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Jun 13, 2009

Beat the Market Without Penny Stocks

Today, we told you about the 10 best-performing penny stocks so far in 2009. Tonight, we wanted to tell you about another group of investments that have been absolutely on fire this year.

So far in 2009, our colleague has already given his readers the chance to cash in eight different triple-digit gains and six more double-digit winners. Possibly more impressive than that: Not a single one of his picks lost a dime of money.

He isn't doing something different this year. He's done this well every year for almost a decade. In just five years with him, you could have turned $5,000 into $1 million. If you were with him from the beginning, that $5K would be worth nearly $1.9 million.

Because of his success, we want to share with you how he does it.

Since Steve Sarnoff, options guru, relaunched his elite e-mail Alert Service, Options Hotline, on Oct. 24, 1999, with an initial recommendation to buy Barrick calls...the profit opportunities for his readers have just doubled and tripled and quadrupled...again and again and again.

If you had invested $5,000 in that first recommendation and in every recommendation that followed, you could have grown that small sum into to a quarter of a million by Dec. 3, 2000.

Then half a million dollars by Sept. 30, 2002.

And then to...$1 MILLION by Dec. 2, 2004!

His track record: 100% winners in all of 2008, 2007 and 2005!...92% winners in 2004! 90% in 2003! Steve's record just keeps getting better and better!

WOW! $1 MILLION in a little over five years with a startup investment of just $5,000 in each pick! I'm so sorry you missed the ride. But get ready. Because you're invited to:

Join Steve as he shows you the way to the next $1 MILLION...it's simple and straightforward and we'll show you how with Steve's one weekly option buy recommendation

His readers call him "prophetic." Read on to find out why.

The best stock market of the past few years has produced very few millionaires. You just can't make a million dollars with a $5,000 initial investment on a nine-year average annual return of 1.63%. To do so would take you more than 400 years. . You'll never live to see it, and neither will your grandchildren, great-grandchildren, even your great-great-grandchildren.

Hello, I'm Steve Sarnoff, recognized options expert and the editor of Options Hotline. I'm here to tell you that even if you've never traded options before, you can do it. In fact, it's quite possible you could grow over $1 million richer...just by buying one option a week...in as little as five years. My proven system is all you need.

In the time it takes you to read this letter, I'm going to show you step by step how you can trade options with a minimum of risk and a maximum chance of profits.

Just ask one of my subscribers, Mr. Eckert: "My very first trade using your service was the GE August $30 call. I couldn't be happier with the 116% profit in just three weeks!"

Or Donna, who says, "I am very pleased with your recommendations, especially with the Bank of America. It's unbelievable for it to be up more than 200% in just a few days."

Mr. Abbott, another one of my happy subscribers, confirms, "Joining Options Hotline was the best decision I've ever made...since I joined -- three months ago -- I have doubled my money."

Why are we getting such rave reviews? Simple. I have the track record to prove it: My wins have overpowered my losses, and my small group of readers has had the chance to reap $1 million in profits in just over five years.

And I'm not talking about a million-dollar portfolio that looks good on paper...I'm talking about the type of wealth you have only imagined. Seriously...$1 million on just one investment a week!

Enjoy Doubling Your Money! We have a track record with more than a 100% average gain on every pick since November 2006.
Compare that to the pitiful average yields of the S&P and Nasdaq! Here are a few highlights from my decisively winning trading record:

Of the 8 options I recommended in the final 10 weeks of 1999, 7 were winners, ranging from a 17% gain on DJX puts to a 628% gain on Intel calls. You could have made $87,000 on those 8 picks...and lost only $5,000 on one trade.

In 2000, I recommended 32 options that triggered (meaning the option reached the price I recommended for buying). That year, readers had the chance to pocket $173,214.55 in total profits with only $5,000 into each play - MORE THAN DOUBLE what we saw in 1999

In 2001, the year of the terror attacks, I made 45 recommendations that triggered. We had some big winners. GM puts gained 1,202%, or $60,000! Pfizer puts, 431%! Biopure puts, 341%! Total profits that year could have been as high as $216,164

In 2002, we crossed the HALF-MILLION-DOLLAR MARK when the 3M puts recommended on Aug. 16 of that year gained 103%! Total that year - $205,101!

How can I claim such amazing track record gains year after year? Simple. I look at the highest price the option gets to after I recommend it and that's the gain I record in my portfolio. So, you can be sure that the gains I talk about here are the biggest and best possible. And the potential profits are the best you'll see.

Are you noticing a winning pattern here?

In 2003, only 4 of the 39 triggered picks I recommended lost. Readers could have racked up $189,463.32 by investing $5,000 in every pick.

In 2004, I cut my losers in half! Only 2 out of 36 lost! And we HIT THE $1 MILLION MARK on the iShares 20+ Year Treasury Bond Fund calls first recommended on July 16, 2004. You could have added $221,300.36 in total profits to your income that year and lost only $363.50! That certainly shows how your wins can overpower your losses.

In 2005, we simply stopped picking losers at all! Every pick was a winner! A 100% win rate. You could have added $217,523.58 by selling your options at the high mark.

In 2006, we picked 36 options that triggered. All but three were winners. The most profitable pick at its peak was a whopping 300%! You could have added $150,375.28 by selling at the right time.

In 2007, our winning streak continued! Every pick a winner. Nearly 40% of the picks were triple-digit winners too. You could have added another $202,635.16 to your bank account ― without losing a single penny!

That's right! Since hitting the first million-dollar mark on July 16, 2004, we've given readers the chance to make another $892,043.04 in profits since. We're closing in on our next million dollars, and I'd like to invite you to join us in this upcoming profit bonanza.

An unbelievable record: I haven't picked ONE loser since November 2006! Steady consistent winning on only one pick a week ismy No.1 million-dollar strategy.
It works. If you follow my recommendations, it can be your killer strategy, too!

In fact, my win rate for 2004 was 92%. That's right, 92% of the weekly picks I recommended could have made money. In 2003, it was 90%.

And in 2005, 2007, and 2008...I didn't have one losing pick. I was 100%!! You simply won't find a better record anywhere else.

In 2008, for example, I had 36 picks that triggered. Only five did not. My average gain was an astounding 127% ― with total gains possible of over $229,000!

You can even check it out for yourself. I've attached my personal Pick-by-Pick Proof Sheet that lists every recommendation I have made since 2006. Like I said before, the gains are calculated at the highest point of each of my actionable option recommendations (meaning the ones that triggered) after I have alerted my readers. You'll see what happened!

While I do not issue specific sell recommendations, with my proven selling strategies, you'll learn how to minimize your risk and lose as little money as possible.

In fact, when we reviewed the over 110 examples of winning options recommended in the past three years and how well they could have done, we found that …

The average gain was over 100% on each recommendation. That's doubling your money on every play! The highest gain was a monstrous 611% on the Newmont Mining December $45 calls in August of 2007. That's enough to turn your one $5,000 investment into $30,550!

The top 39 winners of the past 3 years were all triple-digit baggers! Winners like

472% on Bed, Bath & Beyond February $40 put, recommended on December 18, 2005

420% on Newmont Mining June $40 puts, recommended on April 10, 2005

399% on Qualcomm August $35 calls, recommended on July 10, 2005

366% on SPY November $152 puts, recommended on October 29, 2007

300% on Bristol-Myers March $25 calls, recommended on November 19, 2006

283% on TLT September $89 puts, recommended on March 5, 2007

266% on Newmont Mining March $55 puts, recommended on January 25, 2006

210% on FedEx July $110 puts, recommended on May 1, 2006

205% on Coca-Cola September $55 calls, recommended on August 2, 2007

366% on SPY November $152 puts, recommended on October 29, 2007

569% on Citigroup July $20 puts, recommended on May 25, 2008

439% on QQQQ December $43 puts, recommended on Sept. 21, 2008

These triple-digit winners have been great. Big winners like this are a real high, and when I make any recommendation, that's certainly my goal. Over one-third of all my recommendations from 2005 through 2008 were triple-digit home runs.

But the real secret to making a million dollars with just one pick a week...is not just hitting the triple-digit home runs now and again, it's the solid base hits and the steady stream of winning picks...9%, 21%, 40%, 62%, 80% gains on almost every one.

It's why acting on only one play a week can work. You're not wasting time and risking large amounts of money taking a scattershot approach of buying dozens of options hoping one will sell big for you. Instead, you could be focusing on the one winning trade that matters...week after week after week.

IN FACT, if you were to average out the gains on my picks for the past 9 years since 1999, you'd get about a 115% average gain on each and every play. That's more than double your money average on every pick!

That's enough to turn a $5,000 investment into $10,750 on every play!

Compare that to the pitiful returns of the S&P 500 and the Nasdaq for the same time period:

S&P 500: 1.63 % average annual return from 1999-2007! Actually, from January 1999 through December 2007, the S&P's TOTAL cumulative return has only been 14.7%! 14.7% in 9 years. It's pathetic!

The Nasdaq has done worse....0.64% average annual return and 5.8% cumulative return in that time. That's worse than a savings account …

And forget about 2008! The markets fell up to 40%, sometimes whipsawing around with volatile swings of 3-5% a day!

Just how fast do you think you could build real wealth with those sorts of returns? Perhaps your entire life. It would take more than your and my lifetime of investing combined to even hope to get anywhere near a million dollars on 1.63% and 0.64% returns.

I think you'll agree that my way of trading options is certainly the fastest and easiest way (and it's less risky too - more on that in a moment) to make your FIRST MILLION DOLLARS.

So now you may be asking...

What are options... and why doesn't everyone invest in them?

For far too long, options trading has been shrouded in mystery for the average investor. But no longer. I've been studying options my entire life (my dad, Paul Sarnoff, was a brilliant master options expert), and I have to tell you it's the one investment that truly offers limited risk for unlimited gain.

Many people don't invest in options, because they've listened to all the misconceptions or myths of options trading. Perhaps the No. 1 myth of options trading is that options are too risky, but that simply isn't true. In fact, you can make money trading options in up, down or even sideways markets.

Trading in the actual underlying best stocks to buy is more risky, as more of your money is on the line when you purchase a best stock. You can buy an options contract for as little as $100 and see it double in price in a short period of time. You certainly don't see stock prices of 2010 doubling very often or witness the spectacular gains in stock prices that you do in options.

Another big myth is that most options expire worthless...but as you'll soon see from my profit-building strategies, you should sell the option long before the expiration date to maximize your profit or minimize the loss.

So don't stay on the sidelines and miss out on the huge profit potential of options any longer...not when you allow me to be your expert guide and I have an astonishing "double your money" potential in average gains on every pick since 1999! Just take a look at my year-by-year gain-and-loss chart. The proof of success is in the numbers!

I won't give you a detailed explanation of options, because frankly, at this point, you don't need one. Right now, you just need to know how they work and how to profit from them. (I am offering TWO FREE BONUS REPORTS that will serve as your crash course in options. You'll get both of these gifts just for trying out Options Hotline.)

Simply stated for our purposes...an option gives you the right to buy or sell 100 shares of a specific top stock to buy at a certain price within a set period of time.

If you expect a best stock to rise in the future, you buy a call, the right to buy the best stock at a certain price. If you expect a best stock to fall in the future, you buy a put, which is the right to sell the best stock at a certain price. You're not actually buying or selling the best stocks for 2010, just the "option" to do it.

And that's what makes option trading a real profit shield against disasters and world events...hurricanes, oil shortages, high gas prices, terror bombings, sluggish consumer sales...whatever! If the best stock market goes bearish, then I start looking for puts to recommend to take advantage of the down market.

And we've seen some pretty hefty wins on puts recently. Take a look:

366% on SPY November $152 puts

52% on FedEx October $100 puts

68% on MetLife September $60 puts

130% on Allstate April $60 puts

569% on Citigroup July $20 puts.

And you don't actually have to exercise an option to make money. In fact, all of these staggering gains could have been made on buying and selling the option!

The secret of "SUPER-LEVERAGE"...and how it can make you far richer in a short period of time!

"Super-Leverage" is, quite simply, the potential to make large profits from changing prices while strategically limiting your risk. The instruments of Super-Leverage are nothing fancy...just exchange-traded puts and calls. It's the simplest strategy, but most often, it's the most effective.

The BIG advantage to you is that you don't need to be a financial wizard or have large sums of money to participate. Remember, you can purchase an option for as little as $100!

The disadvantage is that options are wasting assets. And if the underlying security doesn't move enough to give you real value before a specified date, your options will expire worthless. It is a risk...but you're only out the price of the option.

Here's a play from 2007 I recommended that shows you the power of Super-Leverage at work:

On September 17, 2007, I recommended to my readers that they..."Buy the Johnson & Johnson January $65 call, for $200 or less, good this week".

What this means is that I'm recommending readers buy one options contract at $200 (or less) for 100 shares of Johnson and Johnson stock at $65 a share sometime before the third Friday in January. Options always expire on the third Friday of the month.

Now, if the Johnson & Johnson stock climbs higher than $65, your option starts to increase in value. Why? Because you have the option to buy them at $65 a share when others are willing to buy them at a much higher price.

Say Johnson & Johnson rises to $70...that means you can "exercise" your option and buy 100 shares at $6,500 and sell them for $7,000, for $500 in profit minus the $200 (or less) you paid for the option - or $300 net profit. Not bad - a 4% potential return on your investment!

But if you sell the $65 call option (instead of exercising it), in fact you could have sold your option outright for a maximum of $425 and pocketed a return of 112%! Since I suggest a $5,000 investment, at a 112% return, you could have sold it for $5,600 in net profits.

Now that's Super-Leverage, and why options are so profitable...and why you need to risk only $5,000 on my one weekly recommendation.

Here are a few more plays I recommended that produced the HUGE Super-Leverage gains in just a few days, like Mr. Carson's:

Coca-Cola Sept $55 calls, 206% in 8 days

FedEx October $100 puts, 52% in 1 day

Exxon Mobil May $80 calls, 107% in 4 days

UPS July $70 put, 48% in 1 day.


You see why there's no need to buy a lot of options and risk a large amount of your money and hope for one big win to make up for all the losses. I closely look for the one option to buy each week that can make you huge profits in a short time. It's my full-time job...not yours.

My dad Paul Sarnoff was one of the legends in options trading for more than 40 years. Wall Street turned to my dad for the best in options trading advice. He is to options what Warren Buffett is to best stocks to buy - a genius! In fact, it was my dad who started Options Hotline, his private options advisory service available only to a select few, back in 1989.

About 30 years ago, my dad brought me into the "family business" - sort of a Sarnoff & Son. For years, I literally soaked up every word he ever spoke about trading options for big profits. I watched him trade. I listened carefully to his reasons. I analyzed his every pick. I did what he did. It was awesome to watch a master trader at work.

As his apprentice, I saw firsthand how my dad raked in profits. And I'll always remember what my dad said to me nearly every day: "Son, options are the best...perhaps the only way to get rich very quickly."

While I was learning trading secrets from my dad, I also earned my college degree, worked on the floor of the Commodity Exchange and founded my own research company, developing my own charting and analytical techniques to build on what my father had taught me.

In 1995, Dad asked me to join him as co-editor of Options Hotline. I was proud that this options genius felt I was ready to join him as his equal. Sadly, my dad passed away in 1999, but his legacy lives on through me and the ongoing success of Options Hotline.

My first solo recommendation was Barrick Gold calls on Oct. 24, 1999. Not my best pick, with a 100% loss, but I made up for it with my next four picks ...

Home Depot calls, 289%

AMEX calls, 150%

Disney calls, 315%

Cisco calls, 386%.

In fact, my next thirteen recommendations were all double- and triple-digit winners!

As a subscriber to Options Hotline, you'll get more than 50 years of my dad's options experience...combined with my over 30 years of technical analysis...for 80 years of options experience you can depend on to give you the winning picks.

I just don't know where you would find a more authoritative source for profiting from options. But don't take my word for it.

Triple-digit gains without buying, selling or owning a single share of stock! That's Super-Leverage in action!

To illustrate that point, one of my subscribers, Earnest L., told me, "My very first trade using your service was a 50% gain. My second trade is hard to believe, a 750% gain in one working day."

Even though I have had a 100% win rate since November of 2006, I want to make sure that you know losses occasionally do happen. I had three in 2006. But also remember...your risk with options is LIMITED to the cost of the option...not the underlying best stock to buy.

But again, you have my promise that I'll show you wins will overpower our losses and you will steadily and surely get the chance to make money - week after week, month after month, year after year...more on this promise later...

To pick the steadily consistent winners, it takes me a week of painstaking research. I thoroughly study the market technicals, the economy and the impact of events upon the market's direction. I diligently research the companies whose underlying best stock to buy is the foundation of our options picks.

It's why I only make one solid recommendation at the end of the week. It's the one pearl among swine. And it's why my track record is so good. Quality, not quantity.

Plus, I don't stay in just one area of the market. You can see by my Pick-by-Pick Proof Sheet that I'm researching whatever sector of the market has the potential for big profits...commodities, hi-tech, retail, financial, consumer products and services, health care and others.

This all-around diversity immediately minimizes your investment risk, so you're never heavily weighted in one area of the market. In other words, your investment eggs are all over the place...dodging risks and discovering profits.

And I also employ a unique charting system with a proprietary computer screening program that I personally developed that allows me to be just a little bit "prophetic" in picking the options that can return single, double and triple the gains...90-100% of the time! I am unable to reveal the details of these systems, but again, you can see that they work on my undistorted Pick-by-Pick Proof Sheet.

Don't waste a minute wondering what option to buy...
I'll pick 'em. You decide if you want to play 'em. And together, I'll help you make a million dollars!

Obviously, the hardest part about trading options is picking the right options...BUT you don't have to worry about that at all. With my personal Options Hotline Alert Service, you'll get one extremely well-researched recommendation per a week on Sunday night, in plenty of time to call your broker by the opening bell Monday morning if you feel confident in my play.

I suggest you follow each and every one of my recommendations. That's the one proven way I know of that you can be sure that your wins overpower your losses. If you were to cherry-pick week to week, I would be unable to maintain my promise to you of steady incremental gains week after week after week. But the choice is ultimately yours.

The main reason people fail at trading options is that they play too many of the wrong options, hoping for one winner. But one trade per week is all you need. You can clearly see by my attached 2006-2008 Pick-by-Pick Gain Sheet that this strategy DOMINATES! 100% in 2008, 2007, and 2005! 92% wins in 2004...94% in 2003.

Action Item No. 1 toward your MILLION-DOLLAR GOAL: Think it over and call your broker first thing Monday morning and make the play I told you about Sunday night. You won't be sorry.

Now here's how you can make the Million-Dollar Plays to help you achieve Super-Leverage profit potential on every play.

Up until now, I've told you about the importance of buying the one option every week that I recommend. That's the "pick 'em" side.  

Now, let's talk about the "play 'em" side. Here are a few of my proven million-dollar plays to make sure you MINIMIZE your risk and MAXIMIZE your profit potential. If you decide to trade, follow these simple rules. 

The trick to making money with options is simply to play...and to keep playing. I would suggest that you don't pick and choose what recommendations I offer. Be consistent and play each recommendation every week. Staying in the game will help you have your wins overpower your losses.

Take the emotion out of your selling. You'll lose for sure if you get too attached to any trade. So decide on a profit target based on the price of the underlying best stock to buy, not the option. To help you, each option recommendation I offer includes a target price for the best stock to buy.

You'll discover all of my trading strategies in my TWO FREE BONUS REPORTS I'm offering to my new subscribers: Secrets of a Master Trader: Tips and Strategies for Making a Fortune in Options...AND The Options Buyer's Handbook.

Find a time in the day to review your options and stick to it. It may take you only 15 minutes or up to an hour each day...but do it! As my track record proves, I don't know too many jobs where you can work 15 minutes a day with the potential to make over $200,000 a year!

In options trading, greed is always whispering in your ear, saying, "Hang on, don't sell. It's going to go up/down even more." Don't listen! Be disciplined. Be smart. Grab your profit targets when you reach them and sell.

There's always another winning option coming to you next week. Remember the old adage and believe in it with your heart and soul - maybe even embroider it on a pillow...

No one ever lost money taking a profit!

You can see by my record that I find every winner I can. And you can too!

If you faithfully call your broker every Monday morning and buy one contract, 10 contracts, 100 contracts - whatever you're willing to invest (I suggest $5,000 a trade, but talk to your broker about what's right for you) - on the one recommendation I have made that week...

...and then monitor your open options position at least 15 minutes a day, following your predefined, well-established playing strategies I've outlined above...

...then you can calmly, consistently, increasingly...add profits to your bank account...all the way to a million dollars and more!

My readers have already had the opportunity to do just that in just over five years...with just one option a week. It's not too late for you to start.

Some days, you could add tens of thousands of dollars. Other days, a few hundred dollars. Now and again, you may take a hit...but judging by my undeniable record of picking winners, it won't be that often.

Are You Ready to Become a Millionaire?If so, then send for my next recommendation immediately.

Are you ready to start making consistent gains on my winning recommendations? Isn't it time you joined the savvy readers who read Options Hotline and start building a million-dollar bank account...and retire rich beyond your wildest dreams?  

Mr. Kinsey knows. He e-mailed me this happy report: "Profits, Profits, Profits!!! In Friday at $1.55 and out Monday at $2.20. That is a quick 41% profit in less than two trading days. It just doesn't get any better than this!"

And Mr. Greene made even more: "I am more than happy and very much satisfied with a net 185% profit in only 13 days!"

The question is...are you ready for mind-boggling profits? Or are you content to invest in the paltry annual returns of the best stock market and live in fear of outliving your savings? It's your decision, but...

I think you're ready for my next winning recommendation. Here's how you get it:

Make More Money Than You Ever Thought Possible...

You've been selected to receive this offer because I believe you have what it takes to make a fortune in options. Remember, the hardest part is knowing the right option to buy. The rest is just strategy.  

And with your subscription to Options Hotline, I tell you the EXACT OPTION to buy and teach you the profit-playing strategy and discipline you need to squeeze every drop of profit out of a play without risking a lot of money. This service is not for everyone. You need to have confidence that you can exit the play at a good time for you.

All you have to do is call your broker with my once-a-week recommendation, determine your selling strategies and spend at least 15 minutes a day monitoring your open positions.

In just weeks, days or months...you could be making more money than you ever dreamed possible.

With annual potential returns averaging over $180,000 a year, you'd think I'd ask you for at least 10%, or even 5%, of the take. Well, the subscription price is nowhere near that. In fact, it's only $750...less than 1/2 of 1% on the historical average annual gains! Not much of an expense when you think of the wealth possibilities awaiting you.

Absolutely Zero Risk To Try Us Out!

Plus, you have an absolutely No-Risk 100% Money-Back Guarantee. If for some reason you're not happy with Options Hotline, you can always change your mind and cancel within 30 days. You can start slowly. Consider buying just one contract of whatever I recommend next Sunday night. 

Then buy next week's recommendation and the one the week after that. Or just play on paper.

See where you are in 30 days. That should give you plenty of time to see if my service is working for you.

And if you're not happy with the results in those 30 days, then call us and cancel. No questions asked. You'll get a full refund on your subscription.

If you want to have a little more time to decide if Options Hotline is right for you, sign up for my automatic and convenient quarterly billing - only $260 a quarter. That way you can cancel at any time. It's a great way to take my service for a proper test-drive. We'll bill your credit card every quarter until you tell us not to. No hassle. You just stay with us for as long as you're happy.

And if my amazing winning track record is any kind of predictor...then I predict you'll be with us for a very long time.

If you're wondering if it's worth it, then just read what my subscriber J. Atwood says: "Thanks to you, I made 190% on the eBay call in 32 days and 198% on the Qualcomm call in 16 days. Keep up the good work."

For such an affordable service, here's what you get:

 Options Hotline Delivered Sunday Night via E-Mail

This is the very core of my service...and your chance for big profits! Your one- or two-page Options Hotline Alert is delivered Sunday evening in plenty of time for you to read it, digest the information and phone your broker first thing Monday morning.

You'll find my recommendation of the week, written out exactly in the words you can say to your broker, to ensure accuracy. You'll also get my "behind-the-scenes" thinking about why I believe this recommendation is a potential double- or triple-digit winner, and a brief overview on what's going on in the best stock market of 2010. I'll also review the status of our open positions, to help you plan your selling strategy. 

Midweek Updates on Open Positions

Since options can move fast, I've also included midweek update Alerts so you can review again where you are on all of our open positions. We'll talk about the direction of the option price, the underlying stock price of 2010, resistance and support levels (concepts thoroughly explained in your TWO FREE BONUS REPORTS) and where I see it all trending.

This expert information will guide you to making your smart selling decisions. Look for these midweek Alerts every Wednesday afternoon in your e-mail inbox. 

Frequent Recommendation Update Alerts on Fast-Moving Options

Sometimes, underlying stock prices and options are moving so fast I can't wait for the midweek to get a notice out to you. So I'll send out a very brief "heads-up" on a best stock to buy for 2010 so you won't miss the move. This Alert is sent "as needed," so I can't tell you how frequent they may be. But these Alerts are another layer of information to help you make your most profitable selling decisions. 

Important Bonus! Exclusive Free 24/7 Access to My Subscriber-Only Web Site

With the Internet, you're never out of touch. You get unlimited access to the Options Hotline Web site 24hours a day, every day. This password-protected members-only access is FREE with your subscription. Here you can download the latest recommendations, midweek updates and frequent Alerts from any computer - very convenient for when you're traveling.

You can also review my past recommendations as well. Plus, you'll have online access to a wealth of information about options and options trading from a comprehensive glossary of terms to special bonus reports and FAQs. Answers to your options questions are just a click away, so check in at any time.

It's a valuable offer that can put you on the road to a million dollars in profit.

Subscribe now and I'll also give you...

Two BONUS GIFTS That Are Your Crash Course on Options!

In addition to the comprehensive source of information you will find on our subscribers-only Web site, I'm offering you two FREE handbooks that will help you use the Options Hotline service to its fullest. Separately, each handbook will give you a working knowledge of trading options, but together, they're the perfect crash course on options.

Start your options education today with these easy-to-read guidebooks, both written in everyday English, so you're up to speed on options in no time:

1. The Options Buyer's Handbook
Click the subscribe button below to join and download this FREE handbook immediately. Inside its pages, you'll discover just what you need to know about buying options. Learn the basics of options, how they work, when to buy and sell and what it all means in this informative handbook...FREE and instantly available with your subscription.

2. Secrets of a Master Trader: Tips and Strategies for Making a Fortune in Options
The secret to winning at options is to keep playing. Options are not like the lottery or the luck of the draw. It all boils down to your selling strategies (especially since I'm telling you what to buy each week). To really succeed, you need a plan of action. And Secrets of a Master Trader is your playbook. It contains the secrets of two of the best options analysts the business has ever known...my dad, option genius Paul Sarnoff, and me.

You can't get secrets like this at any bookstore or Web site. They're reserved only for subscribers to Options Hotline. You'll receive these exclusive Secrets via e-mail the moment I hear from you.

Read the details about how my TWO FREE BONUS GIFTS will give you the chance to profit trading options on the enclosed flyer. Please don't pass up this chance to profit on the unlimited potential (but limited risk) of options trading with your subscription to Options Hotline.

 

The Proof Is in the NUMBERS. Take a Look at...Steve Sarnoff's Options Hotline 2006-2008 Pick-by-Pick Gain Sheet
Here's a complete list of Steve's closed picks since his last loserback in November 2006.
Gains range from 4% to 611%. Judge the six-figure results for yourself.



 

Date Recommended



 

Play Recommended



 

$ Risked



 

% Gain/Loss*



 

$ Gain/Loss

November 12, 2006

Plantronics February $20 call

$5,000

80%

$4,000.00

November 19, 2006

Bristol-Myers March $25 call

$5,000

300%

$15,000.00

December 3, 2006

American Standard April $45 call

$5,000

220%

$11,000.00

December 3, 2006

J.C. Penny January $75 put

$5,000

4.44%

$222.22

December 10, 2006

Alcoa January $30 call

$5,000

10%

$500.00

January 8, 2007

Microsoft July $30 call

$5,000

50%

$2,500.00

January 22, 2007

Newmont Mining June $45 call

$5,000

88.46%

$4,423.08

February 2, 2007

Cameco March $40 call

$5,000

19.23%

$961.54

February 5, 2007

Intel July $22.50 call

$5,000

224.8%

$11,240.00

February 12, 2007

Allstate April $60 put

$5,000

130%

$6,500.00

February 26, 2007

Monsanto April $55 put

$5,000

165%

$8,250.00

March 5, 2007

TLT September $89 put

$5,000

282.86%

$14,142.86

March 12, 2007

Panera May $60 call

$5,000

20%

$1,000.00

March 19, 2007

Pan American Silver July $30 call

$5,000

DID NOT TRIGGER*

---

March 26, 2007

QQQQ June $45 call

$5,000

96.8%

$4,840.00

April 2, 2007

Boeing April $90 put

$5,000

26.19%

$1,309.52

April 16, 2007

Exxon Mobil May $80 call

$5,000

106.67%

$5,333.33

April 23, 2007

UST October $60 put

$5,000

DID NOT TRIGGER*

---

April 30, 2007

UPS July $70 put

$5,000

48.39%

$2,419.35

May 7, 2007

DIA July $130 put

$5,000

8.57%

$428.57

May 14, 2007

Toyota July $120 call

$5,000

DID NOT TRIGGER*

---

May 21, 2007

Verizon October $45 call

$5,000

44%

$2,200.00

June 4, 2007

Schlumberger August $80 call

$5,000

151.28%

$7,564.10

June 11, 2007

3M July $85 put

$5,000

38.24%

$1,911.76

June 18, 2007

Target October $65 call

$5,000

122.22%

$6,111.11

June 25, 2007

Hecla January 2008 $7.50 call

$5,000

262.16%

$13,108.11

July 9, 2007

General Electric December $40 call

$5,000

114.19%

$5,709.46

July 16, 2007

Merrill Lynch August $90 call

$5,000

65.71%

$3,285.71

August 2, 2007

Coca-Cola September $55 call

$5,000

205.88%

$10,294.12

August 6, 2007

MetLife September $60 put

$5,000

67.8%

$3,390.24

August 20, 2007

DIA September $130 put

$5,000

80.83%

$4,041.67

August 27, 2007

Newmont Mining December $45 call

$5,000

612%

$30,575.76

September 9, 2007

Citigroup October $45 put

$5,000

45.41%

$2,270.27

September 17, 2007

Johnson & Johnson January $65 call

$5,000

136.11%

$6,805.56

September 24, 2007

FedEx October $100 put

$5,000

52.17%

$2,608.70

October 1, 2007

Disney January $35 call

$5,000

28.57%

$1,428.57

October 8, 2007

Marathon Oil November $60 call

$5,000

66.67%

$3,333.33

October 16, 2007

Amgen January $60 call

$5,000

8.84%

$441.77

October 29, 2007

SPY November $152 put

$5,000

366.1%

$18,305.08

November 12, 2007

Merrill Lynch December $55 call

$5,000

137.14%

$6,857.14

November 19, 2007

Starbucks January $25 call

$5,000

33.33%

$1,666.67

December 17, 2007

Walmart March $50 call

$5,000

80%

$4,000.00

December 26, 2007

SPY January $150 call

$5,000

14.22%

$711.11

January 14, 2008

Barrick February $50 put

$5,000

176.19%

$8,809.52

January 21, 2008

Wells Fargo April $25 call

$5,000

318.18%

$15,909.09

January 28, 2008

Caterpillar March $65 put

$5,000

28.85%

$1,442.31

February 3, 2008

QQQQ April $47 call

$5,000

7.14%

$357.14

February 11, 2008

Barrick Gold March $50 call

$5,000

28.86%

$1,442.86

February 25, 2008

Wachovia April $35 call

$5,000

24.32%

$1,216.22

March 3, 2008

Chubb March $50 put

$5,000

88.89%

$4,444.44

March 11, 2008

Baxter April $57.50 put

$5,000

88.57%

$4,428.57

March 30, 2008

DuPont July $50 call

$5,000

170.97%

$8,548.39

April 6, 2008

Crocs June $20 call

$5,000

52.73%

$2,636.36

April 13, 2008

CSX August $55 put

$5,000

8.05%

$402.30

April 20, 2008

Qualcomm May $42.50 put

$5,000

45.63%

$2,281.25

April 27, 2008

Newmont Mining June $45 put

$5,000

50.00%

$2,500.00

May 11, 2008

Chevron June $95 put

$5,000

12.90%

$645.16

May 20, 2008

Duke Realty September $25 call

$5,000

22.22%

$1,111.11

May 25, 2008

Citigroup July $20 put

$5,000

569.35%

$28,467.74

June 14, 2008

General Electric July $30 call

$5,000

44.83%

$2,241.38

June 22, 2008

JP Morgan Sept. $40 call

$5,000

379.59%

$18,979.59

June 29, 2008

Cigna August $35 call

$5,000

255.83%

$12,791.67

July 13, 2008

SPY August $125 call

$5,000

131.12%

$6,555.94

July 20, 2008

Coca Cola November $50 call

$5,000

146.21%

$7,310.61

July 27, 2008

TLT December $88 put

$5,000

20.83%

$1,041.67

August 17, 2008

SPY October $130 put

$5,000

300.00%

$15,000.00

August 31, 2008

Cisco October $25 put

$5,000

153.85%

$7,692.31

September 5, 2008

Exxon October $75 call

$5,000

177.78%

$8,888.89

September 14, 2008

Goldcorp January $30 call

$5,000

151.35%

$7,567.57

September 21, 2008

QQQQ December $43 put

$5,000

439.20%

$21,960.00

October 22, 2008

QQQQ November $30 put

$5,000

140.00%

$7,000.00

October 24, 2008

Intel December $15 call

$5,000

142.55%

$7,127.66

November 2, 2008

General Electric December $20 call

$5,000

183.93%

$9,196.43

November 2, 2008

QQQQ December $32 put

$5,000

183.93%

$9,196.43

November 9, 2008

Caterpillar December $40 call

$5,000

74.55%

$3,727.27

November 16, 2008

Wal-Mart December $50 put

$5,000

40.00%

$2,000.00

December 7, 2008

Archer Daniel Midland March $30 call

$5,000

16.36%

$818.18

December 14, 2008

Bristol-Myers March $25 call

$5,000

22.40%

$1,120.00

December 21, 2008

TLT January $120 put

$5,000

20.00%

$1,000.00

2006-2008 TOTAL GAINS: $582,275.63

If you enjoy the thought of making six-figure gains every year, then you're cordially invited to join my small, elite group of subscribers and start making gains from options trading. Just one investment a week and $5,000 per trade is all you need to trade your way to a million dollars in a few short years.

