look like they could add 25% in new royalty income to this company's bottom line over the coming year.

With that amount going up over the years ahead.

Right now, this company lists on the stock market for only $408 million. Given that it has only $22 million in debt... plus over 100 royalty contracts... and an easy $40 million already looking likely, thanks to its nickel and gold royalty deals alone... you're talking an incredible deal. Other royalty companies have already sold for double that multiple.

But as I said, few of these other mineral rights royalty companies have as good a spread of different royalty streams as this one. And with every dollar that comes in, it continues to add more great royalty streams to its portfolio.

Based on that, plus everything else I've already told you, I fully believe this is the best "Chaffee Royalty" opportunity listed on the market today. Maybe even better than getting into Franco-Nevada at the start of its amazing 50-to-1 profit run.

A takeover... more soaring energy prices... soaring interest in the shares... they could all take the share price higher, very soon... closing out the best of this opportunity very quickly.

So I urge you to get my report, by accepting the special invitation at the end of this letter, as soon as you can. As I said, Big Mining Money Without the Big Risks: How to Build Resource Royalty Wealth While You Sleep isn't free. And I won't take your money for it, either.

It's simply not for sale, anywhere or to anyone.

But there is one way to get a copy into your hands instantly. All you have to do is accept a special invitation. One that could potentially make you a fortune over the year ahead. And show you how to access a pool of investment wealth you never knew existed.

I Should Introduce Myself

My name is Chris Mayer.

Maybe you've heard of me. I'm known for the appearances I make on financial news shows like Fox Television's Bulls & Bears... Forbes on Fox... and the CNBC financial reports.

Or maybe you know me for my new book, Invest Like a Dealmaker. Or from interviews I've given to national radio talk shows or in the newspapers.

You might even know my background, which wasn't originally in financial market analysis at all. I was a commercial banker, for one of the largest and most respected banks in the U.S., overseeing a $250 million investment account and loans for $400 million companies.

It was a role I loved. I'm proud to say I was a vice president there before I turned 30. And not once during my tenure did we lose a single dime on our major corporate loans. That's a rare claim in lending.

I mention it because that background ― poring over the balance sheets of major and minor companies alike, looking for anomalies, mistakes and even hidden value ― was about the best stock picking training you can imagine.

It's why I eventually stepped away from the bank.

Because I loved the markets. And I loved picking winning stocks even more. I do that now, for over 29,220 readers, in a highly sought-after monthly stock market research letter.

But for years, I kept coming across a kind of investing opportunity that I just couldn't share in my widely read monthly letter. Stocks and other plays that were just too small... too "different"... and just that much harder to find or track for your average, mainstream reader.

The "Special Situations" Kept Secret
From You All These Years

The undiscovered opportunities I kept coming across are what Wall Street calls "special situation" stocks ― fast moving, hidden opportunities that are extremely popular with insiders but just too small or too little known for the average investing mainstream.

Takeovers and buybacks... secret mergers... heavy insider buying opportunities... and "Chaffee Royalty" moves like the one I'm showing you today.

Every single one of them revealed money most investors just kept leaving on the table...

Huge opportunities.

I couldn't stand knowing how many of these kept going unnoticed.

So I did something about it. I worked with my publisher to create a brand-new kind of research service, called Mayer's Special Situations.

This is not a simple newsletter for mom and pop market watchers.

It's a much more revealing and advanced research advisory service, tailored for elite readers. How are we doing so far? The service is barely 23 months old.

And we've already clocked gains like 44% on Fundtech... 100% on Lindsay Manufacturing... 122% gains on Gorman-Rupp... 132% on T3 Energy Services... not to mention gains on shares I can't name because they're still open. But we're already up 26% on one... 36% on another... 48%... 50%... 78%... and then 84%... 93%... 129%... 137%... 153%... the list goes on.

Just on an average of all the winners and losers in my current portfolio, we're already racking up an average 33% so far. And on a cumulative basis, a stunning 758% altogether.

These are opportunities you just can't read about anywhere else. And much earlier in the moneymaking stage than you'll discover anywhere else...

• You'll get the moves that go beyond regular stock investing, like the special "royalty program" plays I revealed to you today
  
  
• You'll get the stock opportunities pros would rather trade, above the humdrum, and hinging on the "behind the scenes" deals and insider moves we all know really move markets
  
  
• You'll get the picks that can move your money quickly, and in a very short time, but with my own "banker's twist" ― where I'll do the qualified number crunching most brokers don't even know how to do ― to ensure that I never ask you to take an unjustified risk
  
  
• You'll get advance warning on above-and-beyond moves, with far greater potential than you average, everyday stock opportunity.

Of course, the easiest way to reveal what Mayer's Special Situations can do for you is to let you try it for yourself. Which is exactly what I hope you'll do.

Here's What Others Are Already Saying

Matt M. was one of my earliest Mayer's Special Situations readers. Take a look at what he told me recently...

"Chris, your recommendations total $272,000 ― 15% of my portfolio... I like your approach and style ― and the results ― you identify opportunities that I would not be able to find by myself."

Here's one from subscriber Eric L...

"Hey Chris, your Libbey recommendation alone just paid for my Acapulco vacation ― thanks! Your reports are very professional without being stuffy... You're one of my main go-to guys... keep up the great work, and thanks again!

And this is what Special Situations reader Michael K. wrote in to report...

"I'm enjoying this new service, and I love the way you think about investments. My highest compliment is that I look forward to your updates and recommendations. I appreciate your thorough and thoughtful analysis and independent thinking and research. And the bottom line is you are making me money..."

You can guess I love getting letters like these. And I have piles of them. The gains, the rare and undiscovered alternatives to typical stock investing opportunities, the handpicked moves and careful research... I'm happy to finally have the chance to share this with people who can appreciate how rich these "special situations" opportunities can be.

I'm not looking to brag.

I just want to make it clear that you'll find something here that you're not going to find elsewhere. One popular financial writer even wrote, on his financial blog Market Metaphysics...

"Chris Mayer is the best financial journalist you've never heard of... Mayer's elegant prose will make you wonder why you don't find this caliber of writing in the mainstream financial press. Mayer's essays are sharp intellectual discoveries... all this and solid investment ideas, too."

Again, I'm proud of the kudos. But I'm even more proud of the results. And I'm going to urge you, in just a second, to give me a chance to do the same for you... starting immediately with the new research report I've told you about, Big Mining Money Without the Big Risks: How to Build Resource Royalty Wealth While You Sleep...

The Single Best Way for You to
Get Rich on Royalties Right Now

Right now, there are several companies listed on the stock market that use the "Chaffee Royalty" model to enhance shareholder wealth.

That's why I've spent the better part of the last year doing careful research to find only the best ones for you to consider adding to your portfolio.

And I've written each of them up in detail in the new report we've talked about, Big Mining Money Without the Big Risks: How to Build Resource Royalty Wealth While You Sleep. Inside, you'll find my full and targeted analysis on...

• One of the easiest and purest plays on the coming surge in silver prices. With this company's already solid "Chaffee Royalty" streams of income, you could tap into six of the world's top silver deposits, including a stream of expense-free royalty income on the largest silver deposit ever discovered. If you like silver as an investment play, this could be the single best way to play it
  
  
• With one move, this next "Chaffee Royalty" play could give you a claim on royalty deals for nearly 50 mining properties in mineral-rich Nevada... plus a piece in wholly owned and productive mines with several million ounces of proven gold already in the ground
  
  
• Like the other pure "Chaffee Royalty" companies, this next player owns no mines. Or mining equipment. In fact it has only 15 employees. But that hasn't stopped it from tapping into royalties from several of the world's best gold mines... on the future sale of over 50 million ounces of gold and more than 1 billion (with a "B") ounces of silver
  
  
• The new Franco-Nevada is a lot like the old Franco-Nevada ― jammed with choice royalty deals. After raising over $1.2 billion with a record-breaking IPO at the end of 2007, the new Franco bought back 190 royalties on metals and mineral companies... plus another 100 royalties on oil and gas producers. Is it still a good buy? I reveal the answer inside my report
  
  
• My favorite "Chaffee Royalty" company by far, I save for last. With nearly 100 mineral royalty rights and a brilliant track record of picking deals with as many as 25�30 years of production, this is easily the best way for you to combine big money-multiplying gains with higher safety than you could possibly get just owning mining shares outright.

I urge you to take a look.

And keep in mind, on each of these deals, the royalties are coming in on minerals already discovered, but there's also potential for more discoveries down the line. By already owning a piece of the royalty rights, you'd also be locking in on those future income streams too.

When the mines' owners invest more money to expand the mines, you'd also automatically own a piece of that expansion. Without investing another dime.

What if there's another breakthrough mineral discovery on one of the mineral properties? The royalty rights shareholders own a piece of that too. Along with the bump it could give to the royalty company's shares.

It's like owning an option on the resource boom, with which you get all the future upside gains at a much cheaper entry price. And without any of the major downside headaches.

As long as those mines are producing, the royalties roll in year after year. And with the companies I've found and featured in the report, you've got access to "long haul" deals that have as many as 25�30 years of production left in the related mines.

So those royalties have plenty of time to pile up pretty high. In other words, you could start benefiting from the royalties immediately. And then keep on collecting for many, many years to come. All while even more royalty rights get added to your share of the overall portfolio.

Why would you want to pass that up?

You'd have a tough time finding a better deal ― with full and growing access to the "mineral rush" upside, almost as far as the eye can see, but with very little to none of the conventional mining or exploration company risks ― and that's just the beginning of what I'm ready to share...

Five More "Special Situations"
Moneymakers You Don't Want to Miss

Right now, my Mayer's Special Situations readers and I are looking at five more rare "special situations" I don't want you to miss...

• Unless you know mining, you've never heard of molybdenum. But it's known as the "energy metal." And it's key to all things energy. This little company produces it better than anybody, with a share price that's an easy double within the year. Even if "moly" prices don't budge
  
  
• The world's energy fields are getting old. And this one stock gives you a better way to play this than anybody. Right now, it's still deeply undervalued. But that won't last for long. In our first 11 days with this company, we were up over 6% ― so it's already on the move
  
  
• T. Boone Pickens, the 79-year-old billionaire, must love this next stock as much as we do ― he just bought $76 million worth. And I see it soaring much higher, on the back of a surprise supply-demand super-crunch in this one ignored raw resource
  
  
• This tiny little $2 copper stock is super cheap with huge potential. It's another easy double within the year. Plus, it pays a 5% dividend ― how can you beat that?
  
  
• Drug companies come and go, but with the boomers marching into the golden years... it's a sure bet someone somewhere is writing a medical prescription. The more they write, the better for this last company. It's a spinoff story with solid 300% gain potential ahead.

You'll find out the names of these rare "special situation" moves in your free report Five Stunning "Special Situation" Plays You Can't Afford to Miss. You can download that the minute you accept my invitation to become a subscriber to Mayer's Special Situations.

Here's how it works...

How to Gain Full Access to My
Elite "Special Situations" List

I'm sure you understand this "special situation" research isn't free.

These plays are more difficult to find and track than regular stocks. And you can share them only with a smaller group of readers. That way, the share price won't get influenced.

So the first thing I insist on is that we keep new enrollment at a maximum of 2,000 slots. Not one more. If you come in after that, I'm afraid you're out of luck until we can open enrollment again. No exceptions.

Second, I need to ask a reasonable price, given the potential of the plays I reveal and the level of sophistication I'm hoping to attract in my readers.

What's a fair price for gaining access to these highly valuable, undiscovered "special situation" deals? Before I answer that, let me tell you about just one more little-known opportunity you should add to your portfolio right now...

Grab Your Share of a 500 Billion Barrel
Oil Payout Underneath North Dakota

This is just one more thing I can't resist telling you about.

My readers and I have tracked it recently, and it's one of the most exciting investment stories taking shape in North America today. In short, it starts with incredible new research related to the "Bakken Trend."

This is an absolutely huge stretch of American acreage that could hold as many as 250 billion barrels of oil ― possibly even as many as 500 billion.

And smack in the middle of this suddenly valuable stretch of land is an astounding undiscovered play that was going for less than $2 per share when I first wrote about it for my Special Situations subscribers.

It's already shooting up ― I see a triple on these shares not too far into the future. And even higher ― as much as $10 ― not much longer after that.

I would love nothing more than to name it for you, right here.

But that wouldn't be the least bit fair to my paying readers. So I'll tell you what I'm going to do. If I hear from you immediately, I'll include a copy of this new Bakken Trend report, America's Secret 500 Billion Barrel Bonanza (and How It Could Make You up to Five Times Your Money), in your welcome package for Mayer's Special Situations.

The door to this incredible opportunity just swung open again in 2008. There's no telling how long it will last. That's why you must collect your share of "Chaffee Royalties" before they're gone for good.

So let's sum this up.

When you sign on for an elite, fully guaranteed subscription to Mayer's Special Situations, you immediately get...

• The breaking story about the incredible new energy investment discovery right here in America, in the new report I just told you about, America's Secret 500 Billion Barrel Bonanza (and How It Could Make You up to Five Times Your Money)
  
  
• You also get my exclusive new research on the "do nothing" wealth you can pile up in America's "Chaffee Royalty" opportunities, in your copy of Big Mining Money Without the Big Risks: How to Build Resource Royalty Wealth While You Sleep
  
  
• A bonus special report to get you up-to-date immediately on the very best of what the rest of my members are reading about right now, called Five Stunning "Special Situation" Plays You Can't Afford to Miss
  
  
• My members-only stock analysis, which I'll send directly and privately to my Mayer's Special Situations readers, once every month, with coverage of our newest exclusive on an undiscovered "special situation" stock or other alternative market play
  
  
• Plus, between every full analysis report, we'll stay in steady contact each week so I can make sure you're on target with everything new that's happening in the portfolio, from what to hold to when to take gains, and more
  
  
• And finally, only members will have password-protected access to the Special Situations private Web site, where you can find full backup of all alerts and updates, plus the latest news on the portfolio and downloadable copies of all your reports... so you'll never be left wondering what to do on these underreported, fast-moving and lucrative plays
  
  
• Here's one more bonus: Everyone who signs on will get free access to my publisher's brand-new Agora Financial Executive Series. The Executive Series consists of two daily e-letters and provides you with an insider's view of our editorial room. First, every morning, you'll receive the Rude Awakening delivered straight to your e-mail box. Each "Rude" article enlightens you with focused, articulate essays -- each of which delves deep into some of the core investments that Agora Financial is researching. Next, you'll also receive the 5 Min. Forecast every weekday at noon. The 5 Min. Forecast aims to cut through the incredible glut of "news" by providing you with a quick-and-dirty roundup of the day's most essential ideas and not-so-common knowledge -- in five minutes or less. Normally, this would be an $195 value. But because you're willing to take me up on this trial invitation, this bonus gift is yours free.

So with all of that, what is it worth? To you, it could be worth thousands... tens of thousands... hundreds of thousands. It all depends on how ready you are to jump on these often-missed "special situation" opportunities.

I've seen other services offering half this much and less... charging as much as $2,000... $2,500... even $5,000. Yet even with the coming price hike for new members, I won't ask you to pay anything even close to that.

You'll get the full year of all of my best "Special Situation" research and updates for the reasonable introductory price of only $995.

It couldn't be more plain.

One more thing...

Because of the nature of the stocks we'll cover... and the "special situations" that make them so valuable... I simply can't expand our Mayer's Special Situations membership circle any wider.

What's more, I must insist that when you join as a subscriber, everything you discover inside the circle stays in the circle. You must promise that you won't share our list of "special situation" plays with anybody.

If that's not something you can do, this service might not be for you. Because these unique plays are intended for your eyes only. No exceptions there, either.

Of course, I'm ready to make my own promises, too...

Try my Mayer's Special Situations for the next 90 days. Read the included special analysis in the reports I'll send. Try the recommendations, pocket the gains and see what you think.

If you don't see at least money-tripling opportunities in the reports and regular alerts and updates I'll send ― on any one of the royalty companies we talked about ― then I want you to cancel and I'll send you a full refund, no questions asked.

It's that simple. Either you see results or you pay nothing. Period. And by the way, after those first 90 days, you can still get a refund to cover the remainder of the subscription. Again, no questions asked. And no pressure. The choice is entirely up to you.

That gives you plenty of time ― with no pressure from me ― to make up your own mind.

I hope I'll hear back from you soon...because there's no telling when your chance to collect your chunk of royalties will disappear ― possibly for good.

That's why it's so urgent that you reply right now by clicking on the "Subscribe Now" button below.

The Oil Boom That's Just Getting Started

You don't have to look any further than the Energy Information Administration (EIA) to see there's a changing of the "Old Guard" when it comes to our domestic oil production.

The top oil-producing states -- Alaska, Texas, California -- are cranking out less crude than they were 5 years ago.

North Dakota, on the other hand, is one of the few states in which oil production is actually increasing.

In fact, the state is pumping out more than 144,000 barrels of crude per day for the first time in nearly a quarter century, according to the EIA.

"We've added 20 percent production in just two years, and it just keeps growing," says Ron Ness, president of the North Dakota Petroleum Council.

All thanks to the gargantuan oil reserves being tapped right now in the Bakken region.

But keep in mind, we're only seeing the first stage in Bakken production... with nothing but massive growth expected.

And early-minded investors are taking profits every step of the way.

Learn how you can get in now -- on one one of the most incredible buying opportunities of the year -- in the following report.

Throughout the vast rangelands of North Dakota, residents are saying it's "easier to strike it rich from oil than by winning the lottery."

Take longtime resident Oscar Stohler, for example...

A retired cattle rancher who's lived modestly for 75-plus years, Stohler is now officially a millionaire.

Normally, the afternoon walk to his mailbox would have him flipping through an assortment of bills and your standard issue junk mail. But these days - as often as two or three times a month - he opens up an envelope filled with a staggering check.

Then there's John Bartelson, who gets a hefty royalty check, in the tens of thousands of dollars, from one of the oil companies drilling on his land.

And they're hardly alone.

According to Bruce Gjovig, director of the University of North Dakota's Center for Innovation, there may be as many as 2,000 new North Dakota millionaires within the next three to five years.

And that's only counting one small North Dakota county... where the population barely tops 6,000 residents.

That's one estimated millionaire for every three residents!

North Dakota, as it turns out, is on pace to set a state oil-production record this year.

And as the price of oil continues to skyrocket, the frenzy to set up drill operations here in North Dakota's Bakken formation is heating up.

In fact, oil & gas companies are already churning out successful drill result after drill result... and handing over huge oil royalty checks to property owners.

But everyday North Dakotans aren't the only ones getting rich...

You see, the Bakken formation is quickly becoming the country's hottest new oil play.

And early-adopting, "in-the-know" investors are cashing in... in a big, big way.

Here's how it's all going down...

It's a formation known as the Williston Basin, but is more commonly referred to as the "Bakken." And it stretches from Northern Montana, through a large part of North Dakota and into Canada.

For years, U.S. oil exploration has been considered a dead end. Even the "Big Oil" companies gave up searching for major oil wells decades ago. However, a recent technological breakthrough has opened up the Bakken's massive reserves... and we now have access of up to 500 billion barrels.

And because this is light, sweet oil, those billions of barrels will cost Americans just $16 PER BARREL!

That's enough crude to fully fuel the American economy for 41 years straight.

To America, this discovery couldn't have come at a better time. You see, when all the wells are finally drilled and pumping, we won't have to import any foreign oil from the Middle East. Not a single drop!

For many North Dakota landowners, it means freedom from financial worries for the rest of their lives.

And for investors like you and me, it means a "once-in-a-lifetime" chance to profit on ever-rising demand for oil. And we can do it by getting in on the groundfloor of the next great oil boom...

Even the US Government has confirmed the Bakken as a huge oil formation. The government's own Energy Information Administration (EIA) issued this press release:

"...with new drilling and completion technology taken into account, the resource base for the entire formation is potentially much larger. A study provides estimates ranging up to 503 billion barrels of potential resources in place."

Oil in the Bakken isn't gritty, dirty and expensive like the Alberta oil sands.

We're talking light, sweet crude oil - the least expensive and easiest to refine oil out there.

And here's the kicker...

You don't have to be a North Dakota resident to get your piece of the pie.

In fact, I have uncovered three companies that are drilling in the Bakken right now and are seeing returns and revenues second to none...

"It's a good, old fashioned oil boom," says Dr. Paul Polzin, a University of Montana economist.

One company has been there since the beginning of the Bakken boom... and is already selling its oil to the market. And the best part about it - this company is sharing its Bakken profits with everyday investors.

You see, for the past seven years, this company has distributed its net profits in the form of MONTHLY cash payments. They have sent their shareholders profit-sharing checks for 84 months in a row... and the check amounts are on the rise.

Straight from the company's annual report:

That's how huge and insanely profitable the Bakken play is becoming.

The other 2 Bakken companies I've uncovered are true "wildcatter" plays... with the potential to return investors 100-to-1 on their money. They currently both trade at roughly $9 a share, having jumped from $7 and $5... just within the past couple of weeks.

Amazingly, this monumental oil discovery - and these 3 companies - have remained a secret.

Before I explain this opportunity in more detail, let me be perfectly clear - I have never come across a more ideal profit scenario.

In this letter, I'm going to tell you everything that I've learned about the Bakken discovery, why it is still a secret, who's involved, and - more importantly - how to profit from it. Especially before the rest of the investment community finds out.

Mark my words, an opportunity like this only comes around once every so often and I can GUARANTEE that this will not remain a secret for much longer.

In fact, some of the local media are beginning to report on it...

• "If [oil] prices increase or technology improves, the total amount of oil taken from the Bakken will go up... and that much oil means a century of steady oil production." - Lynn Helms, Director, North Dakota Dept. of Mineral Resources
• "People in the region 'are just starting to see the potential' in this new oil play" - Grand Forks Herald, Nov. 4, 2007
• "The huge potential of the Bakken play has industry and government officials gushing with superlatives." -CanWest News Service, Dec. 10, 2007

As we all know - the people who make the most money are the people who get in first.

And for the shareholders of oil companies that make huge, new discoveries, the potential payoff is mind-blowing.

There are several companies that have seen similar situations to the Bakken - of course on a far smaller scale - and have rallied hundreds of percent in just a few months. If these companies can see their stock prices increase by 300%, 400% or even 500% with oil discoveries of 1 or 2 billion barrels... just imagine what a discovery of up to 500 billion barrel of oil would do to a stock's price!

Here are a few examples...

Bankers Petroleum is a company based in the Patos-Marinz Oil Field in Albania. Upon discovery of its 1.96 billion barrels (1/250th of the potential of the Bakken Basin) the company's stock price increased 468% in just 7 months!

Let me fill you in on the details...

It was a true "rags to riches" story.

Then there's Petrominerals, a company whose primary drilling area is in the Llanos Basin in Colombia, South America. When uncovering a 1 billion barrel potential (1/500th of the potential of the Bakken Basin), this stock jumped 775% in just 10 months!

Lastly, there's the example of BPZ Resources, a Peruvian company that has concentrated on two main oil fields: The Corvina and Albacora Formations. Recently, it was reported that the Corvina Field holds reserves of 60 million barrels and that the Albacora field hold reserve of roughly 500 million barrels (1/1000th of the Bakken Basin Potential) and the stock price rocketed 449% in just 8 months!

As you can see from the charts above - the potential is huge when a company makes a new discovery. And with the Bakken being exponentially larger than any oil field listed above, there is no telling how high the stock prices of the companies that I have outlined below will go - 400%... 700%... 2000%... maybe much, much higher.

Keep reading to learn exactly how to get in on the ground floor of this unprecedented oil discovery called the Bakken Basin...

How a Starving Geologist Found
the Largest Oil Field in Modern History

A few years ago, a Billings petroleum geologist by the name of Dick Findley was working out of his basement - searching for oil in an area that had been barren for over 20 years. Things were rough and he was struggling to get by.

He even flirted with the idea of getting a second job as a restaurant cook. On a diet of nothing but Ramen noodles and hard-boiled eggs - how could you blame the guy?

"The boom has been so big the pipeline carrying Montana and North Dakota crude to Midwestern markets is at capacity and the largest company drilling in Elm Coulee has temporarily closed some wells because they have no way to sell it." - The Montana Standard

But one thing kept Dick going - an unprecedented suspicion that this area, known as the Bakken Basin, contained more oil than Saudi Arabia, Iraq and Iran combined.

The Bakken Basin, located in Montana, North Dakota and Saskatchewan - was at one point coined "one of the largest disappointments in the oil industry."

During this period, technology lacked the efficiency to make drilling worthwhile. And when oil hit all time lows in the late 90's - the Bakken Basin was basically abandoned.

But Findley kept digging around.

And through sheer luck, he and his partner stumbled upon a porous layer of dolomite, 9000 feet below the ground of a ranch just outside Sidney, Montana.

This stumble turned out to be the largest on-shore oil discovery in decades.

Little did he know, but Findley discovered enough oil to fuel the U.S. for 41 years.

And the oil field he found - and the technology that he helped develop to extract the oil - has recently made millionaires out of ordinary North Dakotans and Montanans...

"It was a light bulb kind of thought - When I discovered that the oil was in the middle shale and it continued for 50 miles, I called my partner and I said, 'I think you'd better sit down...we found a giant oil field," says Findley of his initial discovery.

Findley soon took his discovery to energy giant Haliburton, which backed him financially and provided the support to help him develop the necessary drilling technology to efficiently take advantage of this huge oil discovery...

The Technology That Makes It All Possible

It's true that the oil industry has known about the Bakken Basin for over 20 years - but the problem always was that no one knew how to get at the oil. The technology just wasn't there. Until now...

But even today, the exact science behind getting the Bakken oil is still somewhat of a secret.

I mean, think about it for a minute...

Imagine you found a massive, but trapped gold mine in your neighborhood. Now imagine you created a technology to mine it - a technology unique to this specific gold mine.

Would you tell anyone how to do it? Would you reveal your secret?

"Could increase U.S reserves by 10 times..."- American Digest

No, of course not. You would want to make as much money as possible, before everybody else found out about it.

Well that's exactly what's going on with the Bakken Basin.

"It's too early in the play to be sharing information," says Bill Walker, a Denver-based geologist with Headington Co.

Bill says his company has recently developed the technology to drill the Bakken down effectively - and it's one of the company's closest guarded secrets.

Even though the technology I'm talking about is rather well known, actually using it successfully is the big secret.

The technology is called Horizontal Directional Drilling or H.D.D., and only a few companies have mastered the process.

 

How Does Horizontal Directional Drilling Work?

Getting oil out of the Bakken is not a matter of poking a hole in the ground until you hit a soft spot full of oil - which is the old vertical drilling technique.

The Bakken is woven with rocks, and that rock-layer is wide but very thin. Thin enough that vertical drilling is horribly unsuccessful.

It was Findley's idea to drill a well sideways - a technique called "horizontal directional drilling," in which wildcatters drill down to the oil and then kick out their well thousands of feet to the left or right.

Sort of like an underground sprinkler. Here is what it looks like:

But horizontal drilling alone isn't enough to get the oil out of the ground.

Findley had to work with Haliburton engineers to figure out a way to both drill sideways and fracture the rock to release the oil.

"The Bakken is so prolific... one of the top onshore fields found in the past half-century." - Financial Post

Both horizontal drilling and fracturing had been done before, but never together. This was Findley's revolutionary idea.

These combined technologies made drilling the Bakken Basin possible and extremely profitable.

In fact, the technique is so efficient that companies - like the ones I will tell you about below - are extracting oil from the Bakken at an amazing cost of just $16 a barrel!

And with oil now well established at over a $100 a barrel ($140 at last check) - the companies below are making a killing - and you can too if you get in quickly enough...

 

The Best Way to Get in on the Groundfloor of One of
the Largest American Oil Booms in History

 

I've spent the past 6 months researching every possible way of making money with this monumental oil discovery.

I've found a total of THREE ways.

Each opportunity has a unique advantage. And whether you're an income investor or a growth stock investor, there is a way for you to get in on the Bakken boom, before the herd does...

 

Bakken Millionaire Opportunity #1

 

The first opportunity is an explosive growth stock that was recently upgraded to the AMEX exchange in February 2007.

Since being upgraded this stock has gone from $3 to $10 - that is a 233% gain in just over one year.

And that is just the beginning...

The main catalyst for company's stock price spike is an increase in its acerage position in the Bakken Basin to 50,000 gross / 16,000 net acres. This additional acquisition increases its total Bakken position to about 105,000 gross / 52,000 net acres. That's huge.

"Staggering 503 billion barrels total recoverable and non-recoverable..."- Popular Mechanics

They are gobbling up land in this precious region with fervor second to none.

In the past 12 months, insiders of the company have purchased more than 120,000 shares. They know that the Bakken play is going to be a fortune-maker.

With a deep foothold in the Bakken and the expansion of wells throughout the region - there is no telling how high this stock could go. Companies in similar situations have seen their stock rise to over $200 a share. Right now you can buy it for $9 a share.

But let me be very clear: we are talking about the potential of several thousand percent gains. This company trades at a market cap of just $196 million. So it's very small. When this company starts pumping oil out of the Bakken, its market cap could balloon to $2 billion! Right now the company stock is under the radar. But now that the U.S. Geological Survey has officially launched its Bakken report, this company could jump as much as 400% in just couple of days...

By combining experienced management, low overhead and aggressive acreage acquisition, this company is one of the nation's fastest growing small-cap gas and oil exploration and production companies.

"We are excited to announce the expansion of our [Bakken] acreage position," said the Chief Executive Officer. "Our position in this productive resource play is well situated among acreage held by leading Bakken exploration companies. Assuming full development of our [Bakken] leasehold on 640-acre drilling units, [our] acreage would result in approximately twenty-five net wells."

With the newly acquired acreage, this company is poised for profit over the next couple months, which means higher stock price and more cash in your pocket...

 

Bakken Millionaire Opportunity #2

 

The second opportunity is an aggressive income play. This company has been involved in the Bakken for years and has significant acerage in the region.

This company is a high-yielding equity investment in the oil and natural gas business. They have built a balanced and diversified portfolio of producing properties across the United States with a focus on large resource plays, like the Bakken.

They have a strict discipline of paying a significant portion of their cash flow to investors each month. And with a payout ratio of 190% and a dividend yield over 11%, it's hard to argue otherwise.

But here's the rub...

"A new black gold rush is under way... enough to meet all U.S. oil needs for decades." - Kiplinger

This company is also a significant growth opportunity. Compared to the industry this company is trading at a heavy discount.

They have a forward P/E ratio of 14 compared to an industry average of 18.3 and a price to sales ratio of 5.76 compared to 11.04 for the industry.

Based on conservative valuation models, we believe this stock has the potential to double in the next 12 to 24 months.

That's on top of the cash payments it pays out every single month.

 

Bakken Millionaire Opportunity #3

 

The third opportunity to take advantage of the next great American oil boom is through an independent exploration, development and production company that utilizes a revolutionary 3-D seismic imaging technology to systematically explore and develop domestic oil and gas reserve.

The use of this 3-D seismic technology reduces drilling risk and compounds their ability to grow reserves and production volumes.

Just recently this company announced three monumental Bakken discoveries and a plan for a significant acquisition of acreage in the Bakken Basin to the tune of 67,500 acres - bringing the company's total Bakken acreage to 219,000.

And their oil revenues have been booming. Take a look:

As a result, their profits are expected to grow at a huge rate.

According to ratings company Morningstar, the company's EPS growth is expected to grow a whopping 172% from its 2007 earnings.

Take a look:

This company, like the first one, is a huge growth play. It is currently trading at a huge discount with a price to sales ratio of 2.35 compared to an industry average of 11.04.

"The highest-producing onshore field found in the lower 48 states in the past 56 years." - The Wall Street Journal

As the true potential of the Bakken is revealed by the U.S. Geological Survey - this company is sure to trade at a fair valuation - which comes to a 477% gain.

Not to mention that over the last 7 months there have been nothing but purchases with insiders...

This company is setting up for major success and the insiders know it - this stock is going nowhere but up over the next couple years...

This is a once in a lifetime opportunity to get in at the beginning of an oil boom - for next to nothing...

Now listen closely, I've put together an exclusive report that details the 3 companies currently in the Bakken ready to get America off of Mideast oil.

I call the report The Bakken Billions: The Next Big Oil Rush.

Below I will show you how to obtain your free report and become a Bakken Millionaire yourself.

But first...

 

Why You Should Hear Me Out...

My name is Brian Hicks. I'm the president of the investment research company Angel Publishing.

Recently, I co-authored a book with Chris Nelder, titled Profit From the Peak. In the book, Chris and I go into full detail on tackling the world's energy problems... and how investors can maintain financial security in the process.

I can say with confidence that Chris and I know a little more about today's energy markets than your average 'oil expert.'

You see, Chris is a well-regarded energy expert who has designed and built dozens of solar energy projects. This is a guy who understands the energy market inside and out... from energy's worst problems to its brightest solutions.

And for the last decade, Chris and I have preached that investing is key to solving the world's energy challenges... Investments in a multitude of energy practices and technologies that will wean us away from our dependence on oil.

But we're also quick to point out that this blueprint for success also includes the economic harvesting of remaining and unconventional oil sources.

And that's where the Bakken play comes in.

Fact is, oil and gas companies are chomping at the bit to set up drill operations in the Bakken. And you're going to be very glad you got an early piece of the profits, through the $20 Trillion Report.

We've already squarely identified the most profitable companies doing business there. And when the next O&G company gets set for a surge in its stock, our subscribers get first dibs on the profit taking.

Chris Nelder, author of Profit from the Peak, seen here on Fox News' Your World with Neil Cavuto

And that's why I'm writing to you today. The energy crisis in the 21st Century is, without a doubt, one of those investments in which you can achieve a lifetime of wealth. . . a sector that could make you a legendary fortune in just a short period of time.

When you sign up for The $20 Trillion Report, you'll immediately get access to The Bakken Billions: The Next Big Oil Rush.

But that's not all you'll get . . .

I have 4 more money-making reports to give you.

Here's what I suggest...

Test-drive The $20 Trillion Report

There's a super-easy, no-risk way to receive everything I've mentioned in this letter, including...

Energy Investment Report #1: The Bakken Billions: The Next Big Oil Rush.

The Bakken Basin is home to an estimated 503 billion barrels of oil.

Right now, 3 companies are there producing oil. All 3 have the potential to be huge moneymakers for investors.

Energy Investment Report #2: Canada's First Underground Refinery: How to get Access to 31.63 Barrels of Oil Resource for just $47.

With oil trading over $100, every 100 shares you buy gives you access to $316,300 of oil resource.

So far, investors who own this stock have earned over 225% in 2007 alone!

Energy Investment Report #3: Our Favorite Oil Stock Under $5.

I'll reveal our favorite oil stock under $5 a share . . . a stock we think has the potential to hit $26 in the next three years. It's a Texas oil and gas company that's doing something unique - reviving old oil fields and squeezing out what's been left behind. For instance, did you know that for every barrel of oil that was pumped out of the ground in America, two barrels were left behind?

Well, this company is going after it using EOR, enhance oil recovery.

Energy Investment Report #4: The Energy Trade of 2008.

It's a stock in which one American billionaire recently bought 395,000 shares. The company is an "alternative energy" company . . . and this billionaire bought those shares for $13.95 apiece on the open market. Not exactly chump change.

He made this same move last summer, but with a different stock. And it rallied 100%.

That's why we're calling this "The Energy Trade of 2008." It currently trades for around $13 . . . but we think it'll reach $30 in the next couple of months.

And lastly, select the two-year option to The $20 Trillion Report, and you'll receive my book, Profit from the Peak, absolutely free of charge.

 

Profit from the Peak is a roadmap that shows you how to profit from the rise of oil prices. A copy is yours, absolutely free, when you select the two-year option to The $20 Trillion Report.

"Just wanted you to know how much I appreciate the hard work you do in finding the great companies for your readers. Currently I am up 252%, 165%, and 101% respectively. You made a believer out of me. Regards." --N. W.

Just click on the link at the end of this email and let my team know that you'd like to begin your membership in The $20 Trillion Report.

You'll have plenty of time to examine my research and my investment philosophy. If you decide The $20 Trillion Report is not for you, simply let me know within the first 30 days by phone or mail and we'll completely reimburse you for the entire subscription fee of $99.

Before I give you the specifics, let me quickly tell you about one of the investment ideas I'm extremely excited about right now . . .

The Energy Trade of 2008

Thanks to my connections and contacts in the global energy industry, I have uncovered a little-known way you can earn more profits from the energy bull market...

I'm calling it "The Energy Trade of 2008."

"I subscribed about 6 months ago and wish I did it sooner. I'm still up 336%. Yesterday alone my portfolio went up 23%. Thanks a lot!" --B. W.

Simply put, some of America's richest investors are placing huge bets on energy, and especially "alternative" energy.

There's an alternative energy stock that currently trades for around $13 a share. Its market cap is $524 million... and it does $114 million in annual revenue. So as you can see, it's a real company with real revenues.