*DID NOT TRIGGER means the price I recommended buying the option at was not
reached, therefore a trade could not have been placed or triggered.

Please Note:
Gains are based on all triggered picks, assuming exit point at peak option value. Percent gain represents the percentage change at the subsequent high value, from the trigger price. Profit calculations do not factor in commissions and taxes. Any dates not mentioned in the portfolio signify weeks when the bulletin was not published. All other dates and recommendations are included.

Get a THIRD FREE bonus report with your No Risk Trial Subscription to Options Hotline.

Simply sign up in the next three days and I'll send you a third FREE bonus report, my Options Hall of Fame.

Go deep inside 5 of my top options picks and discover how easy and inexpensive trading in options can be...even for the most timid of investors. Gain insight into the big profit plays that can not just double or triple your profits...but I'm talking almost nine times the profit potential on just one option play!

You'll see superleverage in action in these 5 hall of famers and understand how to apply it you your own million dollar plays. Remember, each of my weekly options play may be the next double, triple...almost quadruple digit profit play!

See the details below to get your free copy of my Options Hall of Fame.

It's the Easiest Decision You'll Ever Make!

As my track record proves, my subscribers consistently have the chance to make money from Options Hotline. If you're having any doubts at this point, please review one more time the above 2006-2008 Options Hotline Pick-by-Pick Gain Sheet. 

And remember, the gains are piling up on just one top-notch option pick a week. You're not out there spread thin or confused with multiple plays happening. You're focused on just what I've recommended. I know options trading is not your full-time job.

One pick a week and monitoring your open positions for 15-30 minutes a day will be simple enough to add into your busy lifestyle. And I'll make it easy and efficient for you to build a million-dollar cash portfolio.

I guarantee you will benefit from a subscription to Options Hotline or your money back. This service is one of the oldest of its kind in the industry...almost 16 years of offering winning options picks to my readers. First, with my dad, and then solo with me since 1999.

Since going solo, I gave my readers the chance for their first million dollars on July 16, 2004. Now, I can't give you an exact date in the future when I'll hit the second MILLION DOLLARS. But I know it's out there and it's coming very soon. And I want you to be with me on the day we hit it.

And with my 30-day Money-Back Guarantee, if you're not satisfied, you can cancel within the first 30 days and receive a full refund.

So click the subscribe button below and join my thousands of happy, rich subscribers, like longtime options trader Jack Grossman, who says, "I had subscribed to many newsletters, but none was as concise, to the point and, above all, made money almost all of the time. Thanks a bundle. Keep up the good work."

Now, it's your turn to make a million dollars!

Don't Put off Your Million-Dollar Lifestyle Anymore!

Click the subscribe button below to get started. You'll get your first recommendation via e-mail this Sunday. Or if you would prefer, you can fax your order to 410-558-6362.

Just think...you could be richer by this time next week, even dramatically wealthier by this time next year. After all, we've seen on average hundreds of thousands a year in potential profits. There's no reason why you can't achieve the same success as my current readers have.

Now I'm inviting you to join my small, elite group of readers who will profit most from the world of options trading. This group is now experiencing a lifestyle they only once imagined. Your invitation is risk-free. You have 30 days to cancel for a full refund...or sign up for quarterly billing and cancel at any time.

Only one option pick a week is all you need and I'll send you my first recommendation this Sunday night, via e-mail. Then look for my one recommendation every Sunday night thereafter (except for Christmas, New Year's and my two-week summer vacation).

With Gains Like These, Who Needs the Stock Market?

You know all that stuff we talk about every day in the Whiskey Bar?

The increasing oil scarcity.

The credit contraction.

The inevitable collapse of fiat currency.

Well, it's time to put all those harsh realities to work for you…

With the "Anti-Stock Market."

 

What if I told you there was an Anti-Stock Market?

A market that can never ever go bust.

A market that doesn't care about earnings reports, clever accounting, analysts' upgrades or downgrades.

A market that is totally unrestricted, operates 24 hours a day on a global scale and is 100% immune to dirty CEOs, lies and corruption.

Perhaps best of all, assets in this market are virtually certain never to hit zero. 

And the Upside To the Anti-Stock Market? Virtually Unlimited Profits.

The nastier the stock market gets, the more money readers have the chance to make in the Anti-Stock Market.

For example, just as the poop hit the fan on Wall Street last September, readers closed out a position for 186% gains.

A position they held for just over three months.

What would that 186% mean to your wallet?

It means:

That's almost triple your money in three months!

And this past February they banked 100% returns on a play recommended back in November.

That's another quick double.

And this morning, my readers took 67% on a play held for just two months… that was before 9:30 A.M.!

What do readers think about gains like these? Just take a look…

"Thanks for another amazing trade.  My broker was initially skeptical…now he's amazed at the results we've had in these past 5 months."
— Stephane C.
"I opened a brokerage acct with $15,000…I had absolutely no knowledge about [the Anti-Stock Market]. Since opening the acct I've withdrawn $30,000 and the account value as of today is over $123,000. So as of now I'm up over 10x. Money isn't everything, but all things being equal, I'd rather have some than not." 
— George C.
"The best way that I can say how helpful [the Anti-Stock Market] has been to my trading is to tell you that on January 1st my account was worth $3,366, as of June 30th it is worth $19,395. That's a 576% profit in 6 months."
— Christian H.

So, while everyone else took a whipping in the stock market, readers dove headlong into the Anti-Stock Market.

And they're making money hand over fist.

I'm Talking About 19 Plays In 2008 Averaging 71% Returns — A Year Considered By Most to Be the Worst In Three Generations.

There are no secrets here: that average contains both winners and losers.

And, in case you think that great performance was just a fluke, let me give you a little history. 

We started publishing just over seven years ago.

And the overall average gain for those last seven years?

A staggering 56.3%. Once again including the occasional loser.

To put it another way, if you'd put $1,000 in each of the 212 total plays, you'd have made almost $118,000 in pure profits.

$5,000 in each would have landed you more than $589,000 — over half a million dollars.

Can you imagine making that kind of pure profit money in such a brief period of time?!

Want a piece of the profit action?

How would you like to see $1,000 turn into at least $18,000… or watch $5,000 turn into at least $90,000 in a single year? With virtually no work on your part.  

I'm talking about no less than nine chances to double your money in the next 12 months — guaranteed. But if you want in, I must hear from you by midnight, Wednesday, June 10th.

So, give me just two minutes of your time and I'll tell you everything you need to know to profit from the Anti-Stock Market.

But first, allow me to introduce myself…

This Former "Trash Picker" Can Make You Millions

My name is Alan Knuckman. I grew up in Chicago and started my career as a glorified trash picker working for the Chicago Board of Trade (CBOT).

The CBOT was created in 1848 as a centralized exchange for people to buy and sell commodities — it's the world's oldest options exchange.

You see, before people were able to make all of their trades online, brokers wrote their buys and sells on little cards. And once each transaction was done, the floor traders would just toss the cards on the floor and move onto the next one. 

My job? Basically, I spent eight hours a day picking up those trade cards so the clearing house could settle the books at the end of the day.

I was making about $2.85 an hour, in the crowded mayhem of the grains floor at the Chicago Board of Trade (CBOT) — the heart center of the Anti-Stock Market…

It was the worst job. But it was a perfect chance to see capitalism at its finest.

And it was a start. It helped me learn all the ins and outs of profiting from the Anti-Stock Market.

I eventually moved up from garbage picker to floor trader — giving me an inside view of the markets. A view that most investors will never see. And the edge I needed to profit in all market conditions.

Just a few years later, I created a brokerage division specializing in powerful and unique investments where clients would pay $600 — $900 an hour just to talk to me on the phone.

I had developed a trading strategy that balanced discipline and absolute risk-control with the ability to make my clients millions.

Don't get me wrong. The Anti-Stock Market isn't a sure thing.

But I think the track record speaks for itself.

As you've seen, we spend most of our time finding opportunities for our readers to make a lot of money — our gains far outweigh our losses.

Just ask the readers who've already seen 85%, 72%, 67%, 100% and 80% gains so far in 2009:

"As a member…I must say you are really an asset. I have purchased all of your recommendations and could not be more pleased. "
— Raymond G.
"Thank you, Alan, for the great profits this month. I have been [investing] since November 2004 and it has been blessing. Thank you again for all the great profits and wisdom you bring us."
— Rob L.
"I love what you have done…both in learning and profits."
— John M.

Why are these people so pleased?

Well, as you may have figured out already, the Anti-Stock Market is my name for commodity options.

Because you can use these options to make high-powered gains, completely outside the stock market.

Simple, right?

And those happy folks subscribe to my high-powered, commodity options research service, Resource Trader Alert.


Resource Trader Alert Can Double Your Money,Quickly, Safely and Easily With Just A 5-minute Phone Call

Are you ready to profit along with them?

With Resource Trader Alert, it couldn't be easier.

Because I'll tell you everything you need to know, every step of the way, for maximum commodity options profits, with minimum risk.

When I see a play with potential, I'll immediately fire off an email, right to your inbox:

I'll tell you exactly what to buy…

And when it's time to cash out with your profits, I'll fire off another email letting you know it's time to sell.

In other words, I do all the work — you sit back and watch the profits roll in.

All you have to do is read your email and decide if you want to get in on each play.

For example, last February, Resource Trader Alert readers got the following recommendation when they opened their email in the morning.

What do you do after placing the play? Nothing.

Once you get into a play, your "work" is done.

So you can sit back, relax and plan your next vacation while I keep my eyes glued to dozens of social, political, economic and meteorological indicators.

Then, about two and a half months later, it was time to take some sweet profits.

So, Resource Trader Alert subscribers got another simple email.

Resource Trader Alert subscribers could've pocketed 108% profits on a position they held for just six days.

In other words, $1,000 in each play could have turned into $14,040 total.

All without ever buying or selling a single stock.

And that's just since this January.

Plus, we have open positions sitting at 77%, 102% and 104% as I type this letter.

That's why I feel confident offering you an unheard of profit guarantee: you'll see no less than nine chances to double your money in the next 12 months.

Yup, imagine making at least double your money nine times in a year…

Imagine what you could do with all that dough…

How can I be so sure you'll take gains like these in the next year?

"Thanks for the great tips. I made over $8000 in less than 4 days. Cheers!"
— Kent K.
"Just a brief note to thank you. I am up over 200% since I started."
— Phyllis B.

Of course, never, not once, did we try to make these gains messing with top stocks for 2010.

Why?

Because the time for playing the stock market is over. If you want to see consistent triple-digit gains, it's time to move your money into the Anti-Stock Market.

Double Your Money Nine Times A Year with the Anti-Stock Market

As you know, top stocks had their day in the sun.  It was a long and respectable run.

But that run is over and I'll show you the proof.

"Buy low, sell high" was the winning ticket for a long time. But that strategy only works if your company's stock is guaranteed to go up.

And these days there are no such guarantees.

Meanwhile, Resource Trader Alert has averaged nine triple-digit gainers every year since 2002.

That means you could have doubled your money (or better) every six weeks!

Imagine turning nine $1,000 investments into a grand total of $18,000.

Or up the ante to $5,000 and you'd be sitting on $90,000. In just one year.

What's more, I can tell you from experience that readers have used the Anti-Stock Market to outperform every major fund and index since 2002.

I'm not talking about a couple percentage points, here. I'm talking about a chance at serious money.  

As you see, Resource Trader Alert's "Anti-Stock Market" plays stomped all over the S&P500 for seven years running.

In fact, if you'd put your money in the S&P500 back in January of 2002, you'd have made a -1% return at the end of 2008. Of course, when you consider inflation, it's an even bigger loss…

Meanwhile, on the average, Anti-Stock Market plays have delivered annual returns of over 56% in that same time — 212 plays between 2002 and today.

Let me ask you a stupid question:

Would you rather turn $5,000 into $4,950… a $50 loss?

Or would you prefer to see your $5,000 grow into $7,800?

If you'd put $5,000 into every play published, both winners and losers, you'd have made about $589,000 — well over half a million dollars — in pure profits.

The Power of Options Means Unbelievable Double and Triple-digit Profits from the Anti-Stock Market

Options are a powerful investment. They're a way of making boat-loads of money with just small movements in a commodity's price.

If we think the price of a commodity is going up, we recommend call options. While, if we think a price is headed down, we recommend put options.

It's really that easy.

For now, what's important is that playing options means that you have a chance to make money whether a commodity's price goes up or down.

For example, on February 6, 2008, readers were alerted to buy sugar calls. Like I said, call options make money when the price of an asset goes up.

And over the course of just 20 days the price of sugar went up — from $11.87 to $14.

That's a price movement of only $2.13… a gain of about 18%.

But the lucky readers who got in on this play made 195% in less than three weeks.

That means the money-multiplying power of options turned.

How would you like to triple your money in under a month with only about 10 minutes of "work"? But you can also profit when the price of an asset drops.

On December 9, 2005, readers were alerted to buy cattle puts. Remember, put options make us money when the commodity's price goes down.

And down they went.

In just about three months the price of cattle dropped from $92 to $86.76. That's a price movement of just $5.24 and a tiny 6% loss.

But readers who used the power of options and the Anti-Stock Market took 93% gains on that same price movement.

Not too shabby.

And best of all, you can never lose more than the price of an options contract.

That means you always know exactly how much is at stake — it's 100% in your control.

Don't worry if this sounds a little new. Because, the moment you sign up to start receiving Resource Trader Alert I will send you a FREE copy of, Playing Commodities Options Like a Champion.

In it, I'll show you the ins and outs of profiting from the Anti-Stock Market.

But I don't think you'll need it. Because each and every recommendations is spelled out in extremely easy-to-follow terms.

Terms you can read to a broker, over the phone, in about five minutes, if you want in on the action. You can even get into these plays online with just a few clicks of the mouse.

I'll be with you every step of the way… through winners and losers alike.

But we don't see too many losers around here.

In fact, Resource Trader Alert readers have seen about nine money-doubling plays a year since 2002.

And if I hear from you by midnight on June 10th, I tell you how to pull in at least nine triple-digit gainers of your own in the next 12 months — guaranteed.

The "Experts" Called 2008 the Worst Year for Investors In More than A Generation Yet, Readers Had A Chance to Stuff Their Wallets On 15 Out of 19 Plays

And our average gains for the year? An astonishing 71%.

What would that have meant to your account?

Well, if you had put $1,000 into every play published last year — both winners and losers — you'd have made about $13,500 in total profits.

While $5,000 in each play would have you sitting on almost $67,500.

In just one year.

Was it just a fluke? Hell no…

Since 2002 Resource Trader Alert has Picked 159 Winners Out of 212 Total Plays That's An Unbelievable 74% Success Rate

So what do you think?

Ready to double your money (or better) at least nine times in the next 12 months?

Since Resource Trader Alert first launched, in 2002, readers have seen triple-digit gains, on the average, about every six weeks.

That's an average of nine triples a year.

And it means, if your average investment is $1,000, you'd be sitting on at least $18,000 at the end of the year.

Put $5,000 into each of my suggestions, and you could be looking at over $90,000… just 12 months later.

There isn't a single market, index or fund that can brag nine chances to deliver 100% returns (or more!) in a year.

If it sounds like I'm bragging, that's because I am.

But in just a minute, I'll put my money where my mouth is and show you how you can grab nine doublers for yourself — guaranteed.

More on that in a minute… for now, just take a look at the chart below… the numbers don't lie!

As you can see, in 2008, a year considered by most to be the single worst since the Depression Era, Resource Trader Alert readers averaged 71% returns.

And even in 2004, our "worst" year, Resource Trader Alert subscribers still saw 35% annual gains and 10 opportunities to double their money — including two plays that hit 270% and 285%.

Of course, 2009 isn't even half over yet. But with 51% average gains and two open plays sitting solidly over 100% we're already poised to have one of the best years yet.

If that isn't proof enough, let me spell it out in the simplest of terms:

If you'd put $1,000 in every single Resource Trader Alert play, from 2002 through the most recently closed position — winners and losers alike — you'd be sitting on $117,909.82 in pure profits.

That's almost $118K just for reading your email and making a couple of five minute phone calls to a broker.

Certainly nothing to sneeze at, right?

But tune that up to $5,000 per play, and you're looking at, $589,549.11.

That would mean an average of:

$79,497 every year
$6,624 each month
$1,656 a week

Without ever buying or selling a single stock. And without ever risking more than you're comfortable risking.

Plus, we have open positions currently sitting at 77%, 102% and 104%.

So, as you can see, we're already well-positioned to close out a couple more triple-digit gainers!

Put the Anti-Stock Market To Work For You — See Your Money Double In As Little As Six Weeks

How would your account look if you made 100% gains on your money nine times in one year?

Of course, your total take would depend on how much you plugged into each play.

But whether you put $1,000 into each play and took $18,000 or you put $10,000 into each and made $180,000, I'll tell you this much:

You'd be way ahead of anyone counting on 2010 top stocks, bonds, mutual funds, hedge funds or storage in their guest-room mattress to pull them through these tough times.

The Resource Trader Alert's track record speaks for itself.

Through good times and bad, readers have seen average annual returns of over 56% a year… for seven straight years.

And in 2008? Considered the worst year for investors since the Great Depression?

Subscribers saw a staggering 71% average return for the year. Including the rare play that went south…

That means $1,000 in each of last year's plays — both winners and losers — would have you sitting on almost $13,500 in pure profits.

And $5,000 in each play would have meant almost $67,500…

For checking your email once a day and doing a grand total of maybe an hour's worth of "work" over the span of a year.

2009 is already gearing up to stomp all over 2008's track record… and I want you to get on board and profit along with us.

But I'm not going to lie — a research service like this doesn't come cheap.

And the truth is, if you can't afford the subscription price, then the plays would probably blow your mind anyway.

Because, with a record of success like the Resource Trader Alert, and the unbeatable multiple money-doubling guarantee I'm about to offer you, I could easily charge $10,000 a year.

Remember, I do all the work and you can reap all the benefits:

 

I recommend exactly what to buy

 

And I'll tell you exactly when to sell… cash in hand

All you have to do is check your email, decide if you want to get in on the play and then make a five minute phone call to a broker.

You can actually read my email to him word-for-word. It's that simple.

7 Reasons To Subscribe to Resource Trader Alert Right Now

Let me lay it out for you in plain English. When you become a subscriber to Resource Trader Alert you can expect:

1.

Two to three easy-to-follow trade alerts every month, sent right to your inbox

2.

Detailed recommendations for how and when to cash out of each play

3. Detailed market and portfolio updates every Wednesday morning, right in your inbox
4. I'll do all the work, you'll see all the gains
5. Your risk will always be fixed and 100% in your control
6. The FREE report Learning to Play Commodities Options Like a Champion
7. THE SINGLE MOST INCREDIBLE PROFIT GUARANTEE I'VE EVER OFFERED (more on this in a minute)…

With a laundry list of benefits like this, heck, $10,000 would be a steal.

Sound steep?

Well, my brokerage division specialized in options trading. And our clients would pay $50 — $75, minimum, for a five-minute phone call.

That's about $600 — $900 for an hour of options research — my knowledge and expertise was worth every penny.

Now, imagine paying a rate like that over the course of a year. All of a sudden, $10,000 doesn't sound so steep, does it?

But, through a special arrangement I've made with Agora Financial, if I hear from you today, I won't charge you even a quarter of that.

You'll get a full year of Resource Trader Alert, 24-36 market-crushing trade recommendations, alerts, insights and one of the most unbelievable track records in the industry, for just $1,495.

You read that right: only $1,495.

You'll have the opportunity to make that back in as little as six weeks when we hit our next triple-digit gainer!

Still not sure? That's alright…I've got an airtight guarantee you couldn't possibly pass up…

You'll See NINE Chances To Double Your Money (Or Better) In the Next 12 Months Or Your Money Back

No, I'm not crazy…I'm just sure that I'll make you rich.

No matter what the market conditions are.

Since 2002, Resource Trader Alert readers have seen an average of nine money-doubling opportunities a year… sometimes triple… sometimes quadruple… sometimes more!

And I'm sure we'll do it again.

But, if my Anti-Stock Market recommendations don't produce at least nine chances at 100% returns in my track record, in the next 12 months, all you have to do is call me, tell me you didn't see nine doublers, and ask for a refund. 

Even if you "only" see a chance to double your money just eight times. Even on day 364 of your yearly membership!

It's as simple as that.  I take on all the risk — and you get everything for free unless you see a chance to make 100% nine times in one year.

So, Let Me Hear from You by Wednesday, June 10th and Save Even More Off the One-year Price, plus… 100% Gains Nine Times In A Year — Guaranteed!

I can't tell you the exact price here — you'll have to click through to the order page to see your final discount.

But I can tell you that we may never offer Resource Trader Alert for such a low price again.

Of course, you're free to call and cancel at any time. But if you should ever decide to sign up again, I can't guarantee you'll see a deal this good.

The price will surely be $1,495… or more.

So, why miss another opportunity to profit. Our next triple-digit gainer could come at any minute… don't wait, order now!

Because it all comes back to commodities… it ALL comes back to the Anti-Stock Market.

In the last seven years you could have made $589,000 — just by checking your e-mail… 

That's what my colleague Alan Knuckman has done for his readers by showing them how to invest in the "Anti-Stock Market" — a group of recommendations that averaged 71% gains in 2008 alone.

Now, he's guaranteeing nine chances to double your money — or better — in the next 12 months! 

Has the Market Rally Lost Its Steam?

When I look at the markets, I can't help but be reminded of the old Wendy's commercial — where's the beef? 

By that, I mean where are the good stocks to buy that you can safely buy right now?  Just look at some of the names below — from a technical perspective, you can't possibly tell me there are any low risk entry points with any of these right here. That is unless you want to chase them.

The beef on AAPL is looking pretty slim right now and here's why:

  • Five "Waves" Up (technicians would say that a downward correction is imminent).
  • Relative Strength Index (a comparison of a stock's up days to its down days) is in overbought territory.
  • Full Stochastics (a measure of a stock's momentum) in nose bleed territory.

Now take a look at BIDU, another index heavy lifter.

Look familiar? With AAPL, BIDU, and many other best stocks to buy that look just like them, we want to watch for them to come down to the 50-day average — the stock's average price over the trailing 50 days — then we'll talk. 

Don't get me wrong — I'm are all for the markets going higher, however most of the best stocks for 2010 are very extended and are not offering opportunities to buy them at low risk entry points at this time.  Sure, the market indexes continue to move higher, but unless you are willing to chase best stocks for 2010 or day trade you won't be looking at a lot of up side gain potential.  Most of what we're seeing out there is like what we've seen above — 2010 best stocks that have stalled.  

Even looking deeper into the technicals and internals of the markets, it seems that the beef really isn't there…at least the kind that supports higher moves from here.

So let's take a look at some of those internals and technicals.  First up is the Dow Industrials from a big picture sense:

With the OTC Composite you can see a few more items of concern if the market is going to continue to make forward progress. First off, for all intents and purposes, we've basically hit the 38.2% Fibonacci Retracement level as shown. And during the month of May while this index was consolidating its gains by going sideways and allowing the RSI and Full Stohcasics to reset from overbought to oversold here we are again right back up into those overbought levels again.

Since this bear market started the RSI hasn't gone above the 70 level. And every time it got near 70 it formed a top — that's a pretty strong indicator that the market is losing its momentum.

Also not shown is volume — where is it? While Friday's was higher than we've seen for a while, that's nothing special given that markets actually distribute while they are going up. Think about it… If you are long one million shares of ABC and want out, when is the best time to sell those peanuts. When the circus is in town and you have a ready, willing and able crowd right?

Drilling down to the shorter term frequency charts there are a few more negatives showing up in the form of Negative Divergence, Stohcastics Overbought and some Elliott Wave issues to contend with from here also. These are all negatives for future forward progress from here.

Here too, nothing but negatives for further upside progress. In other words all the signs are there, but until it breaks the blue uptrend line its all still intact. For next week keep an eye on those blue lines!

Right now, the markets are in the zone to turn from up to down, so be aware of where the market's pointing. At the Penny Sleuth we'll continue to watch the technicals for you every week.

Jun 12, 2009

Top Stocks To Buy

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Top Stocks To Buy In 2010 No.1 Atlas Pipeline Partners
by Addison Wiggin

I've been involved in investing and financial markets for the past 15 years. In that time, I've met every kind of investor... and heard about every kind of investing strategy and stock opportunity you can imagine. Here at Agora Financial, we scour the globe looking for hidden investment opportunities often over looked by Wall Street. Capital &Crisis editor Chris Mayer uncovers these opportunities and delivers them to you. Chris is called by some "the best financial journalist you've never heard of ..."

And on behalf of Chris Mayer... I'll gladly put every minute of my hard work and reputation building on theline. His Capital & Crisis subscribers have benefited greatly from his unique recommendations. His globetrotting letter knows no bounds and goes wherever profits can be found. Over to Chris… Finding the Great Investments He's BeenSearching for His Whole Career I'm going to show you how you can start collecting a 20%-plus yield -- on one overlooked energy stock --right away. Besides these plumpdividends, you'll get a good shot at tripling your money. And there's good reason to believe you could make nine times your money -- if Wall Street wakes up and smells hard assets, and pays exactly what they're worth.

The market isn't rewarding Exxon, Chevron or even Gazprom. And now is not the time to start taking risks on wildcat energy explorers. Right now, I'm looking at a stock that's trading under $6. And today, it's showing signs of a climb -- so I wouldn't wait on this opportunity. Just let me give you the bare bones of its business and a nod from a very smart billionaire investor who knows tough markets.

The company's secret is that it doesn't drill for a drop of oil and it doesn't frack a single foot of shale gas. What it does is keep companies who do at its mercy.
Atlas Pipeline Partners (APL:nyse) owns 1,600 miles of pipeline connected to nearly 6,000 wells and is adding over 800 new wells per year in Appalachia. It also operates a growing interstate pipeline system in the Fayetteville Shale. Plus, it has a great deal with one of the most active drillers in America: Atlas Energy. Every well that Atlas Energy drills has to be connected to Atlas Pipeline's system. These are low-risk assets. Now let's talk dividend. Since 2000, APL's average dividend increase clocked in at 7 cents a year. A plump year offered a 107% increase. While it's true that 2008 was a tough year for natural gas, NGLs (APL's primary product) are up 50% from their December lows. Aside from price recovery, there's another catalyst for dividend growth. Given the prime location of its pipelines in Appalachia, you have every reason to expect an increased dividend payout down the road.

War horse Leon Cooperman, shares my interest in APL. He is one of the great living investors. At a recent Manhattan value investors' conference, Cooperman confessed, "This is the most difficult environment I've lived through. And I've been doing this for 41 years." But when he got to talking about getting 20%-plus on your money with APL, he had this to say: "At my age, it's better than sex, but that's just me."

Why does he think Atlas is on sale? Thank collapsing hedge funds the most. These guys have been forced to sell even their best positions to cover losses in other areas. Cooperman thinks this stock is worth $46 easily. My original estimate was $48. That's nine times what it trades at today. So why not consider a stock trading at so steep a discount to book?

Don't forget the great yield -- that's poised to increase. Even if that dividend stays right where it was last quarter, you could still make back today's investment in under four years -- just through the dividend alone.
Recommendation: Buy Atlas Pipeline Partners (APL: NYSE).

Top Stocks To Buy In 2010 No.2 U.S. Cellular 8.75% Senior Notes due 11/1/2032 (NYSE: UZG, $20.25)
by Nilus Mattive

Famed investor Warren Buffett made a telling remark on the kind of returns he hopes to achieve in today's tough markets: "We would be very happy if we earned +10%, pre-tax," he told shareholders at Berkshire Hathaway's (NYSE: BRK-B) annual meeting last May. Co-Chairman Charlie Munger quickly concurred, "You can take what Warren said to the bank... and I suggest you adopt the same attitude."

Well, my recommended security for this market bests Warren Buffett's benchmark. It offers secure yields of better than 16%. And we do mean secure -- as in legal obligation.Although this security trades like a stock every day on the New York Stock Exchange, it's actually a bond, not a stock. That means your quarterly interest payments have top claim on the company's assets, ahead of any common or preferred share dividends if the company runs into trouble. That kind of security is comforting in today's turbulent times, but it's hardly necessary for America's sixth biggest wireless firm. In fact, credit rating agency Standard & Poor's is so confident in this firm's financial position, it just upgraded the company's credit quality to investment grade "with positive out look," meaning the rating could be raised in one to three years.

The upgrade and positive outlook mean that any such bonds the company may issue in the future will most likely offer a lower interest rate than this high-yielding security. That's because today's featured security was issued in 2002, when the company was considered higher risk and needed to offer a higher rate in return.
Consider, too, that this security is now trading at around a -19% discount from its $25 par value. It matures in 24 years and can be called at any time. Either way, sooner or later you will be getting back $25 per share plus any unpaid interest. Meanwhile, you'll be paid amply to wait. If this all sounds too good to be true, read on and decide for yourself...