But more importantly, a billionaire recently bought 395,000 shares of it. He bought those shares for $13.95 apiece on the open market. So he must think - or even know - that the stock is going a lot higher.

He bought another energy stock last summer and it rallied 100%.

We think the stock he's buying now is an easy double in 2008. And you can get your hands on it immediately when you become a member of The $20 Trillion Report.

How to Get $20 Trillion for Just $99

The $20 Trillion Report costs only $99 for an entire year of research and reports.

"Hello, I have to admit that I joined your service more out of desperation than anything else but am I glad that I did! My recent trading history is poor to say the least. I'm just sorry that I didn't act on your information sooner but I guess I can't be too upset with a 250% boost in one week! Keep up the great work." --Judy (a very satisfied member)

Let me ask you a simple question: Is it worth paying $8 and change a month to learn about the best energy investment opportunities you'll hear about nowhere else?

We absolutely believe it is. If we didn't believe in the research my team and I are doing, we wouldn't spend weeks traveling to the Barnett Shale, Fort McMurray, Alberta, Kiev, Ukraine, Wyoming and Montana.

I'd like you to have the opportunity to try The $20 Trillion Report without feeling obligated to pay a single penny.

When you sign up for a trial subscription to The $20 Trillion Report today, you will receive:

• Monthly Issues of The $20 Trillion Report. You'll receive every copy by email quickly and efficiently.
• Hotline Updates. In addition to the monthly issues, we'll also send you a weekly hotline update.
• Research Report #1: The Bakken Billions: The Next Big Oil Rush.
• Research Report #2: Canada's First Underground Refinery: How To Get Access to 31.63 Barrels of Oil Resource for just $47.
• Research Report #3: Our Favorite Oil Stock Under $5. This company is doing something unique - it's bringing old oil wells back to life.
• Research Report #4: The Energy Trade of 2008.

Take the next couple of weeks to have a close look at my work.

If you don't agree The $20 Trillion Report delivers the safest and most lucrative energy investment ideas and recommendations you've ever received, please contact my staff within the first 30 days by phone or regular mail and we will see that you receive full reimbursement for the money you've paid.

The longer you wait to get started with these investments, the less money you will have in 2008 and beyond.

Safety in High Yield

As the market continues to be highly volatile, more and more would-be traders are starting to pay attention to such boring things as "yield," safety, and steady "cash flow."

These ingredients are the life-blood of an investment strategy practiced by one of Forbes' most successful editor/partners, Richard Lehmann. You may recognize Richard as Forbes Magazine's Fixed Income columnist and resident bond expert. He is also author of fixed income bible Income Investing Today and editor of monthly newsletter Forbes/Lehmann Income Securities Investor.

Richard's portfolio of safe, conservative, high-yield fixed-income securities has beaten the stock market for years. In fact if you invested $100,000 in Richard's high yield model portfolio at the beginning of 2000 it would be worth $266,000 at the beginning of July compared to only $85,000 for a similar investment in the riskier S&P 500.

That means his readers have been able to double their profits … while protecting themselves from the looming threat of more market volatility.

With Richard's fixed-income securities picks and portfolios, you can build or re-build your retirement nest egg … generate the income you need to live after you stop working … and preserve the wealth you worked your entire life to accumulate.

 

In a recent interview, Richard shared with Forbes 5 portfolio strategies to help you ensure a financially secure retirement … for as long as you live.

 

1. Forget tax-free munis.

 

Tax-free municipal bonds are the most widely advertised income investment � promising safe, tax-free returns.

But forget them, advises Richard, who says they're a terrible value. They are only for the super-rich, who are interested in preserving their capital. And now as the bond insurance industry implodes we are discovering that "safe" munis aren't so safe after all.

A much better alternative is "corporate preferred shares."

These essentially allow individual investors to buy corporate bonds equivalents once available only to institutional investors � as preferred shares on the stock exchange.

While they aren't tax-free, the income generated by many preferred shares is taxed at the reduced 15% rate for dividends.

So they actually generate a superior return compared with tax-free munis.

Depending on their rating, preferred shares are yielding between 8% and 14%.

Even after the 15% tax on dividends, that's still a heck of a lot better than the measly 3.8% that AAA-rated munis yield.

In his monthly advisory Forbes/Lehmann Income Securities Investor, Richard Lehmann offers a wide choice of preferred shares … ranging from AAA-rated to below investment grade.  Some of these pay dividends as high as 151% of Treasury yield!

To find out which high-yielding preferred shares Richard is currently recommending, click here to subscribe now.

 

2. Canadian energy royalty trusts you can take to the bank.

 

The best income play on rising crude oil prices is to invest in select Canadian energy royalty trusts.  Unlike U.S. energy royalty trusts, which stop paying once the trust runs out of oil….

Canadian energy trusts can acquire and add more reserves to replenish depleted supplies � and as a result, pay off perpetually.

Traditionally, these Canadian energy trusts have been exempt from corporate tax.

In November 2006, Canada announced its intent to tax these trusts � sending investors scurrying.

But what many don't realize is that the earliest this tax would go into effect is 2011.

Also, while the tax rate in Canada is 35%, the effective tax rate for Canadian corporations is a mere 7%.

So even if the tax on Canadian energy trusts actually starts in 2011 � and it may not, since the party in power does not hold a majority in parliament � the effect on dividends is negligible.

Richard's 3 favorites are among the largest energy royalty trusts in Canada � and in Canadian energy trusts, size does matter.

These trusts have 9 years of reserves as well as vast acreage of undeveloped properties.

 

So they are likely to pay increasing dividends for a long, long time. Right now, they pay yields of up to 18.47%.

As a subscriber to Richard Lehmann's Income Securities Investor, you get the names of his top 5 Canadian energy trusts � some of which have yields over 18% -- with your very first issue. Click here to subscribe now.

 

3. Profit from undervalued "special situation" income plays.

 

Income investments aren't only for income.

Some generate superior total returns through a combination of high yields and capital gains.

One of the ways Richard helps his readers generate the dual objectives of growth and income is with "special situation" plays.

Typically, these are companies whose shares (preferred and regular) have fallen in price because of negative news.

Right now, he's recommending specific preferred shares of a large U.S. auto-maker.

As the woes of the U.S. auto industry made front-page headlines, credit agencies couldn't downgrade the credit ratings of this car company fast enough.

Result: institutional investors who are mandated to hold only investment-grade paper dumped these preferred shares into the market.

Now they can be owned by individual investors looking for growth and income.

Expected cost savings would have a major affect on its stock price. But even if it doesn't, you still collect a 13.6% yield on your shares.

 

4. Reallocate your portfolio to achieve retirement objectives.

 

There is no magic formula or hard-and-fast rule determining how to allocate your investments between stocks and bonds.

The amount of your portfolio that should be in fixed-income securities vs. the stock market depends on:

* Your age

* Your job status -- working, retired, getting ready to retire

* Your income

* Your net worth

For instance, if you are a 65-year-old retired person with a net worth of a couple of million dollars, you don't need to increase your nest egg.

You'd therefore invest a larger portion of your wealth in safe, conservative fixed-income securities with good credit ratings.

By doing so, you'd protect yourself against big investment losses which you can't afford, since you are not working and therefore don't have a paycheck coming in to replace them.

If you invested $1 million of your money in a diversified portfolio of fixed-income securities earning 8.5% annually, you'd collect $85,000 a year in dividend payments � taking care of most or all of your daily needs.

 

5. Invest the income portion of your portfolio in Richard Lehmann's high-yield securities.

 

Thousands of investors at or near retirement age depend on Richard Lehmann to help them navigate the somewhat complex � and unfamiliar � terrain of corporate bonds, preferred shares, convertibles, hybrid preferreds, PET bonds, and other fixed-income securities.

In each issue, you'll find dozens of recommendations on fixed-income investments with yields ranging from around 5% to 15% and even higher.

Best of all, there are 6 portfolios to choose from, each tailored to achieve a different set of investment objectives.

These are:

1. High Current Income Portfolio � achieves superior income by investing in securities rated Ba2/BB or below … generates a 13.3% yield and has outperformed the S&P 500 over four of the last five years. 
   
   
2. Medium-Risk Portfolio � generates high yields and high monthly dividend checks with fixed-income securities rated between Ba3/BB and Baa2/BBB … produces a 10.71% yield.
   
   
3. Low-Risk Portfolio � a portfolio of fixed-income securities with credit ratings of Baa3/BBB and higher (these are all investment-grade securities)… our safest and most secure income portfolio … yet it produces a 8.65% cash yield.
   
   
4. Convertibles � convertibles are tied to both interest rates and the stock market, so this is our most volatile portfolio … still in 2007 it produced a yield of 9.15% and beat the S&P 500.
   
   
5. Tax Advantaged Portfolio � For 2008 Richard has added a portfolio of securities eligible for the 15% dividend tax treatment. This portfolio will produce a yield of 9.69% taxable at only a 15% rate.
   
   
6. Multi-driver Portfolio � For 2008, Richard has also added a portfolio that includes diverse income generating sources to minimize exposure to any one economic event. This portfolio has built in 12.47% yield.

The $5,000 investor's service you can get for just 47 cents a day!

There are 2 ways you can "hire" Richard Lehmann to increase yield, capital gains, and safety of principle on your fixed-income investments.

The first is to become one of his private clients. But with a minimum account size of half a million dollars � and a one percent management fee � that will run you a minimum of $5,000 a year.

 

A much more cost-effective alternative is to subscribe to Richard's high-yield income investment newsletter, Forbes/Lehmann Income Securities Investor.

Your cost is as little as 47 cents a day � less than you pay for your morning cup of coffee! And of course, you can cancel and request a refund on all unmailed issues at any time.

Why Paper Silver is not as good as PhysicalSilver

Yesterday, silver hit a low, and was down dramatically to as low as $14.08/oz.  I'm sure the dip caused a lot of margin calls on people who owned silver futures contracts, who had to sell out.  Perhaps this is a time to review a few more reasons why all forms of paper silver are not as good as owning physical silver.

1. Default risk. Silver is good because it cannot default. All issuers of all forms of paper silver can default and fail to redeem their paper for silver, and are therefore not silver.  Those who default might be bailed out, but only in more paper, which is inflationary, which is why you want silver, not paper.  There is a lender of last resort for paper, but not for silver.  When Handy and Harmon, a silver refiner, defaulted due to their bankruptcy, people were paid nothing. Furthermore, payment in paper money that is quickly devaluing due to hyperinflation is no protection, and not the kind of protection that you get with real silver.

2. Bankruptcy risk. This is different from default risk. The company who sells paper silver could go bankrupt. That's different than if they default on any silver accounts or contracts directly.

3. Broker risk. This is another, different risk. When you buy paper silver futures contracts, you usually do it through a broker. That broker can end up stealing money out of customer accounts, even if the broker does not go bankrupt.  Brokers are not covered by FDIC insurance. There is SIPC.  They only reason they have to try to reassure you that your money is safe is because it isn't!

4. Exchange risk. If you own futures contracts, you usually do so through an exchange, unless you own an "over the counter" derivative. Even if your broker is ok, and if the person on the other side of the trade is ok, maybe the exchange will "change the rules". This is different from default risk, bankruptcy risk, or brokerage risk.  The futures market exchange changed the rules, and "defaulted or defrauded" silver investors in 1980.

5. Confiscation risk. Paper contracts could be confiscated by government, since they are traded via "known" agents and exchanges, the standard brokers.  Real silver is portable, and can be moved outside of the jurisdiction of any hostile governments, or held until after the failure and collapse of any hostile governments.  Silver owned by individuals is orders of magnitude safer.  It's not worth their time to confiscate silver of 10,000 people, who live among 10 million people in 10 million homes. It's also far too dangerous, and political suicide. It's much easier to confiscate silver that 10,000 people have pooled together in one place!  It is nearly impossible to confiscate silver that is locked up in a hidden place and cannot be found.

6. Buying paper silver diverts demand away from physical. Thus, paper silver is not real.

7. Paper is a promise. Silver is payment. Fundamentally, paper is not silver, and cannot be silver.  Paper is only money due to "fiat" law, and during times of chaos, such bad laws are ignored.

8. Silver is limited. Paper promises can be created endlessly and have no limit.

9. The entire reason for buying silver is to avoid the failing paper promises of an entire industry. To trust another paper promise is just silly.

10. Fraud is admitted as "standard business practice" among brokers who hold paper silver (not futures contracts) for clients.  This is not hearsay, this was admitted in a legal proceeding.

11. Storage fees are charged for silver that does not exist, as "standard business practice" in the broker industry.  This is not hearsay, this was admitted in a legal proceeding.

12. Buying paper silver creates a lower price for silver. The silver price does not move up when you buy paper.  This is self evident.

13. Buying paper silver puts "cash" into the hands of the manipulators, and enriches the "enemies" of truth and true value.

14. Leverage risk.  With futures contracts, you can get margin calls.  This creates an increased chance of loss that does not exist if you pay for your own silver in full, 100% owned, with no leverage.

15. Margin increases. This is different from a margin call. As silver prices move up, more margin is required to maintain an approximately 15% down payment rate on futures contracts.

16. Time risk. One form of paper silver, (options on silver futures contracts) expires. If the price of silver does not move up enough in a short time, the options expire worthless. Real physical silver will last over 2000 years, from Roman times, with just a slight tarnish that will actually protect the silver from further tarnish.  Silver does not expire.

17. Gambling risk. With futures, you are gambling, and your gain comes at another's loss, not through creating anything that helps people, such as a stockpile of a needed rare commodity, or increased production of a rare commodity. Risk is not the definition of gambling, gambling is when two people make a bet with each other, and one is a winner and the other is a loser, in a zero sum game. Life is risky, and life is not a zero sum game. Risk is minimized with 100% owned physical silver.

18. Moral risk. Your gain necessarily enslaves another to perform what might not be able to be performed. Enslaving others is morally wrong.  Some people say morality should have nothing to do with investing, but I think that if you cannot apply your morality to your life, then your morals are useless.  Owning physical silver is taking responsibility of your own wealth, and taking dominion over what God has provided for mankind. 

19. Tax risk.  Real silver is owned anonymously. Trading accounts are not anonymous; they have your number. Real silver can be sold anonymously for cash. Paper silver is tracked, and thus, capital gains taxes or any sort of new, confiscatory "windfall taxes" may apply.

20. Market risk.  Paper markets and exchanges seize up from time to time, especially during wartime or other crisis times.  Physical silver coins or one ounce rounds can instantly be physically traded to another person without delay or contact or permission from any intermediary. Thus, physical silver is the ultimate form of liquid wealth, and the ultimate form and expression of just power.  Physical silver can even be transported over borders, if need be.

21. Real money does not grow on trees, nor is it printed on paper!  Money is not only, and not merely, a "medium of exchange".  Money is, and must also be, a store of wealth, a unit of account, and a means of final payment (not a promise to be paid!)

The Other Shoe is Falling in Renewables

The Other Shoe

There are plenty of times when investors have that eerie feeling about "the other shoe" needing to fall (a catch phrase meaning that the likely or inevitable consequence of an earlier occurrence has, at last, taken place.). I admit to having that same feeling about the renewable energy stocks in general since the first dramatic low was established in mid March this year.

I said in many of my regular updates that after such a massive rout of selling, it was unlikely that this group of stocks would simply rise sustainably from the ashes without a serious and scary test of the lows.

Well, it looks like the other shoe has indeed fallen (and is falling) now. Investors in the renewable energy sector have a clear task ahead but it won't be easy.

The Renewable Energy Sector: At Support and Ready to Run

Once again, the few indices and mutual funds that effectively represent the renewable energy sector have worked their way back to the very same levels we saw in late March (or even slightly lower).

Powershares Wilderhill Energy (AMEX: PBW), the Powershares ETF that serves as my own benchmark, now sits down on the year by -31% after falling as low as -38% in late June. Pretty ugly, really, but that is the state of affairs so let's digest the situation.

When a sector as volatile as clean tech and renewable energy retests a previous low, we need to remain alert to a potential new rally, heavy emphasis on the word potential. This does not mean we load up recklessly but we remain ready to act once we get some confirmation that this level is going to hold at least according to the likes of PBW.

I see a similar picture when reviewing the major clean tech mutual funds like

• Winslow Green Growth fund (WGGFX),

• Guinness Atkinson Alternative Energy fund (GAAEX) and

• New Alternatives fund (NALFX)

While all are in clear downtrends, I see all trading at their own support levels and showing reasonably good evidence those prices may indeed attempt another rebound from here.

Take a look at the chart of PBW which has worked its way down to a pretty obvious support level on a 2 year level. The longer term support line is marked in red.

Now if you are the type of investor that doesn't have the time or inclination to buy individual stocks and you still want early exposure to THE GREATEST CYCLE OF INNOVATION THE WORLD HAS EVER SEEN (oops I tipped my hand a bit), then you will be attuned to this developing opportunity in the broad sector ETFs and highly correlated mutual funds.

While it appears the other shoe is indeed falling, it can fall further and investors in this camp must remain committed to a wait and see strategy at this point to confirm that a good low is in the works. Investors in individual stocks have a few more options regardless of whether our benchmarks find support at these levels or not.

Follow the Renewable Energy Leaders

It often takes a strong uptrend and a strong downtrend in any specific sector to discover the really strong companies - those that are less cyclical and more driven by good fundamental strength.

While 2007 served as a clearly defined strong period for renewable energy, 2008 is not surprisingly a weak period so far, and our list of keepers is becoming more obvious.

This is my list based on my assessments of my own universe of options. I will warn any and all of these names should only be considered for new purchases after healthy corrections develop and one can use any number of longer term 50-70-90 day moving averages to identify potential entry points.

I would also warn against building a heavily invested portfolio of just a few winners lest we fall victim to dropping the proverbial basket of precious eggs. Anyway, here are a few of my favorite renewable energy stocks that have had positive returns in both 2007 and thus far in 2008 with favorable long term price patterns relative to the sector indices:

• First Solar (NASDAQ: FSLR)

• Xide Technology (NASDAQ: XIDE)

• Companhia Energetica de Minas Gerais (NYSE: CIG)

• Metalico Inc. (AMEX: MEA)

• Badger Meter (NYSE: BMI)

• Enersys (NYSE: ENS)

• American Superconductor (NASDAQ: AMSC)

Brave investors in any of these stocks during 2007 would have had to tolerate no less than 10% losses in any given name and as much as 26% losses thus far in 2008 just to stay with the trend. Those may be intolerable for some but those are the emotional costs of owning any of these names.

And the returns have been superior to put it modestly. So the message is pretty clear; Leadership in the renewable energy sector is becoming more apparent and we need to stay "plugged in" to those names while accepting whatever volatility comes our way during these long up trends.

For the rest of your money, there are short term trends to play but not a lot else to get excited about.

Therapy

While the renewable energy sector is working to raise your blood pressure at support, I'll do my best to offer these words of encouragement.

Renewable energy and clean tech is a very quickly developing mega trend and new innovative cycle. It will last for decades and is far from over as some would suggest (Mostly the old guard from the Oil and Gas worlds who are looking at a possible end to their reign).

Our job as investors is to stay with the trend. Fortunes will be made in this sector like all of the new mega trends of the past so keep the faith, your diligence and patience will be rewarded many times over.

Think about the changes happening now. We are turning waste into power, developing organic food and environmentally friendly products. We are harnessing the sun, wind, waves to power our homes, creating designs with lighter weight materials and improved efficiency reducing our load on natural resources.

Bringing it all together with technology, transmission, and service completes the package. This is big and comprehensive. So fear not because these types of companies are the future as obviously as they are the right solution to a more sustainable life.

In less than a year, I'm confident that we'll look back at this time and marvel at the incredible opportunity as investors.

CXS Money Multiplier System

What's CXS Money Multiplier System?

He had a very bushy mustache. He wore suspenders and had a big potbelly. And if you saw him walking down the street today, you'd probably laugh.

But if you knew what he knew, you wouldn't laugh long.

That's because this man figured out the Five Simple Keys to Making Money on Wall Street…strategies some of the world's greatest investors use to build their fortunes.

His name was Forrest Berwind "Bill" Tweedy. No one really knows when he was born or where he came from. But if you happened to walk past 52 Wall Street in the 1920s, chances are you'd see him working at his cluttered desk - busy writing letters and looking through company reports.

Business was his life. He never married, never had any children. If fact, every day he ate lunch at the same time…at the same restaurant…even in the same chair.

He owned a small niche brokerage house that specialized in trading small-cap stocks. His method was unusual…to say the least.

Investing in Small and Micro Cap Stocks: A Brilliant Way to Pick up Big Profits

Day after day, Tweedy scoured the market for publicly traded companies that only had between 50 and 150 shareholders of record. He attended their annual meetings, wrote down all the shareholders' names and sent them personalized letters. His goal was to find out who wanted to buy and sell their shares. From there, Tweedy paired the buyers with the sellers and brokered the deals himself.

It was a brilliant idea.

Tweedy quickly became one of the only small- and micro-cap brokers on Wall Street. In fact, many shareholders turned to him when they couldn't trade the shares anywhere else. His reputation as the "broker of last resort" gave Tweedy a virtual monopoly in the small-cap market.

Tweedy's business was successful throughout the 1920s and into the 1930s. But it was about to get even bigger! 

Investing in Small and Micro Cap Stocks: Join Forces With One of the World's Greatest Investors

In the early 1930s, Tweedy developed a relationship with a man named Benjamin Graham. If that name doesn't ring a bell, it should. He literally wrote the book on value investing - THE way to make reliable profits in the stock market.

(In fact, if you haven't read his landmark guides - Security Analysis and The Intelligent Investor - I urge you to pick them up today.)

What Graham proved was nothing short of revolutionary: You could make a fortune investing in companies that were selling for a huge discount to their real value.

In other words, if a company trades far below what it's worth, over time, the company's true worth will be discovered…and anyone who invests while it was cheap could walk away much richer.

Think of it like this…

If you went to a flea market and found a rare three-legged 1937D Buffalo nickel selling for $900, you would buy it - knowing the real value of that nickel was somewhere between $3,000 and $4,000. In other words, if you sold it later and ONLY got the nickel's fair value, you will still make about 233-344% on your investment.

Not a bad deal, right?

Well, that's exactly the philosophy that Graham used to buy shares of a company. He looked for bargains - companies selling for 60-70% LESS than they were worth. And it just so happened that many of the small, illiquid companies Tweedy tracked fit Graham's 'value' model.

Investing in Small and Micro Cap Stocks: From $88,000 to $10 Billion

Thanks to their shared investment strategy, Tweedy quickly became Graham's "go-to" broker. And Graham became Tweedy's largest customer - so big that he moved his office right next to Graham's office.

Over the years, Tweedy's business grew. Howard Browne (who started his career as a runner on Wall Street at the ripe old age of 16) became Tweedy's partner in 1945. And the company slowly grew from a simple brokerage house (with about $88,000 in capital) to a full-fledged investment advisory business - that currently manages over $10 billion in assets.

Bill and Howard looked for stocks trading for huge discounts to their real worth. And over the years, they identified five keys to discover the best discount investment opportunities on Wall Street - companies Graham himself would be proud to invest in.

And today, you don't need to pay enormous brokers fees…or trust hype-happy analysts…or even have a monkey throw darts at The Wall Street Journal to find great stocks with fantastic profit potential.

You can use the exact same formula Tweedy developed to find extraordinary stocks on your own! In a second, I'll show you exactly what that formula is.

Investing in Small and Micro Cap Stocks: A Road Map to Stock Market Millions

My name is James Boric. I write a newsletter called Penny Stock Fortunes. I've always known that the best way to get rich on Wall Street is to buy stocks that are undervalued and have room to grow.

In fact, over the past few years, I've recommended stocks like SIRIUS Satellite Radio (which soared 233% in two months)…China Yuchai Intl. (which skyrocketed 146% in under eight weeks)…and Coeur d'Alene Mines (which jumped 110% in just a few months).

But to be honest, I can't take full credit for the success. That honor actually belongs to the computerized stock-picking system I developed - the CXS Money Multiplier System.

The CXS Money Multiplier System scans every single stock on Wall Street for 10 stringent criteria. And as you've seen, the stocks it finds have a habit of skyrocketing - giving you a chance for big profits. In fact, in 2003, it found a winner 72.7% of the time.

But as good as the CXS System is, I was intrigued by Bill Tweedy's method, too. After all, it helped transform an $88,000 specialty business into a $10 billion behemoth.

So I tinkered with the CXS System a bit, tweaking it to look for everything old Bill would like in a stock. And what I discovered was astounding - two companies that could jump 509% or more by Nov. 1, 2005.

Tweedy's 5 Investing Secrets

Tweedy looked for five specific things in every company he recommended. They can still be used today…nearly 50 years after his death!

And you can use them, too. Here's how…

1. Find a Company That's Worth More "Dead" Than "Alive"

Think back to that 1937D buffalo nickel I talked about earlier - the one that cost less than it was worth.

That's exactly what you want to see in a company. In stocks, a company's value is called its book value. Essentially, if you sold everything the company owns - inventory, buildings, even the desks and chairs - how much would be left over?

Now take a look at what the market thinks the company is worth. You'll find that in its market cap - the number of stock shares the company has times the stock's current price. That's how much money you'd need if you wanted to buy every single share of the company's stock.

See where I'm going yet?

Say a company has a book value of $10 million…but a market cap of just $5 million. You could buy every share of its stock for $5 million…and get $10 million worth of stuff! That's a 50% bargain!

As you'd imagine, bargain stocks like these have a history of going up over time. In fact, Bill and Howard found that stocks with low price-to-book ratios can return five times as much as companies with high price-to-book ratios!

One study even showed that if you had invested $1,000 in all the companies trading for 30% of book value or less in 1970 and kept rolling that money each year into the next group of stocks that were trading for 30% of book value or less - just 12 years later you would have been sitting on $23,298.

Meanwhile, that same $1,000 invested in the S&P 500 would have grown to just $2,662!

Of course, study results are one thing, and actual results are another. So let's take a look at a real-life example from the pages of Penny Stock Fortunes…

Small & Micro Cap Stocks: 25% in a Month From an Overlooked Bargain

In July 2004, my CXS Money Multiplier System selected Salton - a leading designer, marketer and distributor of small appliances, home decor and personal care products. Its famous brands include the George Foreman grill, Toastmaster and Farberware.

Truth be told, there were a handful of problems with this company. Its North American business brought in $22.8 million LESS than it did a year ago. It recently violated a deal with one of its lenders that caused its stock price to plummet to an all-time low of $2.50. And it just incurred a huge quarterly loss of $58 million - part of which will be used to implement a restructuring plan that will save the company $40 million in the future.

But Salton was trading for just 0.3 times book value. That means if you sold its assets for market prices, the company would be worth 3.3 times MORE than its shares!

That's an incredible bargain for such a famous company. And with the company's restructuring plan, I knew Salton's financial problems wouldn't last long. It was time to buy…before the rest of Wall Street woke up to the opportunity.

I immediately sent a buy recommendation to my Penny Stock Fortunes readers…and not a moment too soon. The shares began to take off…and when I recommended selling in September - a little more than two months later - the shares were up 25%. Not bad for eight weeks!

And that's just the first step in Tweedy's incredible discovery.

2. Look for Companies With Reasonable Profit Expectations

Tweedy also learned to only buy companies with reasonable profit expectations. The most time-tested way to judge that is with the price-to-earnings ratio, also called the P/E. That's the company's current price per share divided by its earnings (profits) per share.

The higher the P/E, the more profits investors expect the company to make in the future.

Think of it like this - a company has a price of $5 a share, while its profits over the past year have been 50 cents a share. That's a P/E of 10. In other words, investors are paying 10 times more for the company than what it made last year.

But let's say the company only made 5 cents a share last year. That's a P/E of 100…or 100 times more than what the company made last year. The only reason to buy such an overpriced company is because you think that earnings will eventually catch up to the stock price.

The higher the P/E, though, the more earnings have to rise.

Tweedy found that if you invested $1,000 in the highest P/E stocks between 1967 and 1984, you would have ended up with just $2,810 for your trouble. Putting your money in the lowest P/E stocks, however, could have led to $12,220 profits!

Now, I know what you're thinking - 17 years is a bit long to wait for a big payoff. And you're right. But you can use Tweedy's rules to make money much faster…

$3,100 in Just Four Months

In April 2003, a small aerospace company called Orbital Sciences caught my eye. It's a leading developer of smaller, affordable space systems - providing essential parts to everything from communications to research satellites.

Some pretty advanced stuff.

Of course, like anything tech-related, the business was hammered in the 2000 - 2001 recession. The company lost over $406 million between 1998 and 2001…its debt was mounting…and its stock sunk from $7 to as low as $1.38.

Now, most investors dismissed the company as a goner. But I saw some positive things… The company sold off underperforming divisions…paid off debt…and lined up new clients and contracts. In fact, in 2002 it racked up deals worth $1.37 billion.

In other words, the company was back on the plus side. Meanwhile, with multiyear multimillion-dollar contracts piling up, its earnings would grow for a long time to come.

With a great opportunity staring me in the face, I immediately alerted my Penny Stock Fortunes readers. And when I recommended selling just four months later, they had the chance to be 62% richer.

Imagine, if you had invested just $5,000 when I recommended Orbital Sciences, you could have cashed out in four months with an extra $3,100 in your pocket.

3. Find a Company With Optimistic Leaders

Here's another rule that investors just don't seem to understand…and it's already cost some their entire life savings.

Remember when Enron CEO Ken Lay told people, "Now is the time to buy Enron stock" - even as the company headed for financial ruin? Obviously, he was lying…and investors lost millions when the truth came out.

But it didn't have to be that way. That's because there is an easy way to really measure management's enthusiasm…just look at how much of their own stock they're buying with their own money.

You see, company executives and members of the board of directors are required to disclose when they buy and sell shares in their own company. It prevents the kind of dishonesty that led to Enron's demise.

Of course, there are many reasons a company executive might want to sell shares of their stock - it could be a bad sign, or it could mean he or she just needs some cash.

But when insiders start buying - it can only mean one thing: They're optimistic about the company's future.

It makes sense, doesn't it? You don't invest in something you think will lose value. You only buy if you expect it to go up.

Insider buying has been proven as one of the most reliable indicators for a company's future growth. In fact, Tweedy's research uncovered studies that show investors who follow insiders' leads often make twice what they would have made following the major stock indexes!

Even better, having a stake in the company's profits motivates the executives to do the best job possible. The better the company does, the higher the stock goes…and the more money the insiders can make.

Buy into these companies, and your money will jump alongside theirs - just like it did for Penny Stock Fortunes readers who followed my advice in August 2002.

Follow the Insiders for 179% or More

In August 2002, Midway Games popped up on my CXS System's radar. Just a few weeks earlier, a member of Midway's board, Sumner Redstone, picked up 496,000 shares of the stock when shares were selling for just $4.60 - or a total of $2.3 million of his own money.

That's usually enough to grab my attention. But then I saw something even more optimistic…

Redstone kept buying more shares…at higher and higher prices.

Between August 2002 and June 2004, he shelled out more than $48 million to buy more Midway stock. And each time he added to his collection, he paid a little bit more for the stock.

Heck, that's not just optimistic…it's downright enthusiastic.

Sure enough, today the stock is up 179% from when Redstone started his buying spree. If you had followed his lead and invested just $1,000 in Midway, you'd be sitting on $13,950 today!

4. Buy Stocks That No One's Brave Enough to Own

These days, the smallest bit of bad news can send a stock tumbling. Low earnings…a lawsuit…a labor strike…even a negative comment from an analyst. All can be lethal.

But it turns out these are exactly the kind of stocks you want to buy.

Tweedy's research found a study showing that the 35 worst-performing stocks over a five-year period beat the major indexes by an average of 18% just 17 months later. Meanwhile, the 35 best-performing stocks for a given five-year period underperformed the market by 6% 17 months later.

Let me say that again. Wall Street's worst-performing stocks - companies investors wouldn't touch with a 10-foot pole - did 18% better than the major indexes!

I'm always on the lookout for beaten-down stocks. In fact, my readers recently had a chance to play one former hot stock for a chance to make 66% in two months.

 66% in Two Months

No industry has been beaten down more than Internet companies. From its high in March 2004, the tech-heavy Nasdaq index has fallen 62%. The stocks of major companies like Cisco, Amazon.com and even Yahoo are still down 71%…61%…even 76% from their highs. And once-famous names like Pets.com and MP3.com are completely out of business.

So I was a little surprised when my CXS System identified drugstore.com as a potential winner in February 2003. True, the company had survived the Internet bust…but just barely. A major restructuring plan put the company $282.8 million in the hole in 2001…and the stock had fallen 95% from its high!

But the CXS System noticed something most analysts had overlooked - things were turning around for the company. Sales were rising…and profits were up 82%. Business was only getting better.

This fallen angel was about to fly again.

I recommended shares at $2.50. And sure enough, within two months they had jumped to $4.14. That's a 66% gain in just eight weeks…or enough to turn $5,000 into $8,300.

The lesson: If you're bold, you stand to make a lot of money. And smart investors know that most well-run companies usually revert back to their old selves before too long.

5. Buy Companies on the Verge of Becoming Household Names

Market cap is one way to judge how well known a company is. As you probably know, stock prices are determined by supply and demand. The less demand there is, the lower the price will be.

And there's almost no demand for a company that no one's ever heard of. In fact, there are many, many fine companies that are just too small to catch the big brokers' notice.

But these companies tend to have higher growth rates and higher rates of return versus their larger, more established counterparts. That means they have more room to expand…and become well known.

According to research, stocks with low market caps outperformed the largest companies year after year. In fact, over 17 years, the largest stocks on the market only yielded about 9.5% a year. The smaller stocks, however, did over three times better - going up an average of 33% a year!

That proves the best time to buy a company is when it's small - before it's touted by every Wall Street analyst in a suit and tie.

That was the case with a company I recommended just last year…China Yuchai Intl.

 More Than Double Your Money - In Under Eight Weeks!

The name China Yuchai probably doesn't ring a bell. But that's the point…few people know about this company, one of the largest diesel engine maker in China.

That's BIG - because China is in the middle stages of morphing from an agricultural nation to a fully modern one. It's spending billions of dollars building new roads, repairing old ones and manufacturing cars, buses and trucks - as well as manufacturing the engines that run those cars, buses and trucks.

That meant brisk sales for China Yuchai. Its sales and net income grew 97% and 64%, respectively, last year. On top of that, its net income was up to $49.8 million from $30.3 million a year ago - a healthy 64.4% increase.

Even with all this going for it, people still weren't buying in…and shares were selling for just $7.50 each in July 2003. But I knew it was only a matter of time before Wall Street caught on to the opportunity.

In fact, it happened less than two months later, when the shares jumped to $18.50 each!

If you had followed my recommendation, you could have picked up 200 shares for just $1,500. And just two months later, in September 2003, you could have sold them for $3,700! That's a profit of $2,200 - in just over eight weeks!

My CXS Money Multiplier System helped my readers cash in on the China trend before it became front-page news. And now, using Tweedy's accurate stock-picking guidelines, you have a chance to discover two more great companies before Wall Street catches on. 

Investing in Small and Micro Cap Stocks: High Returns Without Fail

These five investment criteria discovered by Tweedy have been proven to make money in the stock market over long periods of time.

But you don't need high-priced help to put their formula to work for you. In fact, I programmed my computerized CXS Money Multiplier System to find stocks that Tweedy would invest in if he were alive today.

As you can imagine, the results were astounding…

Prejudices of Penny Stocks

Don't ever judge a book by its cover. Chances are…it's a good book. Otherwise it would have never been published. The same goes for penny stocks…

There are several accusations about penny stocks that can make an investor hesitant and timid to invest because of a "risky no-gainer gamble" stereotype. These statements are exaggerated and erroneous…

Learning the truth about what you heard in the past…might be a wealthy opportunity for the future…

Here is the top three…

Misconception #1: Penny stocks are priced low because they are poor performing companies.

Penny stocks are usually small and newly created companies. While still trying to get established, penny stocks are analogically infants and toddlers compared to large-cap adult companies. With great parental guidance from a superb managing team, penny stocks can hold a promising future.    

Hints: Do your research! Get background information. There may not be an abundance of information on the company because of lack of media attention. So research patiently and vigilantly. 

Check if the managing executives and board members are respectable and passionate towards the company. A positive staff is always going to produce great work and show that through the company's bottom line.

The Chance to Turn $5,000 Into $1.5�2 Million or MORE. . .

I'm sure you've heard this story before ― but it's a classic: One split-adjusted share of Microsoft from its $21 IPO in March 1986 would be worth around $7,900 today.

Investors who put down just $5,000 in Microsoft in 1986 could have as much as $1.9 million today. What's going to be the next visionary market move?

Make sure the company is in a growth position and if they are compatible with future trends and markets. A company's willingness and desire to expand is a good indication of the value of a company to potentially rise.  