Snapshot: These exchange-traded notes were issued in 2002 by regional wireless operator U.S. Cellular (NYSE: USM). The company is the sixth-largest wireless carrier in the country by number of customers. Its wireless networks serve 6.2 million customers, for an estimated 3% share of the U.S. wireless market. Headquartered in Chicago, the telecom carrier focuses on smaller regional markets mainly in the Midwest, including Illinois, Indiana, Iowa, and Wisconsin.

Key Statistics:
Security Type: Exchange-Traded Debt
Annual Dividend: $2.1875
Dividend Yield: 10.8%
Frequency: Quarterly
Credit Rating: Baa3/BBB

Wireless services account for about 93% of revenues, while equipment sales contribute the balance. Roaming revenues from other wireless carriers using USM's networks provide a 7% chunk of the company's wireless service revenue. U.S. Cellular is a subsidiary of rural fixed-line phone operator Telephone & Data Systems (NYSE: TDS), which owns 80.8% of the company.

Performance: U.S. Cellular has seen earnings grow an average of +50.2% a year over the past three years through December 31, 2007. U.S. Cellular has a strong balance sheet, which is supported by funding from parent company TDS. Its debt-to-EBITDA (earnings before interest, taxes, depreciation, and amortization) ratio, a measure of leverage, is less than 1.0. Meanwhile, debt is only around 20% of total capitalization. Both those measures are well below its regional wireless peers. Rival Leap Wireless (Nasdaq: LEAP), for example, carries a debt-to-EBITDA ratio of 6.4 times, and debt is 60% of total capitalization.

Top Stocks To Buy In 2010 No.3 Strike Gold with SPDR Gold Shares (GLD)
by Ian Wyatt

If the gains gold has made are any indicator of profits to come, I think SPDR Gold Shares (NYSE:GLD) is the golden ticket investors need to expose their portfolio to the safety and profits of the precious yellow metal.

Gold has been one of the best performing investments in a down market, and was one of the only investments to post gains in 2008, proving to be an excellent safe haven. Like U.S. Treasuries, the price of gold has rallied as investors fled equities and bonds, and sought safe investments. SPDR Gold Shares is an ETF that trades at one-tenth the price of an ounce of gold, and tracks the price movement of the commodity. The metal has most notably been on the rise, jumping 31% to $923 an ounce from the recent Nov. 13 low of $700 an ounce. As I mentioned in my weekly letter on Monday, I had been considering buying the Market Vectors Gold Miners Index (NYSE:GDX). However, this higher-risk, higher-reward investment has soared an astounding 74% from a recent Oct. 27 low, making it much riskier than GLD.

Through SPDR Gold Shares, I intend to take a cautious approach to gaining exposure to gold, given the big gains that the ETF has already experienced in the last few months. I plan to start with a small position of $2,000, and may add to the position in the future. I don't intend to have more than 5% of my portfolio invested in this position at any time.

For any Goldfingers out there, investing in SPDR Gold Shares is much like buying gold bars or coins, minus the headache of having to hold them in a safe or hide them under your bed. Using the fund, you have the added flexibility of being able to buy or sell at any time. The fund is backed by physical gold reserves, giving investors the security of buying the real commodity.

Many commodity prices dropped in 2008, including gold, which fell briefly in October and November of 2008. Don't let this brief decline fool you though - this is a long-term bull market for commodities, and gold will continue to perform well. As investors ditch low-yield U.S. Treasuries and seek other inflation-protected investments that can provide safety, gold appears to be the perfect investment.

The reckless monetary policy of the U.S. Federal Reserve will have its day of reckoning in the future, and investors who are long-gold and have investments that aren't tied to the greenback will be smiling in the years to come.

Let's face it: once the economy picks up, deflation will change into inflation. And hyper-inflation isn't far off, as a result of a U.S. government that continues to spend aggressively and issue more curren cy in a thus far failed attempt to jumpstart the U.S. economy. This anti-inflation investment allows investors in the United States to diversify out of the dollar and own an asset backed by a physical commodity that is likely to see greater demand with limited additional supply coming on line in the coming years.I plan to begin with a small position, which I may add to if I see a breakout in the price of gold. I'll also look to add to my position if prices consolidate, which I think is quite possible given the recent jump in price.

Top Stocks To Buy In 2010 No.4 How One Tiny Drug Developer Could Take Down The Industry Leaders
by Greg Guenthner

Grab Your Share of a $31 Billion Market In 2007, the global pharmaceutical pain relief market was worth approximately $31 billion. In the U.S., two-thirds of the dollar volume of the prescription pain medication market is for drugs used to treat chronic pain, with the remainder going toward drugs used for acute pain.
Javelin Pharmaceuticals Inc. (JAV: AMEX) designs products to fulfill unmet and underserved medical needs in the pain-management niche. The company is particularly focused on breakthrough cancer, post-operative, back, orthopedic injury and burn pains. Despite the advances in medicine, the company insists treatments for these types of pain continue to be an underserved medical need. That's where Javelin's lucrative new contract comes into play…

The company penned an agreement in January worth up to $71 million that includes double-digit royalties on future sales of its new pain drug, Dyloject. Javelin will receive roughly $12 million in upfront cash payments from European pharmaceutical developer Therabel for the commercialization rights for Dyloject, the flagship product in Javelin's current pipeline. Dyloject is an injectable form of diclofenac, which is a prescription anti-inflammatory drug often prescribed to treat postoperative pain.

Dyloject is undergoing Phase 3 clinical development in the United States - the drug is already available in the United Kingdom. During its pivotal U.K. registration trial, Dyloject's efficacy and safety were shown to be significantly superior to standard intravenous treatments currently marketed in the U.K.

A Faster, Better Treatment
The competition for Dyloject requires dilution and slow infusion into the patient. But Dyloject comes ready to use for immediate IV administration. Anti-inflammatory drugs such as Dyloject, along with opioids like morphine, are often used post-operatively. They help reduce opioid doses by as much as 50%, thereby decreasing morphine-related side effects on the patient.

Dyloject's most significant U.S. competitor in the injectable antiinflammatory category is ketorolac tromethamine. In January 2006, Javelin announced the results of a Phase 2b U.S. study in which Dyloject showed superior onset of action compared with ketorolac five minutes after intravenous injection.

Bottom line: This drug does what it is supposed to do. And it does it better than all of the leading competitors. That's the ringing endorseent for Dyloject…especially since it's awaiting approval in the U.S. U.K. Sales and European Agreement Are Signs of Things to Come Dyloject is already on the market in the United Kingdom, and sales have been growing at an impressive pace. The drug is now on the formularies of 73 hospitals in the U.K., 58 of which were considered gold accounts and 15 silver accounts. In the first nine months of its availability, Dyloject was accepted at 40% of their targeted accounts. The drug has been accepted at 95% of the institutions to which it's been presented. This, Driscoll believes, shows that Dyloject has value to clinicians. It will prove valuable to shareholders, too…

Since Dyloject was introduced to the market, sales of the drug have doubled each quarter. Although that may be a small sample size, it shows the growth potential of the product once it is introduced into a wider market.Javelin is on schedule to complete its studies on Dyloject and submit applications in late 2009 for approval in the U.S. and European markets. The partnership with Therabel helps Javelin accelerate this process.Javelin's a Bargain at Current Prices Javelin has put itself in a fantastic position to succeed. The company currently has $34.6 million in cash and equivalents and no long-term debt whatsoever. Its burn rate during the first three quarters of 2008 was $8.6 million. With $12 million in upfront cash from Therabel, the company is well positioned to wait out approval in the U.S. Javelin feels that the self-medication segment is an area of possible growth. It generally takes 15-20 minutes and sometimes as long as 40 minutes for commercially available oral pain medications to provide any meaningful relief. Javelin says that all three of its product candidates appear to work faster than the oral formulations of currently available prescription pain products. Dyloject has shown to relieve pain in as little as five minutes, a mark that has not been achieved by current injectable anti-inflammatory drugs.

Recommendation: Buy Javelin Pharmaceuticals Inc. (JAV: AMEX).

Top Stocks To Buy In 2010 No.5 Abercrombie & Fitch
by Bernie Schaeffer

At Schaeffer's Investment Research, we employ a 3-tiered analysis approach known as Expectational Analysis® (EA) that was created more than 2 decades ago. EA utilizes traditional methods of fundamental and technical analysis and combines these with a third, crucial look at investor sentiment. It is this third layer of analysis that provides a critical edge in selecting stock and option plays. Both anecdotal and quantifiable measures of investor sentiment provide a window into how the investing crowd perceives reality. These perceptions serve as powerful contrarian indicators, as the crowd tends to move as a herd and is, to paraphrase the venerable contrarian Humphrey Neill, "right during the trend but wrong at both ends." A look into the psyche of the collective investing masses, while also taking into account important technical and fundamental variables, can offer a reliable recipe for trading success.

The latest opportunity found by the EA methodology is Abercrombie & Fitch (ANF). According to Hoover's, Abercrombie & Fitch (A&F) sells upscale men's, women's, and kids' casual clothes and accessories. The firm has 1,000-plus stores in North America (mostly in malls) and also sells via its catalog and online. It targets college students, and has come under fire for some of its ad campaigns, as well as for some of its short-run products. The company also runs a fast-growing chain of some 450 teen stores called Hollister Co., and a chain targeted at boys and girls ages 7 to 14 called abercrombie. RUEHL, a Greenwich Village-inspired concept for the post-college set, debuted in 2004.

In early February, earnings rolled in from the trendy retailer, surpassing the consensus estimate. For the fourth quarter, the company posted a profit of $68.4 million, or 78 cents per share, compared to its year-ago profit of $216.8 million, or $2.40 per share. Excluding impairment charges and costs tied to a new employment agreement with its CEO, the retailer boasted a profit of $1.10 per share, beating the Street estimate for a profit of $1.01. Sales fell 19% to $998 million, said the company. ANF stated that it would not issue an earnings forecast for fiscal 2009, citing a tough year ahead. The company said it expects a difficult selling environment to continue.

Abercrombie forecasts capital expenditures of $165 million to $175 million in fiscal 2009, a major portion of which is tied to new stores and remodeling.
Technically speaking, the security gapped sharply higher on the earnings report, gaining more than 10% amid broad market weakness.What's more, this significant bullish gap has placed the equity above resistance at its 80-day moving average. This short-term trendline had capped the shares' recent rally attempts.

As followers of the EA method, we ideally like to see solid price action persist against a backdrop of skepticism, as this implies that there could be additional money waiting on the sidelines that hasn't yet been committed to the bullish cause. It seems as though there is plenty of room on the bullish ANF bandwagon. Options players have leveled some heavy bearish bets against the stock in an attempt to call a top to its uptrend. The Schaeffer's put/call open interest ratio for ANF stands at 1.28, as put open interest outweighs call open interest among near-term options. This reading is also higher than two-thirds of those taken during the past year, indicating extreme skepticism among short-term options speculators.Meanwhile, Wall Street has yet to fully jump on this outperforming security. According to the latest data from Zacks, 14 of the 19 analysts following ANF rate it a "hold" or worse. Any upgrades from these remaining holdouts could help to propel the shares higher during the long term.

Overall, this combination of pessimistic sentiment against the stock's backdrop of improving earnings and strong technicals has bullish implications from a contrarian perspective. As investors unwind their bearish bets and jump on the stock's bandwagon, they will help to push the security even higher.

Top Stocks To Buy In 2010 No.6 Redefining Pharmacy Benefit Managment
by Ian Wyatt

The way I see it, even through current market malaise, SXC Health Solutions (Nasdaq:SXCI) is standing firm with its two corporate feet firmly planted in two complementary arenas: it's providing pharmacy benefits management services and developing the technology engine needed to keep costs under control.
Bringing down health-care costs remains a hot-button issue, as the baby boomers reach retirement age, Medicaid and Medicare grow, and drug costs continue to rise.

SXC Health, formerly known as Systems Xcellence, is a niche player in the benefits marketplace. Headquartered outside Chicago, SXC Health is a provider of health-care information technology solutions and services to providers, payers and other participants in the pharmaceutical supply chain in North America.

SXC Health is redefining pharmacy benefit management (PBM) by providing a broad range of pharmacy spend management solutions and information technology capabilities. The company is a leader in delivering an innovative mix of market expertise, information technology, clinical capability, scale of operations, mail order and specialty pharmacy offerings to a wide variety of healthcare payor organizations including health plans, Medicare, managed and fee-for-service state Medicaid plans, long-term care facilities, unions, third-party administrators and self-insured employers. In essence, the company's services allow customers to make good decisions and save money.

SXC Health's informedRx business sells management services mostly to government and universities, while its Healthcare IT Group develops the technology behind the services and provides a revenue stream via software licensing.

SXC's recent acquisition of National Medical Health Card Systems expanded its informedRx services, which is a broad, flexible suite of à la carte PBM services, which provide flexible and cost-effective alternative to traditional PBM offerings. The acquisition is an essential step in SXC Health's strategic evolution toward being a leader in pharmacy spend management, and gives the company's customers the chance to pick and choose what services are right for them. SXC Health is the only company in the PBM space to offer its clients such a broad portfolio of solutions SXC Health's technology touches close to 1 in every 4 of the estimated 3.5 billion prescriptions written in the United States annually - a plus considering that the health-care sector and health-care IT industry will outperform the market for the next few years.

The company also stands to benefit from demographic and political trends, in that the population is aging and pharmaceutical companies will need SXC's products and services. Also, the new administration has vowed to digitize the health-care system. Both of these trends will positively influence SXC Health's earnings.
In the quarter ended Sept. 30, 2008 earnings were $3.5 million, or $0.15 per share, up from $2.7 million, or $0.12 a year ago. Revenue increased to $318.1 million from $22.2 million. SXC increased full-year EPS guidance to $0.54 to $0.58 a share, from its previous estimate of $0.41 to $0.50. Additionally the company narrowed revenue estimates to $840 to $855 million, from $825 million to $875 million. We forecast the company will earn $0.59 EPS in 2008 and grow EPS 50% in 2009 to $0.88. We expect revenues will be $854 million this year and increase 52% to $1.3 billion next year. The company has made brilliant acquisitions in recent years, which have made it one of the primary players in pharmacy spend management services and information technology solutions.

The company was recently trading at 32 times current year EPS and 22 times forward EPS. These are high multiples in the current environment, but SXCI shares are worth every penny. In fact, shares are worth more. We estimate fair value to be $28 based on EPS and revenue growth projections.

Top Stocks To Buy In 2010 No.7 Power Lines and Trees: A Dynamic Duo for Income And Growth
By Justice Litle

They may not be sexy, but it's hard to go wrong with trees and power lines. In fact, we'll be using that unlikely duo to execute this "perfect inflation hedge."
Brookfield Infrastructure Partners (BIP:NYSE). BIP is a limited partnership (though its cash flows are not subject to the same tax treatment as MLPs, or Master Limited Partnerships).

Brookfield Infrastructure Partners (BIP) is a spin-off from a much larger mother ship, Brookfield Asset Management (BAM:NYSE).While little BIP is small and scrappy at $316 million, mother BAM boasts a far larger market cap of $9.5 billion.As a publicly traded partnership, 50% of BIP is owned by investors like you and me. Forty percent is owned by BAM, the parent, and the last 10% is owned by Brookfield directors and management.

BIP was spun off from the BAM mother ship with the intent of being a "pure infrastructure play." The far larger BAM has all sorts of assets on its balance sheet; through the creation of a stand-alone entity, BIP offers a way to pick up direct infrastructure exposure.BIP's primary assets are electricity transmission lines and timber, and they are distributed across North and South America. On the electricity side, BIP owns roughly 5,500 miles worth of transmission lines (power lines) in Chile and Canada (Northern Ontario). Additional power lines in Brazil were sold at a considerable profit in the third quarter of 2008.

BIP's transmission lines are part of a regulated monopoly, which means no competitor can muscle in. As of March 2008, these assets had a recorded book value of $330 million -- more than the value of BIP's current market cap. Using the Brazilian asset sale as a benchmark -- in which BIP fetched a 40% gain over book price -- its likely current holdings have a far, far higher value than the old numbers reflect.

A Toll Road for Electrons
Power lines are a great business. Just as you have to drive to work each day (unless you're retired or work from home), the electricity has to move from the power plant to your house (or the office building, the factory and so on).

Here's why you want to own power lines:
They require very little maintenance and upkeep, so most of the cash flow goes right into the owner's pocket.
Because people and businesses are steady in their use of electricity, those cash flows are very stable.
As inflation rises, steady price increases can be pushed through as part of the contract.

Additionally, BIP will have the chance to build out its electricity transmission networks at attractive rates of return over time. The only thing better than a strong, stable, cash-flow-producing business is a business that can expand on the same great terms. As emerging markets resume their upward trends, electricity use will go up too... and this can only be good news for BIP.

An Infinite Resource
The other thing BIP owns is timber -- more than 1.2 million acres in Oregon,Washington state, and coastal British Columbia. The nice thing about timberland is that, when managed properly, it's an infinite resource. Unlike metals or fossil fuels -- which eventually run out and leave a site in decline -- trees can grow back.
As with electricity, BIP's parent company (and 40% owner) offers four decades of experience owning and operating timberlands. This gives BIP an edge in key areas like harvest planning and managing the product mix.

BIP's acreage is concentrated in premium timbers like Douglas fir and hemlock. In addition, the close proximity to the coast gives BIP an edge on the export side of the business.

Timberland tends to rise in value over time because, unlike the currency spit out of a printing press, they just aren't making any more of it. Timber's uses are many and varied for the global economy, and, like power lines, timber has the advantage of being a high-margin, low-upkeep business.

When prices are high, BIP can cut more timber. When prices are low, they can cut less (saving costs) and let the acreage value appreciate. The timber itself is a renewable resource, and BIP has the ability to book capital gains through the occasional sale of choice parcels for land redevelopment.

An Exceptional Value
Investors are coming back to their senses, snapping up assets that got insanely cheap. BIP's parent could well be buying back shares too, figuring it's crazy to leave them out on the market at such a tempting price. Back in March of 2008, management gave an estimate of BIP's book value (the value of the underlying transmission and timber assets) at $24 per share. I think that is not only a reasonable estimate; it is more than likely a conservative estimate. BIP could easily be worth $25 to $30 per share.

As we prepare for a central-bank-induced inflation deluge, stable, cashflow producing infrastructure assets will only increase in value. Power lines and trees will never go out of style... and the stream of income collected from those assets will only keep ticking up year after year. Buy Brookfield Infrastructure Partners (BIP:NYSE) at $18 per share or better.

Top Stocks To Buy In 2010 No.8 Big Profits from Downsizing
by Stephen Rawls

All Americans are changing their spending habits as the economic recession hits home. We're adjusting to the idea of driving the car an extra year or more, to buying clothes at Sears instead of Joseph A Banks, that sort of thing. And while our change in spending habits hurts some, it helps others. As investors, we need to focus on those companies well positioned to profit from these changes. Those companies well positioned to profit from the fundamental changes in the American lifestyle.
One of the major changes that we're seeing now is a turn by the American consumer to private label brand foods to feed their family. As a result, one of the big beneficiaries of this move is American Italian Pasta Company (AIPC), the nation's largest manufacturer of dry pasta. Sales are booming. And so is the stock.

What makes American Italian Pasts so interesting is that it's booming because of several trends. The first is the aforementioned transition to private label foods. A second favorable trend is that consumers are moving away from a meat and potatoes diet to something less expensive, like pasta. And, finally, the low-carb "Atkins diet" fad is now history. Even more amazing in the recession of 2009, American Italian Pasta has actually been able to raise their prices while sales increased! Sales of pasta products in the United States rose 5% last year to $6.4 billion. During that time, American Italian was able to raise prices faster than their costs increased.
For the first quarter 2009, American Italian Pasta earned a whopping $1.23 EPS, up from 2008's first quarter EPS of 43 cents. Retail revenue for the quarter rose 56% to $136.1 million, while cost of goods sold rose only 40%. Overall volume for the company was up some 13%.

From a technical standpoint, American Italian Pasta seems to defy the overall market, making new highs as recently as February 25th. The company is a newly listed issue on the NASDAQ, beginning trading there on November 14, 2008. The company is trading above its 50-day moving average and gapped higher on February 12th after releasing its first-quarter earnings. Since then, the stock hasn't looked back.

With no upside resistance to speak of, the critical technical support level comes in the gap between $27.00 and $29.19. Given the strong earnings report on February 11th, I wouldn't expect the stock to violate this gap. Prospects for the company seem very strong and the company appears able to deliver on those prospects.

Pricing power is something almost unheard of in the economic climate of 2009. And that's one of the things that impresses me the most about American Italian Pasta - it has the ability to increase sales, while raising prices.

One other factor that hasn't yet been considered by most analysts, I believe, is that the cost of raw ingredients, which had been going up for most of 2008, are now in retreat.With higher prices already in effect, any fall in cost of goods sold will reflect directly in higher profitability for the company.

In summary, with American Italian Pasta, you have a company that's benefiting from multiple trends working in its favor. Fundamentally, the ability to raise prices and not affect sales is amazing. With more Americans "trading down" their eating habits, this trend to higher sales shows every indication of continuing. And with their raw ingredient prices now falling, the company will not have to raise prices in the near future to stimulate growth. Rather, the profits for the second quarter of 2009 will come from higher prices already in place, accompanied by falling ingredient prices.From where I sit, American Italian Pasta Company looks like a rare winner in 2009.

Top Stocks To Buy In 2010 No.9 Looking for Safe Stocks? Try Channeling Ben Graham
by John Reese

When I began conducting extensive research into the strategies used by some of history's greatest investors some 12 years ago, one thing quickly became apparent: Many of these Wall Street stars, including Peter Lynch, Warren Buffett, and Benjamin Graham, built their fortunes and reputations not by relying on some sort of investing "sixth sense", but instead by using approaches that were mostly or completely quantitative. They stuck to the numbers, never letting emotion influence their decisions.

That was great news to me. Because of my background in computer science and artificial intelligence, I was able to develop sophisticated but easy-to-use models based on these gurus' quantitative approaches.

Today, these models power the research and analysis on my web site, Validea.com, allowing everyday investors to take advantage of the strategies that some of history's most successful stock-pickers used. Since I started tracking them nearly six years ago, portfolios built using each of my eight original "Guru Strategies" have all significantly outperformed the market.

For some top picks in today's market, let's turn to my top-performing strategy -- one that, interestingly, is inspired by what is far and away the oldest of these methodologies, the approach of the late, great Benjamin Graham. Known as the "Father of Value Investing" -- and the mentor of Warren Buffett -- Graham detailed his strategy in his 1949 classic The Intelligent Investor. Six decades later, my conservative Graham-based model is up almost 70 percent since its July 2003 inception, while the S&P 500 has fallen more than 22 percent. Last year, while the market tumbled close to 40 percent, my Graham-based model sustained well less than half of that decline.

One stock my Graham model is particularly high on right now:
Ameron International Corporation (AMN), a California-based firm that makes water transmission lines, fiberglass-composite pipe for transporting oil, and infrastructure-related products like ready-mix concrete and lighting poles -- just the kind of company that could benefit from the federal stimulus package's infrastructure funding.

Having lived through both his own family's fall from financial grace (following his father's death when Benjamin was a young man), and, later, through the Great Depression, it's no surprise that Graham focused as much on preserving capital and limiting losses as he did on producing big gains. He liked stable, conservatively financed companies, not speculative gambles, and Ameron fits the bill. One example of why: its strong current ratio of 2.87. Graham used the current ratio (current assets/current liabilities) to get an idea of a company's liquidity (and the credit crisis has shown us all how important liquidity is).

Companies with current ratios of at least 2.0 were the type of financially secure, defensive, low-risk plays he liked, and Ameron makes the grade.Another way Graham targeted conservative firms was by making sure long-term debt was no greater than net current assets. Ameron has just $36 million in long-term debt and almost $300 million in net current assets, a great sign.

The other main part of Graham's approach was making sure a stock had what he termed a "margin of safety" -- that is, its price was low compared to his assessment of the intrinsic value of its underlying business. Stocks with high margins of safety have downside protection -- they're already selling at a discount compared to their real value, so even if problems occur and earning power declines a bit, the stock still might gain ground because it's so undervalued to begin with.
To find undervalued stocks, Graham looked at both the price/earnings ratio (the model I base on his approach requires the greater of the stock's current P/E or its three-year average P/E to be no greater than 15) and the price/book ratio (which, when multiplied by the P/E, should be no greater than 22). Ameron's P/E (using the higher three-year figure) is just 8.2, and its P/B is just 0.99, indicating that the stock is a great value.

In addition to Ameron, here are a couple more of myGraham model's current favorites:
Schnitzer Steel Industries (SCHN): Hammered when commodity prices began to tumble last summer, this Oregon-based firm has made a big rebound since late November, and my Graham model thinks it has a lot more room to grow. It has a current ratio of 3.2, just $106.1 million in long-term debt vs. $338.5 million in net current assets, and bargain-level P/E and P/B ratios of 5.8 and 1.01, respectively.

National Presto Industries (NPK): Talk about an eclectic group of business segments. This Wisconsin-based firm's housewares division makes small appliances and pressure cookers; its defense segment makes ammunition, fuses, and cartridge cases; and its absorbent products division makes adult incontinence products and baby diapers. Its fundamentals are exceptional -- current ratio of 5.23, P/E ratio of 14.5, P/B ratio of 1.49 -- and, the firm has no long-term debt.

Top Stocks To Buy In 2010 No.10 Hedged Investing with Hussman Strategic Growth
by Ian Wyatt

When I recently discovered the Hussman Strategic Growth fund, it was love at first sight. Hussman acts like a hedge fund, providing the fund managers much flexibility in the investment instruments and strategies utilized to capitalize on rapidly changing markets like those we are currently experiencing. Manager John Hussman's disciplined strategy has navigated the mutual fund toward calmer waters amid choppy market conditions, a testament to the fund's ability to achieve remarkable performance in down markets.

Although Hussman receives the advice of key personnel on the fund's board of trustees and at Hussman Econometrics, this mutual fund depends heavily on Hussman himself. He also invests all of his personal liquid assets (outside of cash and money market accounts) in his two funds, clearly aligning his personal interests with those of fund shareholders. Hussman Strategic Growth invests primarily in U.S. stocks with the objective of longterm capital appreciation. It currently has 116 long holdings that include the likes of Johnson & Johnson (NYSE:JNJ), Nike, Inc. (NYSE:NKE ), Amazon.com, Inc. (Nasdaq:AMZN), Coca-Cola (NYSE:KO) and Best Buy Co. (NYSE:BBY). Hussman goes long on individual positions, and can leverage using equity call options. Ninety percent of the fund's net assets are tied up in stocks while the remaining 10% is sitting in cash.

Hussman was down only 9% in 2008, a performance that was the envy of most fund managers, especially in light of the 37% drop in the S&P 500. In the previous bear markets of 2001 and 2002, the fund was up a whopping 14% in each of those years. Because the fund is so risk-averse, its short-term track record may limp in bullish environments, but its long term performance is where investors begin to see solid profits. Given the current state of the market, and the fact that my outlook calls for a range bound and volatile stock market in 2009, Hussman Strategic Growth fund is a solid place to have capital invested.

John Hussman develops a risk versus reward profile for the current market climate, identifying economic trends and valuing individual stocks based on their expected streams of cash flow. For much of the past decade, Hussman has considered most stocks overvalued and did not think they were providing enough reward given their high level of risk.To preserve capital, he hedged the portfolio against market risk by shorting indexes such as the S&P 100. As a result, the fund has been fairly uncorrelated to the whims of the market and has been shielded from the heavy losses many funds have faced.

Since its July 2000 inception, the fund's 8.9% annualized return has outpaced the S&P 500, which lost 4.4% annually over the same period.Performance in 2009 appears to be holding up, with year-to-date returns of 0.25% versus a loss of 8% for the S&P 500 index. Morningstar calls Hussman "one of the steadiest and cheapest options in the fledgling long-short category," and gives the fund a 3-star rating.

Hussman's claimed approach of "investing for long-term returns while managing risk" is in perfect alignment with my aggressiveapproach to conservative investing. I, too, aim to find opportunities for long-term capital appreciation, while limiting downside risk through portfolio diversification and aggressive risk management. The fund is currently taking a very conservative approach to equities, which makes sense given the performance last year. With the bleak prospects for global growth in 2009, this fund should perform well in horizontal or down markets, making it a nice fit within the equity portion of my Recovery Portfolio. Additionally, the fund's flexibility should allow it to perform nicely once stocks begin their recovery.

Carbon Trading: The World's Next Biggest Market

If you haven't been following the debate surrounding capping and trading emissions, you're missing out. Not only does it have implications for how our nation, and the world, produces energy, it has the potential to offer a myriad of opportunities for well-informed investors.

You see, California has been asking for permission to regulate greenhouse gas emissions since 2004, but the philistines at the Environmental Protection Agency (EPA) have yet to grant it permission to do so.

For quite some time the EPA's excuse was that they didn't have the power to regulate emissions. That's funny--greenhouse gases harm the environment and the EPA is supposed to protect the environment. Maybe they should consider a name change.

Now, back in April the Supreme Court ruled that the EPA did in fact have the authority to regulate greenhouse gas emissions. Like we didn't see that one coming.

After that decision, you'd expect everything to be rosy. But this administration doesn't make anything easy, even obeying Supreme Court decisions. So here we are, a substantial time since that decision, and the EPA still hasn't given California--and the eleven other states that would do so--permission to regulate emissions.

And while it would be nice to have the federal government's support, it looks like the rest of America is ready to move on without it.

Already, corporate behemoths like General Electric, DuPont, Johnson & Johnson and others have come together to form the United States Climate Action Partnership.

Even oil juggernauts like Shell, BP and ConocoPhillips have joined this coalition, which calls itself "an expanding alliance of major businesses and leading climate and environmental groups that have come together to call on the federal government to enact legislation requiring significant reductions of greenhouse gas emissions."

Now you can be certain the environmental groups that are a part of this alliance are there with pure intentions, but I'm willing to bet some of those companies are looking for a way to make a buck from the capping of emissions.

Carbon Market Potential

According to a recent New York Times article, carbon trading is one of the "fastest-growing specialties in financial services." And companies are scrambling to get "a slice of a market now worth about $30 billion and that could grow to $1 trillion within a decade."

The article, entitled, "In London's Financial World, Carbon Trading Is the New Big Thing," continues: "Carbon will be the world's biggest commodity market, and it could become the world's biggest market over all."

If you doubt that assertion, consider this: Every year humans generate about 38 billion tons of carbon dioxide.

At its current price of about $3.50 per ton, the potential carbon market stands at roughly $133 billion (38 billion x $3.50). That's today.

CCX

As more and more governments start to regulate their country's emissions, and as more companies - just as we're seeing in the US--start to voluntarily limit their emissions, the demand for available carbon credits will skyrocket. And so will their price!

One need only revert to the simple law of supply and demand to see that this industry is going to be huge. If increased demand dictates an increase in price, getting in now could be one of the wisest best investment moves you make in the first half of this century.

Carbon Trading, an Introduction

Europe has had a carbon market--surprise, surprise--for quite some time now. Each member state of the EU gets an annual emission allocation which is then divvied up among its worst emissions-producing companies.

The companies are then legally obliged to produce no more emissions than they are allowed. If a company comes in under target, it can sell its excess allowance as "carbon credits" to other firms that have overshot their targets. But if it exceeds its target, it has to pay a penalty and then go to the market to buy credits to make up the difference.

Right now, with an abundance of carbon credits available, their price is relatively low. But with the second phase of the program, 2008-2012, just around the corner--bringing with it a reduced amount of credits and more stringent targets--the price of carbon credits is set to explode.