Another good way to analyze a company is by reviewing a company's financial reports and accounting sheets. 10-K annual reports are a great source to attain information. Comparing and analyzing numbers throughout the years will show the "guts" of a company that you won't read or hear about in the news. However this process can be challenging…

In compliance with SEC rules, companies have to report their financial records. Inside executives know that these records are easily accessible and can show the value and worth of the company. As a loophole, firms will try format the reports differently every year to make the evaluation more difficult and tedious to analyze.

Misconception #2: Penny stocks are all frauds.

Some investors have fallen victim to the "pump and dump" scheme ― a system where spammers will buy a stock and then hype it up by sending out positive e-mails and internet ads causing the price of the stock to jump. While the price is up, spammers will sell at a net gain, causing the price to fall, leaving their victimized investors holding the bag.

Hints: Go back to the basics. One of the primary rules to investing…never…ever…invest on tips and rumors. Chances are, your source is wrong or you'll get in too late… 

Do your research! Make sure you know what you are investing in. Make sure your sources are honest and ethical and act upon the interests of its investors and clients. Tips are only ideas. Investments should only be made on your own personal conclusions.  

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Misconception #3: Penny stocks will usually generate a net loss.

Every stock bares risk. Whether they are priced from $0.01 to $1,000, or a microcap or a large-cap company. Barriers to entry and competition are high these days… Since a majority of penny stocks are young and small companies, its common for penny stocks to default under a competitive market.

In fact, penny stocks are one of the fastest and easiest ways to make double or even triple your money.  It's a whole lot easier for a $2 stock to jump to $4 than a $60 to $120.       

Hints: Do your research! Are you starting to see a pattern here? Make sure the industry sector of the company is compatible for future market trends. Analyze the company by generating different scenarios. For example… Would the company be affected by high oil prices? Is their innovative product going to be the high in demand? How would they perform in a recession?

Generally, the more risk you have, the higher the yields can be. If you enjoy risk and want to make big-time returns, by all means go ahead and invest irrationally. But if you are risk-adverse, go back to the basics and diversify your portfolio.

There you have it, three truths to investing…

These common misconceptions are the response to investor's bitterness of poorly managed securities. For what it's worth, that's up to you. But with sufficient research and a promising future market, penny stocks can yield gains far greater than you could have imagined…

Sorcerer’s Apprentice

So Alan Greenspan ― former chairman of the Federal Reserve ― thinks this equals the Great Crash, if not out-bads it.

"It's getting increasingly evident that this is a once-in-a-century type of phenomenon," he told the ever-fragrant Maria Bartiromo in an interview with CNBC this week, "not the standard type of liquidity crisis that we have seen in the past.

"It's verging on the issue of solvency."

Inside Information from Secret Documents

You can find inside information on some of the biggest companies in "secret" documents released by the companies themselves. This information will give you all the details you need to tell if a stock's price will go up or down and when.

To gauge the true scale of this crisis, Greenspan went on, just consider the fact that it took sovereign credit to stabilize first the U.K. and then U.S. financial systems. When Northern Rock went belly-up last Sept. and then Bear Stearns blew up this spring, Treasury bonds had to be lent out like adjustable-rate home loans circa 2006, covering short- term black holes with government debt.

Without these loans of government bonds, the banks simply wouldn't lend to each other. They needed securitized tax payments to gain the credibility needed for raising new funds in the market. Short of offering government debt to put up as collateral, they found the cost of borrowing money ― when they found any money to borrow ― simply too high to bear.

"It's still very evident from [inter-bank lending] spreads that we have not gotten closure yet," Dr. Greenspan continued, pointing to the ongoing premium charged for loans backed by anything other than sovereign credit. So to fix the problem ― or at least tease it out for months if not years ― clearly the world needs more government bonds for the big banks to borrow and put up against cash loans in the market.

"It's essentially, fundamentally the price of homes in the United States which are determining...the ultimate collateral of mortgage-backed bonds, pretty much around the world."

Looking ahead, he concluded that "we're still nowhere near the bottom of the home-price thing" ― the word "thing" standing in for "crash...collapse...crisis...deflation" and all the other phenomena Greenspan must still believe can never apply to real-estate prices.

As key contractor, if not the architect, of today's pan-global banking crisis, he chose to keep U.S. interest rates way below the rate of inflation ― making debt pay and savings a suck of real value ― for three years straight starting in August 2002:

That period marked the first run of sub-zero returns paid-to-cash since the inflationary '70s, back when loose money worldwide led to a bubble in prices that needed 20% interest rates to revive the world's faith in the dollar.

The start of this decade also saw the gold price ― dormant-to-dead ever since the U.S. took that strong medicine at the start of the '80s ― double inside five years.

"First warning," as Marc Faber wrote in his Gloom, Boom & Doom Report of Sept. '07, of trouble ahead.

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"Ultra-expansionary U.S. monetary policies with artificially low interest rates led to bubbles all over the world and in every imaginable asset class. The price of gold more than doubled in nominal terms and against the Dow Jones Industrial Average."

So why didn't gold take a dive when Greenspan's successor ― Ben Bernanke ― tip-toed his way back to 4% real rates of interest in late 2006...? Because early gold buyers never believed the Fed would succeed in keeping rates there. With housing now a political issue ― and home ownership a god-given right for even the flakiest debtors ― the first sign of trouble would cause a collapse in real rates, destroying the value of money in the hope of achieving "Reflation Part II."

Hey, it worked after the Tech Stock bubble blew up. Why not again? And faced with a much greater crisis, or so Ben Bernanke believes, he's managed to out-Greenspan the Maestro...pushing real U.S. interest rates way down to minus 3% and worse.

Take gold as a marker of stress, and the true extent of today's crisis becomes clearer still. Bear Stearns' firesale to J.P.Morgan in mid-March ― which required an open-ended loan of $29 billion from the Federal Reserve ― saw gold jump to $1,032 per ounce. We think it's a signal that Alan Greenspan ignores it.

"Central banks, of necessity, determine what the money supply is," as he told Congress in a 1999 hearing. "If you are on a gold standard or other mechanism in which the central banks do not have discretion, then the system works automatically.

"The reason there is [now] very little support for the gold standard is the consequences of those types of market adjustments are not considered to be appropriate in the 20th and 21st century. I am one of the rare people who have still some nostalgic view about the old gold standard, as you know, but I must tell you, I am in a very small minority among my colleagues on that issue."

Today, almost a decade later, the Federal Reserve and its peers across the world are trying to prevent the money supply from shrinking again. That was the fear amid the "Deflation Scare" of 2002, which caused the Fed to ordain sub-zero rates, creating not only the bubble in housing but also the collapse of true money values against oil, food and pretty much all raw materials.

The world's nostalgia for gold, in response, has seen it treble in price vs. the dollar and more than double against the Euro, Yen and British Pound. But the cheerleader for cheap money when running the Fed, Alan Greenspan points instead to government bonds when gauging the size of today's crisis. A true policy wonk, Greenspan thinks only of political bailouts to protect the system, rather than considering how private investors might choose to protect themselves and their wealth.

Heaven knows they won't get any help from Bernanke's repeat of the Maestro's "reflationary" error.

The War We Saw Coming

Understanding the War in Georgia

From Chechnya to Kosovo to South Ossetia and Abkhazia, it's difficult to sort out Russia's stance on independence movements. High in the Caucasus Mountains, a patchwork of ethnic enclaves confounds the former Soviet republics of Russia, Georgia, Armenia and Azerbaijan.

Joseph Stalin, himself a Georgian, knew the area's complexity well. That's why he started as the Soviet Union's Commissar of Nationality Affairs, wrangling disparate peoples into Moscow's communist corral.

Today's Russia is capitalist, but Prime Minister (until recently President) Vladimir Putin pines for the days when Moscow's power extended solidly into the "near abroad," from Finland all the way to the Pacific.

So the Russian Federation has taken the autonomous Georgian regions of Abkhazia and South Ossetia under its wing, sending in military peacekeepers to prevent Georgian government incursions while issuing Russian passports to local residents.

This sponsorship understandably irks Georgian leaders, who are close with the Bush administration. Russia's support for Abkhazia and South Ossetia also seems to run counter to Russia's backing of Serbia over the issue of Kosovo, a majority Albanian section of former Yugoslavia that recently declared its independence.

Further complicating things, Russia fought hard through the 90s to assert its control in Chechnya, a Caucasian part of Russia with a militant independence movement.

No matter what would seem to make sense, hypotheses are now out the window and Russia is at war with Georgia.

Down to Business in the Caucasus

Though there have been battles in the Caucasus since time immemorial, modern economic conditions change the spoils of war and the methods by which they are gained.

Georgian government websites have reportedly been targeted by Russian hackers in the past few days, a real show of force that can be equal in economic damage to a blockade in the Information Age.

In other recent regional squabbles, most of which have transpired without a volley of mortars, Russia has used its substantial oil and gas reserves as leverage to get former Soviet republics and satellite states to capitulate.

Ukraine found its gas supply cut by Moscow when it refused a price increase in 2006, and European states to the west cried foul since the drop in pressure to Ukraine also threatened supplies in NATO countries.

The energy equation is different when it comes to Georgia, though, which may be why we've seen Russia ban imports of Georgian mineral water and wine, as well as employing cyberwarfare, to inflict financial wounds.

Georgia is a key player in moving oil and gas from the Caspian Sea basin westward to the Mediterranean. The country has gained the support of the United States in the form of military consultation (we have a couple hundred troops on the ground there now even as Russia and Georgia are fighting), and with engineering expertise to move natural resources safely.

The $4 billion Baku-Tbilisi-Ceyhan pipeline, named for the capitals of Azerbaijan and Georgia and a Turkish province, passes within 100 miles of the South Ossetian capital of Tskhinvali.

image: BP

Carrying a million barrels a day, the BTC pipeline is separated from the Russian-backed region (which Monday is said to be totally under Russian control) by over 10,000 Georgian soldiers. It has also been buried underground for most of that stretch to prevent attacks by saboteurs.

The U.S. Department of Energy says there are two energy priorities for Caucasus countries: to diversify their energy supplies and to cash in on transit revenues.

Energy diversification and profit are indeed the top motivators for many policy moves these days, from Eastern Europe all the way to the United States. Russia, for its part, has moved to re-nationalize companies such as Yukos and projects led by BP while using energy leverage in neighboring states like Ukraine as mentioned above.

Russia opposes the BTC pipeline, which was purposefully built to skirt Russia's transit routes. Moscow's opposition to a trans-Caucasus route puts them at odds not only with Georgia but also with Azerbaijan and Turkey, the other BTC hosts.

As you can see in the BTC map above, Armenia would have provided a more direct path from the Caspian to the Mediterranean, but Armenia is tighter with Russia and has frosty relations with Azerbaijan over a majority-Armenian territory deep inside Azerbaijan.

Economic Fallout to Come

When I first started covering international energy issues and how tension in the Caucasus could affect supply, oil cost less than half what it does today.

That means the stakes are ever-higher, and what seems to be a matter of autonomy and ethnic affinity has become more economic.

Russia is also under scrutiny for moves outside the energy arena. Investors in NYSE-listed Mechel Steel (NYSE:MTE), previously worth over $15 billion, got spooked by comments that seemed to threaten top shareholder Igor Zyuzin. Putin also hinted that the government's anti-monopoly service and state prosecutor should get involved in accusations that Mechel is selling materials abroad at a discount to the Russian price.

Mechel's stock price swiftly dropped, and so did the Moscow Stock Exchange benchmark index.

The Georgia affair may not do Russian stocks any favors either, but then again Israel's leading share index actually rose during its 2006 war with Lebanese terrorist group Hizbullah.

So far this summer, it seems that Putin's comments on Mechel did more to harm investor confidence than the developments in Georgia, with the most precipitous decline coming in late July after the PM's menacing words.

Since Russia invaded South Ossetia over the weekend, seized a base inside Georgia near South Ossetia, and now has paratroopers in Abkhazia, the Market Vector Russia ETF Trust (NYSE:RSX) is down by 6%, compared to a nearly 27% decline in the past 3 months together.

No Georgian stocks are available in the U.S., but the European Bank for Reconstruction and Development is already revising its growth estimates for the country.

"The frozen conflict in South Ossetia has always been a worry for foreign investors in Georgia and if that is ultimately removed as a result of this, it could become more appealing," analyst Michael Davey told Reuters. "If there is a final conclusion then the slowdown may not be that pronounced ... but there will be one."

If you own any Russian stocks, watch them closely. Energy shares should be held, but be wary of Putin's new aggressive language towards Mechel as well as the hit the market could take with continued fighting in the Caucasus.

The Trendy Pick

The price of almost everything on the planet has been rising. And so has the inevitable talk of a commodities bubble and price manipulation. The discussion has become front and center in global markets around the world as economies reel under the heavy weight of soaring prices.

It's simple for a senator to blame high oil prices on speculators. But don't hold your breath to hear a long discussion of the taxes on every gallon of gasoline and heating oil that the government collects each time we fill up our tanks. Perish the thought.

Scientists have recently discovered a new technology that practically acts as an off switch for cancer.

This is the type of breakthrough that could not only save thousands of lives, but make investors very wealthy.

So who are these speculators, and why and how could the high prices of commodities be their fault? Of course, those are the real questions. But the conversation never really gets that far. The cameras are turned off before the detectives hit that crime scene.

Beyond the Sound Bites: Hoping for Real Answers

To say we are in a crisis is a massive understatement. It's like saying there was a little fire on the Hindenburg. As oil prices surge and the ebb and flow of trading begins to catch up with the world's growing population, we can expect to see these prices continue to climb ― maybe exponentially.

Meanwhile, the fools in Washington, and those political candidates hoping to get into that asylum, continue to talk the same smack they have for years. Essentially, they'll say whatever they need to in order to get elected. What else is new?

The problem this time, however, is that the situation is simply too dire. We should not waste time trying to find scapegoats. That won't solve the problem. It will just distract attention while politicians hope for answers.

But let's face it. The blame game works. The politicians have an easy target in speculators. After all, the average American imagines Gordon Gekko-type characters slashing and burning their way through Wall Street and making the everyday man's life more expensive while they water-ski behind their yachts.

So for senators and other politicians, it's not a tough putt to get the general public to latch on and want to lynch every speculator out there.

But Gordon Gekko was not a speculator. He was a manipulator. He used information he should not have had to do things he should not have done.

That does not matter to the politicians, however. They want to paint every speculator with a broad brush. To the politicians, every legitimate speculator is an unlawful manipulator.

The problem is this: If the politicians restrict legitimate speculation, they will cripple the free market and actually cause prices to surge even higher. Politicians have confused things pretty badly.

Speculation shapes the margins of the markets. Many markets cannot function correctly without some element of speculation at the margins. Few politicians seem to understand that. Or they do, but won't acknowledge it. Either way, it's a critical mistake to be focusing on witch-hunts, rather than real answers.

Liquidity, Liquidity, Liquidity

In real estate, it's location, location, location. In trading, it's liquidity, liquidity, liquidity.

In case a number of U.S. senators don't know, one of the most important elements in a free market is a provision of liquidity. It is possible to discover an "active price" only when the market is free and open. This is the job that speculators perform. Without speculators, there cannot be free market capitalism. 

Far From Over

A few stimulus checks may have made everything seem okay for a few weeks, but there is still blood in the water and more financial danger right around the corner.

If you're starting to think things are going to get better, think again. The worst of this financial crisis is still to come.

Yet even in the face of clear evidence that speculators perform this vital service, all we hear about is how speculators are causing the run-up in energy prices. And then we hear how speculators need to be more "regulated." It's absurd and dangerous.

As Richard Rahn of the Cato Institute writes in a great article for The Washington Times, "Many members of Congress make up 'solutions' to things they do not understand and cause problems where there are none or make real problems worse, which explains the current run-up in gasoline prices."

Amen.

If You're Not Part of the Solution, You're Part of the Problem

You may be reading this and saying, "Of course you're saying this. You're a speculator!"

Very true, but I am also a consumer who has to buy gasoline and heating oil, just as you do. I also know the risks of assuming any position in these volatile markets. And that risk is calculated each time I trade. There are no guarantees. (How I wish there WERE some guarantees when I lay my cash on the line!)

The other very important factor here is to realize that speculators are not beholden to one side of the market. They are married to movement, not direction.

As far as my trading portfolio goes, I couldn't care less if oil were moving higher or lower. As long as there is movement, we have trading opportunities.

The problem with blaming speculators is the damage done to the free market can be irreversible.

Richard Rahn goes on to say, "Speculators are not the problem; they are part of the solution, by reducing the risk for producers, refiners and other oil market participants. This risk reduction results in more production of oil, other fuel, food and metals where futures markets exist."

Once again, he has hit the nail on the head. Reducing the number of speculators in the free market actually has the reverse impact. It drives prices much, much higher.

Can't We All Just Get Along?

Let me just say that I am one of the biggest advocates of free, open, transparent markets. So are almost all speculators. The integrity of any market is only as good as its participants. And in some cases, I can see the need for more regulation. But the best regulator of the commodity market is usually the market itself. Markets punish unwarranted excesses.

Did you notice that back in July ― when oil prices slipped from record highs and even had their biggest one-week drop in history ― nobody was calling for speculators' heads? There were no congressional hearings into the matter, just silence.

The fact of the matter is that speculators were just as active on the way down as they were on the way up, providing the service they do. With or without speculators, prices will continue to climb. The solutions, however, will be much harder to come by without speculators. The speculators are the ones who add liquidity and discover the best free market prices every day.

We must set aside all of the election-year rhetoric and demand better from our politicians, energy producers and even ourselves. We all have to take some responsibility if we hope to find solutions. Simply blaming one group of people is not going to work. The challenges of Peak Oil ― if not Peak Everything ― remain. Banning speculation means just losing a critical piece of the early warning system.

Beating Buffett with Today’s Penny Stocks

In 1936, one smart six-year-old purchased a few six-packs of Coca Cola from his grandfather's grocery story for a quarter per pack and resold each bottle for a nickel apiece. With that initial 20% profit he made of each six-pack, the world's richest man got his start in business.

Today, that same man owns $12.2 billion worth of the Coca Cola Co. Obviously, I'm talking about Warren Buffet…

Everyone already knows all there is to know about him…or so they think…

Sure, we know that he went to Columbia to study under Benjamin Graham. And, that he's one of the largest owners in many of the brand names we enjoy everyday ― General Electric, Anheuser Busch, Bank of America, and of course, Coca Cola. He's also the wealthiest man in the world, totaling $62 billion.

But there is something that only a handful of people know… He wants to be poor again.

That's right! Back in 1999, he told BusinessWeek "...it's a huge structural advantage not to have a lot of money. I think I could make you 50% a year on $1 million. No, I know I could. I guarantee that."