The US has a version of a carbon market as well.

Established in 2003, the Chicago Climate Exchange (CCX) is North America's only voluntary and legally binding greenhouse gas (GHG) reduction and trading system.

The companies that join the exchange commit to reducing their aggregate emissions by 6% - from the same baseline used by the EU--by 2010. Currently, the exchange has more than 200 members ranging from corporations like Ford and Motorola, to municipalities such as Oakland and Chicago, to educational institutions such as Tufts University and the University of Minnesota, to farmers and their organizations such as the National Farmers Union and the Iowa Farm Bureau.

Emissions reductions are independently verified and count for about 4% of total US GHG emissions-leaving plenty of room for growth.

Investing in Carbon

The only pure play is to buy Certificates in Emission Reductions (CERs). However, the sole way to do this currently is through an established carbon fund set up by huge capital firms. The most well-known firm that does this, Climate Change Capital, requires a minimum investment for 2010 of $33.3 million--leaving little opportunity for small investors.

Or you could invest directly in the company that owns the carbon exchange, Climate Exchange Plc. (LSE: CLE). If you'd done so a year ago, you'd be up over 540%. Have a look:

Climate Exchange

Don't be overwhelmed by those prices, they're in Pence Sterling (GBX). 2,000 Pence Sterling is about $41.

These guys cornered the market early. They even own the Chicago Climate Exchange (CCX).

But if those shares are too pricey, there's still hope for getting into the carbon market.

More Than One Way to Profit

Carbon isn't just a one trick pony. There are a few ways to make sure you get your share of this opportunity.

You see, as this industry grows and matures, companies are going to be looking to make money from it in any way possible.

So if you don't have the $33 million and change needed to break into trading CERs, there's still hope.

For starters, you could invest in companies that reduce emissions simply by the nature of their business. Companies that produce clean energy will soon be profiting on two fronts--they'll be selling their power and the carbon credits they acquired while making it.

For example, a company that produces electricity via a clean renewable resource may not only sell the electricity, but also the carbon credits earned from not burning fossil fuels--so long as the emission reductions are certified by an independent third party.

Of course, this arrangement would be much easier to understand and keep track of if a cap and trade system were implemented by the federal government. In fact, just capping the amount of emissions would do wonders.

And we may not be too far off. Major energy legislation put before Congress yesterday would require that 15 percent of the nation's electricity be produced by wind, biomass and other renewable energy sources by 2020.

Today, only 3% of our electricity is renewably produced. A 12% increase in the next twelve years would not only send renewables through the roof, but would create a pretty sweet carbon market as well.

As the demand increases for carbon credits, many companies are coming on the scene that specialize in reducing emissions. These are companies that help reduce the overall emissions of a variety of businesses, like farms, factories and utilities.

These companies are not only getting premium consulting fees, but a portion of the carbon credit proceeds as well.

Take a look at Ecology & Environment Inc. (AMEX: EEI), which offers a range of environmental consulting services, including environmental planning, management, and regulatory compliance.

EEI

In one year, this company is up 34% - six percentage points higher than the record-breaking Dow - and has increased its annual net income by over 62%.

And there's yet another way to tap into this industry.

As more governments begin to cap carbon emissions and initiate trading schemes, there will need to be regulatory bodies that measure and confirm reduced emissions. And those agencies will need new instruments and technologies to measure and record.

The bottom line is, the savvy investors that stay on top of this nascent industry will witness the birth of an entire new generation of dominant companies - and the making of legendary profits.

Brazilian Stocks +110% - You Can Do Even Better!

You need to know about one of Forbes' most recent additions to our blue-ribbon lineup of investment newsletters and advisory services, and the incredible moneymaking opportunities you'll find in Latin Stock Investing

I'm talking about doubling or tripling your money in a fairly short period of time.

U.S. stock averages have rallied 30% to 40% from their lows as markets anticipate a recovery.  Nice gains for a few months of work, but you could have done much better by focusing on Latin America. The Latin America 40 Index is up 84%.  Even hotter, the iShares MSCI Brazil Index (EWZ) is up an astounding 111% since November. 

Don't you wish somebody tapped you on the shoulder and told you to "BUY" last fall?  Subscribers to Latin Stock Investing were told, and now they're sitting on fat profits.

Click here to download "Latin Capital Markets 101," your guide to the best investments in Latin America, FREE when you subscribe to Latin Stock Investing.

Rudy Martin, editor of Latin Stock Investing, did his readers a tremendous service last fall when panic took hold and markets tanked all around the world.  He sifted diligently through the damage, separating treasure from trash, and issued timely BUY recommendations that produced triple-digit gains for his readers. 

Look at Rudy Martin's picks and how they performed from November 20, 2008 through June 3, 2009:

Petroleo Brasileiro (nyse: PBR)             +192%

Mercadolibre (nasdaq: MELI)               +179%

Cosan (nyse: CZZ)                                   +141%

Cresud (nasdaq: CRESY)                        +101%

More than doubling your money in just a few months--this is the way to recover from a bear market! 

Click here to begin your subscription to Latin Stock Investing and instant access to the complete model portfolio. You'll also receive a new special report: "Latin Capital Markets 101," a detailed guide to the most promising stocks in Latin America.
 
Latin America is home to many of the world's best investment opportunities.  Growing populations and economies in Brazil, Mexico, Chile, Argentina, and Peru are driving the growth of new businesses and personal incomes.  

Thinking that you've missed the boat in Latin America?  Don't worry.  There's still plenty of time for the trends of modernization and development to enrich investors in Latin American stocks -- if you know where to look. 

Rudy Martin, editor of Latin Stock Investing, became fluent in reading international financial statements as an analyst at Fidelity in Boston, and he currently advises institutional and high-net worth investors on Latin American investments.  His guiding principle is to find the best stocks for capitalizing on three mega-trends reshaping Latin America:

Mega-Trend #1: POPULATION EXPLOSION

Within the next decade, Brazil and Mexico's combined population will be larger than that of the United States. With 180 million people, Brazil is now the fifth most populous country in the world.  More people are living in central urban cities today than ever before, and a growing middle class spurs ever-increasing demand for more goods and services, especially from the telecom industry for cellular, Internet and cable services!

Unlike industrialized nations, emerging economies can leapfrog directly into state-of-the art wireless networks. Already, 45% of the region's population uses cell phones. But with new 3G networks becoming more widely available, sales of the new smart phones are exploding. A comparison with smart phone penetration in other parts of the world implies sales of another 30 million smart phones units as Latin countries catch up!

Click here to subscribe to Latin Stock Investing, and get Rudy Martin's latest specific recommendation for cashing in on this Latin cell phone bonanza including a telecom that expects a 22% growth in broadband users and a 30% increase in mobile customers this year 2009.

Mega-Trend #2: GROWING ENERGY DEMAND

The inevitable return of much-higher oil prices will not only increase the demand for crude oil (good for Latin America, too!) but it will also boost demand for ethanol-generated power. The global market for ethanol is already 46.5 billion liters, and Latin America is the only region producing ethanol at a competitive cost--using sugarcane.

The United States and Brazil now account for 90% of the world's ethanol production used for fuel, and while Brazil is exporting ethanol to Europe and the rest of the world, U.S. production can't even keep up with domestic demand. Brazil's ethanol shipments abroad jumped 45% from 3.5 billion liters in 2007 to 5.1 billion liters in 2009, which keeps Brazil at the top in global ethanol exports.

Which Brazilian company with interests in sugarcane and ethanol is poised for major growth over the next several years, and could be undervalued right now by 50% or more?  Click here for the complete Latin Stock Investing model portfolio and the FREE special report, "Latin Stock Investing 101," when you subscribe to Latin Stock Investing.

Mega-Trend #3: MATERIALS

The region holds some of the world's largest and most competitive deposits of alumina, bauxite, copper, iron ore, nickel and zinc, as well as massive gold and silver mines. Worldwide copper supplies are limited and concentrated in the hands of a small number of producers with the capital and distribution clout to ship to global markets. The world's largest producer of copper is in Chile and the third largest is in Peru.

On credit fears and drops in demand, copper prices went into freefall plunging 69% from $4 in March 2008 to $1.25 at year end. In response, copper companies slashed production and cancelled orders. The tactic worked and copper prices are now up 33% from lows of a few months ago and likely to climb much higher. More price upside is expected as the large stimulus plans take effect over the coming year.

Where do you invest right now to capitalize on the unstoppable demand for copper?  For maximum profit potential, click here for specific stock recommendations in Latin Stock Investing.

Investment opportunities in Latin America are abundant, from meat packers to oil drillers, sugar growers to online commerce--but it pays to have an expert in your corner to point out the pitfalls alongside the promise. 

As you saw last fall, these markets can be especially volatile. After the staggering losses in supposedly blue-chip U.S. companies last year, however, you cannot afford NOT to be in Latin American stocks!

The Deflationary Downturn

Stocks and oil both held steady on Friday.

Gold, however, took a big hit - minus $26.

There are three kinds of money in the marketplace. There's the smart money that goes with the trend. There's the dumb money that bets against the trend. And there's the money that doesn't know whether it is coming or going.

The trouble is always figuring out which is which.

The markets are clearly in a deflationary downturn. No doubt about it. After a long period of credit expansion credit is finally contracting. The smart money is probably betting on lower asset prices.

"Consumer credit falls the second most on record," reported Bloomberg last Thursday.

Houses, as everyone knows, are deflating. There are signs that the fall in housing prices is becoming less violent, but the trend is still down.

This from Robert Shiller, in the New York Times:

"Long declines do happen with some regularity. And despite the uptick last week in pending home sales and recent improvement in consumer confidence, we still appear to be in a continuing price decline.

"There are many historical examples. After the bursting of the Japanese housing bubble in 1991, land prices in Japan's major cities fell every single year for 15 consecutive years.

"Why does this happen?"

Shiller goes on to explain that housing markets don't adjust quickly. People make their housing decisions years in advance...based on changes in their lives. They may have found a job somewhere...or gotten a divorce...or their children may have left home...or they might just want to live in a different area. These plans take years to come together...and years to execute. They can be reversed by changes in market conditions...but not quickly.

And then, when people are planning to sell a house, they may not be in a hurry. If prices slip, they may decide to hold off - maybe for years.

Then too, decisions about buying or selling a house are often decisions taken by two people together. The husband may be desperate to get out of a sinking housing market, for example, but the wife may not want to leave her home. Even when they must sell for financial reasons, that decision can take months...even years...to reach. Often, they hesitate. The wife expects to get a better job...or the husband expects a raise...or they anticipate some other economic change in their lives that would forestall the need to sell their house.

Then, after the decision is made, there's the actual process of selling a house -- setting a price...and finding a willing buyer. In a downward market, buyers' expectations tend to adjust most quickly. Reading in the paper about a correction in the housing market, the prospective buyer expects a great deal. The prospective seller, on the other hand, tends to deny the severity of the downturn. He reluctantly and belatedly acknowledges that he'll need to lower his price. But as he gives in the market gives way further. The prospective buyer hears about more great deals that other buyers are getting...and he lowers his price targets even faster than the sellers lower their asking price.

Shiller gives another example...

"An elderly couple who during the boom were holding out against selling their home and moving to a continuing-care retirement community have decided that it's finally the time to do so. It may take them a year or two to sort through a lifetime of belongings and prepare for the move, but they may never revisit their decision again.

"As a result, we will have a seller and no buyer, and there will be that much less demand relative to supply - and one more reason that prices may continue to fall, or stagnate, in 2010 or 2011.

"All of these people could be made to change their plans if a sharp improvement in the economy got their attention. The young couple could change their minds and decide to buy next year, and the elderly couple could decide to further postpone their selling. That would leave us with a buyer and no seller, providing an upward kick to the market price....

"Even if there is a quick end to the recession, the housing market's poor performance may linger. After the last home price boom, which ended about the time of the 1990-91 recession, home prices did not start moving upward, even incrementally, until 1997."

We're also looking at $2.4 trillion worth of Alt-A mortgages that will need to be refinanced or reset. The peak in those resets won't happen until January 2013.Learn how to protect yourself (and even turn a profit) in the face of the second wave of loan defaults.

So stay tuned...this housing bear market isn't going away any time soon.

More news from Ian at The 5 Min. Forecast:

"For the first time since at least second World War, Americans are acting like... well... everyone else," writes Ian in today's issue of The 5 Min. Forecast.

"Americans are spending less this year than they did in 2008. Believe it or not, that's a first since WWII. What's more, we're saving at a historic clip...the personal savings rate (updated Friday) jumped from near 0% last year to 5.7%, a 14 year high and the fastest growth rate since at least 1950, when the government started keeping track. Check it out:

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"'We believe this is crucial to household balance sheet repair," adds our macro-man Rob Parenteau, "but it can only continue if some other sector of the economy is willing to reduce its net saving or increase its deficit spending. Otherwise, in a dynamic sense, saving by one household simply leads to income shortfalls and dissaving elsewhere.

"'Contrary to the textbook story, intended saving does not automatically provoke planned investment, even with interest rates lower. With the monthly trade deficit improvement beginning to stall as U.S. consumption and production stabilize, the only other sectoral source that can support higher household saving besides fiscal deficit spending is higher business reinvestment rates, but that is probably a good year out from now.

"'At best, then, we can hope the gross personal saving rate stabilizes near current levels until business investment revives. In the meantime, it all hangs on fiscal stimulus getting traction.'"

You can catch Rob (along with all your favorite Agora Financial editors) next month, at the Agora Financial Investment Symposium in Vancouver, British Columbia. If you haven't secured your spot yet, you better act fast...this event is sure to sell out. Get all the information here:

The Agora Financial Investment Symposium - July 21 - 24, Vancouver, B.C.

And back to our thoughts:

Housing is wealth for America's middle class. As long as housing is going down - or even NOT going up - the middle class is going to feel poor. It has the huge debts that it built up during the credit expansion...and it has to pay them, even though it has 1) falling incomes...and 2) falling assets.

The smart money is probably betting that this deflationary correction has further to go...probably much further to go.

But against this natural, normal -- and probably inevitable -- market trend are the hopes and fantasies of an entire generation. The baby boomers have staked their futures on continuing EZ credit. So have their leaders. And so now, the feds and the voters are of one mind. Both want to stop the market correction AT ALL COST - especially if they can lay the bill onto the next generation.

Now, here's where it gets interesting. Because the dumb money is probably betting that the feds can make this work. That's what all this talk of "green shoots" is about. A huge part of the public believes that the 'worst is over'...and that the feds' policies are working. They're buying stocks in the belief that this is a recession just like any recession of the post-war period. Ben Bernanke says it will be over by Christmas; they believe him.

Meanwhile, there are some very smart people who think the feds' efforts not only won't work...but will create an even bigger disaster. Those people are buying gold...and commodities.

David Einhorn, the hedge fund manager who foresaw Lehman Bros. going broke, is now buying gold. John Paulson, who made billions by being right about the credit crisis, is also buying gold. The Chinese are buying gold. So many smart people are buying gold coins that they have become hard to get.

What's our view? Who's right? The dumb money; the smart money; or the very smart money?

They may be all right...but at different times. This rally could last a while longer. Then, prices will probably resume their downward path...and then, eventually, inflation fears will send gold soaring. And when it does you'll be prepared...because you've taken advantage of the golden opportunity of a generation. Click on the link below to learn more - but hurry...only 356 copies remain of this special report, Set for Life: Eight Keys to Getting "Miserable Rich" with Gold.

We continue to answer the question - "will we have inflation or deflation" - in the positive. 'Yes,' we say, 'both of them.'

The markets must fully express themselves - which means they need to bounce...and then take the stuffing out of asset prices. Today's asset prices represent yesterday's economic calculations. The value of a house, for example, depends the economic conditions of the bubble period, 2002-2007...and on the whole swell of the great post-war credit expansion. That house price is now adjusting to the post-bubble era...when people have lower living standards and less expectation of a rising housing market. That adjustment will take many years and eventually leave house prices probably 20% to 30% below where they are today.

But the feds must fully express themselves too. They're bound and determined to cause inflation. They believe the country's financial future depends on it. It may take them a long time to get the upper hand in their war against capitalism...but eventually, they will do it. And eventually, the very smart money will be proven right - when the dollar collapses...and gold goes up.

Jun 11, 2009

Brazilian Stocks +110% - You Can Do Even Better!

You need to know about one of Forbes' most recent additions to our blue-ribbon lineup of investment newsletters and advisory services, and the incredible moneymaking opportunities you'll find in Latin Stock Investing. 

I'm talking about doubling or tripling your money in a fairly short period of time.

U.S. stock averages have rallied 30% to 40% from their lows as markets anticipate a recovery.  Nice gains for a few months of work, but you could have done much better by focusing on Latin America. The Latin America 40 Index is up 84%.  Even hotter, the iShares MSCI Brazil Index (EWZ) is up an astounding 111% since November. 

Don't you wish somebody tapped you on the shoulder and told you to "BUY" last fall?  Subscribers to Latin Stock Investing were told, and now they're sitting on fat profits.

download "Latin Capital Markets 101," your guide to the best investments in Latin America, FREE when you subscribe to Latin Stock Investing.

Rudy Martin, editor of Latin Stock Investing, did his readers a tremendous service last fall when panic took hold and markets tanked all around the world.  He sifted diligently through the damage, separating treasure from trash, and issued timely BUY recommendations that produced triple-digit gains for his readers. 

Look at Rudy Martin's picks and how they performed from November 20, 2008 through June 3, 2009:

  • Petroleo Brasileiro (nyse: PBR)             +192%
  • Mercadolibre (nasdaq: MELI)               +179%
  • Cosan (nyse: CZZ)                                   +141%
  • Cresud (nasdaq: CRESY)                        +101%

More than doubling your money in just a few months--this is the way to recover from a bear market! 

 access to the complete model portfolio. You'll also receive a new special report: "Latin Capital Markets 101," a detailed guide to the most promising stocks in Latin America.
 
Latin America is home to many of the world's best investment opportunities.  Growing populations and economies in Brazil, Mexico, Chile, Argentina, and Peru are driving the growth of new businesses and personal incomes.  

Thinking that you've missed the boat in Latin America?  Don't worry.  There's still plenty of time for the trends of modernization and development to enrich investors in Latin American stocks -- if you know where to look. 

Rudy Martin, editor of Latin Stock Investing, became fluent in reading international financial statements as an analyst at Fidelity in Boston, and he currently advises institutional and high-net worth investors on Latin American investments.  His guiding principle is to find the best stocks for capitalizing on three mega-trends reshaping Latin America:

Mega-Trend #1: POPULATION EXPLOSION

Within the next decade, Brazil and Mexico's combined population will be larger than that of the United States. With 180 million people, Brazil is now the fifth most populous country in the world.  More people are living in central urban cities today than ever before, and a growing middle class spurs ever-increasing demand for more goods and services, especially from the telecom industry for cellular, Internet and cable services!

Unlike industrialized nations, emerging economies can leapfrog directly into state-of-the art wireless networks. Already, 45% of the region's population uses cell phones. But with new 3G networks becoming more widely available, sales of the new smart phones are exploding. A comparison with smart phone penetration in other parts of the world implies sales of another 30 million smart phones units as Latin countries catch up!

get Rudy Martin's latest specific recommendation for cashing in on this Latin cell phone bonanza including a telecom that expects a 22% growth in broadband users and a 30% increase in mobile customers this year 2009.

Mega-Trend #2: GROWING ENERGY DEMAND

The inevitable return of much-higher oil prices will not only increase the demand for crude oil (good for Latin America, too!) but it will also boost demand for ethanol-generated power. The global market for ethanol is already 46.5 billion liters, and Latin America is the only region producing ethanol at a competitive cost--using sugarcane.

The United States and Brazil now account for 90% of the world's ethanol production used for fuel, and while Brazil is exporting ethanol to Europe and the rest of the world, U.S. production can't even keep up with domestic demand. Brazil's ethanol shipments abroad jumped 45% from 3.5 billion liters in 2007 to 5.1 billion liters in 2009, which keeps Brazil at the top in global ethanol exports.

Which Brazilian company with interests in sugarcane and ethanol is poised for major growth over the next several years, and could be undervalued right now by 50% or more?  Click here for the complete Latin Stock Investing model portfolio and the FREE special report, "Latin Stock Investing 101," when you subscribe to Latin Stock Investing.

Mega-Trend #3: MATERIALS

The region holds some of the world's largest and most competitive deposits of alumina, bauxite, copper, iron ore, nickel and zinc, as well as massive gold and silver mines. Worldwide copper supplies are limited and concentrated in the hands of a small number of producers with the capital and distribution clout to ship to global markets. The world's largest producer of copper is in Chile and the third largest is in Peru.

On credit fears and drops in demand, copper prices went into freefall plunging 69% from $4 in March 2008 to $1.25 at year end. In response, copper companies slashed production and cancelled orders. The tactic worked and copper prices are now up 33% from lows of a few months ago and likely to climb much higher. More price upside is expected as the large stimulus plans take effect over the coming year.

Where do you invest right now to capitalize on the unstoppable demand for copper?  For maximum profit potential, click here for specific stock recommendations in Latin Stock Investing.

Investment opportunities in Latin America are abundant, from meat packers to oil drillers, sugar growers to online commerce--but it pays to have an expert in your corner to point out the pitfalls alongside the promise. 

As you saw last fall, these markets can be especially volatile. After the staggering losses in supposedly blue-chip U.S. companies last year, however, you cannot afford NOT to be in Latin American stocks!

Decisive Moves in the Stocks Market

Just as I've said, the broader U.S. equities market continues to power higher. Let's begin with this weekly chart of the S&P 500 (a good proxy for the broader U.S. stock market of 2010):

As you can see, best stocks for 2010 are on a roll. In fact, from a low of 667 in March to a recent price of 944, U.S. stocks are up a mind-blowing 41%.

That's a ton of upside action in a relatively short amount of time. And while I anticipate the typical 3-5% pullbacks along the way, there's little doubt this market is headed higher in a strong and decisive way.

In fact, while I've told you here many times that I was confident this market was going to head higher, I'm impressed by how solid and steady that uptrend has really turned out to be.

But that's not all…

The market has powered above the 930 resistance level — set during the beginning of last month — like a walk in the park. That level should now become a solid support level for more movement to the upside.

But here's where it gets tricky: If you take a long, hard look at a daily chart of the S&P 500, you'll quickly realize that the near-term 930 level actually balloons to include a range extending all the way to 944. And since that level was established on a medium-term high in January, we're really looking at resistance in the 930-944 range.

In other words, for the market's recent action to really get legs, I'm looking for a decisive move above 944, not 930. And since we just pierced 944 this week and have yet to establish support, don't be surprised if we get some lower prices in the days and weeks ahead.

Now, if you listen to the pundits and talking heads, you'll probably hear that the move in the broader markets that I've been predicting and talking about for months doesn't have any fundamental power behind it: It's all just smoke and mirrors.

I love it when I hear stuff like this.

In fact, using many of the so-called experts in the investment field as contrary indicators — in other words, buying when they say sell and selling when they say buy — has put cash in my subscribers' pockets time and time again.

You can mark my words: When everyone says it's time to get into this market for good, you can bet your bottom dollar the market's big moves will be history. It's just a fact of life that you can't wait for the herd; you have to take reasonable chances, and you have to have vision of what's going to happen, not what's already in the hopper right now.

And while there's no doubt the broader fundamentals aren't rosy, they're certainly on the mend. And the biggest one — recovery in the real estate sector — is beginning to show more life:

Existing home sales in April jumped an impressive 2.9%, to an annual rate of 4.7 million units. Plus, distressed properties — read: foreclosures — continue to be cleared from the market, a big key for price stabilization down the road

Interest rates are at record lows, home prices are super-attractive and first-time homebuyers can enjoy an $8,000 tax break. In my book, those are all positives.

And it's not just real estate fundamentals that are on the mend. I'm also seeing upticks in industrial production, consumer spending and consumer confidence

Retire Rich with This Legal Monopoly

Water is, by far, the most important element we need to survive. You can go a month without eating, but not even a week without water. Lack of adequate drinking water has killed almost 800,000 people this year. Now politicians are throwing billions of taxpayer dollars at water and wastewater systems.

Obama's American Recovery and Reinvestment Act sets $126 billion aside for infrastructure projects. The majority of this is for roadwork and water infrastructure.

On top of that, $144 billion more is going to state and local governments. A large amount of that cash will be spent on these failing water systems. After all, we've already seen pipes burst throughout the country, and no one wants to be next governor on CNN trying to explain why the state didn't fix its water pipes.

Right now, there are a handful of dividend producing water infrastructure stocks that are giving investors the chance to profit from this life-sustaining element. Better yet, one class of these companies has a secure government-sponsored monopoly. You can't ask for a safer stream of income, and I've got my eye on one of these stocks specifically.

But to understand the profit potential of these kinds of stocks, you should be caught up to speed on the background story…

Monopolizing the Last 0.3% of the World's Most Precious Element

Of 6.7 billion people in this world, 1.3 billion don't have access to safe drinking water. It seems odd considering we have a blue planet. Here's how it works out…

96% of all water on this planet is found in the ocean - salt water. Another 3.7% can be found in icebergs, glaciers and the atmosphere. That leaves just 0.3%, or two million cubic miles, left in groundwater and freshwater lakes and rivers.

Imagine if just a few companies controlled that tiny amount of fresh water. Well, that's exactly what we have.

You see, municipalities control about 85% of the total market. And you know they won't allow any competition. The other 15% comes from investor-owned monopolies. Investors call these monopolies water utility companies.

Utilities in general have enormous advantages over regular corporations. Just like monopolies, they are the only provider of a service. There's very limited or no competition to contend with. That makes them great investments.

The reason we love utilities so much is because in the income world, they are about the closest you can get to guaranteed dividends. Unless these companies are fiscally irresponsible, we are assured of steady income from a competition-free business.

Why Water is the Best Utility Investment

However, water utilities have an extra attribute other kinds of utilities do not. Natural gas can be transported through trucks and pipelines. So if one area is experiencing an extra-cold winter, it can get gas from other places. The same applies to electricity. It can flow through the grid from one area to another to stop blackouts before they happen. You just can't do that with water.

If one area is suffering from a drought, it's nearly impossible to bring enough water from elsewhere to make a difference. Transporting water is difficult. It costs way too much. Plus, the infrastructure is simply not in place. That's why water utility companies can stake out a territory and monopolize the area.

We also love water utilities because they provide an absolute necessity. If you are really sick of high energy bills, you can put solar panels on your roof. If you don't like your natural gas company, you can find another heating source. There's no substitute for water. Unless you are willing to ship in an astronomical amount of bottled water or drill a well, you are pretty reliant on the water company.

How much do you really even pay for water? It's hardly anything at all. There's very little chance you'd ever think to radically change your water supplier. The cost of drilling a well far exceeds any local municipality's or utility's fee. So you are stuck with one provider.

Demand certainly isn't falling, either. There's no recession or even depression that can cause someone to say, "I can do without water this month." In fact, the amount of people this world needs to supply with water is only growing. To really spur a growth play, we need to look for areas that are growing the fastest.

A Liquid Investment

With scarcity, recession-resistance, and a bulletproof dividend stream, water utilities are a fantastic investment that can diversify your small-cap portfolio and add big gains to your bottom line.

Like I told you before, I've got my eye on one of these water utilities right now — in fact, I've already given that name to my Lifetime Income Report readers. If you want the chance to get in before this stock climbs above my "buy" window, just click here to learn more about the best dividend stocks on the market…

Jun 10, 2009

The World's Oldest Energy Source Makes a Comeback

The #1 threat to energy supply security that we face today is underinvestment, bar none.

New stats from Goldman Sachs show that the number of oil & gas projects approved in 2008 barely equaled the total for 2002.

In 2009, exploration by the world's petroleum powers will drop even more to just 1/6 of the 2006 peak.

But there are bountiful energy resources out there that you don't need to drill for. . .

And water is the first and best of these.

Hydropower is making a comeback, and it's hardly the same old "dam" story we've been told for generations.

Last week in Wealth Daily's sister publication Green Chip Review, we gave readers access to a full report on the top water-to-energy technology we're tracking, including the names of no fewer than 5 companies in on the uptrend.

It's called run-of-river hydropower, and it will soon power hundreds of thousands of homes worldwide. 

Here's an excerpt, with a link to the full report below:

Run-of-River Scores a Win in Canada

In the province of British Columbia, run-of-river power has been run through the political mill lately.

The New Democratic Party stumped for a 6-month moratorium on private power projects that encompassed several clean energy technologies. Hydro was included on the forced dormancy list, so were wind and biomass (the local solar resource is negligible).

But the Liberal Party won, and Canadian clean energy stock investors didn't just breathe a sigh of relief ― they also propelled shares of companies like Plutonic Power (TSX:PCC) to new highs.

Vancouver-based Plutonic Power's stock jumped by more than 20% on the heels of the May 12 vote.

From March 3 to June 3, PCC shot up by 83%!

That one company has at least 17 small-scale hydroelectricity generation sites planned for the hilly headwaters of Bute Inlet, a fjord just north of Vancouver and Vancouver Island.

Below, you see the layout of how run-of-river generation works in Plutonic Power's proposals:

plutonic run of river power

This run-of-river design diverts some water into a pipe called a penstock, which channels the river water into turbines for generation. Then, the water goes back into the stream with little or no net effect on downstream water levels.

That's perhaps the most salient difference between dams and ROR projects in terms of environmental impact and the regulatory hoops specialty firms have to jump through.

Hoover Dam, that national landmark and symbol of how long hydro has given power to the American Southwest, has a generating capacity of just over 2000 MW.

If approved, Plutonic's modular Bute Inlet array will be optimized to generate more than 1000 MW!

An Avalanche of Claptrap

Illusions pile up... They're sure to come down sooner or later.

Like snow at high altitudes, the central banks' new money is piling up. As reported last week, all the world's major central banks have turned on their snow machines. The U.S. Federal Reserve has been authorized to "print" $1.75 trillion worth of new money in order to buy Treasury bonds. The Bank of England has its own program ― worth 75 billion pounds, so far. Even Switzerland has been printing money ― so much that its money supply, as measured by M2, is growing at 30% per year. And two weeks ago, the European Central Bank announced that it too would begin creating money in order to buy corporate bonds.

"Quantitative easing" it is called. As a refresher for readers with real lives and better things to do, QE is how central banks describe what is essentially an act of counterfeiting. They buy bonds with money created ― electronically ― specifically for that purpose. Abracadabra ― "money" comes into being.

The feds aim to provide liquidity for the cities and farms. But so far, only a trickle is coming down. Instead, chilly weather in the upper reaches of the financial sector holds it frozen in place. Hundreds of billions come down from central banks, but there it stays...waiting for spring.

Today, here on the back page, we ask ourselves a simple question: What will happen to it?

The feds' counterfeit money does such a good imitation of the real thing, you can't tell them apart. But the problem with all money is that it is as fickle and unreliable as a bad girlfriend. One minute she goes along with the flow. The next minute she turns silly and bubbly. And then, she gives you the cold shoulder.

According to theory, an increase in the supply of something leads directly to a decrease in the price of it... That is, if other things remain constant. Despite the credit crunch, the banking freeze-up, and the economic recession, the money supply in the U.S. as measured by M1 is actually rising at 14% per year. Yet consumer prices are not keeping pace. The latest report shows them actually going down slightly over the last 60 days.

Turns out, causing inflation is not as easy as it looked; controlling it probably will be even harder. It's not enough to manage the quantity of money; you also need to be able to control its behavior. Money can be a solid, a liquid, or a gas depending upon the temperature of the economy. At normal temperatures, money runs freely, watering the economy. And when things really get hot, it vaporizes, creating gaseous bubbles such as those of the late Bubble Period. But when the temperature falls, money shivers in wallets and bank accounts ― reluctant to go out into the cold.

Economists refer to the "velocity of money" to describe the magnifying effects of motion. When the same dollar bill appears in three different places in the same day, it is as if the money supply has been multiplied threefold. In a freeze, on the other hand, it comes to a dead stop.

When the thaw will come we don't know. But the authorities are ready for it. When consumer prices begin to rise, they'll stop adding to the money supply. Then, they'll withdraw liquidity, as need be, to keep it under control.

They know that runaway inflation would cause problems ― the collapse of the dollar...and the U.S. Treasury bond market, for example. So at the first signs of inflation, they will move quickly to remove excess liquidity from the system. How? Their emergency plan is simple enough. Now they are buying bonds. When their inflation targets are met, they will begin selling them.

We thought the Bubble Epoch was the peak in claptrap and illusions. But we were only in the foothills. The feds now pretend to bail out the economy by giving money to companies that pretend to be concerned, run by people who pretend to know what they are doing. And when they run short of money, they create more of it, pretend it is real...and pretend they can tell it what to do.

What is likely is that money will have a mind of its own. First, the stock markets will react...and the authorities will not. They will remember their own critiques of Japanese and Roosevelt-era monetary policy. In both cases, they believe central banks removed the punch bowl too early ― before the party really got rolling. In both cases, the recovery was cut off.

Then, while they are hesitating, money will turn on them. Inflation rates will rise further. The velocity of money will pick up. And investors ― including foreign governments ― will become eager sellers of government debt. Suddenly, it will be too late. In order to remove the monetary inflation they previously added, central banks will have to sell bonds, instead of buying them, trying to reabsorb money from the economy. The extra cash will then disappear back into the central banks. But in order to bring inflation under control, the biggest bond buyers in the world must turn into the world's biggest sellers. Bond prices, already falling as investors fear the worst, will collapse immediately. An avalanche of dollars will fall upon the world stock markets ― as dollar holders all over the world become desperate to get rid of them.

We don't know what day it will happen. But we have a good idea as to what time of day central bankers will realize that they are doomed. About 4 AM is our guess. That is the moment when Ben Bernanke and other central bankers begin to feel like members of the Donner Party. That is, like imbeciles.

you can make as much as 668% on the top 12 stocks

Relieved to see oil prices back down?

Looking forward to the days when we can get to $2 gas?

Ready to dump all your energy stocks... if you haven't already?

If you answered "yes" to any of those questions, think again.

Because what you think you know might be about to change forever.

See, what nobody's telling you is that a single almost completely undiscussed event is about to permanently change the way you live and invest. More so than the recent crash. And forever.

Do nothing and you stand to lose a fortune.

Do something and you could get very rich. Here's the thing...

This signature event is not something far in the future. It already happened. It's not something we can stop. It's not even something we can prepare for.

That time has come and gone.

It's not a war. It's not something done by some bungling boob in Washington or on Wall Street. Instead, it's a single, seismic event that has already occurred.

By our best estimate, it happened in July 2006.

And now there's no turning back.

No, the nightly news did not cover it. Neither did Obama or McCain.

Even though there is probably no event with a greater impact on your financial security, the American way of life or the security of the world than THIS event.

We'll have to deal with this event not just for the rest of this year... or the next four years... but for at least the next 20 years. If not longer. That's not my estimate.

It's the estimate straight from the U.S. government's own research team.

What massive event am I talking about?

I'm talking about the almost certain end of "cheap oil." Not just a new oil spike up to $140 per barrel. But a permanent, sustained new crisis that will make the petro-busts of the 1970s... and even of the last two years... look like a Sunday drive through the park.

You must be warned about this.

Nobody else is willing to talk to you about it. Not your government. Not the Big Oil companies or the OPEC whackos. Which is exactly why I'm writing you today.

Because I want to show you what's already happened. To give you the shocking facts nobody else wants to share.

And most importantly, to show you how to prepare for what comes next...

Starting with $8–12 for a gallon of gas... huge fuel lines... even "gas riots" worse than anything we've ever seen before... empty supermarket shelves... empty suburbs... and empty airports.

Politicians will make lots of promises.

They'll use words like "energy independence." They'll try to dazzle you with vague pie-in-the-sky plans to reinvent the energy landscape.

But don't you believe 'em.

Why? For the very reasons I spell out for you in the proof that follows.

No matter what anybody tells you — or what you want to believe — we're heading into what could easily be the most vicious and unpredictable financial cycle of the past 150 years.

The war in Iraq? Afghanistan?

They're just hiccups in history compared with what lies ahead...

The rising Cold War on the shores of the Caspian... new terrorism and oil killings in Saudi Arabia... a coming military conflict over offshore oil under the South China Sea... these are all just shadows of a dark future...

We All KNEW This Crisis Would Come, but Few Understand... It's Already Here!

Let's be clear.

Even the most bright-eyed optimist KNEW this day would come eventually.

But only a handful are plugged in enough to realize... it's already here.

I call this event "E-Day." But if you run in the same circles I do... and care about markets and your money the way I do... you know it by another name.

It's the hugely controversial phenomenon called "Peak Oil."

What is "Peak Oil"?

Some people think it's the idea that we've just run out of gas. Literally, that the world's pockets of petroleum have been completely tapped. And that the world's oil wells have now run dry.

Actually, it's exactly the opposite. "Peak Oil" is the idea that we've just passed the point at which we're producing the MOST oil we'll ever produce.

To explain it to the people I care about, I like to show them this chart...

For more than 149 years, we've had it easy getting oil out of the ground. For decades, America DOMINATED world oil production. We were swimming in it.

All that cheap energy made us a massive industrial power.

In the early 1970s, our huge oil supply "peaked." We started getting less every year out of the ground. And we had to turn elsewhere... like to the Middle East. You know the rest of the story.

Here's the thing.

"Peak Oil" is a very big idea to petroleum geologists.

In fact, I'll show you it was one brilliant geologist who started to figure all this out... nearly 60 years ago. Today, it has plenty more experts and industry insiders terrified.

In fact, one group compiled over 200 technical papers and 20 years of energy research and — in October 2007 — published a shocking report that backs our 2006 "Peak Oil" estimate.

Of course, you don't need anything close to a geology degree to understand what this could mean for you... for your children... for America and for the rest of the world... over the years ahead.

You have very little time before the last of the "deniers" lose all their credibility. You have even less time than that to get ready. Because the panic doesn't begin when oil runs out. It begins on the day the rest of the world understands the historical "wealth reversal" we're in for when "cheap oil" becomes a thing of the past.

Already, we're seeing the symptoms of a collapse. Think about it:

Military scrambles for oil resources

Pulpit-pounding petro dictators and terrorists

Soaring oil prices

Increasingly impossible gasoline prices.

You remember how it happened in the '70s. And you can see in the chart I showed you earlier how it played out too. Temporary supply shocks sparked two of the biggest market crises of modern times.

Only this time, it really is different.

This time, it's not really about ideology... it's about geology.

As warriors and cowards, CEOs and pundits, dictators and bureaucrats stake their territory and make their claims... deep underground, the world's source of cheap oil is on the brink of running out. And nothing you do to make or protect your money can or will ever be the same again!

I promise you, we're in for radical change. And not the kind guys in suits promise you on television. But I can promise you something better too. I can promise you you'll have a chance to come through this clean, if you follow the strategy I'm about to give you.

In fact, even while most Americans see their savings attacked, I can reveal to you exactly how a few smart energy investors could still get very rich! But not in the way you might imagine, buying major energy stocks.

How so?

Stick to the pages that follow. I'll show you at least two simple "safeguard" investments you can make RIGHT NOW to lock in leveraged gains as this situation unravels.

Not only can these two investments give you a powerful SHIELD against the fallout ahead... but they could soar, despite all the current market turmoil.

How high? On lesser moves in the same markets, I can show you how we've already booked gains as high as 668%. I expect this future move to send many more opportunities I'll identify soaring just as high, very quickly.

Possibly even higher, if your timing is right.

That's not all.

Because I'd also like to give you access — FREE — to nearly a dozen more blockbuster investments just like these. Each with huge prospects for investment gains when the permanently rising spiral of energy prices locks into place.

What you'll discover here will allow you to build a kind of fortress around your portfolio... and allow you to rake in gains at the same time. I know of no other strategy that will let you do this over the months ahead.

I'd like to start by sending you a FREE copy of a special investment report I've created JUST for this situation I'm about to describe. The report is called Crude Awakening: How to Survive the Total Global Energy Crunch of the Next 20 Years.

And again, I'm going to give it to you FREE.

Inside, you'll see why the danger of this event is very REAL. I'll give you evidence that's IRREFUTABLE.

And most importantly, I'll show you how the physical and financial devastation ahead could literally UNRAVEL a century and a half of American financial prosperity!

But of course, you'll also see why it doesn't HAVE to be that way. Because I firmly believe the two investments I'll show you in Crude Awakening: How to Survive the Total Global Energy Crunch of the Next 20 Years should play a key role in ANY intelligent investing strategy for the turbulent months ahead!

A few smart investors could get very rich... just on these two stocks. You're about to see why. Yes, you still have time to prepare. But not much. So let's start at the beginning...

The Beginning of Everything

Millennia ago, oil was a laxative.

Then in 480 B.C., the Persians used oil to dip and light fire-tipped arrows, which they launched over the walls of Athens. Back then, it's hard to believe, oil didn't mean much at all!

The world had the Renaissance, the Enlightenment and the American Revolution...

All without the benefit of oil. Then something changed. Something people didn't expect to make such a difference at the time.

Cities got bigger. Big cities needed better lamps. Along came kerosene!

In 1861, Nicolaus Otto invented the first gas-burning engine. Along came gas!

Then Ford showed us how to mass market cars. And build mass-market factories. Oil made it possible to mass-produce food, cities... and war...

For the whole of the 20th century, we soaked up cheap oil to run our cars and heat our houses... light our porches... and power our tractors. Oil gave us plastics. And petrochemicals.

Oil shaped America. It changed us.

More than the Internet. More than the stock market bubble of the 1990s. More than the Japanese bubble of the 1980s. More than the real estate bubble that's just burst under our noses. And that's what makes us so vulnerable to the shock "E-Day" will bring...

America's Dirty Secret: "Hooked on Crude!"

Without oil, America shuts down.

Farms close. Hospitals don't open. Streetlights don't burn. Trains and trucks don't run. Planes don't fly.

This isn't some fantastic doomsday scenario. It's just a simple fact.

We burn through nearly 30 billion barrels per year. Even 90% of the chemicals we use for farming, making drugs and making plastics... come from oil. It's a habit we can't quit.

Some of us commute 100 miles per day to and from work. Six billion people. Driving 700 million cars. Every day, each car uses four times more energy in fuel than people need for food.

At the airport, a thousand planes a day take off and land, each carrying as much as 24,000 gallons of fuel. Passenger jets alone burn about 1,200 gallons of fuel each hour!

The phones, Internet, televisions, washers, dryers, refrigerators and stereos in our homes... the trucks, trains, planes and ships that deliver food to our supermarkets... our factories, tractors, turbines and compressors...

Hot showers and hot coffee. Fried eggs and bacon. Your daily commute to work. And your commute home to your family in the evening. Air-conditioned skyscrapers and air-conditioned theaters. Late nights reading in bed by lamplight.

Weekend car trips to the beach. Thousands of boxes of cereal on grocery store shelves, fudge-ripple ice cream in the freezers, heaping piles of fruit on the produce rack...

None would exist or arrive without oil.

On average, most food in North America travels 1,300 miles from farm to plate!

How else do you get grapefruits in New England and maple syrup in New Mexico? Or salmon in Kansas or pineapples in Wisconsin?

The list goes on. Ambulances, firetrucks and police cars. Hospitals and hospital equipment. Modern dentistry. All need a steady, cheap supply of oil.

YOU SEE THE POINT.

As long as we can keep that oil coming, we've got no problem. Life goes on. If that source of cheap oil disappears... we're talking catastrophe. It's nearly unthinkable.

Yet now that we've passed the point of no return in world oil production, that's exactly the kind of cataclysmic disaster you can expect...

The New Oil — "Cheap" at $150 per Barrel?!

Maybe you remember what the guys at Morgan Stanley said when oil passed $55.

It was back at the start of 2005, and they called it the "final frenzy." They said it was a panic spike. And that oil prices would cool for years to come.

Another 29 analysts called for oil to drop below $50 — and stay there — that same year.

Three years later, at the start of this year, oil had doubled to around $100. And George Bush had gone personally to Saudi Arabia, to beg the royal family to crank up production and lower prices.

Today, those same experts feel like $100 is a "breather." And those politicians tell us $3 gas is supposed to be good news. Compared with what's coming, they could be right.

Oil at $150... $200... or higher. This isn't a "maybe" scenario.

There are no politics to fix. No quotas to double or contracts to sign. "E-Day" — the day when cheap oil disappears forever is not only coming. It's here. Come and gone.

All that's left for you to do now is prepare, starting with what I'll show you in the FREE report I want to send Crude Awakening: How to Survive the Total Global Energy Crunch of the Next 20 Years.

I'll show you how to get a copy sent to you in just a second. First, let me just continue showing you the shocking research that proves what we're up against...

The Day Big Oil Turned Its Back on Reality

In the 1930s, a geophysics professor at Columbia University named Dr. Marion King Hubbert made a discovery. He found a way for Big Oil to release petroleum trapped under deposits of hard rock.

The oil companies used his discovery to make billions.

Hubbert became a star for the industry. By 1956, he was working full-time as a highly paid expert for Shell Oil. But that's when the brilliant Dr. Hubbert made another discovery. And this time, it nearly ended his career.

See, what Hubbert realized was that the more oil you drain out of an oil field, the more those pockets of crude CHANGE. The first barrels come squirting out of the hole. But as pressure drops, the rest of the oil gets tougher to draw out.

It's like sucking the last of a milkshake out of a tall glass.

Years of pumping, said Dr. Hubbert, would turn rich fields into petro-pin cushions as the companies tried desperately to drain the last drops of oil. You can imagine, when your entire business — and your company's share price — depends on how much oil you have in reserve, this is a very big deal.

In fact, the biggest deal.

Hubbert's bosses BEGGED him not to release his controversial discovery.

But he did anyway. He told a roomful of oil executives and engineers how the U.S. was on track to hit its production "peak" as early as 1970. And the audience practically laughed him out of the room!

Now, you've got to picture this. At the time, America was the world's largest oil power. Black crude flowed like water from Texas wells. The controversy that followed nearly ruined Hubbert's career. Shell even hired other geologists willing to put the peak date in 1990 or even 2010... and Hubbert was all but shunned by the industry bigwigs.

Just 15 years later, the United States hit that peak.

Like clockwork, in 1971, oil wells in Texas and Louisiana started to dry up. U.S. oil production plateaued... then fell off a cliff. Within three years, oil imports tripled. Gas and oil prices soared. And OPEC had us at its mercy.

Hubbert was right all along.

No part of the U.S. economy escaped the crisis. When the stock market crashed, millions got wiped out financially. They got slammed again in 1979, when Iran twisted the screws and sent the U.S. into another tailspin.

But even that was just the beginning...

Crude Awakening: The Total Global Energy Crisis of the Next 20 Years

See, the data Hubbert had discovered a full 15 years before the U.S. oil peak didn't just predict a peak in the lower 48 states of the America...

The same data ALSO predicted similar peaks for the rest of the world's petroleum nations... until all GLOBAL OIL PRODUCTION hit a permanent downward slide!

Sure enough, look what's happening.

One by one, other oil-producing countries have started to fall.

Libya peaked in 1970. Iran peaked in 1974. Romania — once Hitler's prize petroleum conquest — peaked in 1976. Brunei peaked in 1979. Peru in 1982. Cameroon in 1985. Indonesia peaked in 1997. So did Trinidad.

Out of the 65 biggest oil-producing countries, 54 have already slammed into the wall of peak production. That's serious.

On average for the whole European region, the peak year for oil production was back in 2000. For the whole Asian-Pacific area, it arrived back in 2002. Even for the former Soviet Union, the oil peak came back in 1987. And the peaking dates for the rest of the major oil regions — including the Middle East — are right around the corner!

Forget what politicians and pundits tell you.

There is no "oil recovery" in the wings.

Recessions might give us a break on demand, now and then. But shrinking energy supplies always add up to rising prices. And what I'm showing you here adds up to a permanently shrinking supply.

What will this do to the stock market... to budding small businesses... to the job market... and to the prices of everyday goods? What happens with China? With India and the masses in other emerging markets?

Many, many people will get caught unaware.

Of course, you don't need to get caught along with them.

Not just billions... but trillions... in global wealth will disappear, as we scramble for a solution. However, others — and I'd like to include you in this category — could make hundreds of thousands of dollars simply by buying the right energy and resource investments.

This is why I want you to let me send you my new FREE report, Crude Awakening: How to Survive the Total Global Energy Crunch of the Next 20 Years. Inside, you'll discover two virtually unknown stocks that should soon start to soar...

Especially as one of the biggest "Peak Oil" coverups of all gets revealed. I'm talking, of course, about the LIES you've been fed for at least a decade by none other... than the royal family of Saudi Arabia...

The Saudi Princes' Dirty Secret: Dying Oil Fields and Shrinking Reserves!

Remember when Shell Oil shocked investors by admitting to overestimating its oil reserves by 4.5 BILLION barrels? Their share price collapsed by 9% in a single day.

Can you imagine, then, if the world's BIGGEST oil producer gets caught trying to feed you a whopper more than 12 times that size?

Energy expert Matt Simmons says that the day Saudi Arabia hits its energy peak, that's the day the rest of the world will wake up to the reality of "Peak Oil"... by tailspinning into chaos!

So maybe it's a good thing, in a way, that the crown princes of Saudi Arabia have been lying to us all these years. But they can't keep their charade going for much longer.

See, here's the real scandal...

The Saudis have some 300 oil fields. But 90% of their oil wealth comes from just a handful of those fields. Their crown jewel producer is the Ghawar field.

The Ghawar held an astonishing 87 billion barrels of oil when it was discovered in 1948. By the 1970s — according to experts at Exxon, Chevron, Texaco and Mobil — the Ghawar still had another 60 billion barrels left, the bulk of Saudi Arabia's 110 billion barrels of proven reserves.

But in 1979, the Saudis kicked out the U.S. experts.

Overnight, they claimed to have another 50 billion barrels. Nearly a decade later, they were claiming to have over 260 billion barrels of oil overall.

And for the next 17 years, they never adjusted that figure.

Magically, even after selling billions of barrels of oil to the U.S., China, India and anyone else who wanted it... that 260 billion barrel estimate never went down!

Without a single new major oil discovery during that period.

Even now, the Saudis claim they can kick out at least 10 million barrels of oil per day. And our own Department of Energy banks its rosy energy predictions on the Saudis' ability to churn out up to 20 million barrels per day, if they have to.

It's the biggest, most carefully guarded LIE in the industry today.

But the coverup can't last forever. Every day, the Saudis pump 7 million gallons of seawater into the Ghawar's 3,400 wells... just to maintain pumping pressure.

But now, more than HALF the fluid they're getting back out... is the seawater they pumped in to help force out the rest of the oil! That's no isolated situation.

The Saudis have five mega oil fields, all on the brink of collapse. Even U.S. Energy Secretary Samuel Bodman admitted recently that the Saudis are "right at the ragged edge" of their ability to meet oil demand.

Right now, 73% of all the world's new oil comes from the Saudis. So their big LIE is already a big enough deal all by itself. But ask yourself, if our "allies" in Saudi Arabia don't hesitate to lie about their reserves...

"Is Anybody ELSE Lying to Us About How Much Oil They Have Left?"

Here's the rest of the ugly truth...

The rest of OPEC is secretly running out of oil too!

Take a look at this chart...

See, here's what happened.

In 1986, OPEC made a new rule for its members: You could only sell as much oil as you held in total reserves. In other words, the bigger your reserves, the more money you were allowed to make.

Almost every OPEC country "upgraded" its reserves overnight.

Here's the thing: Those countries made the overnight "upgrades" in their reserves WITHOUT a single new oil well discovery being made... and WITHOUT a single new rig being built!

And just as the Saudis do, those same countries continue to keep and even add more "ghost oil" to their books. It's a scandal that has ALREADY cost investors and energy buyers hundreds of billions of dollars.

But as I said, the world doesn't have to run out of oil and gas to spark a crisis.

Remember, It's the Halfway Point That Matters

All that has to happen is for the world oil market to discover there's a lot LESS oil out there — now and for the future — than we need to keep on living like we do right now.

The day the truth comes out, catastrophe strikes.

That's why I hope you'll let me send you a FREE copy of my new Crude Awakening: How to Survive the Total Global Energy Crunch of the Next 20 Years special investing report.

Because even if I and dozens of other energy experts and geologists are wrong... even if we have a few years left before the peak arrives... you still need to start preparing for the inevitable. We already use much more oil worldwide than we produce or discover.

That can't last forever.

Here's something else. When Dr. Hubbert first revealed his "Peak Oil" predictions, he explained that just before and after the "peak," there would be short plateau of FLAT oil production... followed by a steep collapse. Guess what's happening right now.

This next chart shows the last 10 years of production for the world's 17 biggest oil companies... and for every one of them, production is completely flat!

Usually, when oil prices soar, Big Oil pours that money into new wells and new discovery... but this time, there's no new oil left to produce or discover!

Buying the Big Oil companies, though, even during price pullbacks and minor corrections, might NOT be the best way to make money on this move.

Which is why I urge you to send for your copy of new report, Crude Awakening: How to Survive the Total Global Energy Crunch of the Next 20 Years, as soon as possible.

Because it's going to show you better alternatives.

Including two powerful stocks that should soar as this dramatic trend unfolds. They won't stay this undiscovered forever. But if you wait until the rest of the market wakes up, you'll miss your chance.

You can read about them in your free copy of Crude Awakening: How to Survive the Total Global Energy Crunch of the Next 20 Years, just one of the SIX FREE reports in the new PEAK OIL PROTECTION LIBRARY that I'd like to give you, absolutely FREE.

Look, this is monumental.

The MOMENT news of this new data hits the wires... it's going to reverberate on Wall Street like an H-bomb with a bad attitude. In the crisis ahead, businesses will face serious choices. Thousands of investors will lose BILLIONS of dollars.

But before that happens, you can be ready.

Simply read your FREE copy of Crude Awakening: How to Survive the Total Global Energy Crunch of the Next 20 Years... and then let me send you the rest of the SIX FREE reports in the complimentary PEAK OIL PROTECTION LIBRARY that I'd love to send you today.

You can even download it just a few minutes from now, if you're ready.

I expect you to make at least 668% gains on these breakthrough energy investments. Perhaps even more. Because the worse the situation gets, the more I'll be there to show you exactly what to do next.

Yeah, you say... but still, we've already seen new record prices... and then they pulled back. So how bad could this really get?

All I'm saying is, even if you don't send for your FREE reports, I urge you not to get too comfortable.

Because even today's high prices are just a taste of what lies ahead...

We'll Pay "As Much as $378 per Barrel," Says a White House Insider

Plunging supply and soaring demand... it's the purest law in economics.

Matthew Simmons is a former Harvard professor. Now he's an investment banker who manages nearly $56 billion in energy investments. He's been a White House adviser under both Bush and Clinton.

Here's what Simmons recently said:

"It works out as much as $378 a barrel. Yes [I can see it reaching that high]." CBS MarketWatch says the coming Peak Oil crisis will "dwarf that of 1973."

And the San Francisco Chronicle is saying we're looking at "social and economic upheaval across the globe... "

And it's not just the geological crisis that will make energy scarce.

For instance, take a look at China...

China had just 700,000 cars in 1993. Now it has 7 million. It also had only 15 million motorcycles then. Now it has over 100 million!

China's energy use alone has already doubled over the last 20 years. Suppose China started using oil at a rate like, say, Mexico?

Right now, China uses just 1.7 barrels of oil per year per Chinese citizen. Mexico uses 7 barrels per person. If China matched those rates, total DAILY oil demand in China would soar to 24 million barrels per day. More than in the United States. And about 30% of the total oil demand worldwide!

China expects to import TWICE as much oil as the United States within the next 15 years. Its rate of oil demand growth is already double the percentage demand growth worldwide.

The current economic bust might slow oil demand temporarily. But in the bigger scheme, it will come roaring back. Because the foundations of future demand have already been laid.

In fact, according to the International Energy Agency (IEA), global demand has already grown in the very recent past at its fastest pace since 1980. Average global demand is 88.1 million barrels per day. Aside from today's extreme financial events, we're sure to meet and exceed that level of demand in the future. And out of that, about 20 million barrels of daily oil demand comes from the United States.

If you can't get your head around that number, imagine an Olympic-size swimming pool. Drain the water. Fill it with crude oil. Now do that 1,272 times. Every day of the year.

THAT'S A LOT OF OIL!

And remember, once it's burned, it's gone for good.

"Yes, but Couldn't One Huge Discovery... or Alaska... or Deep-water Drilling... Change the Equation?" Unfortunately, Absolutely Not...

What are the chances of finding another 90-billion-barrel oil field?

Or two fields of 45 billion barrels each?

Close to zero.

You could go broke looking. In fact, many oil companies already have.

(In the 1950s, for instance, George Bush Sr. made millions from his Texas oil business. In the early 1980s, George Jr. had to get OUT of his own businesses... after just about every drill they dropped came up BONE-DRY!)

The dynamic has completely changed. And why? Because there hasn't been a major new oil field discovery in more than 20 years. Even the "untouched" deep-water fields and Alaskan oil — while they might hold what seems like a lot of new oil — likely don't hold enough.

Worldwide, net oil discoveries have plunged every five years since 1980. Some of the biggest fields are now between 30–100 years old! And they're starting to run dry too!

Over the last five years, the world burned 27 billion barrels per year. But the oil industry discovered only 3 billion new barrels per year.

How long can you use up nine times what you're finding in replacement?

Not long!

There were 16 large discoveries of oil in 2000, eight in 2001, three in 2002 and NONE in the year that followed. It hasn't gotten any better since.

Worldwide, peak discovery was in the 1960s. In the 1990s, that average was one-sixth that total... 9 billion barrels per year!

That's next to nothing compared with world oil demand. Even if we DID find another Ghawar... it would only delay the inevitable impact of "E-Day" by less than 24 months.

Meanwhile, your whole way of life is in danger.

So what's the solution? Yes, there is one. Some of it will come from a wave of breakthroughs for tapping the rest of the oil... some will be new ways to burn what we already have more efficiently... and a string of alternative energies — wind, solar, clean coal, safer nuclear energy, hydro and even hydrogen — all hold lots of promise.

But not every one of these will have the same payoff. And some will take longer to give you gains than others. What I'd like to help you do is find the few market moves that do make sense for the turbulent crisis ahead. For instance, I have two I can share with you right now. Both will help make a few smart investors exceedingly rich. Provided you know which stocks to buy and the right time to get in...

Huge E-Day Profits by Buying When the Time Is Right!

I should introduce myself.

My name is Byron King. And when it comes to oil, gas, energy, war and politics, I think I can politely tell you — I know what I'm talking about.

See, I'm what you'd call an "old rockhound." Which is my way of saying that, years ago, I graduated with honors from Harvard with a degree in geology.

In the 1970s, I took that background to the oil industry, and I worked as a geologist in the exploration-and-production division of a major oil company.

When natural gas whipping out of a 21,000-foot well got too routine, I dropped it all and joined the U.S. Navy, logging over 1,000 hours of flight time in tactical jets.

I've even pulled off more than 127 carrier landings.

After I left active duty, I became a practicing attorney in Pennsylvania.

But with all that excitement and experience... I found that I couldn't get my passion for oil and energy out of my blood. I kept up with my contacts in the field. And dove deep into energy research.

I started reading and writing about new discoveries in the field. I studied them. I gave speeches about them, every chance I could get. To this day, I've done more radio shows and have written more published articles on the topic than I can count.

Years ago, I even got the chance to meet M. King Hubbert himself.

If you know anything about oil, you know that for an oil guy and geologist like me, that's like meeting Mick Jagger. But I'm not telling you all this to brag.

I just want to show you how it is that I linked up, just a few years back, with someone you might already know — New York Times best-selling author Addison Wiggin. See, Addison is also has a pretty high profile in the investment world, including in the energy markets.

He's been interviewed by Forbes, ABC Money Matters, CBS Sunday Morning, Fox, Bloomberg, CNN Money, MotleyFool.com, TheStreet.com, Money, The New York Times Magazine and more than 350 different local and national radio shows about his best-sellers Financial Reckoning Day and Empire of Debt: The Rise of an Epic Financial Crisis.

He's even the co-writer and executive producer of the new Sundance-nominated financial documentary, I.O.U.S.A. So it was only a matter of time that we crossed paths.

What really drew me in, though, was that Addison manages a nearly prophetic multimillion-dollar financial research group... that specializes, in part, in energy market analysis.

When I realized just how much he and I saw eye to eye on many of these forces... I jumped at the chance to join his international team of experts. And here I am today.

That's why I'm writing you now.

Because I'd love to let you into our private network, where I can help you track these opportunities... discover these trends... and turn them into the huge, protective opportunities that most other investors will miss.

Our group is one of the fastest growing out there.

And we'd love to have you on board... 

The #1 Performing Investment Letter Over a Five-Year Period

The service I now run is called Outstanding Investments. And I'm proud to say that unbiased and meticulous industry watchdog Mark Hulbert ranked Outstanding Investments the No. 1 Performing Investment Letter over a five-year period in 2005, 2006, and 2007.

Sorry for bragging... but I'm thrilled to be on this team, and I can't help but be proud. Especially with our No. 1-ranked track record. But you don't have to hear it from me.

Let's listen to what some of my Outstanding Investments subscribers have to say. For instance, guys like reader Jeff B., who wrote in:

"It's difficult to be unhappy when all of the recommendations I hold from Outstanding Investments are up a minimum of 36%!"

Then there's reader Charles B., who says he's done even better:

"I made a 140% gain with Tocqueville Gold — great pick! And 64% on Northgate, another winner!"

I'm not cherry-picking these accolades.

We get letters like this in the office all the time:

"My stock portfolio has increased 52% in eight months as a result of the insight of Outstanding Investments. I plan to be a subscriber for years to come... " — Fred H.

"I made back the cost of the subscription on my first buy, within about a week... Your newsletter is a great deal!" — A. D.

"Thanks for all the good advice. Subscribing to Outstanding Investments is one of the best investment decisions I've ever made." — Wade G.

Here's my point.

Readers like you have done very well so far following our recommendations. Now before this critical moment of upheaval, I'd like to invite you to join them. And in a very special way.

See, I think it's so important that you don't miss this chance, I'd like to invite you to try Outstanding Investments for yourself... free for up to a full year.

That's correct.

No charge for as many as 12 months.

Plus, to make it even more tantalizing, I've arranged for nine free gifts that are also yours the moment you get started. Including a new library of six special investing reports I've pulled together. I call it my Crude Awakening Crisis & Profit Library.

Inside, you'll find a three-step strategy for safeguarding your money against the new oil war of 2008... brilliant alternative energy plays that will soar as a new wave of violence overcomes the Middle East... innovative, safeguard strategies that can work even in whipsaw markets... plus much more.

And it's all yours at no charge, as soon as you're ready.

Let me just give you a glimpse inside...

The Breakthrough Energy Stock All the Insiders Want to Own

When cheap oil finally does disappear, the world will search desperately for something... anything... to fill the void.

But wind, solar, hydrogen, thermal and more... most of these alternatives to oil energy are just NOT READY for prime time. They're either just too expensive to use or too different and complicated to develop SOON enough to make a difference.

However, among the most immediate options that DO work is an incredible commodity you might have overlooked... plain-old natural gas.