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The reason for his guarantee is simple… The best opportunities in the world are in small-caps. If you have a tiny company worth 50 cents per share, it's a lot easier for it to go to $1, as opposed to a $50 one going to $100. But that's not the only reason Buffett loves small-caps.

He also discusses his affinity for finding little nuances in companies that other investors don't see right away. In a 2005 Kansas University interview, Buffett elaborates, "You have to turn over a lot of rocks to find those little anomalies. You have to find the companies that are off the map ― way off the map. You may find local companies that have nothing wrong with them at all..."

You can't do that with big blue chips…

If a small company has a hidden asset that investors haven't picked up on yet, it would take some work, but you could find it and make big money off of it. Finding a large company with a hidden asset is exponentially tougher.

There are a thousand reasons why smaller companies offer more potential, but at the end of the day, it comes down to one thing. How much more money can I make with small-caps.

Let's take a look at two charts for a minute:

The top one is Berkshire Hathaway, Buffett's investment vehicle, from 1977 to 1992. The bottom one is Berkshire from 1992 to 2007.

Upon quick glance, they both look pretty good. In fact, they look nearly identical except the spike at the end of the century, which happened in nearly every single stock traded at the time.

But if you look closer there is a big difference between the two charts. Notice how in the first one, Buffett brought investors gains of 10,000%, and in the second, he only brought a 1,200% gain. Now, I know that still sounds pretty darn good (which it is), but the question remains, why did he do so much better in the first 15-year period of Berkshire than the second 15-year period? The answer is small-caps…

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You see, back in 1977, Berkshire was a much smaller company, with a lot less money to invest. So, Buffett was able to invest in smaller companies at the time, including American Express, Disney, and the Washington Post Company… Those companies were able to grow much faster than the ones Buffett is restricted to now. Now, Buffett has to look at companies worth tens of billions of dollars. In '77, he could look at companies worth just a few hundred million dollars.

But to do even better than Buffett, your only chance is to look for companies even smaller. I'm talking companies flying way under the radar. Companies in the tens of millions of dollar range… Simply put, buy penny stocks because Warren Buffett can't.

Decoupling in the Land of the Dead

Writing to you from the Land of the Dead...

We step back in order to have a look at the Big Picture.

Hmmm...still, not very clear. So, we step back again...and again. Soon, we are so far away that we can't see a thing!

Still, looking through the binoculars, this is what we think we see.

First, the U.S. economy is in decline. The latest figures show it growing more slowly than the population � which means, the average citizen is getting poorer.

Of course, dear readers know the figures are not very helpful anyway. In a consumer economy, GDP growth rates tend to measure the rate at which people consume wealth rather than the rate at which they create it.

But let us put that quibble aside, at least for this morning.

The weekend news brought more evidence that the U.S. economy has peaked out. Recent graduates are having a hard time finding work, says the Washington Post . Joblessness is supposed to rise to 6% next year, adds the Financial Times .

Even 'the rich are beginning to feel the pain,' opines a piece from the Associated Press .

And millions of Americans are facing "retirement poverty," continued the salmon-colored paper. Why? They haven't saved enough...and their houses � on which they had counted to finance their golden years � suddenly seem to be made of base metal.

Fannie Mae faces a "glut of unsold homes," reports the Chicago Tribune . (What the paper means is that it faces a glut of houses, not homes. A home is what people make of a house. But if it is unsold, it is a house, not a home. And many of the houses built in America in the last 10 years will probably never be homes. They are too expensive. Too far out. And too many.)

"Ghost towns across America," is how the Wall Street Journal describes them.

Another small bank failed in Florida, while in Detroit, the auto industry is a wreck. Vehicle sales are down 13.2%, for obvious reasons...and the automakers are running low on cash, says the New York Times .

Between 1950 and 2000, the USA transformed itself from a country that made things to a country that financed things. Mothers stopped wanting their babies to grow up and become captains of industry; instead, they wanted them to go to Wall Street. That's where the money was � in finance, not in manufacture. Gradually, the engineers and machinists who used to run the automakers were replaced by financiers. And gradually, the business model changed, from making money by selling cars to making money by financing cars. And if you're going to finance cars, why not finance some houses too?

But now the finance industry seems to have peaked out. And what's left of the automakers? We don't know...but we're going to find out soon � as they get hauled to the junkyards, stripped, dismantled and sold for scrap.

"Only luck can save America's troubled economy," concludes the FT .

From a distance, we can see the United States � and England � sinking. But it looked for a long time as though the rise of other economies � China, India, Russia, Brazil...just to name a few � might be enough to balance it out. This was the theory of 'decoupling,' the idea that the U.S. could sneeze all it wanted; the rest of the world would still remain in rude good health.

Here at The Daily Reckoning , we were always skeptical of the 'decoupling' concept. Coupling has been going on for a long time; it didn't seem likely to us that it should suddenly go out of style.

On the other hand, never before in the history of the world has so much economic growth been going on. And most of it is going on outside the United States...and Europe.

"It's amazing...I just can't believe it," said a young man we met over the weekend. "I work in aluminum. I'm a buyer for a big French company that makes products out of aluminum. So, I travel regularly to China...to Beijing and Shanghai, mostly. I go at least every six months. And when I go I stay in the same hotels. And I get there and I look out the window, and every time there is another big skyscraper right next door. 'Where did that come from?' I wonder. Because they hadn't even begun to work on it when I was there the last time. But those people work day and night. And the city of Shanghai is growing by about 30,000 new people every week...something like that. It's unbelievable...

"And then when I get back to France...it is like going into a museum...where nothing ever changes. In some ways, it is a comfort, because life here is nice...predictable...and comfortable. But it is like the land of the dead."

And now, the big news: manufacturing contracted in China for the first time since '05. Decoupling? Maybe...but China is slowing down too. And if America, Britain, Europe and Asia are all slowing down, what does it mean for oil and commodities? It means they must go down!

Yes, that is the third big thing we see...as we look through our binoculars. After hitting a high of $147, oil is slipping and sliding. It ended last week at $125 � a loss of 15% from its high.

The industrial commodities are all falling � copper, aluminum, steel. Gold at $917 an ounce also seems to have lost its way. And many people think we've seen the last of the bull market in the whole commodity/oil/gold complex. It may be another 20 years, some believe, before we have another big run-up in the commodity sector. So far, no major magazine has announced the "Death of Commodities," but surely some are thinking about.

But we're even more skeptical about the 'death of commodities' than we are of 'decoupling.' Because, commodities cycles tend to be much longer than other cycles...and prices do not react only to the economic cycles; they also react to the monetary cycles. Copper, oil, lead, wheat � all represent more or less finite resources. And all require real resources � time, money, equipment, investment, and know-how � to bring forth. You can't blame the people who produce them for wanting more than worthless pieces of paper in exchange for them. Typically, the more pieces of paper there are in circulation � pretending to be 'money' � the more pieces of paper producers want in exchange for their oil, gold, silver, lead, etc. And typically, they look ahead to try to figure out what those pieces of paper will be worth in the future before they agree to trade valuable resources for them.

Yes, dear reader, that is what we see through our binoculars too. A world in motion. Nothing stands still. Instead, no matter where we look � at houses, oil, stocks, you name it � it bobs on a frothy sea of 'money.' And while we have to look to see if the United States and China are declining...or if the financial boom has topped out...or the commodity cycle has peaked...we also have to keep our eye on tides of money too. About which...more to come this week...

*** "Wave goodbye to the invisible hand," says a Washington Post article by Steven Pearlstein. The poor man thinks it is the 'invisible hand' of the market that has messed things up, rather than the fat paws of the market manipulators in Washington.

"Trade...[has]...failed to deliver the economic and social outcomes that Americans consider acceptable," he writes.

He has a point � trade has failed to give the yahoos what they wanted, something for nothing. They thought they could use their houses like an infinite line of credit. Didn't turn out that way.

But nobody really appreciates laissez-faire capitalism, least of all the capitalists. They all want to control the future, not let it happen. And everybody wants to gain some edge...some little favor or advantage � a monopoly, a subsidy, a fat contract with the government, a handout, free food, free medicine, crop supports, student loans, a guaranteed pension, a bailout, a tax credit...some kind of greasy giveaway; the last thing they want is a free market, where the chips fall where they may.

And now that the illusions of the Reagan Era are being destroyed, out come the regulators, controllers and meddlers with illusions of their own. Now, they claim they can make a better world � better than people could make on their own. They'll make sure that capitalism is put in chains...defanged, de-clawed...trained and harnessed. They'll turn the jungle of capitalism into the zoo of a rational, state-managed mixed economy.

The Wall Street Journal reports that New York has gone into court with a complaint about Citigroup. "Hey, we didn't know you could lose money on those freak investments you sold us," say the New Yorkers.

They are all searching the email records for the 'smoking gun,' a single email by someone with a brain pointing out the obvious � that those complicated collateralized securities might really be the investments of "mass capital destruction" that Warren Buffett said they were.

And hallelujah, they've got one: "We should not be rating it," said an email from an operative from Standard & Poor's, stating what many others must have thought but few dared to say.

As you recall from last week, the sovereign state of Connecticut has attacked the rating agencies, charging that they knew or should have known what they were doing. Now, with that email, it looks like the yankees have a case.

Peter Schiff of Euro Pacific Capital writes, "The grim reality is that trillions of dollars were borrowed and spent that will never be repaid. No government program can alter that fact. Someone is going to have to pay the piper for all those granite counter tops and plasma TVs. The price tag is staggering and for all the bailouts and stimulus packages, all the government can do is exacerbate the losses and shift the burden through inflation. Nor can the government resurrect bubble home prices and the fantasy of real estate riches that went along with them. One way or another, rational home prices will be restored and the myths of our asset-based, consumption-dependent economy will be finally discredited."

If that wasn't enough, as a long-time homeowner, I can tell you that buying the house is just the beginning of house-induced-bankruptcy, as staggering property taxes and homeowner insurance are major recurring items, but which doesn't even begin to address the fact that you need to paint the damned thing every ten years or so � costing many thousands of dollars � and replace the roof about every 15 years � costing many more thousands of dollars � and replace every damned thing in it (air conditioner/heater, dishwasher, water heater, televisions, video players, furniture, carpets, etc) in the thing every 7 years or so, costing umpteen MORE thousands of dollars, not to mention all the front doors you knock down and have to replace when your family locks you out as part of some doofus "tough love" thing, like I'm going to put up with that crap even if I was sober!

So, it seems little wonder that so many people are allowing themselves to go into foreclosure. Nobody told them about that part!

And given that banks, when selling foreclosed houses, actually net about half the price of the mortgage, that means to me that houses are, by extension, overpriced by half, and as such will surely not be rising in price for a long, long time to come.

The businessspectator.com is not interested in how I am trying to unload my own eyesore of a house at a seeming top in the market, or how I am holding the dishwasher together with duct tape until then, but says that that National Australia Bank has made a "decision to write off 90 per cent of its US conduit loans", which apparently comes out to a tidy $830 million dollars! Wow! Talk about biting a bullet!

They go on, "A US recession is now locked in, but more alarmingly, 55 per cent loan losses point to the possibility of a depression."

Possibility? Hahaha! The essay "Dead Cat Bounce" by Edgar J. Steele at conspiracypenpal.com hits the nail on the head when he says, "Not only is something wrong with the dollar, the banking system and the economy, there almost literally is nothing right with any of them. Truth is, that whistling noise you hear is the air streaming past your ears as we all plummet into the deepest economic abyss ever seen by mankind."

So why haven't things collapsed? The answer is simplicity itself: Desperate actions by desperate people in Congress and the Federal Reserve, who are using every slimy trick they can think of, as I gather from Michael S. Rozeff, a retired professor of finance and writing at LewRockwell.com, who asks, "What do our officials most fear? They fear the public's loss of confidence. Events are driving their improvised attempts to stem a general loss of confidence in the dollar, in them, the financial and monetary system, and the government as a whole".

The motivation, I assume, is because the November elections are just around the corner, where all the House of Representatives and a third of the Senate are up for re-election! Hahaha! Now you know how things work!

And they may be onto something there, as the latest Gallup poll has Congress receiving its lowest approval rating ever. Only 14%! And when 6 out of 7 people think you are doing a bad job, you become desperate people doing desperate things, too.

Some will be desperate enough to buy gold and silver. They will almost certainly prosper, if history repeats itself as it always has.

Others will be desperate enough to invest in other things. They will almost certainly not prosper, if history repeats itself as it always has.

So it comes down to a bet on a 100% long-term probability, which makes me go "Whee!"

How to Sell the Dollar

In 2004, then Treasury Secretary John Snow was traipsing about the globe trying to "talk the dollar down." Why? In a word: debt. At the time, our debt stood at $7 trillion, with interest payments in fiscal 2003 totaling $318 billion. But now the U.S. national debt stands above $9 trillion, with interest payments in fiscal 2007 adding $1.4 billion a day.

But the Fed and Treasury have engineered a strategy to pay off the debt with weaker and weaker dollars. And guess what? So far, so good. Since November 2002, the dollar has fallen against the euro more than 50 percent since its high in October 2000. Of course, this is not the first time we've gone through a managed devaluation of the currency. In the 34-year period since Nixon slammed the gold window shut and subsequently ended the Bretton Woods exchange rate mechanism, we've had only five major currency trends:

1. Weak dollar 1972�1978 (7 years)
2. Strong dollar 1979�1985 (7 years)
3. Weak dollar 1986�1995 (10 years)
4. Strong dollar 1996�2001 (6 years)
5. Weak dollar 2002� (? years)

The most notable period spanned the 10 years from 1986 through 1995. Then as now, the United States was fighting a historic current account deficit through managed debasement of its currency. But because the present bear market only began in February 2002, the current cycle looks like it still has a number of years to run.

In the best-case scenario, if the current bear market follows the trajectory set by the 1986 ― 1995 slump, we could see a weakening dollar for up to 10 years. This presents an opportunity for selling the dollar in one of four ways: direct and indirect speculations, using short- and long-term options for each. These plays will help you safely position your money outside the dollar bear market. And you stand to make a fair amount of money, too.

Using the "Off Switch" to Shut Down Alzheimer's and Huntington's Diseases, Too

It turns out the "off switch" discovery could have lots of uses beyond radically improving a patient's chances of beating cancer.

For instance, take Alzheimer's. Right now, there's no cure.

But imagine the implications ― for both victims and medical investors ― if this same breakthrough could be used to reverse Alzheimer's symptoms in just weeks.

But there is great danger ahead. Since the trade deficit passed the $759 billion mark ― 6.3 percent of GDP ― foreigners now must shell out about $1.5 billion a day just to keep the dollar afloat. And even during the managed dollar decline of 2003, the trade imbalance continued to grow. In 2005, Stephen Roach, Morgan Stanley's chief global strategist, predicted that the current account deficit at the time was on course to reach $710 billion ― 6.5 percent of GDP. He was short by only a few billion.

Herein lies the drama. The Bank of Japan spent the equivalent of $187 billion in 2003 ― and $67 billion in January 2004 alone ― in a bid to prevent its strengthening currency from choking off the country's export-led recovery. In dollar terms, the Bank of Japan is now spending more than $1.5 billion every day trying to keep the yen from strengthening against the greenback.

Over a four-week period in the fall of 2003, combined foreign central bank purchases of U.S. securities topped $40 billion, more than $2 billion every trading day. Yet these central bank billions managed merely to limit the greenback's decline to just 2.3 percent over the same period. Can you imagine what would have happened if the banks hadn't pumped that money into the Fed's reserves? One former currency trader has asked, "If $40 billion cannot bring about even a minor rally, just how weak and despised is the once ― almighty dollar?"

We have relied on the kindness of strangers for too long. "We're like the untrustworthy brother-in-law who keeps borrowing money, promising to pay it back, but can never seem to get out of debt," Jim Rogers writes. "Eventually, people cut that guy off."

There is no way the United States can possibly pay off its creditors should they decide to cash in their IOUs. Right now, the United States holds only about $70 billion in reserves against its obligations ― much less than 2005's $87 billion. That would last about three minutes should creditors begin to sell the dollar, rather than trying to support it.

It's hard to imagine, isn't it? The world's reserve currency spiraling downward, out of control. But then, that's what the British must have thought in 1992 when they attempted to manage a devaluation of the pound. Despite the Bank of England's best efforts, sterling got away from them; the currency collapsed and Britain was kicked out of the Exchange Rate Mechanism (ERM) established to pave the way for the euro. On that day, known as Black Wednesday in Britain, currency speculator George Soros is rumored to have made as much as $2 billion. Don't be surprised if more fortunes emerge in the future as the dollar slips dangerously close to free fall.

By flooding the system with liquidity, the Fed cannot control the value of the U.S. dollar against foreign currencies; nor can they control its purchasing power ― at least not indefinitely. The Fed's current policies can "give the majority of investors the illusion of wealth as asset markets appreciate," wrote Marc Faber in November 2003, "while the loss of the currency's purchasing power is hardly noticed. This is particularly true of a society that has a very large domestic market, where 90 percent of the people don't have a passport and therefore know little about what is going on outside their own continent.  And where the import prices of manufactured goods are in continuous decline because of the entry of China, as a huge new supplier of products with an extremely low cost structure, into the global market economy." If that's the case, you should look at any declines in the dollar as an opportunity to make some money.

The dollar is the single biggest element of risk in the world of finance today. Rearrange the current system of world finance ever so slightly, let confidence in the greenback falter, and the mighty dollar could go up in flames. There are many ways to hedge against this risk. Better still, there are many ways to profit from the likelihood the dollar will fall. Some methods are direct, some indirect. Some are leveraged, some unleveraged. There is a methodology for every taste, but before explaining the specifics, we ask: What ails the dollar?

The dollar is a victim of its own success. It is America's most successful export ever ― more successful than chewing gum, Levi's, Coca-Cola, or even Elvis Presley, Britney Spears, and Madonna put together. Trillions of dollars flow through the global financial markets every week, and they are readily accepted at large and small ― and clandestine ― business establishments from Kiev to Karachi.

Today, there are simply too many dollars in circulation for the currency's own good. Why? Americans have been living beyond their means for more than two decades. The U.S. dollar's problems stem from a single cause. "If there's a bubble," wrote David Rosenberg, chief economist at Merrill Lynch," it's in this four-letter word: debt. The U.S. economy is just awash in it."