It's been quietly booming lately — starting even before the current energy crunch hit. Liquid natural gas trade soared 55% in the 10 years ending 2004. This little market is growing like crazy.

Some analysts even predict natural gas will surpass King Crude to dominate the world's energy markets. The CEO of Shell says within 10 years, gas will be a bigger part of the company's business than oil.

The problem is that gas, unlike oil, is hard to transport. Because of the transportation problems, the price of natural gas is much higher in North America than in the countries that are swimming in the stuff.

This "Energy Bottleneck" is your chance to multiply your money many times over.

How much exactly? Possibly 300% or more...

An American Natural Gas Play That Could Easily Grow 300%

First, here's the thing...

Plenty of in-the-know experts share my view on natural gas. But finding the right investment can be tricky. For example, you could always buy Exxon Mobil. But that's like trying to buy a ranch to own a steer — even in a serious market turnaround, you wouldn't make more than a couple percentage points.

I'd rather swing for the fences... for gains of 200%, 300% or more.

Which is why I've prepared another special report for you, called Riding the Natural Gas Boom to Triple Your Money.

Inside, you'll discover my top pick right now. It's one of the top three independent natural gas producers — with a fat $21 billion market cap — but in the energy business, that qualifies this company as a small, nimble player.

It's U.S. based. And owes its success to active property acquisition and consistent drilling. This isn't a new strategy, but this company is doing it on a large scale in the right market. This company is a master in every facet of the natural gas business.

I'm not the only one who thinks this company is about to skyrocket...

What's one indicator that great investors have always used to predict upward movements in a stock price? Insider buying.

Who knows the business better than the management of a company? No one. If company execs are putting large chunks of their hard-earned dollars into the stock, you know that they believe the price will go up.

This company's CEO has been stocking up on shares. For the past couple years the CEO has been filing SEC form-4's — the forms you have to fill out if you are an insider buying your own company's shares.

Do you think this CEO would be sinking his hard-earned money into something that he didn't believe in? No way. He knows what I know about natural gas. And right now, it's at a great time to buy.

The Worldwide Natural Gas Boom

This company is in a great position to profit, but they are in an even better market. Natural gas is quickly becoming the energy of choice internationally.

As oil prices increase, natural gas demand will also become a cheaper and more viable energy source. And this company will stand to make money. And here is the kicker...

Alone, this natural gas producer is a strong candidate for growth, but it may be an even stronger candidate for a buyout. With a company this well positioned, it may just be a matter of time before one of the big guys buys it out...

You'll learn all about it in your free special investment report, Riding the Natural Gas Boom to Triple Your Money. You receive this report and up to five more when you subscribe to my newsletter.

Meanwhile, here's another way to profit...

Earn a 6% Dividend and Double Your Capital, Too!

LNG is a possible grand slam homer in natural gas. But you can also profit from North American companies that don't need to ship their gas across an ocean.

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Here's something more...

Profit From a Nuclear Breakthrough

This next breakthrough sounds like a miracle. But it's real. And it could easily fatten your personal bank account. See, if things play out the way I expect, fossil fuel power plants — utilities that use coal and natural gas to make electricity — will join wood-burning stoves on history's dustheap.

And you can make a fortune owning a piece of the power revolution that will follow. You'll learn the details in Turning on the Juice: Power Plays for the Electricity Crisis Ahead, another of the six FREE reports I'm ready to send.

One of the key ways to profit, for instance, is a coming worldwide boom in nuclear power. Yep. After a couple of freak accidents several decades ago, Americans decided they wanted nothing to do with nuclear power ever again.

But guess what?

The rest of the world didn't have that luxury. They had even less access to cheap fossil fuel. So they took a second look at nuclear... and reinvented it completely. Now it's safer and more efficient than ever.

France now gets 77% of its electric power from nuclear plants. Japan and South Korea get 39% — and the two of them have more than 20 new plants on the way.

Belgium, Sweden, Finland... they've all gone nuclear. It seems like everyone but us is building nukes. China plans to boost its nuclear power capacity by 500%.

In fact, for the past 40 years, nuclear has been the fastest-growing power source in the world. And now it's really taking off.

What's more, all the hundreds of plants worldwide have logged thousands of reactor years without a single accident. You see, Asians and Europeans have discovered something some Americans refuse to see: Nuclear power beats fossil fuels hands down.

It's safer... it's cheaper... and it's cleaner.

And it's about to enjoy a whole new age, worldwide. With or without the U.S. In Turning on the Juice: Power Plays for the Electricity Crisis Ahead, you'll find out how... including how to make a bundle on the new trend.

Already, you could have gotten rich on the soaring price of uranium. It's up many times over, just in the last few years. But there's still room to make plenty more.

Turning on the Juice reveals my favorite ways to gain from the new nuclear boom... including a company with huge uranium reserves, plus ready access to China and its massive nuclear program. Best of all, this company controls a production bottleneck the U.S. nuclear industry can't do without. But even that isn't my No. 1 play that you'll read about in your FREE copy of this report...

Nuclear Power Plants Will Roll off an Assembly Line

The Chinese are charging ahead with a new type of nuclear power plant.

I predict utilities will build hundreds, maybe thousands, of these new plants all over the globe. Electricity will become super cheap.

And eventually, we'll see an economic boom worldwide like we've never seen before:

The new plants will be walk-away safe. A meltdown is not just unlikely, it's impossible

There's no danger of radioactivity venting into air or water

There's no chain reaction involved

No need for huge cooling towers or water. No billion-dollar pressure dome

Almost no waste, and what waste there is can be stored safely on the premises

No need to fear a terrorist attack.

You'll learn all the details in your free special investment report, Turning on the Juice: Power Plays for the Electricity Crisis Ahead.

The technology uses an alternative way to harvest the energy of the atom — a way that Americans discovered and then rejected decades ago.

The Chinese plan to mass-produce the reactors.

The plants will be modular and factory made, built to last 40 years, ready to ship anywhere in the world and assembled like Lego.

A Chinese scientist boasts, "Eventually, these new reactors will compete strategically, and in the end, they will win. When that happens, it will leave traditional nuclear power in ruins."

The man has reason to be cocky. The prototype has already been tested by turning off the coolant and letting the plant cool down by itself. That would be totally unthinkable with a conventional reactor.

This could be the ultimate solution to global warming.

These plants will get built by the hundreds because the world needs cheap, clean energy. But they'll get built by the thousands if the world decides to get serious about global warming. Selected stocks will take off into the stratosphere.

I think the Chinese will pull it off, and we're going to see a new industrial revolution.

You need to move soon, because the Chinese are plunging full speed ahead. Subscribe now and get your free copy of Turning on the Juice: Power Plays for the Electricity Crisis Ahead.

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Your First 3 FREE Reports Plus up to 6 FREE Months of My Research

So here's a quick recap of the first three FREE reports I want to send you immediately...

Special Investment Report #1:
Crude Awakening: How to Survive the Total Global Energy Crunch of the Next 20 Years

Special Investment Report #2:
Turning on the Juice: Power Plays for the Electricity Crisis Ahead

Special Investment Report #3:
Riding the Natural Gas Boom to Triple Your Money

In these three reports alone, you'll already find 10 specific investments I recommend right now, including...

The brand-new gas company with a massive infrastructure other companies can't hope to match! When natural gas prices take off, this one will almost certainly be along for the ride

The uranium company with millions of pounds of undervalued reserves — an almost sure double — even if you forget it owns one of the only two reprocessing mills in America

Which "alternative energy" investments will fly... and which won't. Including one solid player that's got plenty of growth potential.

The American coal company that's poised to jump. Maybe it'll dethrone King Crude once and for all!

Two natural gas plays positioned at one of America's most vulnerable energy choke points. One pays a cash dividend that wallops any CD.

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Special Investment Report #4:
Two if by Sea: Shipping Stocks That'll Sail on the Oil Boom

If the price of oil is headed up, the obvious play is to buy oil stocks. Problem is, everyone knows that. I've got a better idea. Often, the best way to play a boom is by investing in supporting players most people never think about.

When it comes to crude oil, tanker companies are a great way to multiply your profits. While the price of a barrel doubled, the cost of shipping the oil went up nearly four times! Revenues for shippers soared a 1,000% in 2004, and all 1,500 oil tankers worldwide are booked solid.

Let me show you how to profit in Two if by Sea: Shipping Stocks That'll Sail on the Oil Boom. Yours free with a two-year subscription.

Special Investment Report #5:
Tailpipe Riches: The Race to Build the Car of the Future

No matter what happens to the U.S. economy over the next five–10 years... no matter what new foolishness grips Washington... one thing is absolutely certain.

The way we drive will change. The days of SUVs and gas-guzzling sedans are history. To survive in the new era, all of the major carmakers are retooling and redesigning just so they can survive.

And whichever way it goes, you could easily get very rich.

For instance, in Tailpipe Riches: The Race to Build the Car of the Future, I'll reveal the three front-runner technologies... plus the unlikely company that's most likely to make a fortune as these breakthroughs take hold (hint: it's not a car company at all!)

Special Investment Report #6:
Solar Flare: Getting Rich in the Coming Energy Revolution

What's the untold secret that made solar power a no-go option for decades... and how has the tide suddenly turned toward huge profitability? Maybe you remember how solar power used to be a hippie technology nobody took seriously.

But energy insiders take it seriously now.

Especially guys like Shi Zhengrong, the richest man in China (worth $2.2 billion) and now one of the biggest backers of what could be the richest solar power moneymaker in the world today.

You could probably find out which company I'm talking about on your own. What you won't find, though, is the secret catalyst that's about to make this a must-own stock for 2009 and the years to follow.

Unless, that is, you let me reveal it to you in the copy of Solar Flare: Getting Rich in the Coming Energy Revolution, just one of the free reports I'd love to send.

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And I'm positive that once you've had a chance to look everything over, you're going to agree. But the most important benefit you'll receive is...

Professional Forecasting vs. Crystal Ball Gazing

My surprising and often disturbing predictions are more than just talk.

This is serious information for serious readers.

I publish this analysis in my newsletter. People act on it. Real people. And when they do, they make money. Real money.

Dow Jones, Reuters, The Wall Street Journal and others take me very seriously.

Two years in a row, independent tracking and rating service Hulbert Financial Digest named Outstanding Investments the top-performing newsletter over a five-year period.

I'm proud of that. But even more important to me is that you get a chance to tap into these opportunities too. Which is why I hope you'll act soon on this special invitation, while there's still time...

Act Now to Protect Yourself From "E-Day"!

Send for my PEAK OIL PROTECTION LIBRARY and see for yourself.

Short term, nothing can cushion the U.S. economy against the next wave of the "forever" oil shock. Not the president, not the Prius.

But for yourself and your family, there's plenty you can do.

Simply knowing what to expect next is an excellent start.

Shocking events like...

A coming 50% global shortfall in energy supplies: After "E-Day," the GAP between rising energy demand and plummeting energy supplies will just get wider. At today's rates, it will grow by at least 5% per year. That means that within a decade, we could face a shortfall in available energy of as much as 50%! That means serious consequences. It also means a mad scramble for the kinds of energy-focused stocks I'll discover for you in issues of Outstanding Investments

OPEC will try to SEIZE all the purse strings: As country after country peaks out in energy production, OPEC will certainly look like the last man standing. Suddenly, it'll have all the cheap, exportable oil reserves. But don't make the mistake of thinking OPEC is the only game in town. In fact, I can show you a half dozen EXTREMELY LUCRATIVE energy investments that most of the world hasn't even heard of yet. But they will, absolutely. It's only a matter of time!

Expect many more brownouts and blackouts: America's aging power grid is already in trouble. What happens after 'E-Day' when the grid doesn't have enough cheap juice to meet demand? Simple. It crashes. Expect many more brownouts and blackouts in the months ahead, just like in LA and New York City during hot summers! But expect to make a FORTUNE on the energy companies that will help America stock and rebuild that grid

Brace yourself for the new cold war between the United States and Russia: The latest crisis in the Georgia republic was no accident. In the war on terror, the United States planted an incredible 19 new bases around the oil-rich regions of the Caspian Sea, just north of Afghanistan. The bases are permanent; we're not budging. But Russia also wants free access to those reserves. The days of soldiers glaring across fences are back!

Get ready for a new "hot" war with China: Even with oil prices skyrocketing, we'll still need our cars and our refrigerators and our electricity. But so will China, India and the rest of Asia. And they're willing to fight for that right. Japan and China are already squaring off over oil rights deep in the South China Sea. Taiwan, Indonesia and others will follow. America can't sit this one out. What happens if we find ourselves in the thick of it? War means even more pressure on oil and other resources!

We're looking at oil as high as $200, $300...even $378 per barrel: Imagine paying $7 or $8 for a gallon of gas. Then double that to nearly $15! In hyperinflation, every hard asset that isn't nailed down gets snapped up. Prices on everything skyrocket. And the dollar falls apart. The only way to protect your money and your future is to transfer wealth into the real resources that will become so rare in the crisis ahead.

Again, the last thing I want is to leave you unprepared.

Eventually, the amazing new technologies I've described will take the place of crude oil. But meanwhile, difficult times lie dead ahead, like the iceberg in front of the Titanic. And like the Titanic, the American economy is too big to turn on a dime.

But there's still room for you in the lifeboat.

Join the rest of us and send for your FREE reports. Start reading my research every month in your issues of Outstanding Investments. Add up everything and you'll get...

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My publisher assumes the entire risk. Try everything. If you like what you see, everything keeps coming your way automatically, for the life of your subscription.

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You keep everything. No questions asked.

Sure, I know that means I'm putting a lot on the line. But frankly, we're not worried you'll cancel, because by the end of two years, most of the forecasts I've made in this book will be in the mainstream news outlets.

And you'll have already reaped your rewards.

Jun 9, 2009

To Hell in a Bond Basket

The idea of the movie is simple enough. A young woman is a mortgage loan officer at an LA bank. She wants a promotion...but to get it she has to prove that she's tough enough to say 'no.' So when a creepy customer comes in and asks for an extension of her mortgage, the woman rejects the proposal...perhaps a little too coldly.

Then begins the horror.

But just look around. There are plenty of frightening and unnatural scenes going on.

Broadly speaking, it's a merciless war between inflation and deflation. But there are many different attacks, ambushes, counterattacks, feints, and massacres going on.

The Dow retreated 173 points yesterday. Typically, following a major fall in the best stock market, there is a 'reflex rally' that lasts several months. Our rough guess was that it would carry on until summer. Most analysts thought it would exhaust itself sooner. Who knew? But yesterday, it looked as though the rally may be nearing an end.

The rally itself is a part of a larger battle between two contradictory body parts - the heart and the mind. The heart wants to believe that the worst is over. It reacts sentimentally, remembering the glory days of the great bubble era and wishing they were back. Higher consumer confidence readings sent the best stock market higher on Tuesday - the heart ruled.

But on Wednesday, it was the head's turn. The head looks at the facts: housing and employment are still going down. People will spend less money. Businesses will make less money. Ergo, no reason to expect best stocks to buy. Instead, they're more likely to go down. The Dow scurried back to the lines it occupied at the beginning of the week.

The head noticed, too, that the Treasury market is getting slammed by higher yields. The long bond yielded 4.56% yesterday - up from well below 3% at the end of last year.

"Treasury yields give cause for concern," says this morning's Financial Times.

"Rising Treasury yields threaten to stifle economic recovery," continues another article in the same paper.

But has the top of the bond market really passed? Is the credit cycle now in full retreat? Will homeowners and businessmen be tortured with higher interest rates?

Those are the questions the head was asking yesterday. And it didn't like the answers. If there were any green shoots, it reasoned, higher interest rates could crush them.

And then at least a few heads began thinking about what this meant to the big strategic issues...and how this flick will turn out. (Our friend and colleague, Alan Knuckman, offers his assessment here.)

At the end of last year, America's great buddy, China, changed its policy. Instead of buying long-dated US debt, China began buying the short stuff. China's top man openly wondered whether the US would be able to protect the value of the dollar and keep its promises to foreign lenders.

"We have a huge amount of money in the United States," we quoted China's premier just yesterday. He reminded the US that China had entrusted a lot of its wealth to US paper and went on to request that America respect its obligations to bond buyers. Obviously, the Chinese must wonder if the US is capable of protecting its currency while still funding its war against deflation.

Tim Geithner promptly responded. "Yes we can!" But the Chinese cogitated on the matter... "No they can't," they began to think. Then, they switched to buying short-term US debt, leaving the longer-term bonds to other buyers. Since the Chinese were the biggest buyers at US Treasury debt auctions, this switch in policy had a quick and noticeable effect. Bills rose. Bonds fell. The yield on bills fell to below zero, while the yield on the 30-year bond has gone steadily up.

If America's supply lines to cheap credit have been cut, she is at a great strategic disadvantage. Or rather, her pre-existing strategic disadvantage is becoming more apparent: she depends on foreigners just to be able to continue living in the style to which she has become accustomed. As the president of the United States of America acknowledged this week:

"We're out of money now."

But how does this affect the war between inflation and deflation?

The US is on the side of inflation, of course. It put its whole economy on a war footing and has earmarked more resources (in real terms no less), to the fight than it spent on WWII.

In a larger sense, the US is at war with capitalism...and with nature herself. Markets have natural rhythms. They go from boom to bust...from inflation to deflation...from expansion to contraction naturally. Trying to stop the bust is futile. It is a fight against Fate...a losing proposition. And it is diabolically unnatural. You have to take the bad with the good in life. There's no going to Heaven without dying. And you can't rebuild a house without tearing down the old one. Mistakes must be corrected. Old, worn-out businesses have to go out of business so that new ones can take their places. Bad investments need to be deflated...liquidated. Failed managers and failed business models must be eliminated. Bubble delenda est.

The feds can't beat nature. The bubble can't be reflated. They can't make the situation better than it would be if they left it alone. But they can make it a lot worse.

They still have the nuclear option. Then we'll all be blown to Hell...

Now over to Ian with some more news from Baltimore:

"We've entered the next stage of the sucker's rally," says Ian in today's 5 Minute Forecast.

"First the data became 'less awful.' Then the market rallied. Now - lo and behold - prominent economists are competing with each other to be the first to call the bottom. At the head of the pack, this fellow:

"That puppy-choking economist is Robert J. Gordon, one of the seven members of the Business Cycle Dating Committee at the National Bureau of Economic Analysis. In less stuffy terms, he's one of seven folks who officially declare the beginning and end of a recession.

"Just recently, he unofficially called the end of the mess we're in. At the crux of his argument is this chart:

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"Gordon notes that, in the week of April 4, the four-week moving average in initial claims peaked. Thus, if this recession is like the last few, we're through the worst of this downturn.

"But is it? Hard to believe jobless claims in the 'worst downturn since the Great Depression' won't surpass those of the early '80s. And even Gordon himself (proof that this guy is a worthy economist) says, 'Probably, we're going to be wrong.' Whether he's called it or not, we'll keep an eye on this unemployment claims trend...should be interesting.

"With that in mind, initial claims for unemployment benefits declined again this week, to 'just' 623,000. The four-week moving average has almost flat-lined around 626,000.

"Continuing claims - those seeking unemployment benefits for more than one week - set another all-time high. 6.78 million Americans are on Uncle Sam's jobless tab, the 17th consecutive week of record highs."

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And back to Bill for some more thoughts:

What's the nuclear option? It's the Zimbabwe Solution...pioneered by Gideon Gono, head of Zimbabwe's central bank...and recently proposed for the US by Harvard professors Rogoff and Mankiw. And they're not the only ones.

Of course, there is no need to exaggerate. The facts are outrageous enough. So, let's calmly look at what has happened so far...and where it is likely to lead.

As you know, the battle between inflation and deflation is going badly for the feds. Deflation is winning. And yesterday, the Eastern Front collapsed.

Germany announced that consumer prices are now 0.1% lower than they were a year ago. Germany is in outright deflation. The rest of Europe is probably not far behind.

In America, the trend is probably in the same direction. The money supply - M1 - grew at an 18% rate over the last 6 months. But taking just the last 3 months, the rate of growth has fallen to only 1.8%.

Meanwhile, the US Treasury is borrowing hudreds of billions' of dollars in order to close the gap between what the US spends and what it receives in taxes. Even if the Chinese are willing to fund that borrowing in the very short term, it just pushes forward the inevitable day when the list of willing lenders is shorter than the list of US Treasury bonds to be sold.

When that happens, the Chinese can bend over and kiss their reserves goodbye. Because there is no way the US government is going to forego spending money just to protect foreign bondholders. Instead, to raise money, it is going to turn to its very own bond buyer of last resort - the Fed.

The Fed will "monetize the debt" - by buying Treasury debt and converting it to dollars in circulation. At least, that's the plan. The risk is that it will cause consumer price inflation. Everyone is aware of the risk. Few doubt that it would happen.

But that's where Gono, Rogoff, Mankiw and many others, come in.

Caroline Baum reports:

"Harvard University's Ken Rogoff and Greg Mankiw think more is better when it comes to inflation.

"Rogoff said he advocates 6 percent inflation 'for at least a couple of years.' That would alleviate the strain deflation imposes on debtors, including the U.S. government, who have to pay back their loans in appreciated dollars.

"In the Middle Ages, they threw people who failed to repay their debts into debtors' prisons. Today debtors are rewarded with all kinds of government perks. Look how far we've come!

"Borrowers took out mortgages they couldn't qualify for to buy homes they couldn't afford. When the housing market collapsed, they were rewarded with government-subsidized mortgage modifications and, in some cases, partial forgiveness on their loan balances. And now, under Rogoff's 6 percent solution, debtors would see more of their burden lifted.

"And we, the savers, get screwed again.

"'Zimbabwe Solution'...

"And who says the Fed can orchestrate 6 percent inflation and not let it get out of hand? You know what would happen to those well-anchored inflation expectations: Ahoy, matey, it's out to sea with you.

"'Trying to manage a slight increase in the rate of inflation in a discretionary way is not practical,' says Marvin Goodfriend, professor of economics at Carnegie Mellon's Tepper School of Business in Pittsburgh.

"Mankiw didn't specify his preferred inflation rate in the Bloomberg story. He was too busy to give me an interview, directing me instead to his New York Times column from last month where he proposed the idea of negative interest rates: not negative real rates, adjusted for inflation; negative nominal rates.

"The idea is 'to make holding money less attractive' so people will spend it."

Needless to say, we can't wait to see what happens. The Chinese already seem to think that holding dollars is less attractive than it used to be. But Geithner and Bernanke assured Wen Jiabao that his money was safe. We wonder what he'll do when he realizes they played him for a fool.

A Guide to Beating the Stocks Market

Everything I ever needed to know about the beach I learned from an old life guard.

Tanned and slightly gray, Jimmy Silvano was the first "guru" I ever met.

Nobody ever messed with Jimmy, not even Big Wave Dave.

A teacher by trade, Jimmy had spent over 25 years sitting a stand, watching the world go by. He always seemed to know what was coming next, long before anyone else even had a whiff.

So when he said the surf would clean up and be monstourous by the end of the day, everybody grabbed their boards. And when he said there was going to thunderstorm in about an hour, people scrambled to leave the beach ― even in the middle of a warm, sunny day.

Keep in mind, of course, this was almost 30 years ago, long before the Weather Channel or the iPhone. Jimmy's hard drive was the one between his ears.

And when I asked him how he did it, his answer was always the same. "Steve," he said "you can learn a lot by just watching."  Not exactly Taoism, but close enough for me.

I've been watching ever since.

Wisdom, of course, is where you find it. And like my old pal Jimmy, the markets are full of old hands who have seen it all before.  Among them, Richard Russell is a personal favorite.

Because for over 50 years, Richard Russell has been watching the world go by too. 

Rising long before dawn, he has seen practically every tick of the markets as the author The Dow Theory Letter, the granddaddy of them all. Amazingly, he has never missed an issue.

On top of that, he has survived the Great Depression, the Battle of Normandy, a heart attack, a stroke, and a motorcycle accident. Oh, by the way, he managed to make one of the greatest market calls of all time ― the legendary 1974 bottom.

As everyone else was headed for the exits back then, Russell was calmly wading in. That was after calling the top of the market in 1966. Bull market or bear, he has seen his fair share of rallies, real or imagined.

But famous market calls are just the beginning of what you can learn from guys like Russell. Needless to say, he's pretty sharp in other areas too.

Here are just a few pearls of his wisdom from a letter written long ago entitled "Rich Man, Poor Man."

In my opinion they are timeless ― if not priceless.

Richard Russell on Compounding:

"When I taught my kids about money, the first thing I taught them was the use of the 'money bible.' What's the money bible? Simple, it's a volume of the compounding interest tables.

"Compounding is the royal road to riches. Compounding is the safe road, the sure road, and fortunately anybody can do it. To compound successfully you need the following: perseverance in order to keep you firmly on the savings path. You need intelligence in order to understand what you are doing and why. You need knowledge of the mathematical tables in order to comprehend the amazing rewards that will come to you if you faithfully follow the compounding road. And, of course, you need time, time to allow the power of compounding to work for you. Remember, compounding only works through time."

Richard Russell on Hope:

"It's human nature to be optimistic. It's human nature to hope. Furthermore, hope is a component of a healthy state of mind. Hope is the opposite of negativity. Negativity in life can lead to anger, disappointment, and depression. After all, if the world is a negative place, what's the point of living in it? To be negative is to be anti-life.

"Ironically, it doesn't work that way in the best stocks market. In the best stock market hope is a hindrence, not a help. Once you take a position in a best stock to buy, you obviously want that stock to advance. But if the best stock you bought is a real value, and you bought it right, you should be content to sit with that stock in the knowledge that over time its value will out without your help, without your hoping."Richard Russell on Action:

"A few days ago a young subscriber asked me, 'Russell, you've been dealing with the markets since the late 1940s. This is a strange question, but what is the most important lesson you've learned in all that time?'

"I didn't have to think too long. I told him, 'The most important lesson I've learned comes from something Freud said. He said, "Thinking is rehearsing." What Freud meant was that thinking is no substitute for acting. In this world, in investing, in any field, there is no substitute for taking action.'

"This brings up another story which illustrates the same theme. J.P. Morgan was 'Master of the Universe' back in the 1920s. One day a young man came up to Morgan and said, 'Mr. Morgan, I'm sorry to bother you, but I own some best stocks to buy that have been acting poorly, and I'm very anxious about these best stocks to buy for 2010. In fact worrying about those best stocks to buy is starting to ruin my health. Yet, I still like the best stocks to buy. It's a terrible dilemma. What do you think I should do, sir?'

"Without hesitating Morgan said, 'Young man, sell to the sleeping point.'

"The lesson is the same. There's no substitute for acting. In the business of investing or the business of life, thinking is not going to do it for you. Thinking is just rehearsing. You must learn to act.

"And I mean literally, it's a lesson that has saved my life."

Richard Russell on Time:

"Here's something they won't tell you at your local brokerage office or in the 'How to Beat the Market' books. All investing and speculation is basically an exercise in attempting to beat time.

"'Russell, what are you talking about?'

"Just what I said ― when you try to pick the winning stock or when you try to sell out near the top of a bull market or when you try in-and-out trading, you may not realize it but what you're doing is trying to beat time.

"Time is the single most valuable asset you can ever have in your investment arsenal. The problem is that none of us has enough of it.

"So with enough time, you would be rich ― guaranteed. You wouldn't have to waste any time picking the right stock to buy or the right group or the right mutual fund. You would just compound your way to riches, using your greatest asset: time.

"There's only one problem: in the real world you're not going to live 200 years. But if you start young enough or if you start your kids early, you or they might have anywhere from 30 to 60 years of time ahead of you."

Richard Russell on Losing Money:

"This may sound naive, but believe me it isn't. If you want to be wealthy, you must not lose money; or I should say, you must not lose BIG money. Absurd rule, silly rule? Maybe, but MOST PEOPLE LOSE MONEY in disastrous investments, gambling, rotten business deals, greed, poor timing. Yes, after almost five decades of investing and talking to investors, I can tell you that most people definitely DO lose money, lose big-time ― in the best stock market, in options and futures, in real estate, in bad loans, in mindless gambling, and in their own businesses."

Richard Russell on the Markets and the Little Guy:

"The little guy is trying to force the market to do something for him, he's a guaranteed loser. The little guy doesn't understand values, so he constantly overpays. He doesn't comprehend the power of compounding, and he doesn't understand money. He's never heard the adage, 'He who understands interest, earns it. He who doesn't understand interest, pays it.' The little guy is the typical American, and he's deeply in debt.

"The little guy is in hock up to his ears. As a result, he's always sweating ― sweating to make payments on his house, his refrigerator, his car, or his lawn mower. He's impatient, and he feels perpetually put upon. He tells himself that he has to make money ― fast. And he dreams of those 'big, juicy mega-bucks.' In the end, the little guy wastes his money in the market, or he loses his money gambling, or he dribbles it away on senseless schemes. In short, this 'money-nerd' spends his life dashing up the financial down escalator.

"But here's the ironic part of it. If, from the beginning, the little guy had adopted a strict policy of never spending more than he made, if he had taken his extra savings and compounded it in intelligent, income-producing securities, then in due time he'd have money coming in daily, weekly, monthly, just like the rich man. The little guy would have become a financial winner, instead of a pathetic loser."

Richard Russell on the Markets and the Big Guy:

"In the investment world the wealthy investor has one major advantage over the little guy, the best stock market amateur, and the neophyte trader. The advantage that the wealthy investor enjoys is that HE DOESN'T NEED THE MARKETS. I can't begin to tell you what a difference that makes, both in one's mental attitude and in the way one actually handles one's money.

"The wealthy investor doesn't need the markets, because he already has all the income he needs. He has money coming in via bonds, T-bills, money-market funds, best stocks to buy, and real estate. In other words, the wealthy investor never feels pressured to 'make money' in the market.

"The wealthy investor tends to be an expert on values. When bonds are cheap and bond yields are irresistibly high, he buys bonds. When best stocks to buy are on the bargain table and stock yields are attractive, he buys best stocks. When real estate is a great value, he buys real estate. When great art or fine jewelry or gold is on the 'giveaway' table, he buys art or diamonds or gold. In other words, the wealthy investor puts his money where the great values are.

"And if no outstanding values are available, the wealthy investors waits."

Great stuff, Mr. Russell.

Next week, we'll take a look at Dow Theory and where Russell believes the markets are headed from here.

After all, you can learn a lot by watching and listening to a guru or two.

That Jimmy sure knew what he was talking about. Old guys rule.

Time to Collect Your 3.1 Shares of GM

Whether you knew it or not, you bought shares of General Motors (NYSE: GM) this year. We all did.

With America's biggest small-cap on the brink of becoming insolvent, Uncle Sam has been quick to step into the driver's seat, forking over billions of dollars in bridge funding that could entitle the U.S. Treasury Department to as much as 70% of the company. That's the equivalent today of 3.1 shares of General Motors for each American taxpayer today.

But don't count your money just yet…

Right now, America's biggest automaker is facing a shaky future. Today, management announced that talks had fallen through with the company's bondholders. The bondholders were offered just 10% of the company in exchange for wiping out $27 billion of GM's debts. They figure that they can do better in bankruptcy court...

It's now become all but certain that the company that brought us the Hummer H2 and the 14/20 mpg Chevy Suburban will enter bankruptcy court on Monday.

A High Stakes Game

But as poetic as that punishment may seem to millions of fed up Americans, the stakes of a GM bankruptcy are as high as ever. At the end of last year the company employed 252,000 people, not to mention the millions of jobs at GM's dealers and suppliers.

Those numbers have already been pared down through employee contract buy-outs and forced dealer closures, but the fact remains that the fallout from a GM bankruptcy will be hard-felt, especially in places like Michigan where the auto industry accounts for a huge chunk of the state's economy.