You've seen it firsthand: John Q. Public now holds more credit cards and outstanding loans ― with a higher and higher total debt load ― than ever before. Outstanding consumer credit, including mortgage and other debt, reached $9.3 trillion in April 2003 ― a significant increase from its $7 trillion total in January 2000 ― but by the third quarter of 2007, debt had nearly doubled since 2000, to $13.7 trillion. With consumer spending alone responsible for approximately 70 percent of U.S. GDP, that's quite a hefty personal debt load.

The corporate debt picture is no better. American companies have never depended so much on sales of their corporate bonds. Between 2002-2007, investment-grade corporate bond sales increased nearly 60 percent, growing from $598 billion to $951 billion. But junk bond sales for that same period broke the bank, surging from $57 billion to $133 billion.

The third leg of the debt problem, following consumer and business debt, is Uncle Sam. Government debt as of November 7, 2007, officially passed $9,000,000,000,000. That's about $30,000 for every man, woman, and child in the country. This total includes debt owned by many types of investors, from individuals to corporations to Federal Reserve banks and especially to foreign interests. (By 2004, foreign central banks had stockpiled more than $1.3 trillion worth of dollar-denominated Treasury bonds and agency bonds at the Federal Reserve. By 2007, foreign debt had nearly doubled, to $2.033 trillion.)

What the $7.8 trillion figure does not account for are items like the gap between the government's Social Security and Medicare commitments and the money put aside to pay for them. If these items are factored in, the government debt burden for every American rises to well over $175,000. In 2005, the Methuselah of investment mavens, Sir John Templeton, then 93, said you should get out of U.S. stocks, the U.S. dollar, and excess residential real estate. Templeton believed the dollar would fall 40 percent against other major currencies, and that this would lead the nation's major creditors ― notably Japan and China ― to dump their U.S. bonds, which would cause interest rates to run up, thus beginning a long period of stagflation. He was right.

The Slow-Motion "Black Monday" Ahead

Here's a picture for you: If the market today falls as fast and as far as it did in 1987, you'll see more than 3,000 points erased from the Dow alone. In a single day.

Could it happen?

Banks hold the same blue chip shares you'll find parked in your retirement fund. When the "level three" losses get declared, those same banks might have to start dumping those shares to raise cash. And that could send these blue chips...along with most of the rest of the stock market...into full-scale collapse.

I urge you to take the seven steps outlined for you in your free Strategic Financial Survival Library.

Don't let his age fool you ― Templeton was still sharp in 1999 when the financial industry hacks in Florida were urging their customers to buy more tech stocks. Templeton warned that the bubble would soon burst. He was right; they were wrong. Of course, he was only 87 back then. He is almost certainly right again. Other great investors, too, are getting out of the dollar. For the first time in his life, Warren Buffett is investing in foreign currencies.

George Soros, who made a fortune selling sterling in the 1992 ERM crisis, warns that the U.S. system could "blow up" at any time. Richard Russell, the influential editor of the Dow Theory letters, speaking at the New Orleans Investment Conference, warned: "If ever there was a crisis that could shake the global economy ― this is it." Jim Rogers is teaching his daughter to speak Chinese. When old-timers nod their heads in agreement ― especially when they happen to be the most successful investors in the world ― their advice may be worth listening to.

American consumers, companies, the U.S. government, and the country as a whole owe more dollars to more people than ever before. But perhaps the greatest threat to the U.S. economy is its foreign creditors. There is ― or should be ― a limit to the number of dollars foreigners are willing to buy and hold and thus a limit to their willingness to service our credit habit. Why? Because the United States, while still the world's number ― one economic power, is showing itself to be an unreliable steward of its own currency.

Bad Reflexes

Last year, I devoted several issues of my Strategic Investment service to the web of structured finance. I think it paid off.

Since then, banks and brokerage stocks were punished. Energy and material stocks have soared-thanks to the Fed's inflation campaign. Fed officials have taken their ability to devalue the U.S. dollar to new heights. What collateral backs today's dollar? Mostly mortgage securities that nobody wants ― as if Treasury bond collateral weren't bad enough.

Have You Joined North Dakota's Overnight Millionaires?

There's an amazing phenomenon happening across the northwest state…one that's turning simple-life ranchers into overnight oil barons.

In fact, Ron Ness, President of North Dakota Petroleum Council, stated anecdotally, "there's a millionaire a day being created in North Dakota."

Best part is, these rapid fortunes are no longer restricted to North Dakota residents. That means you could also start profiting from the greatest oil boom is U.S. history immediately.

Despite the latest "reports," current trends still have room to run. Just consider Fannie Mae and Freddie Mac. Those shareholders could be effectively wiped out by endless equity offerings as early as next year. The mountain of debt holders and bond insurance policyholders comes first.

Now, it's possible that the federal government could issue hundreds of billions in new Treasuries to officially guarantee Fannie's and Freddie's liabilities. If no one lines up to buy these bonds, the Fed could monetize them. Such a scenario could herald a return to double-digit long-term interest rates and a collapse in confidence in paper money - demanding a new monetary system. We live in interesting times. Billionaire currency speculator George Soros thinks we've just entered the ugly side of a "super bubble."

I wrote about George Soros' investing framework in the August 2007 Strategic Investment. Here's the excerpt on Soros:

The growth of securitization has truly altered the global economy…

One negative consequence is that financial markets are starting to shape the destiny of the real economy, not the other way around. Storied currency speculator George Soros was one of the first to speak publicly about the phenomenon of markets shaping economies. He calls it the theory of "reflexivity" and described it when testifying in front of Congress in 1994:

"The generally accepted theory is that financial markets tend toward equilibrium and, on the whole, discount the future correctly. I operate using a different theory, according to which financial markets cannot possibly discount the future correctly, because they do not merely discount the future; they help to shape it."

Here's reflexivity at work: As a company's stock grows more coveted by wild-eyed speculators, its cost of capital gets lower and lower as its stock skyrockets; the higher its stock price, the more capital a company can raise in a secondary stock offering by issuing a set amount of shares. So its ability to reinvest capital and grow ― its future ― is shaped by the whims of speculators.

A second consequence of the securitization revolution: The further a lender is separated from a borrower, the more potential there is for fraud on the part of the borrower and underestimation of risk on the part of the lender.

Now, before you dismiss Soros as a Big Government "world improver," keep in mind that he took the right side of every major financial crisis since World War II. The man clearly understands how markets can boom and bust, especially when greed and fear overwhelm rationality.

The New Cancer "Off Switch"

Wouldn't it be nice if we could just halt the growth of cancerous cells? Simply stop them from spreading? Well, that may be possible, and it could make you over $100,000.

To see how Soros views the current crisis, I picked up his latest book, The New Paradigm for Financial Markets: The Credit Crisis of 2008 and What It Means. In the first half, Soros laments that reflexivity is not taken seriously in university economics departments. In the second half, he argues that the current crisis marks the end of a decades-long expansion of U.S. dollar-based credit. Soros dubs the period from the early 1980s-2007 a "super bubble." He makes a convincing case:

Credit conditions have been relaxed to such an extent that I wonder how they could be relaxed any further. This is certainly true as far as the U.S. consumer is concerned. Credit terms for mortgages, auto loans, and credit cards have reached their maximum extension… It may also be true for commercial credit, particularly for leveraged buyouts and commercial real estate.

Only one thing is off the mark: Soros' prescription for more government regulation.

Nowhere in his book will you find an explanation of how the global paper money system practically guaranteed the formation of his "super bubble." This super bubble would not have been possible under an international gold standard. The international gold standard of the late 1800s fostered a time of incredible growth and wealth creation in a stable price environment. It wasn't perfect.

It had periodic depressions. But it was far better than what we're looking at: Government's inflationary policy responses to problems created by its policy of perpetual bailouts.

Don't forget that every paper currency in history eventually fell to its intrinsic value: zero. The dollar is no different, although it has taken longer than most others. For decades, foreign governments have aggressively bought dollars, propping up their value, hoping, thus, to insure long-term economic stability. Instead, this action is heavily responsible for the runaway inflation we're seeing all over the world.

Soros seems to believe that the real economy cannot grow unless credit is growing. This ignores the fact that credit growth does not create economic growth. It merely assists growth. Over the long term, the economy grows as the capacity to produce goods and services grows. No credit necessary.

But we must invest in the environment we face, not the one that we wish were in place. The government response to the ugly side of Soros' reflexivity will seriously impair confidence in paper money.

Look for gold, energy, and other natural resources to keep performing. Avoid financials, real estate, and consumer discretionary stocks.

A Nuclear Renaissance

America has a pressing energy crisis on its hands.

Only, it's not oil. And you won't read about it in today's headlines.

I'm referring to the 'other' energy crisis... Nuclear Energy.

Specifically, an increasing supply shortage of domestically enriched uranium... which could soon threaten our own ability to produce nuclear power.

Fortunately, the U.S. government is set to bail us out of this production crisis.

And one company stands to benefit... in a major way.

We're calling it the "government-aided nuclear monopoly," and it's about to turn one stock into an easy double bagger.

You can learn all about it in the following free report. While most Americans have been fixated on oil and the cost of a fill-up lately, America's "other energy crisis" has gone largely unnoticed by the thundering herd.

I'm talking about a potential future shortage of domestic enriched uranium that could put the U.S. at the mercy of imports again in the future... that is, unless we do something about it, at once.

You see, while everyone knows we're emboldened to foreign oil, fewer of us are aware of this startling fact:

We currently import some 92% of the enriched uranium necessary to run our domestic nuclear plants.

It's a current danger that we can ill-afford... and Washington knows it!

What's more... The situation will get worse once a 20-year program with Russia called Megatons to Megawatts runs its course in 2013.

After that, all bets are off. We could be completely on our own, unable to meet our own needs.

That's where our "government-aided nuclear monopoly" enters the picture... and why its share price is set for an extraordinary run-up.

Because just like Freddie and Fannie, this is one monopoly that's too important to our security to fail.

According to the EIA's 2007 Uranium Marketing Annual Report:

• 8% of the 51 million pounds of U308e delivered in 2007 was of U.S. origin.
  
• 47 million pounds, or 92%, of U308e delivered in 2007 was of foreign origin.

The reality is, the government won't let it fail.

You see, without this former "government-sponsored enterprise," there would be no domestic producer of nuclear fuel. And that's simply unthinkable in today's world.

And that is precisely why the U.S. government has every interest in aiding this nuclear power house... and why Uncle Sam is literally helping the company build the kinds of moats Warren Buffett would be proud of.

Plus, with America right now on the brink of a nuclear renaissance, this is one domestic monopoly squarely in the right place at the right time.

The nuclear tide is clearly turning... as the looming crises of energy and climate change force all of us to get sensible about nuclear.

Here's how it's all unfolding...

Peak Oil and the Nuclear Renaissance

Of course, we wouldn't be talking about this at all if it wasn't for Peak Oil.

Peak Oil, as it turns out, is actually one of the biggest investment opportunities we'll see this century.

That's because huge sums of money will be needed to fix the problems that have sent the price of crude to the moon. And needless to say, numerous industries will benefit from these massive expenditures -- like our nuclear monopoly, for instance.

In fact, the Peak Oil problem is now so serious that the International Energy Agency (IEA) estimates it'll take well over $22 trillion in spending -- worldwide -- to fix.

Zogby Poll: 67% Favor Building New Nuclear Power Plants in U.S.

Survey finds Americans more likely to support a nuclear power plant in their own community than a coal, natural gas or oil plant.

That's a ton of dough... but the truth is that figure is probably just the beginning.

So, in reality, $22 trillion is just the starting point on a journey that could easily double before it's all said and done.

Those are the figures that have put alternative energy sources such as nuclear power on the uptrend while the energy complex climbs higher across the boards.

That is what the energy markets are actually pricing these days as they come to the realization that Peak Oil isn't just the work of some lunatic fringe. It's real.

After all, this is one cup that won't be passed.

Which is why I'm so bullish on nuclear power investments these days... and why you should be, too.

Take a look at nuclear's resurgence in this chart...

And despite the long shadow cast by those cooling towers in Pennsylvania, nuclear power--like it or not--is in the throes of a dramatic comeback -- one that promises to be a big issue in the Presidential elections this fall.

When that happens, it'll be a stunning reversal of fortune for an industry that had to fight tooth and nail just to survive over the last two decades.

Now consider this the next time you open your monthly power bill...

 

The US Department of Energy reports nuclear power costs 1.72 cents per kilowatt-hour (including operations and maintenance costs).

Now compare that to:

・ Coal at 2.37 cents per kilowatt-hour;

・ Natural gas at 6.75 cents per kilowatt-hour; and

・ Oil at 9.63 cents per kilowatt-hour

The numbers don't lie. Nuclear power is the cheapest and most reliable power source by far... day or night... windy or calm. Nuclear power delivers.

Nuclear's "Carbon-Free" Advantage

That's right. Aside from being cheap and reliable, nuclear energy is also carbon free. That makes the industry an even bigger winner if cap and trade legislation becomes law.

That's all part of the equation that has 17 companies preparing license applications for as many as 31 new U.S Reactors.

(And that's on top of the 15 construction and operating permits already under review by the US Nuclear Regulatory Commission.)

And while that doesn't exactly match the 112 new nuclear reactors that were built between 1957 and 1990, it is definitely the start of a trend... one that investors will soon catch wind of.

You see, energy prices have simply gotten too high to stomach... and nuclear makes too much sense to ignore it.

Nuclear Energy Powers the World... and, Now, Your Portfolio

For investors, that means following a growth trend that is already firmly in place in the rest of the developing world.

It's no secret that while America allowed its nuclear industry to wither on the vine out of fear, the rest of the world moved forward.

While we dithered, everyone else kept building... and building... and building.

 

 

In fact, according to the Nuclear Energy Institute, as of March 2008, 30 countries worldwide were operating 439 nuclear reactors for electricity generation. Additionally, 35 new nuclear plants are currently under construction in 14 countries.

Naturally, that includes numerous new plants in both China and India, where power demand is expected to nearly triple between now and 2030.

But no matter where all these new plants will be built, the majority of them will be fueled with enriched uranium... which will inevitably become...

The "End Product" of our Domestic Nuclear Monopoly

You see, when this single company begins to open up its new production facility in late 2009, it will hit the market at precisely the right moment.

Moreover, the U.S. government has basically set up the company with a protected U.S. market... by restricting cheaper foreign imports, largely from Europe. That includes a restriction on imports from Russia into 2020.

But make no mistake... While this company may be aided by the federal government, it's certainly no start up. To the contrary, it has an established foothold... with its roots going back to the beginnings of the U.S. nuclear power industry.

In fact, just last year this company supplied nearly 1/3 of the world's enriched uranium supply, fueling 150 reactors on 3 continents. All this while meeting over 50% of the U.S. supply.

But as I mentioned earlier, that feat was only possible using fuel from old Soviet warheads... and that program is rapidly coming to an end. Without the program, only 12% of our enriched uranium would come from domestic sources.

That has this particular company working feverishly on a plan to replace those resources before they run out for good -- one that will help the country rebuild its enrichment capacity before it's lost to foreign competition.

Now, understand this... The plant itself has been costly and subject to big cost overruns. And without explicit government backing, investors have been harder to find.

But with a $2 billion government loan guarantee likely on the way -- sooner rather than later -- the news itself will catapult shares of this vital company much higher... as investors begin to pour in on the announcement.

This One Could Be a Double as the News Crosses the Wire!

And here's the kicker...

The stock price is cheap. In fact, it's trading well below both its book value and its cash per share.

(But don't expect this key piece of the nuclear infrastructure to be on the bargain rack for long.)

Fundamentally and technically, it's forming an investment springboard that will send its share price on a long, long run.

The key, then, is catching it at the right time.

And that time is now.

But before you go any further, you have to ask yourself one critical question:

Would you really let $49 stand between you and the insight that could double your money in a bear market?

Now think about that for a minute.

Because that's a micro-fraction of the fees and commissions investors dole out every year to their brokers and those 401K guys. Meanwhile all they do is spend half their day thinking of new ways to bleed you over a 10% annual return.

And don't even think about trying to get one of those dinosaurs on the phone when you really need them.

Fortunately, there's a better way...

The Sure Way To Wealth

My name is Steve Christ, and I developed The Wealth Advisory newsletter specifically for the individual investor.

It's a weekly look at the markets that matter, along with the detailed investment insights that winning portfolios are made of.

Because let's face it... Making serious money in the stock market is a ton of hard work. I'm not going to candy coat it for you.

It takes patience, savvy, and a certain level of market smarts if you want to play with the big boys. And the cold hard truth is that if you don't possess each of these traits, the big boys will drain your portfolio dry.

"Due diligence" simply can't be done by watching a show or two on CNBC. It just doesn't work that way.

The market eats naive investors for breakfast. Sure, it might work for a while in a bull market, but in a bear market it is another story entirely.

That's why I hope that you'll join The Wealth Advisory today.

You see, the Wealth Advisory goes well beyond winning stock picks. We don't just deliver the stock recommendations that can help members build a lifetime of wealth. We know it's just as important to teach investors how to think for themselves...

The Wealth Advisory Investment Philosophy

As for our philosophy, it's as simple as the man who taught it to me over 25 years ago. And it has served me well ever since. We will look to buy stocks that have been heavily discounted and sell them at a time when others will pay any price.

This was the philosophy taught to me by my uncle Charlie, a man who hadn't held a job, in the traditional sense, since the Great Depression. My uncle was very much out of the Benjamin Graham school when it came to investing.

A few words from Steve's subscribers:

"Keep up the good work!" Mike M.

"Your 2006 call on the homebuilders was right on. It made me a ton." Peter K.

"I remember when Steve started with Wealth Daily and I asked him a question on the housing market bottom. Steve was right on. I thoroughly enjoy his insights into the markets and look forward to his letter. Thanks for sharing your knowledge with us Steve." Ann P.

"Thanks from one happy "lazy" investor. It works as advertised." Gerry L.

Of course, if you were behind him in line at the grocery store that's the last thing you would've expected. But it's true-- he was a self-made man and he owed it all to his winning investment philosophy.

"It's all about taking and managing risks," he'd say. "It's just that simple."

"Figure that out, and you'll never have to work again."

And to be honest, it's not much more complicated than that -- as long as you know how to keep your risks to a minimum.

You see, if there is one thing that I have consistently discovered in talking to retail investors, it's this: they simply take on too much risk. And that, in the end, is what ruins their portfolios.

That to me is the big lesson in it all. The markets really are more than happy to reward you. It's just a matter of having enough patience to protect your principal, and be willing to learn along the way.

That much I'm sure of.

So Here's the Bottom Line:

If you are willing to part with a buck a week, you can gain full access to everything The Wealth Advisory has to offer, including detailed information on how to invest in our play on the 'nuclear monopoly.'

I'll also include, at no charge, the following two new investment reports:

• My new "money machine" report: How to Sit Back and Become a Millionaire. (In it, you'll find every last detail on my new income investing strategy, including how you can easily create an income-producing money machine of your own.)
• The Govt-Aided Nuclear Monopoly: The emerging nuclear power play set to deliver triple-digit gains.

All for only $49 a year!

And here's my guarantee to you:

If, for any reason, you're not completely satisfied with The Wealth Advisory, the stocks in it, or the level of research presented, simply let me know within your first 30 days, and I'll personally refund every penny. No questions asked.

And, by the way, you can hold on to my two newest investor reports. They're yours to keep.

Now, look. If you're still on the fence, be assured...

The Wealth Advisory has consistently posted impressive gains, at a time when other investment newsletters are struggling to come up with ANY positive returns.

Bull market or Bear market... it doesn't matter.

In fact, here's a peek at how we've done so far on our closed positions since we opened the service:

• Adobe Systems Inc. (ADBE:NASDAQ) closed with a 32.28% gain in 11 weeks.
• Converted Organics Inc. (COIN:NASDAQ) closed with a 42.11% gain in two weeks.
• FXP UltraShort FTSE/Xinhua China 25 Proshare (FXP:AMEX) closed with a 27.23% gain in four weeks.
• Morgan Stanley China -- SHORT POSITION (CAF:NYSE) a 32.51% gain in four weeks.
• PowerShares DB Commodity Idx Trking Fund (DBC:AMEX) a 14.26% gain in eight weeks.
• PowerShares DB Energy (DBE:AMEX) a 15% gain in nine weeks.
• VMware Inc. (VMW:NASDAQ) a 44.44% gain in eight weeks.
• Chesapeake Energy (CHK:NYSE) a 15.4% gain in 6 weeks
• UltraShort QQQ ProShares (QID:NASDAQ) - an 11% gain 4 weeks
• SonoSite Inc. (SONO:NASDAQ) - a 9% gain in 12 weeks
• PowerShares DB Oil (DBO:AMEX) - a 49% gain in 5 months

That's a cumulative gain of 290% vs losses of only 55%... or a net gain of 235%!

Time To Jump On The Bull Bandwagon?

With the major indices breaking higher on Friday via yet another big point gainer, the bulls have to be feeling pretty good about themselves right now. From a technical perspective, it is positive that both the Dow and the NASDAQ were able to break above resistance zones this week and also above their 50-day moving averages, which according to the textbooks, defines that intermediate term trend.

However, in pondering the market's big-picture environment this morning, the biggest question in our minds has to do with the amount of upside still available to investors. Frankly, if we were asked whether one should jump on the bull bandwagon on Monday, we are not sure what our answer would be. So this morning, the plan is to sift through the market messages to see if we can come up with an answer to the question.

Reasons for the Rally

Probably the most important aspect of succeeding in the stock market over the long term is having the ability to identify the big picture environment and then to understand what is driving the action. So, let's start with a quick review of the reasons for the recent move up in stock prices.

Stocks initially bounced up off the July 15th low on the idea that we have seen the worst in the credit crisis. If this sounds familiar, it should, because we've heard this story before. In short, stocks have rallied each time traders have become convinced that things couldn't get any worse in the financials. Unfortunately however, each of these rallies has ended abruptly when it became clear that this assumption had been false.

This time, it was Merrill Lynch's admission that they did indeed need to raise a bunch of capital and the only way they could do it was to sell off a bunch of the toxic debt securities at $0.22 on the dollar. The thinking is that this move put some sort of a floor on the CDO market. And despite the fact that Mother Merrill had financed the deal themselves, thereby effectively reducing the sale price, traders liked the idea that there was at least some sort of a starting point available to value these securities.

Next up, the decline in oil prices has definitely had a positive effect on the psyche of investors. It isn't so much that oil is suddenly cheap. No, the point is that the pullback signals that we may have seen a top in the price of oil. And since much of the uptick we've seen in inflation this year has been caused by oil and commodities, the argument can be made that we've also seen the high water mark for inflation.

And finally, it would appear that the greenback may have ended its losing ways. The U.S. Dollar has broken out of a long basing pattern, which, as the technicians tell us, means that the buck will continue to advance. However, the problem is we've seen this movie before.

But The Big Question Is.

While oil falling from $147 to below $115 is indeed a good thing; the question, in our minds at least, is how much help can the move in crude be to stocks?

Let's look at this another way. If you recall, oil has more than tripled over the three years. And yet, through it all, the consumer managed to deal with the pain at the pump and kept going about their business. Yes, the price of gasoline DID eventually impact spending habits. However, we believe that this change had more to do with the media coverage of housing, the economy, the stock market, etc. The point is that since oil's move higher didn't really do much damage to the consumer, should we really expect a pullback to queue dancing in the streets?

The bigger issue here is that the price of oil doesn't do ANYTHING to help you sell your house. In addition, the price of oil has absolutely ZERO impact on the value of CDO's on a bank's balance sheet.

Yes, lower oil will help keep the Fed from being forced to raise rates too soon. Heck, even the ECB started talking nice this week about interest rates. But, lower oil prices won't suddenly cause banks to start lending money again or force mortgage rates to come down.

In addition, both the Dow and the S&P 500 are going to encounter some resistance fairly soon and are once again in an overbought condition. Thus, falling oil only helps cure one of the three symptoms that is causing the patient pain.

An Answer Please.

So, to answer the question posed this morning, in light of the fact that the credit crisis is NOT over (the next problem looks to be credit card-based securities) and the housing correction has NOT ended, we will say that the upside looks limited from an intermediate term perspective.

But, (don't you just love it when analysts talk out of both sides of their mouths?) we do feel that it is probably okay to get long for a trade. However, it would be a really good idea to keep a close stop as oil is probably due for a bounce.

Wishing you all the best for a profitable week ahead.

David Moenning
Editor Top Gun Trader Alert Service

Note: Mr. Moenning edits the "Top Gun Alert" Service with a 92% winning track record Learn More...

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TOP GUN TRADE ALERTS -- by StreetAlerts.com Editor David Moenning

Our "Top Gun Trader" Alert service is designed for active traders looking to trade "top gun" stocks (the market's top rated companies in terms of earnings strength). You'll receive real-time trading alerts detailing exactly what we're about to do and why.

Chart by StockCharts.com

Top Gun Trade of the Week:
Norfolk Southern ( NSC)
Company Profile
Date Purchased: 8/4/08
Purchase Price:
Original price: $70.04. We'd be buyers on weakness down to $70 or a break over $74

Trading Strategy:
It is important to understand that we are seeing a shift in market leadership right now from energy and materials into areas such as healthcare. So, why then are we highlighting a stock in the industrial sector? Because, in short, although oil prices are declining at the moment, a pullback from $147 to $115 does not mean that oil is suddenly cheap. In addition, the move down does not mean that Americans will suddenly start buying big cars again. No, the tripling of oil prices over the past three years has turned us into a nation now concerned about fuel conservation. And this story helps cement the idea that the demand for rail traffic is going to continue to grow - not shrink. So, with a solid fundamental story, we continue to like the rails here.

Try the Top Gun Real-Time Alert Service!
Since April 27, 2004, the Top Gun Alert service has provided members with 436 winning trades (with just 34 losses) -- that's a 92.78% winning track record.

Details on how to get Mr. Moenning's trade alerts for 30 days here

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52 Wins in 52 Weeks

SUCCESS TRADING GROUP -- by MarketFN.com Editor Eric Aafedt

Our Success Trading service delivers quality trading ideas for the elite investor that has the financial wherewithal and market nimbleness to profit on small moves in a stock's price. Become a member and you will be provided with email and/or PDA alerts intended to provide you with the opportunity to make many, many profitable trades.

Chart by StockCharts.com

AA (Alcoa Inc.)
Company Profile
Our Success Trading Group closed another winning trade this week. We traded in and out of Alcoa (Ticker: AA) for a quick gain this week. We believe the current market conditions will allow us to make some more short-term trades in the upcoming weeks and we are looking forward to actively trading the weeks ahead.

Our Success Trading Group scored 52 Wins in 52 Weeks and has closed over 340 winning trades and only 9 losing trades on our Main Trade Table.
Details Here.

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STOCK SPLIT REPORT -- by StockSplits.net Editor Jon Johnson

We play pre-split plays as short-term plays. We get in when the technical indicators show us things look right, grab as much as we can, and get out, always being conscious of resistance and support. These stocks are highly volatile at this time, and can turn on you quickly. Don't let good profits disappear. Watch for turns, especially when a stock trades in a wide range and finishes off its high. That is a sign these stocks often give you that they are running out of steam. We usually get out and ask questions later. We can always get back in. We like to play in the money calls, preferably two strike prices in the money as this usually gives us a greater delta (the percent an option will move versus the stock's movement). We prefer deltas of 75 or better. This means if the stock moves 1 point, the option should move three-fourths of that point. That means up or down.

Remember, wait to see the stock start to move up. Don't just blindly make a play and don't try to guess tops and bottoms. We can look at indicators to give us a clue as to what will happen, but we need the stock to confirm it for us.

Listen to Stock Split Report Editor Jon Johnson's
stock split interview on CNBC-TV [  Broadband  |  Dial-up ]

Here's a pre-split play and our current analysis.

Chart by StockCharts.com

TWI (Titan International--$44.52; +1.60; no options): Auto parts. Splits 5:4 on 8-18-08
Company Profile
EARNINGS: Announced 7-30-08
STATUS: Test breakout. Held the 10 day EMA and bounced Friday though volume fell below average. Still an excellent set up to run higher next week as its split date draws closer. Very nice pattern, nice test, and can blow higher like the wind. To recap: TWI gapped higher on the earnings and split news, clearing a 6 week base on the move. Big move and needed a test, making that test the past week. TWI has come back to the 10 day EMA (42.52), closing just over that near support Thursday. Being patient and letting it make the test, and as it breaks higher we will be ready to move in as it makes its move toward another new all-time high.
Volume: 542.606K Avg Volume: 546.046K
BUY POINT: $44.75 Volume=750K Target=$52.95 Stop=$42.44
POSITION: - Stock

Learn more about the Stock Split Report and how we have made gains of 321% with our powerful stock split plays!
Details Here.

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$10 TRADER -- by MarketFN.com Editor Bill Kraft

We really enjoy trading stocks that are $10 and under. Often they provide the chance to enjoy high percentage gains and, of course, at worst, the risk is limited to what we paid for the stock.

Chart by StockCharts.com

AHR (Anthracite Capital, Inc.)
Company Profile
On Monday, I closed a trade I was in for only 2 business days. Before commission, I realized a 4.7% gain. AHR now looks like it could be in position to re-enter early next week as it continues to climb up a trend line.

Try our $10 Trader Real-Time Alert Service!
Details Here.

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IH ALERTS -- by InvestmentHouse.com Editor Jon Johnson

The IHAlert Service is a combination of all of the BEST PLAYS from all of our nightly newsletter services at InvestmentHouse.com! You get Detailed Market Insights, Expert Technical Analysis and Market Alerts sent to your computer and/or pager!

Chart by StockCharts.com

MNTA (Momenta Pharmaceuticals Inc.)
Company Profile
Even as the market sold off new leadership emerged. Of course it had more of a defensive flavor as it focused on the medical and health sectors, be even within those there are growth areas that can give us just as much return as any energy, tech or other stock in their prime.

MNTA caught our attention in late April as it gapped over a long down trendline on strong volume, riding a good earnings report. We were not immediate buyers, however, because we know that such moves are tested in 80% of the cases, particularly when a stock is reversing an established trend. MNTA did just that coming back to test the old trendline over the next 9 weeks. We did not lose track of it, just kept watching for when it was ready to resume the trend break move. I keep a sign right on my desk in front of all of my monitors: PATIENCE. In the market patience is often the difference between a successful trade and a mistimed move. Thus we waited on MNTA, placing on a watchlist of potential new leaders and keep track of it each day.

On 7-16-08 MNTA followed up a high volume session three sessions before with a good price gain. We put it on the report. The next day it tested, but on 7-18 it broke higher again on above average volume and we moved in, buying some stock at $14.98 and some December $12.50 strike call options at $4.40 per option. We could have gone with some September options and had enough time, but as MNTA was reversing a trend we wanted to have some time to let it run for us.

We caught MNTA just about right on this renewed move as it added 0.68 the next session and $1.12 the next. That put it up 4 out of 5 sessions so we knew a test of some sort was coming and knew what would be acceptable and what would be too much ahead of time. Sure enough it faded 0.88 the next session and another 0.53 the next. On 7-25 it tested near support at the 10 day EMA intraday and then rebounded for a solid gain. A false start the next session left it at the 10 day EMA again but then it started a steady climb after testing that near support following the strong initial run. Stocks will often do that: make the big surge then come back to test near support at the 10 day EMA before resuming the move.

MNTA put in a series of steady though not spectacular upside sessions, though building more gain for us just about each day. On 8-5 it cleared the initial breakout high, and it did it on strong volume. That showed us the buyers were still in the game and were buying with strength. They showed that strength the next session with a $2.29 blast higher on the best volume of the entire run, even the trend break. Then it was decision time: the stock hit our initial target so do we bank some gain here and let the rest run or do we let it all ride? As usual we stuck to the plan. We set that as our initial target so we took half of the gain, selling some stock for $18.30 and some options for $6.60. That banked us some solid 22% gain on the stock and 50% on the options. Nice gains after a nice steady advance.

Thursday the market took a hit and a lot of the leadership in the biotech sector (MNTA's sector) sold hard. Glad we used the blast higher to bank some gain. MNTA back and landed at the 18 day EMA, in the middle of its rise in late July and early August. Now we see if it can come back as it bounced up to the 10 day EMA on Friday. If it does hold and resumes the advance MNTA is in position for another gain equal to the one it had already made for us. If it stumbles, however, we need to get out because despite the overall market recovery, if this leadership group starts to break down that is not good news for the market overall and we always have to listen what the leaders are telling us. Thus far they are hanging in with a few hiccups here and there. Cannot let hiccups turn into the dry heaves or something worse, however.

Chart by StockCharts.com

AGU (Agrium Inc.) DOWNSIDE PLAY
Company Profile
At the same time we are playing upside on the remaining market leadership we are playing the downtrends in the former leaders such as agriculture. The downside can happen so fast when a trend breaks that it makes for some easy gains. You just have to warm up to playing it because when you do the results are often better than the upside. They definitely come quicker, especially in crowded upside trades such as agriculture.

AGU peaked in June and started to trend lower in July, but it was late in that month when the stock finally signaled it was not just a modest pullback but a breakdown. It broke through key support at the 90 day SMA on 7-24-08 and it did so on high volume. As with breakouts, breakdowns typically test the support broken. AGU went on the watchlist. It started to bounce on low volume, tapping up toward the 90 day SMA on 7-28 and falling back, so we put it on the report that session, looking to buy some September $85 strike put options if it rolled over. These options were perfect as AGU was bumping just below 85, and thus the options gave us a good price entry point as well as good delta to capture the fall from 85.

AGU showed the action the next session, but then AGU jumped higher on 7-30 on strong volume, moving through the 90 day SMA. Hmmm. Renewed strength? Maybe, but it would have to prove it. We moved the entry point for the play higher; if it stumbled as we suspected it would, then we have a better entry point. It did stumble the next session and closed below the 90 day SMA once more. Just one day break back above it and then a close below it the next session: that made the rebound move what we call an outrider, i.e. not consistent with the trend and thus changed nothing. The next session AGU was down again and we entered the play, buying those put options at $6.50 per options. We used September because as noted, the downside happens fast and we don't hang around long when we get a good move.

Next session we got the good move as AGU dove lower by $7.80. Came close to our target, but there was more to the downside as this move just started. The 200 day SMA was another 4 points lower and history strongly suggested AGU was going to tap near that level before it rebounded. Next session, 8-5-08, AGU gapped lower, continuing the move. It reached out toward the 200 day SMA, but it started to rebound. Gap and reversal after a big move equals take some gain. We sold our options for $11.40, banking a 75% gain in just three sessions. AGU bounced back up to the 10 day EMA over the next two sessions, but it is struggling again. We are not going to jump right back in here, however, as AGU is just over the 200 day SMA, and until it shows us how it is going to handle that very important level we are not going to play with it just yet.

Learn more about the IH Alert Service!
Details Here.

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OPTION TRADER -- by MarketFN.com Editor Bill Kraft

Our Option Trading Service is for conservative traders that understand leverage principles. We focus on powerful option trading strategies that place volatility and momentum in your favor. And we pride ourselves on minimizing our losses. We always know our downside potential in a trade.

Chart by StockCharts.com

TIF (Tiffany and Co.)
Company Profile
Interestingly, the jewelry store sector has been moving up and within that sector, high-end jeweler, Tiffany (TIF) has broken above a price support. I am considering a bullish play either selling some short duration $40 puts naked or perhaps buying some in the money LEAPS calls.

Try our Option Trader Real-Time Alert Service!
Achieve returns with us like 16.48% return in 5 days!
Details Here.

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DIVIDEND INVESTOR -- by MarketFN.com Editor Eric Aafedt

Perfect for your IRA! Our Dividend Investor service focuses solely on the "best of the best" dividend paying stocks. Many of the stocks that we will be buying in our Dividend Investor service raise their dividends almost every year. Year after year! This is powerful. We buy these stocks for their powerful dividend producing income; and we will also buy these with a purpose to make capital gains as the stock increases in value.

Chart by StockCharts.com

MDU (MDU Resources Group, Inc.)
Company Profile
Our Dividend Investor members also traded in and out of Alcoa (Ticker: AA) this week. We like MDU Resources Group, Inc. (Ticker: MDU) for a new position at its current price for either a "trade" or an "invest" position.

Feel free to sign-up for a free 30-day trial. During such time you can review our Trade Table and see the type of stocks we are buying. You will also receive all the new investing alerts we send during your trial period. Again, many of the stocks that we will be buying in our Dividend Investor service raise their dividends almost every year. Year after year! This is powerful. Don't miss out on this service!

While we titled this service an "investor" service, we also believe these stocks are solid for the "trader" in you. With these stocks, we believe an exit point of 3% above the buy price is generally appropriate for traders. And, in fact, our first 53 positions have hit our 3% target subsequent to the buy alert!
Details Here.

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COVERED CALLS -- by the CoveredCall.com Research Team

Chart by StockCharts.com

RJF - Raymond James Financial Inc. is currently trading at $31.00. The September $30 Calls (RJFIF) are trading at $2.80. That provides a return of about 6% if RJF is above $30 on expiration Friday in September.