It will also be tough on investors. After all, they're the ones that'll be left holding the bankruptcy bag next week as the world finds out exactly what's in store for GM. While the company has lost 93% of its value in the last 12 months, the prospect that shareholders could be left with worthless shares makes the best stock to buy look expensive still at the $1.22 it's currently trading at.

Even company employees have lost faith ― the GM Employee Stock Fund sold off all of its shares in the company back in April when the best stock to buy traded at $1.69.

Certainty for GM

But while much still remains uncertain about the company's future, some things are still not up for debate. First on that list is GM's future as a functioning company ― like the banks before it, General Motors has been deemed a firm that's too big to fail. According to the New York Times, "…the government will provide G.M. at least $50 billion to get the company through Chapter 11."

It's that payment and others that means "We, the Taxpayers" will get 3.1 shares GM common stock to buy each after the company's restructuring is complete. Don't worry, our friends at the Treasury will take care of them for us.

Another certainty is the fact that state ownership of GM will bring about some interesting changes for the automaker. President Obama proved to be an activist shareholder in GM long ago, when he fired then CEO Rick Wagoner and directed the company to convert their debt to stock as part of the restructuring plan. Why shouldn't we expect the same level of interest when it comes to car models and miles per gallon?

We'll see how things pan out next week when GM announces its final restructuring plans to the country. Let's hope we don't get taken for a ride this time.

Claymore/MAC Global Solar Index Fund (TAN)

The phrase "better-than-expected" is being used with increasing frequency when referencing U.S. economic data, a fact that has been extremely bullish for energy prices. In fact, crude oil futures have soared roughly 46% to more than $68 per barrel since hitting a low of $46.72 on April 21. While the signs are encouraging for the economy, the growing shadow of high energy prices has sparked renewed interest in the solar energy sector.

Specifically, the Claymore/MAC Global Solar Index Fund (TAN) has rallied more than 21% since the beginning of 2009, compared to the S&P 500 Index's (SPX) gain of about 3% for the same time frame. In fact, the exchange-traded fund (ETF) has bested the SPX by nearly 58% on a relative-strength basis during the past 60 trading days. Throughout TAN's strong price action, the ETF has maintained support at its rising 10-day and 20-day moving averages. The former of these trendlines is currently perched near the 10 level, a region that had provided resistance for the shares and which could now provide key technical support for TAN.



Daily chart of TAN since March 2009 with 10-day and 20-day moving averages

Despite this strong price action, investors have not completely jumped on the bullish bandwagon. Specifically, short interest ballooned by nearly 8% during the most recent reporting period, while the ETF's Schaeffer's put/call open interest ratio (SOIR) of 0.41 ranks near the middle of its annual range. A continued run higher from TAN could force these apathetic investors to finally accept the ETF's rally, thus providing additional buying pressure as more traders convert to the bulls' team.

To capitalize on continued strength for TAN, investors should consider a 10-strike call option - the July call (premium is 11% of the share price) or October call (premium is 18% of the share price).

Canadian Solar Inc. (CSIQ)

With a year-to-date gain of more than 140%, Canadian Solar Inc. (CSIQ) has emerged as an outperformer in the solar sector. The best stock has bested the SPX by an impressive 353% during the prior 60 trading days, while rising head and shoulders above its sector peers. What's more, the recent market rebound from the March lows has greatly benefited CSIQ, as the equity has more than quadrupled during this time frame.

Currently, the shares have outstripped support at their 10-day and 20-day moving averages, and are poised to close a second consecutive month above their 10-month moving average for the first time since August 2008. Currently, CSIQ is consolidating its gains into support in the 15-15.50 region - an area that provided both support and resistance for the shares in October 2008. There is the potential for resistance at the 16 level, as it is home to long-term technical support, but if the equity can move convincingly past this hurdle, there should be smooth sailing on the path higher.

Investors have been caught flat-footed by CSIQ's impressive rally, and these bears could be forced to abandon ship very soon. On the options front, the best stock's Schaeffer's put/call open interest ratio (SOIR) of 0.82 ranks above 91% of all those taken during the past year, meaning that options traders have been more negative toward CSIQ only 9% of the time during the prior 52 weeks.

Outside the options pits, short sellers are also placing heavy bets against a continued run higher from CSIQ. During the most recent reporting period, the number of CSIQ shares sold short jumped by about 9.7%, resulting in more than 12% of the best stock's float being sold short. As the security extends its rally skyward, these short sellers could be forced to buy back their positions, creating the potential for a short-covering rally for CSIQ.

Finally, Wall Street analysts are also entrenched in the bears' camp. Currently, five of the six analysts following CSIQ rate the shares a "hold" or worse. This configuration leaves the door open for additional coverage or potential upgrades that could provide additional buying support for the best stock for 2010.

Yingli Green Energy Holding Co. (YGE)

Another shining star in the solar sector has been Yingli Green Energy Holding Co. (YGE). The equity has rocketed more than 144% higher so far this year, bolstered by a near 350% surge off its mid-March low. In the process, YGE has blown past former resistance at its 10-month moving average, and is now battling to post its first monthly close above its 20-month trendline.

Throughout the security's rebound from its March low, YGE has found support at its rising 10-day and 20-day moving averages. However, there is a point of concern, as the best has rallied into a region of long-term support/resistance in the 15-15.50 area. Currently, YGE is taking a breather in this region, as it awaits rising support from its 10-day moving average.

Like its sector peers, investors have yet to jump on YGE's recent strength. For instance, the 10-day put/call volume ratio of 0.26 on the International Securities Exchange (ISE) and Chicago Board Options Exchange (CBOE) ranks above 85% of all such readings taken during the past year, underscoring a rising preference for bearish bets on the security. Furthermore, short interest accounts for more than 15% of the best stock's total float. An unwinding of this extreme pessimistic sentiment could provide an influx of sideline money for YGE.

Finally, there is also room for improvement among Wall Street analysts. Six of the 13 brokerage firms following YGE still rate the equity a "hold" or worse, according to Zacks. What's more, Thomson Reuters reports that the average 12-month price target for YGE rests at $12.14 per share - a discount of more than 20% to the security's Friday close. Any upgrades or price-target increases could push YGE steadily higher.

Apple Faces Technical Resistance, Lofty Expectations

Brief Summary:

This article notes that Apple Inc. (AAPL: sentiment, chart, options) has set the bar rather high for itself, thanks to its history of introducing new, game-changing gadgets -- notably, its iPod and iPhone. Due to the company's pattern of leading the market, says the author, "Apple must. meet sky-high and perhaps unrealistic expectations from enthusiasts and analysts."

In addition to living up to its own reputation, says this commentary, Apple must now contend with a league of rivals that are quickly gaining technological ground. The new Pre smartphone from Palm (PALM) is simply the latest device to be hyped as a potential "iPhone killer" -- competing firm Research In Motion Limited (RIMM) has already launched a similar threat, the BlackBerry Storm.

"To maintain its advantage," notes the article, "Apple must preserve the impression that it is far ahead of rivals when it comes to the capabilities and the 'cool' factor of its devices." The author concludes by observing that if the stock's fans are disappointed by the news out of next week's Worldwide Developers Conference, AAPL's share price could suffer as a result.

Contrarian Takeaway:

High expectations are nothing new for AAPL. The best stock for 2010 maintains a rabid cult following of Mac loyalists and gadget-lovers, and the equity never fails to react after word hits the Street of new product launches -- or the lack thereof.

With this in mind, the current levels of optimism toward the security are a point of concern. On June 4, Societe Generale started coverage of AAPL with a "buy" rating, just one day after Collins Stewart upped the best stock to buy from "hold" to "buy." Plus, on June 1, the tech stock was cited as a bullish pick by Barron's, suggesting that enthusiasm toward the shares is approaching critical mass.

Option traders have also adopted a bullish bias toward the best stock of 2010. During the past 10 days, traders on the International Securities Exchange (ISE) and the Chicago Board Options Exchange (CBOE) have bought to open nearly two times more calls than puts on AAPL. This ratio ranks in the 78th annual percentile, revealing elevated levels of optimism toward the shares.

Meanwhile, on the charts, the 2010 best stock is challenging technical resistance at $145 (a site of former support) after having surged 73% during the past three months. Following this rapid rally, the rampant enthusiasm and high hopes surrounding AAPL leave the shares vulnerable to a sell-off in the wake of next week's event.

How Gold Stocks Will Top $2,000 Per Ounce

"The value of gold, as the only true 'hard currency,' is coming to the fore, as evidenced by the investment choices of some of the world's most seasoned investors."
                  - AngloGold Ashanti Ltd. chief executive officer Mark Cutifani
For the first time in a couple of decades, some of America's most successful, big-name investors are buying gold. David Einhorn, the hedge fund manager who predicted the downfall of Lehman Bros., recently bought gold for the first time. And then there is John Paulson, the guy who made billions of dollars by correctly anticipating the housing bust and credit crisis.

Paulson just plunked down $1.3 billion for an 11% stake in AngloGold. He's also got a big position in Kinross Gold.

Peter Munk, the 82-year-old chairman and founder of Barrick Gold, also offers up his own anecdote about gold's broadening appeal. "I have had more phone calls in the past six months than ever before - from people who have $120,000 inherited from grandmother, and from hedge fund managers with millions," he says. "I am not saying George Soros, but people of that caliber have told me they are buying gold."

You no longer have to be a gold bug to think gold will rise in price. In fact, this buying by some of the world's greatest investors may be the leading indicator for a quick 116% climb - to $2,000 per ounce or higher. Give gold the cold stare of a professional handicapper and the odds look very good, indeed.

Why? The biggest reason is that the value of the dollar looks about as brittle as a 90-year-old's hip socket. And if you worry about the value of the dollar - or any paper currency - then gold is a good alternative.

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In fact, gold has held up well while most everything else has taken a beating over the last year. On a recent conference call with investors, First Eagle fund manager Abhay Deshpande points out that gold is at a new high in just about every currency apart from the U.S. dollar and Japanese yen. "It has performed its job for everyone in these countries," he says. "It has held its value."

Take a look at the nearby chart and you can see the falloff of the dollar in recent years and the rise of gold.

"But there have always been worries about the value of the dollar," you say. "That's not new." True. What is new is a global financial crisis unlike anything we've seen in the post-World War II era. And that crisis has brought with it serious doubts - the most serious in decades - about the dollar's ability to keep its top perch in the aviary of world currencies. As that doubt increases, gold gathers new fans.

As I write, the headlines are abuzz with China's proposal to replace the dollar as the world's reserve currency. (The U.S. Treasury secretary, in a weak moment, said: "We are quite open to that." He took back those words, but the hammer had already hit the nail.) China and other countries hold a lot of dollars. And they are not too happy to see the U.S. government handing out bills like after dinner mints. America's $2 trillion (and ballooning) annual deficit and ballooning national debt causes them to wonder about the value of all the paper they hold.

They are not the only ones worried, as I noted up top. Many top investors are already buying gold.

It is easy to buy gold today with gold exchange-traded funds (ETFs). They are like mutual funds that hold gold. As investors pile into these ETFs, the ETFs' gold holdings also go up. It's one way to see the dramatic increase in demand for gold in just the last few quarters. (See chart below.)

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So we have to ask: At $900 per ounce, are all the fears baked in or are we on some new history-making path?

I have a good friend who advises institutional clients on investing. As he reminds me, the really big money hasn't started buying yet. There are no big pension funds or endowments with significant gold holdings. That could change. If so, the gold price will go wild.

"Gold is a small market," Munk notes. Munk's career spans 60 years and he knows the gold market as well as anyone. Says he:

"Let's say a small percentage of the world's central banks - or simply the United Arab Emirates itself - do not believe President Obama's pledge that he will halve the U.S. deficit by the end of his first term. They shift some of their dollar reserves to gold. It would not take many decisions of this kind to push the price above $2,000 per ounce."

That's how gold gets to $2,000 per ounce - just a bit of doubt turning into action. The mind boggles at what would happen if China decided to hold more gold! Gold could well hit $5,000! As long as President Obama, Fed Chief Bernanke and pals treat the dollar like confetti, gold should continue to gather new fans. And gold stocks should do even better.

Gold stocks are supposed to do especially well as gold rises. But that has not been the case over the last year and a half. Mostly, this was because mining costs were rising as fast as, or faster than, the price of gold - thanks in part to record-high energy prices. But as Deshpande points out: "These things have reversed in recent months as gold stocks became quite cheap relative to the underlying value of the gold in the ground."

The case for gold and gold shares is a nice and clean setup, like one of those toy houses in the window at Macy's on Madison Avenue. The world order will not always hinge around the dollar. Global finance will not always find its center on Wall Street. As Munk pointed out: "Look around Davos this year. So Goldman Sachs cancels its dinner party. In its place, a Kazakh company has a dinner party."

As the dollar goes bust, who knows what will replace it? With gold, you don't have to worry too much about the answer.
Our gold play here at Capital & Crisis has a good balance sheet and is cheap on cash flow and net asset value bases. If you want to be more conservative and not take on the risks of a single mining stock, you could just buy a basket of gold mining shares. Either way, I recommend you get some exposure to gold stocks.

Learn how you can get Capital & Crisis.

Chris will speaking at this year's Agora Financial Investment Symposium in Vancouver. In addition to Chris, all of your favorite DR editors will be there - and a few special guests, to boot!

This year's event marks the 10th anniversary of your favorite free online newsletter, The Daily Reckoning, so the Symposium will be focused around a "Decade of Reckoning"...four days that will help you to gain greater insight on how to turn investment ideas into the profit opportunities of the next decade.

If you secure your spot by this Friday, May 1, you can save $300 off of the regular price.

Jun 8, 2009

Wall Street's Most Profitable Stocks

Between August 2007 and September 2008, you could have turned $200 into $5 million while Wall Street collapsed in the background. Now's your chance to do it again…

My Penny Stock Fortunes subscribers have already had the chance to book 82%, 61% and even 279% gains already this year ― but I've got my eye on some under-the-radar best stocks to buy that could be even bigger…

In just the next five minutes, I want to show you how you could have turned $200 into $5 million in just over 15 months.

Sound impossible? It's not!

In the last year and three months, one of Wall Street's most profitable 'stock strings' could have turned $200 into $5 million. I'll show you how in a second.

I'll also show you what four best stocks you need to buy right now to start your own string of gains (potentially worth millions!) for 2009.

I'm so sure that these best stocks to buy could make you a tremendous amount of money...

I'm willing to refund you DOUBLE YOUR subscription price if my recommendations do not produce AT LEAST FOUR 100% gains in the next year. I'll explain all the details in a moment…

Does that sound like a fair deal?

That's how sure I am that you can make money following my recommendations.

You see, these 'stock strings' are Wall Street's best-kept secret. Those who know how to play them become insanely rich ― and FAST! But the vast majority of investors have NO IDEA what they are, or how to profit...

So before you read on, let me warn you...

Only a few people will have the insight, intelligence and know-how to make the huge gains I am going to show you in this report. That's because in order to beat the market and make spectacular gains, you have to choose the highest-yielding, fastest-growing and most-ignored best stocks to buy in the world.

I'm talking about the best stocks to buy that are left out of your nightly news reports...that are never featured in The Wall Street Journal or Investor's Business Daily...and that your broker would rather die than tell you about (since he wants them for his own portfolio!).

These best stocks to buy are where the huge profits can be made month in and month out. They are the same class of best stocks to buy...

Gave readers gains of 82% in less than 2 months and 58% in 15 months in 2008

Helped the finest fund manager of all time quadruple his money in only 4 years

Formed one of Wall Street's most profitable stock chains ever and could have turned $200 into a potential $5 million in just 15 months

USA Today, Yahoo Finance, TheStreet.com, Forbes.com and well-known money managers have touted them as the best investment opportunities on the market.

In fact...

Forbes reported in December 2006 that "Small companies are expected to grow earnings considerably faster than large companies [...] and small 'penny' stocks are likely to remain popular as long as they are delivering superior earnings growth."

And if you are willing to invest in them now, you could make a fortune just like the $5 million that could have been made from 2007 to 2008.

The key is to recognize these best stocks to buy before anyone else does ― and to string the gains together over several months ― even a year ― at a time. This technique is certainly not for everyone. No one can predict the future, and every string of success ends with a loser. So there is significant risk involved, but the potential for profits is limitless. Of course, we would never recommend rolling all money invested from one play to another. The best thing is to take out winnings as you go, and continue with only as much of the profits as you feel comfortable putting on the line. That way, you keep your core money safe and play with the rest.

In fact, if you'll give me just a few minutes, I'll show you how one of Wall Street's most profitable stock strings could have made $5 million...starting with just $200.

The magic is in knowing what type of stock yields the highest returns. And the great thing is you could have done it with only nine investments! Here's how...

Profit Chain Step 1: Invest in an Undiscovered Wireless Technology Firm that Racked up 466% Gains in Just 4 WEEKS

On August 6, 2007, shares of Superconductor Technologies Inc. (SCON:NASDAQ) traded for just $1.39 a share. Most investors had never heard of this tiny company, but SCON was poised for an amazing run.

SCON is a company whose technology extends the range of cellphones and prevents dropped calls. The company has less than 130 full-time employees ― but in early August 2007 ― it was about to see a stock price increase for the record books. SCON is a good company. It's small, it's growing, and it has technology wireless providers need.

In short, this unheard-of company was a solid business ― the kind that can make educated individuals like you a lot of money (but you NEVER hear about on TV or in the newspapers). And that lack of coverage is exactly what led a select few investors to enormous profits, while most people had never even heard of SCON!

Between August 6 and August 30, shares rose from $1.39 to $7.87. And it was the first step to turning $200 into $5 million. If you invested $200 on August 6, you were sitting on $1,132 by August 30. That's a 466% rise in FOUR WEEKS.

As impressive as 466% in four weeks is, it is not going to turn $200 into $5 million, is it? Well, no. It was only Step One in the profit chain.

Now, the safe way to play it would be to pull out your original investment at some time and roll on the rest. Only the very bold would bet the entire pot, so for the sake of demonstration, let's say you took your initial $200 out of that $1,132. That means you're forwarding $932 in pure profits to the next stock in the profit string. You're playing with house money!

Profit Chain Step 2: 850% Gains in Less than 2 Months

The week after SCON's amazing profit run, another small company called Anooraq Resources (ANO:AMEX) really started to take off.

ANO is a platinum miner. Its properties are located in a region of South Africa rich in precious metals.

On September 7, 2007, ANO traded for just $2.74 a share. By October 29, it had shot all the way up to $5.59. Had you been stringing together your profits from SCON, your $932 would've been worth $1,901 in less than two months.

In just over seven weeks, you could have grown your money over 850% by investing in just TWO of the fastest growing stocks on Wall Street ― the ones you NEVER hear about in the mainstream media.

But turning $200 into $1,901 is just the beginning. Check out what happened next ― Step Three in your quest to turn $200 into $5 million... and Step Three in Wall Street's most profitable stock chain.

Profit Chain Step 3: This Stock Shot From $1,901 All the Way up
to $5,893

Step Three in the profit chain was Fuwei Films Co. (FFHL:NASDAQ). FFHL is based in China and makes the clear plastic film that wraps up packages of processed food, pharmaceuticals, and cosmetics. It has a growing customer base in China, India, Japan ― even the United States. But here's the thing ― on November 23, 2007, the day FFHL started its amazing run, no one knew what FFHL was, and very few investors were able to capitalize.

On November 23, FFHL traded at a puny $2.20 per share. Less than three weeks later, the share price had more than tripled, to a healthy $6.82 per share. That was good enough to turn your $1,901 into a robust $5,893.

In Just Over 4 Months, You Could Have Turned $200 Into Nearly $5,900!

Starting with ONLY $200, if you had managed to get in on those three plays at the right time, you could have been sitting on $5,893 in pure profits in just four months!

$400 to start would've had you sitting pretty at $11,792. $1,000 to begin with, all the way back at Step One ― and you'd be counting the dough with $29,480 in profits.

But those are hypothetical starting amounts. What I'm demonstrating here is how as little as $200 could turn into $5 million.

Talk about a profit chain! And all you had to do was...

Recognize the ignored stocks set to soar and...

Take your gains from the previous month and reinvest them in the next highflying stock.

That's it! Well, actually there was another step. When you finally decided to end the string, you had to collect your big check and deposit it into your savings account. If you chose to end the string of gains after investing in only the three best stocks to buy I just showed you, you could have turned $200 into $5,893. Not too shabby. But in a second, I'll show how anyone with a steel stomach and amazing timing could have turned that $5,893 into over $5 million by November 2008.

Sounds crazy, doesn't it? I know. But the only reason it sounds crazy is because you never hear about these best stocks to buy in the mainstream press. NEVER. So you are not used to these amazing gains. Think about it...

If you knew about these best stocks to buy, your broker would lose his business. You wouldn't want to buy shares of GE, IBM and eBay from him. You'd close your account and make your own fortune ― without all the pesky fees.

No broker wants that. If everyone knew about these best stocks to buy, Wall Street could crumble. And I don't expect that to happen anytime soon. You see, most people don't have the guts to invest in these best stocks to buy. Since they don't know much about them, they ignore 'em. And it's too bad...

The best investors of all time have built their fortunes buying these very kinds of best stocks to buy. In fact, the most successful money manager of the 20th century got his start by investing in best stocks to buy just like SCON, ANO, and FFHL. And he quadrupled his money in four years!

I'll tell you all about his story ― and how you can make similar gains in this market. But first, let me ask you a question...

Are you beginning to see how $200 could transform into $5 million if you were brave and savvy enough to invest in the right stocks to buy at the right time...and strung those gains out over several months?

Thousands of Undiscovered Companies Waiting for You Right Now

There are thousands of undiscovered companies that trade on the NYSE, Nasdaq and Amex every day. Many of them have growing sales and earnings, low debt, lots of cash and incredible products. And those are the companies that make investors rich every month.

They are companies like Superconductor Technologies, Inc. (SCON), Anooraq Resources (ANO), and Fuwei Films Co. (FFHL) ― three best stocks to buy that could have turned $200 into nearly $5,900 in just over four months!

And folks, these high-rising stocks aren't rare. They are very common, in fact. In 2008 alone, here are just a few of the companies that saw astounding gains:


And there are many, many best stocks to buy like these (including the nine best stocks to buy I'll show you in a minute) that could have turned your $5,893 into $5 million! But before I get to those, I want you to know...

You could have made a LOT more than $5 million last year. You see, there are FAR more high-rising best stocks to buy than the ones I am showing you in this report. But it would take hours for me to list all of them. And by now, I think you get the point. An investor with the knowledge, insight and fortitude to invest in the right stocks to buy at the right time could make a fortune.

And that is exactly why I am willing to offer you the best deal I've ever offered.
If you give my research service a try today and my string of recommendations does not deliver at least four 100% gains in my track record in the next year, just give me a call and I'll pay you back DOUBLE what it costs to join. All you have to do is ask.

Simple as that. If my analysis does not deliver gains, I'll send you a check for exactly TWICE what you sent in.

Sounds like a fair bet, doesn't it? If you're willing, I can show you how the best investors of all time made a lot of money. And get you on the road to joining them... completely risk-free.

From $200 to $5 Million in Just Over 15 Months

For instance, using a hypothetical example, I just showed you how you could have turned $200 into $5,893 ― in only three steps on the profit chain.

Let's take that example to its gutsy, but logical extreme. Pretend you could have kept the profit chain going all year long. I'll show you how you could have turned that $5,893 into $5 million by mid-November in 2008 with only SIX more top stocks to buy for 2010.

If you had managed to invest in one highflying stock after another ― taken your gains and invested in the next highflier ― just like I showed you with SCON, ANO, and FFHL ― in just about 15 months, you could have turned $200 into $5,893... then into $5 million. Check it out...

Starting in August 2007 and ending in mid-November 2008, it was possible to turn $200 into over $5 million by investing in the right stocks, cashing out and reinvesting your winnings in the next stock on the profit chain! Of course, you couldn't have done it investing in General Electric, IBM, Intel, Cisco or any other large stock your broker tried to push off on you.

You had to have the proper guidance and intelligence to put your money where no one else was... and you had to decide whether to do the safe thing and take some winnings out early ― or take a chance by rolling your winnings into the next play.

Of course, I can't promise you will turn $200 into $5 million this year by following my recommendations. What I showed was an extreme example of how powerful penny stocks to buy can be. It took tremendous timing and a lot of luck to turn $200 into $5 million.

But those who kept up the string could have walked away millionaires in a year. And if you stay with me, I'll show you what four best stocks you need to buy now to start your own stunning chain of winning stock picks.

Remember, you need only $200 to get started.

Penny Stocks Beat the Pants off of Large-Cap Stocks Year in and Year Out

The best-performing stocks to buy on the market are companies with tons of cash... groundbreaking products... and growing businesses ― the same best stocks to buy that have proven to be the BEST investments over the last century.

The one thing that makes these best stocks to buy different is... they're still small enough to make them affordable for small investors to make a grab for their share of the profits!

Since 1926, no other class of stock has made investors more money than these penny stocks to buy. Let me repeat that...

Over the last 80 years, NO group of best stocks to buy has made investors more money than penny stocks to buy. Not mid caps, not large caps, not gold stocks to buy and not retail stocks to buy.

In fact, a famous study done in 1996 by Ibbotson Associates ― a major research firm based in Chicago ― proved this once and for all.

After compiling cold, hard data on small- and large-cap stock returns from 1926-1996, Ibbotson Associates proved that small-cap penny stocks to buy outperform large caps...

56% of the time in any given 1-year period

66.1% of the time if you hold for 10 years

94.2% of the time if you hold for 20 years

100% of the time if you are willing to hold for 33 years or more!

In other words, investors who buy shares of the smallest companies on the market beat those who buy stock in companies like Microsoft, GE, IBM, Intel and Cisco. That's exactly why everyone generates the same returns year in and year out. It's ridiculous!

But what investors don't realize is...

There are 3 times more small-cap best stocks to buy than large caps on Wall Street right now. That means you have 3 times as many opportunities to make huge gains every month ― like the 82% and 58% gains Penny Stock Fortunes readers could have made

The longer you are willing to hold solid small-cap best stocks to buy for 2010, the more money you can make.

Check it out...

$1,000 Turned Into $3.96 Million

Anyone who invested $1,000 in a basket of small-cap best stocks in 1926 could have cashed out for $3.96 million by 2000. By comparison, a $1,000 investment in a basket of large-cap stocks in 1926 grew to only $1.76 million by 2000.

Translation...

Over time, people who buy and hold small-cap stocks give themselves the chance to walk away MUCH richer than those who follow the Wall Street herd and invest in the same old large-cap stocks. I'm talking $2.2 million richer!

In fact, the most famous money manager of all time made his first fortune following the same advice I am sharing with you now.

Here's How He Turned $10,000 Into $40,000 in 4 Years

John Templeton was the most successful money manager of the 20th century ― and probably of all time. In 1954, he founded his flagship Templeton Growth Fund ― one of the highest-yielding funds of the modern era. Every $100,000 invested into John's fund was worth $55 million by 1999. That's an annual rate of return of 12.2%. To put that in perspective for you...

If you put $100,000 in Microsoft in 1986 ― arguably the best single investment opportunity of the last 100 years ― you would be sitting on $22.9 million today. That's less than HALF what the Templeton fund yielded investors!

And in 1992, John sold his entire group of funds ― worth $25 billion ― to Franklin Resources Inc. for $440 million. Until his death in 2008 at the age of 95, he lived a life of luxury in Nassau, in the Bahamas.

Think he was just a rich kid who got richer as he got older? Think again... John Templeton wasn't born rich. In fact, he was born on Nov. 29, 1912, in Winchester, Tenn. ― a small town only miles from where the famous Scopes Monkey Trial took place.

After graduating first in his class at Yale (which he put himself through by working three jobs), Templeton took a job on Wall Street. He loved stocks, numbers and the promise of big returns. And he knew he could make a fortune investing in the most lucrative best stocks to buy of all time ― small-cap "penny" stocks. By 1939, just five years out of school, John saw his opening. Problem was, he had no money to act on his knowledge.

But that wasn't going to stop the young farmer from Tennessee. In a move slated for the Investment Hall of Fame, John went to his boss and begged for a $10,000 loan. Remember, this was 1939 ― 10 years after the start of the Great Depression. The Dow Jones was down 73% from its high in 1929. And most people were petrified to invest in any best stocks to buy ― let alone small caps. Plus, $10,000 was a lot of money ― the equivalent of $155,108 today.

But John's boss knew there was something special about this kid. He studied the markets like a bloodhound looking for a faint scent in the woods. And when he found it, the gains were sure to follow. So he gave John the loan ― all $10,000.

It proved to be the best move he ever made.

Templeton took the money and invested it equally in every single small-cap stock trading on a major exchange for $1 or less. There were 100 best stocks to buy, all told. He was betting these best stocks to buy would lead the way out of the Depression. And, boy, he was right.

Between 1939-1943, John's investment grew from $10,000 to $40,000 ― despite four of the companies going bankrupt and losing everything! Shortly before his death, Mr. Templeton's net worth was an estimated $2 BILLION. He owed his fortune to that day he went in, hat in hand, to borrow the money from his boss... and took a calculated gamble on the fiery strength of small companies and their will to survive in tough markets.

Today, I'm offering you a similar shot...speculating on the very fiber of America's future leaders. With the right guidance, you could achieve similar results. In fact, I am so confident of these best stocks' effectiveness, I'm willing to make you the best offer of my entire career.

If you give my research service a try today, I will give you an unbeatable offer...

If you aren't 100% satisfied with the results, all you have to do is say so. If my strategy does not yield the opportunity for four 100% winners in my track record in the next year, just give me a call and I'll send you DOUBLE WHAT YOU PAID. All you have to do is ask.

Simple as that.

No one else can afford to make that kind of an offer. But there's a simple reason for that. I know something no one else does...

These best stocks to buy were good enough to help John Templeton quadruple his money after the Great Depression. They have been proven to be the most lucrative best stocks to own over long periods of time. And I have NO doubt they will help you make a pretty penny in this market!

Sign up today, and I'll give you ALL the details you need to start your own profit chain in 2009. I can't promise you'll have a chance to make $5 million like last year. That was one of the best runs of all time, even in one of the worst markets ever… and it took tremendous timing and a lot of luck. What I showed you was an extreme example of how powerful penny stocks can be. But the market is still ripe for huge gains. Even the mainstream press knows that!

What The Press is Saying About the Small-Cap Penny Stock Market

"Small companies offer individual investors like us many other advantages. Most institutional investors, who have billions of dollars to allocate, must avoid small caps ― at least until they grow larger. That makes small caps underfollowed and increases the chances that they're misvalued.'

―The Motley Fool

"Running a portfolio that targets some of the market's smallest stocks allows [investors] to buy growth opportunities, often in overlooked areas, and ride them before the rest of the market piles on.'

―MarketWatch.com

"Managers who own shares [of their own company] stand to reap a bigger benefit from a firm's success, which results in a big increase in share price [for small caps].'

―Money.CNN.com

The ONLY Major Group of Stocks to Beat Its 2000 Highs!

Not only are penny stocks making headlines. Since 1999, penny stocks have blown their large-cap peers out of the water.

The Russell 2000 (known as the "small-cap index" on Wall Street) pummeled the S&P 500. In fact, it was the ONLY major stock index to not only reach its 2000 highs (during the height of the last bull market), but also pass them.

Small-cap best stocks to buy can make smart investors with the insight and intelligence to go after them a lot of money. And they can do so at a record-breaking pace. In fact, readers have seen gains of:

87.5% on shares of little-known Alloy Inc― a "Generation Y" marketing company

56.6% on shares of DURECT Corp. ― a small pharmaceutical company

19.82% on leather maker Wilsons

25.2% on Salton Inc ― maker of the popular Foreman grill.

And they also could have walked away with additional gains of 20%, 22.4% and 10% on, DURECT, Salton and Wilsons ― again.

But that's nothing. In a second, I'll show you a real-life string of gains that helped readers make 233%, 146.7%, 62.35%, 34.81%, 34.94%, 35.2%, 32.19% and more over a span of six months. In fact, from June to September 2003, EVERY single small-cap recommendation my publication closed out was a winner. Putting only $200 into each stock, you would have been sitting on a possible $3,051.06. And you have a chance to do the same thing NOW!

Before I show you this profit chain, let me introduce myself... please read on...

If I Put My Name on Something, It Must Be the BEST

My name is Greg Guenthner. I am the editor of Penny Stock Fortunes ― the single greatest penny-stock newsletter on the market today. And I can say that knowing it's 100% true.

I have spent time in newsrooms up and down the East Coast, and I bring a reporter's eye and skepticism to every stock I research. I'm not looking for fly-by-night best stocks to buy that might give your portfolio a tiny boost. I travel whenever necessary, meet with CEOs, pore over financial filings and take part in conference calls so I can uncover only the best small-cap stocks that could put money in your pocket for years to come.

I also evaluate best stocks to buy using my proprietary CXS Money Multiplier System. It's a complicated screen I perfected after reviewing the fundamentals and prospects of several of the most successful small-cap stocks in history. The CXS System is an important tool in helping me determine whether or not a stock is worth recommending. I rely on it in every single issue of Penny Stock Fortunes.

The great thing about the CXS System is that it isn't subject to fads in investing. Hot ideas of the month and wildcard best stocks to buy with no fundamental strengths are rejected by CXS just like all the other garbage stocks out there. You can always count on Penny Stock Fortunes to bring you only the very best picks from the world of penny stocks to buy.

My peers are best-selling authors in the investment world, CEOs of major businesses and traders that have made millions on Wall Street. And I don't say that to brag. Rather, I want you to know...

If I put my name on any investment letter, it MUST be the best. And Penny Stock Fortunes is.

In years past, Penny Stock Fortunes readers have had the chance to rake in gains like these...

If you had put only $200 into each one, you would be sitting on $8,502.12 today.

Those are some pretty nice gains ― and they are only a few of what readers have seen through the years. There have been more ― lots more! And there WILL be more in the future. Because there are new blockbuster opportunities every day!

Every month, I highlight at least two penny stock opportunities for you. I tell you what the risks and rewards are. And I give you ALL the information you need to make an informed buy decision.

I even let you know when to take your gains and get out ― with detailed and reasoned sell recommendations. It couldn't be any simpler...or more potentially profitable.

Check out what some of our Penny Stock Fortunes readers have said...

I've Made More Money With You Than the More Expensive Services
"I depend on the recommendations of Penny Stock Fortunes, plus some research for peace of mind. I am not a rocket scientist in the area of investing and cannot afford huge chunks of change for stock. I only wish I had signed up sooner for the service. I respect what you do. I've made more money with this service than any of the other more expensive services out there."

― Best Regards, Peggy B.

You Allow My Money to Work for Me!
"Thank you for helping my dreams become a reality by allowing me to make my money work! Believe it or not, you are the only newsletter that I have found I can trust."

― A happy and loyal subscriber, R. Hunt

I Love Your Analysis!
"I am very new at trading best stocks to buy. In fact, my only experience prior to subscribing to Penny Stock Fortunes has been keeping an occasional eye on my 401(k)-type savings plan that my employer sponsors. I love your analysis as well as your delivery."

Reaped Many Rewards
"I've been impressed by the results of the system and reaped many rewards. Your system has helped steer me in the right direction and prepare the foundation for a profitable future."

― T.K., Satisfied PSF Subscriber

Those are some pretty powerful testimonials. And it goes to show how you can make a lot of money if you are willing to invest in the right penny stocks.

In a moment, I'll give you all the details you need to know to invest in the four best stocks to buy on the market right now ― the four best stocks to buy that could start your own profitable stock string and turn $200 into $5 million in 2009.

And if you take advantage of my 100% money-back guarantee today and sign up for Penny Stock Fortunes, you could begin booking the gains in just a few hours ― literally.

How so? Let's take a look...

I want to prove to you that my research service is the best in the world, so I'm going to give you four penny stock picks that could easily double your money...or more.

When you sign up for your risk-free trial to Penny Stock Fortunes, you'll get all the details on these four barnburner best stocks to buy in my groundbreaking report Four Penny Stocks You Need to Own. Here's a sampling of what you will find...

Barnburner Stock No. 1: Millions of shares of this small company were snapped up by legendary investor George Soros. This company that has him so excited is a leader in a specific kind of telecommunications technology poised to return decades of great profits.

The company is solidly run, has great financials and will be a welcome addition to your portfolio. Its forecast for the future is one of the brightest you'll find in the entire technology sector.

Barnburner Stock No. 2: This company has a head start on technology that helps businesses, governments, and universities connect to the Internet. And now, the giant firms that provide Internet access to tens of millions of homes are about to jump aboard too.

This is one of those companies you'll be hearing about on TV in another year or two ― after the big money's already been made. You have a chance to grab that big money for yourself!

Barnburner Stock No. 3: This tiny health insurer is steadily growing its revenues in a tough economy. And its five-year growth rate is more than double the industry average.

In an industry dominated by big boys like Blue Cross and Humana, no one's noticing the profit stream this little dynamo is building. Get in before the crowd starts to notice, and the profit potential is amazing!

Barnburner Stock No. 4: If you use a wireless modem for your laptop computer, there's a good chance this company makes it. It's lined up lucrative contracts with all the big providers ― AT&T, Verizon, and Sprint. This stock could return years of great profits!

Any one of these four best stocks to buy could return four times your money or more. And if just two or three rise, one after another ― forming a profitable stock chain ― you could walk away VERY rich! Just how rich?

Well, that's impossible to forecast. But if it's as good as the profit string Penny Stock Fortunes had back in 2003, you are in for a treat. I'm reaching all the way back to 2003 to show you these gains, because I want to prove to you just how successful this service has been... for YEARS! Check it out...

Nine Gaining Stocks in a Row!

From June 2003 until Oct. 22, 2003, Penny Stock Fortunes closed out positions in nine best stocks to buy. They were all for gains. Take a look at what can happen when you hit several successes in a row...

Right now, I also have best stocks to buy in the open portfolio that are up 19%, 33% ― the list goes on and on!

Think about these results for a second... in only six months, nine Penny Stock Fortunes picks in a row returned profits. Not a loser in the group! This is a real-life chain of gains that you could easily see when you subscribe. And who knows? If you hit everything just right, you could even turn $200 into $5 million!

So how can you get started in this moneymaking venture? How can you get the names and ticker symbols of my four favorite small-cap stocks for 2009?

All you have to do to get in is join me at Penny Stock Fortunes. Take me up on my offer to try out my research service risk-free. If my recommendations do not deliver at least four 100% gains in the next year, just let me know and I will gladly refund double you what you paid for the service.

A Chance to Make Tons of Money, or I Pay You

Penny Stock Fortunes is worth thousands of dollars a year. If, for example, just one of my Four Penny Stocks You Need to Own best stocks rises 100%, you could make thousands of dollars right there, depending on your initial stake.

Between these and other upcoming opportunities alone, you could see $200 stakes shoot up to princely sums in no time!

With the profit potential this high, it wouldn't be unreasonable to ask for $2,000 to join Penny Stock Fortunes. After all, you could make that up on one or two investments ― easily. But that's not all...

Sign up now, and you'll get the names of my four favorite barnburner best stocks to buy ― all of which could at least double your money in a heartbeat. The groundbreaking report is called Four Penny Stocks You Need to Own. Inside this one report, you'll get the hard data on four excellent companies and what simple steps you need to take to start seeing amazing profits!

Plus, if you act right now, I'll also throw in two more reports... FOR FREE!

My Best Online Discount Brokers Guide will tell you what you need to watch out for when searching for a broker, and how to find a good one. Having the wrong broker can suck profits from even the tidiest of portfolios ― but having the right broker will put you on easy street even quicker!

Winning With Penny Stocks will give you an insider's look into the world of small-capitalization penny stocks ― how they work, how they grow and what you need to do to see the best profits. Investing successfully over the long term with penny stocks is both an art and a science. This report will get you started off on the right foot.

So that's four best stocks to buy you started on your way to earning $5 million in 2009 and beyond, plus TWO other exclusive reports.

All of a sudden, $2,000 doesn't seem like so much to ask!

But don't worry, there's no way in the world I'm going to ask $2,000 for a subscription.

In fact, I'm not even going to ask $100! I'm going to offer you my best deal ever. And I mean that. Just keep one thing in mind...

I can't guarantee you will turn $200 into $5 million this year by following my recommendations. What I showed you was an extreme example of how powerful penny stocks can be. It took tremendous timing and a lot of luck to turn $200 into $5 million. But what I can promise you is this...

My Ironclad Promise to You

Every month, you will receive a full, in-depth report on the two very best penny-stocks on the market. You'll read my in-depth analysis and be able to dissect my CXS Money Multiplier evaluation of every pick.

I'll tell you when I think you should buy. I'll tell you what the risks and rewards are. And I'll tell you when to sell. You just sit back, read the e-mails, decide whether you are ready and call a broker. I will do all the work for you. And know this...

Some of these best stocks to buy could double your money. Others could rise 10-fold. And still others could fall. That's OK.

These are exactly the kinds of best stocks to buy that helped John Templeton quadruple his money in 1939 ― despite four companies going completely bankrupt. They are the same kinds of best stocks to buy that could have turned $200 into $5 million from August 2007 to November 2008. And they are the same kind of best stocks to buy that I recommend to my readers ― with tremendous success. For instance...

Penny Stock Fortunes recommended shares of Select Comfort. At the time, this beaten-up bed manufacturer was trading for $5.61 a pop. Less than five months later, every investor on Wall Street was buying the stock, and it shot up to $9.76 per share

Chinese diesel engine maker, China Yuchai, was also screaming, "BUY." It was trading for less than 10 times earnings. Its sales and net income were soaring. And demand for its diesel engines was sky high. When Penny Stock Fortunes recommended CYD to readers, it was trading for $7.50. Less than two months later, it hit $18.50. That's a 146% gain in 60 days!

Shares of gold and silver miner Coeur d'Alene Mines were once dirt cheap. And with precious metals on the rise, this was a no-brainer. Readers were able to buy shares of CDE for $1.71. Later, they were triggered to sell at $5.49 ― a mere 221% gain!

A bed maker, a Chinese diesel engine manufacturer and a gold miner... It doesn't matter what kind of company it is ― as long as it is a solid business in a growing industry.

Those are the kinds of penny stocks you will find in the pages of Penny Stock Fortunes every month. And if you sign up today, you'll take advantage of my best offer ever...

Sign up for Penny Stock Fortunes for Only $39!

Try Penny Stock Fortunes for one year for the ridiculously low price of only $39. That works out to less than 11 cents per day ― the best offer I've ever made! When you sign up, you'll get my three FREE reports with all the details on the four best stocks to buy you need to own to start growing your own profitable stock string.

Plus, you'll be signed up for the Agora Financial Executive Series... two daily e-letters that give you an insider's view of our editorial room here at Agora Financial.

You'll receive the groundbreaking Rude Awakening, which uncovers the latest big-picture trends in politics as well as in the markets, and the 5 Min. Forecast ― a daily snapshot of what our editors are saying right now. These respected letters are also yours, FREE!

These two daily letters are reserved only for elite, paying members of Agora Financial. And they're yours for FREE with your Penny Stock Fortunes subscription.

But that's not all...

If you find that my system lets you down, I make you this ironclad promise... If my recommendations do not yield four 100% gains in my track record in the next year, I will refund you 200% of the subscription price. All you have to do is ask. In other words...

Basically, I am assuming ALL the risk. I am betting the house that my research service is the best in the world. But you know what? I know Penny Stock Fortunes is the best.

I have nearly 80 years of data proving that small-cap stocks are the best investments of all time. I have studied the great investors ― guys like Warren Buffett, T. Rowe Price and John Templeton. I know how they made their fortunes. And I can help you make yours.

Remember, Templeton invested in small-cap stocks in 1939 and quadrupled his money in four years. And that was right after the Great Depression! After that, he went on to become the most successful money manager of the 20th century with a personal fortune of $2 BILLION!

You can do the same.

Heck, even the mainstream press knows these best stocks to buy are the best. Remember...

Forbes reported that "Small companies are expected to grow earnings considerably faster than large companies, and small best stocks to buy are likely to remain popular as long as they are delivering superior earnings growth."

The problem is most of those other so-called experts don't have the guts to recommend penny stocks! But I do. And if you join me today, I will ― starting with the four best stocks to own right now. But before you sign up, look at what another reader said about Penny Stock Fortunes...

You Do the Work for Me! Being an accountant, I understand financials, however, I don't have time to research every stock I come across. You have done that for me.'

― A.L.

So there you have it. Readers love Penny Stock Fortunes. And I know you will too. All you need to do is sign up. When you do, you will get...

12 monthly issues of Penny Stock Fortunes sent to your home and e-mail box, complete with in-depth analysis and CXS Money Multiplier breakdowns

Weekly e-mail alerts telling you exactly when you should buy and sell every stock we recommend

A copy of Four Penny Stocks You Need to Own, detailing my four favorite barnburner penny stocks of 2009 ― set to rise to amazing new heights

My Best Online Discount Brokers Guide to help you find the best broker and the level of service you deserve

The groundbreaking Winning With Penny Stocks report that routinely gets rave reviews from members

Access to our Penny Stock Fortunes Web site ― including all past issues, reports and portfolio holdings

FREE subscriptions to the Agora Financial Executive Series ― the 5 Min. Forecast and the Rude Awakening ― five days a week of the best investment analysis and news on the Internet!

But I'll tell you what... since I'm already making the best offer I've ever come up with, I'm going to throw in one more bonus FREE gift.

Another Gift to You for Trying Penny Stock Fortunes

Because I want you to make as much money as possible in the small-cap market, I will automatically sign you up for the daily e-letter ― Penny Sleuth. With a daily circulation of over 100,000, it's one of the most fearsome and powerful small-cap penny stocks newsletters in existence!

Irreverent, Skeptical, Penetrating, In-Your-Face Coverage of the Small-Cap Universe

At Penny Sleuth, we're tired of the same old story on Wall Street ― especially when it comes to the small-cap market. Everyone's a "yes man" these days. Your broker loves any stock that will make him a commission. "Yes, it's a buy." The mainstream analysts do nothing but tout bad stock after bad stock. "Yes, they will rise!" Even your neighbors tell you only about their winners.

The best deals aren't found on the surface of Wall Street. They are hidden in the shadows, in the corners and under the rug. Most brokers don't know a thing about them. The Wall Street Journal doesn't cover them at all. And your neighbor doesn't even know they exist.

So who knows what secrets lurk in the shadows of the small-cap universe?

PENNY SLEUTH ― YOUR SOURCE FOR THE LATEST MARKET NEWS

Sleuthing is about peering into the dark corners of the small-cap market. It's about asking questions no one else is asking and looking off the beaten path for answers.

It's about looking at the market with a fresh perspective and at small-cap investing with a fresh approach. Sleuthing is about seeking real insights...and real gains.

Every issue of Penny Sleuth unearths corners of the small-cap market you didn't even know existed. It's a personal window into Wall Street's most profitable hidden treasures of all time.

By signing up today for Penny Stock Fortunes, you'll automatically receive Penny Sleuth five days a week, absolutely FREE. What do you have to lose? If you don't love it, you can just cancel ― and go back to listening to the same yes men you have been listening to for years. The choice is yours. But you must act now. This offer won't last forever. And remember...

If I do not deliver 100% gains in my track record on at least four of my recommendations in one year, just let me know and I'll pay you back 200% of your subscription price! That's how sure I am of this product and these small-cap stocks.

No matter what happens, all the free gifts you receive when you join are yours to keep ― forever. But with this much profit potential just around the corner, I highly doubt you'll ever cancel Penny Stock Fortunes.

I look forward to welcoming you on board. And I can't wait until you see just how powerful these penny stock profit chains can be. I do hope you will find out!

China Isn’t the Only Currency Manipulator

What a day in the currencies yesterday! Another day of wild swings… Volatility is the name of the game these days… Watching, for instance, the euro (EUR) trade down to 1.4220, and then up to 1.4320 and not just on a one-way ticket! Oh no! This is a bounce here, a bounce there… But just like it was going from 1.41 to 1.42, it took a few times over the 1.42 figure before it finally stuck, and headed to 1.43… All the other currencies followed in the swings, as usual…

In a change of things that have been going on, which was simply watching the Asians sell dollars, and watching the U.S. counterparts buy them… The Asians actually reversed that course last night taking the euro from 1.4320 to 1.4220 as I walked in this morning, which was later than usual… The S. Korean monetary officials said that they "see absolutely no alternative to the dollar as the main reserve currency of the world."

Of course… What else would you say if you were a small country connected to another country that likes to show its military power, and shoot off missiles… Oh, and by the by, they are believed to have nuclear bomb capabilities… You would be kissing up to the U.S. like an intern to their boss, as they attempt to get full time employment!

However, the S. Koreans weren't the only Asian monetary officials to speak… The Indian Central Bank is dying a death of 1,000 daggers watching their currency gain 11% in the past three months! And… Then the Big Kahuna… Japan… But, we all know that the Japanese are the biggest currency manipulators on this earth, and they would do anything to get the yen (JPY) weaker… Speaking of currency manipulating… (Doing an Andy Rooney here) Ever wonder why the U.S. Treasury Secretary and lawmakers all point to China for currency manipulation and don't mention Japan?

Japan was the whipping boy of the U.S. in the '80s… Remember? It was all "their fault"… Skip ahead 20 years and it's now switched to China… Ask Schumer, ask Graham, and any of the other dolts that signed the bill to assign tariffs to Chinese exports, that hangs out on the shelves in D.C. just waiting for the "right time"… Ask them who's at fault here, China or Japan… They'll all tell you China… And never mention Japan.

Speaking of currency manipulation, the Big Boss, Frank Trotter, and I were talking the other day, and we came to a thought about manipulation… The U.S. is quick to find fault with currency manipulation, but isn't the U.S. in the manipulation business too? Aren't they buying Treasuries in their quantitative easing, to keep interest rates down? By buying the treasuries they are manipulating the price of the bond… But, does anyone hear the media calling them out, here? Bawk, Bawk, Bawk… Son! I think I see a chicken hawk!

OK… On to other things… Did you hear Germany's Chancellor Angela Merkel talking about quantitative easing? This is like one of those MasterCard commercials… Bundesbank President Axel Weber talking down quantitative easing… very worthy… But Germany's Chancellor Angela Merkel talking about it… Priceless!

Why priceless? Because it is a long standing tradition in Germany that the leader of the country never comments on monetary policy… But with the European Central Bank (ECB) looking at ways of doing quantitative easing, she took her shot… And the shot was not just aimed at the ECB… She got three birds with one stone! Throw the Fed and Bank of England in here too… Here's the Chancellor… "Unconventional monetary policies being pursued by the world's main central banks could aggravate rather than ease the economic crisis."

She went on to mention the Fed and Bank of England… Let's listen in… "I view with great skepticism the powers of the Fed, for example, and also how, within Europe, the Bank of England has carved out its own small line," Merkel said. "We must return together to an independent central bank policy and to a policy of reason, otherwise we will be in exactly the same situation in 10 years' time."

You know… Another female leader of a county from times past is responsible for another quote that I use in my presentations… I'll go dig it up, and come right back… Just hum the Jeopardy song for the final question, and I'll be back!

OK! I'm back! Here it is… "The problem with socialism is that you eventually run out of other people's money." – Margaret Thatcher…

The Eurozone did get some damaging employment data overnight… The Eurozone unemployment rate hit 9.2% in April, after sitting at 8.9% in March. I know, that sounds bad… But just like I tell you all the time about comparing the dollar and euro's data… The U.S. car is uglier than the euro car… And here's why… I know of NO games that are played with Eurozone employment data, like the games the Bureau of Labor Statistics (BLS) plays here in the United States. So… If the Eurozone says unemployment is 9.2%, it's 9.2%! Whereas here in the U.S., when the BLS says that unemployment this Friday is 9.2%, it won't really be 9.2%; instead it will most likely be closer to 20%!!!!!!

While the Eurozone deals with rising unemployment… Australia posted a better than expected rise in GDP for the last quarter! The last three months showed a rise in GDP of 0.4%, after shrinking 0.6% in the previous quarter! Now… The members of the Reserve Bank of Australia can all breathe a sigh of relief after they left rates unchanged on Monday night! They can walk about like 20-game winners, with their chests sticking out, and their chins in the air! They are dragon slayers!

The news pushed the (AUD) to 0.8260, but profit taking has pushed the Aussie dollar back below 82-cents… But this news will live in the minds of traders for some time, and after the profit taking is over, they will once again take a run at higher levels for the Aussie dollar. Could 85-cents be in the cards in the near future? Could be… But, just as easy as it could go to 85-cents and maybe beyond, it could go the other way… What I'm saying here is that this run from March 1st, is going so fast! It certainly could see it break off, take a breather, go back and fill in the gaps, whatever you want to call it.

I was reading a report yesterday where a trade expert was interviewed regarding the massive bailout of Government Motors (GM)… Claude Barfield, a trade expert at the American Enterprise Institute, believes that the massive bailout of GM "raises the question of whether the subsidies violate President Barack Obama's pledge not to embrace protectionist measures." The intervention "will come back to haunt us in terms of the competitiveness of U.S. corporations and in terms of furthering U.S. public-policy goals."

Well, slowly but surely, more and more people who understand the ramifications of government bailouts are starting to agree with me and speak out against them. Don't you think that over half of the Financial Institutions that took TARP money are wishing they hadn't ever hear of TARP right now? It's a bad thing… Ronald Reagan used to say that the scariest words spoken are…"Hi, I'm from the Government, and I'm here to help."

But these were "abnormal" and they called for "abnormal" right? Isn't that the gobble-de-gook the government tells us, as they jam one measure after another down our throats that takes away free markets, and more importantly our republic… We The People, are soon to be, We The Government…

OK, I know, I'll get a ton of emails telling me to shut my trap, and stick to currencies… But this all has something to do with currencies, folks… Protectionism to a country's currency, the dollar in this case, is like kryptonite to Superman… So, if you want to see your country's currency on the slippery slope to nowheresville, just keep those protectionist measures floating… Because you can't have both… You can't have protectionism and a strong currency (dollar)… One floats, while the other sinks.

In a related story about having one but not both… A reader sent me two charts yesterday… One showed the fall in the U.S. dollar index in the past three months… And the other showed the rise in the stock markets in the same three months… The reader said that it looked to him that someone was saying, "You can either have a weak dollar and strong stock market or vice versa, but you can't have both!" Yes… Just like the protectionism, and a strong dollar… You can't have both!

In a "sign of the times"… The Vehicle Sales for May printed yesterday, and while all the carmakers reported double digit declines of sales, the U.S. automakers outperformed the Japanese automakers!

And then… I know I go to the well quite often when I reprint something from The Daily Reckoning, but it goes both ways, so I don't feel too bad! But, when Bill Bonner, the Mogambo, or someone else says something that I think you need to read, I go for it! So… Yesterday, Bill was talking about U.S. Treasury Sec. Geithner's visit to China… Let's listen in:

"'It will be helpful if Mr. Geithner can show us some arithmetic,' said Yu Yongding, a former advisor to the Chinese central bank.

"Yes, we'd like to see that arithmetic too. How do you add $1.75 trillion in deficits…pay for it with funny money from the Fed…and still come out even on the value of the dollar? There's no arithmetic we know of that works in the Chinese favor. Right now, the numbers…and the logic of the situation…are telling us that feds aim to create inflation. Instead of trying to keep prices under control…they're trying to get them to go up. That's yet another thing we didn't expect to see!

"The US government is less concerned with protecting foreign lenders than it is with getting the US economy back to its old E-Z money ways. Cheap money is what people want. Cheap money is what the feds are trying to give them."

I was looking at some graphs yesterday of the major currencies… Dollar, euro, yen, sterling (GBP), and even Canadian loonies (CAD)… I've told you over and over again that the currencies have all posted gains versus the dollar since March 1st… Well… Euro, sterling and loonies have all outperformed yen. You would have to think that if China is pulling Asia out of the economic meltdown, that Japan would also benefit… So… Maybe, we'll see yen catch up with its major currency counterparts.

Speaking of sterling… Chris Gaffney and I were talking the other day about sterling's rise… I talked about this a couple of weeks ago, and said I was impressed with the performance but wasn't sold on its ability to remain strong… But there it is with a 1.65 handle on it, after hitting a low of 1.35 in February. I still don't "get it" – as the U.K. has the same problems as the U.S. – but, as I told Chris, sterling is probably a beneficiary of the "crosses" with all the currencies that are going up versus the dollar… Explains it a bit, but sterling has put in a very good performance the past three months!

But… The sterling's performance is not even on the same page as the performance of the South African rand (ZAR)… And the Brazilian real (BRL)… Of course, past performance doesn't mean that future performance will repeat itself.

The Gold Bull Market and the Fed it Rode In On

I thought that as part of the new Mogambo Program To Stop Freaking Out (MPTSFO) and maybe get some sleep that is not disturbed by screaming at nightmares of the horrors of inflation and economic ruin that are the just desserts of an America that has now embraced ignorance, stupidity and sloth as virtues, I had turned off the alarms in the Mogambo Bunker (the MoBu) that were connected to the circuits monitoring the creation of bank credit by the Federal Reserve.

This new bank credit is the stuff from which "money" is instantly made when someone borrows from a bank, which increases the money supply, which creates inflation in something when that new money is used to bid up the price (or prices) of part (or parts) of the existing stock of goods and/or services, the recipient of which goes out and bids up the prices of stuff that HE wants, round and around.

My Mogambo Sleepy-Time Plan (MSTP) was, alas, to no avail, and I tossed and turned fitfully all night, especially now that the far-Left, commie-think, brain-dead Obama administration � which I now refer to as The Obamaniacs � has gotten the Democrat-controlled Congress to spend a monstrous 28% of GDP, of which 13% of GDP (slightly less than half!) is borrowed money!

The Federal Reserve has two choices here. It can choose to tell Obama and the idiot Congress to go to hell because creating that much money will produce ruinous inflation, like it has always produced all the way through history, destroying the economy.

But instead, the despicable, incompetent Fed has chosen to acquiesce, and print the money necessary to buy all of that new debt! Trillions and trillions of new dollars flooding into the economy through governmental spigots! Yikes!

Perhaps this is why I am hearing a lot of things like, "The US dollar has fallen below important support at 81 on the index, and everyone expects it to fall more. This is what the guys and I were discussing while hanging around the water cooler instead of engaging in our usual banter of plotting some sick revenge against our boss, and we were wondering what you thought of this idea that the ailing dollar will go down, meaning that that other currencies are getting stronger, and we were also wondering if you would still be leaving work next Thursday at the usual time and walking down that same dark, deserted side-street to where you park your car for free instead of paying for parking like everybody else, you cheap bastard?"

Well, to the latter I say, "Not any more! Hahaha!" and to the former I say, "The dollar index is just a measure of the relative monetary stupidity of governments and their central banks. If you want to know the future of the dollar in terms of its buying power, on the other hand, then look at the dollar-price of gold, you moron!"

And on that golden note, Jim Willie of Goldenjackass.com reports, "The ratio of the 10-year USTreasury Note yield to the 2-year USTreasury Bill yield has always been highly reliable in predicting a move in the gold price."

So the Treasury market says "gold bull market ahead!" and one of the things that tells me that we are in a bull market for gold is that, according to Barron's, the Krugerrand is selling at the same price as the US Eagle and the Austrian Philharmonic, which is weird because the Krugerrand is one troy ounce of 22-karat gold and is only 91.7% pure gold, while the Eagle and Philharmonic are one troy ounce of 24-karat gold and are 99.999% pure gold.

So it seems that buying Eagles and short-selling Krugerrands would guarantee a profit when the price gap opens back up and people slap themselves on the forehead and say to themselves, "Wait a minute! You mean that I paid the price of an entire ounce of pure gold but I only got 91.7% of an ounce of gold? Sell!" Hahaha!

So what is the point of all of this technical analysis stuff that I do not understand, other than wasting everyone's time? It is simply that gold is obviously getting ready to zoom, as the steepening Treasury yield curve attests, meaning that bond owners are belatedly realizing that all of this new money means that inflation will rise, making interest rates go up, handing bond holders a loss, and the longer the bond, the bigger the danger, so they are demanding higher yields.

As an interesting aside, as in, "We're freaking doomed by a clot of corrupt government devils," Mr. Willie says to "give credit to the USGovt statrats in their busy laboratories. They decided to ramp up the Q2 Gross Domestic Product by including all USGovt rescue funds for the big banks, including the diverse funds from the many liquidity facilities. All those funds will go directly into the GDP for Q2 as a special line item. Expect a miraculous economic recovery in the second quarter, based on vapor."

Miraculous indeed! Hahaha! What a blatant governmental affront! What a colossal, transparent, low-IQ fraud!

I noticed that my trigger finger was twitching, my voice was bellowing in fear and outrage, my blood pressure was 500/400 and my kids were running away, crying out, "Run for the hills! Dad's freaking out again!"

After they were gone, I calmed down in the sudden blissful peace and quiet, and it was then I remembered that gold, wonderful glorious gold, will save me like it has saved everybody else in the last 4,500 years of episodes of governmental monetary and fiscal insanity.

Even my trigger finger stopped shaking, so I used it to dial the phone and order some more gold, remarking to myself as I did that "Whee! This investing stuff is easy!"

How Can Earn Money From Stocks Market

Yeah, we drink tea in Pittsburgh. But really, Pittsburgh is more of a shot-and-a-beer kind of town. What else would you expect from the place that — back in 1794 — challenged the authority of the newly established national government in the Whiskey Rebellion? I wrote about it five years ago, in one of my first articles for Whiskey (hence the name) and Gunpowder. You can reread it here.

Old Whiskey Rebellion and Modern Tea Party

During the Whiskey Rebellion of old, irate Western Pennsylvanians burned down the house of George Washington's appointed tax collector, General John Neville. This wasn't without provocation, of course. The bonfire started after one of Neville's federal marshals shot and killed an unarmed tax protester. Lesson to the feds: Be careful who you shoot, especially when they can shoot back. 

The recent Pittsburgh Tea Party was far less inflammatory, although some of the issues and basic sentiments are much the same as those of the 1790s. The original Whiskey rebels opposed a distant and aloof government that reflected the interests of an East Coast cultural aristocracy. Despite the personal popularity of George Washington, his federal government was imperial and out of touch. To answer a summons in federal court, for example, a Western Pennsylvania farmer had to trek near 300 miles across the mountains to Philadelphia. And the lack of a useful national currency — one of the key functions of any government — handicapped economic growth. In fact, for lack of real money on the western frontier, people used whiskey as a form of currency.

The final straw came in 1792 when Treasury Secretary Alexander Hamilton proposed raising revenue by taxing the capacity of stills. And in those days, stills were no mere means of making recreational moonshine. By 1794, the draconian collection of Mr. Hamilton's new tax placed at risk the ability of farmers to transform their surplus grain into more transportable and saleable whiskey. 

In other words, the whiskey tax damaged the farm economy, which was about all there was west of the Alleghenies. Inept government economic and monetary policy placed the future at risk. Thus did many citizens rebel. And rightfully so, some say.

Rooted in Citizen Anger and Frustration

What's behind the modern "Tea Party" sentiment? I believe that it's rooted in citizen anger and frustration that the federal government just spends and spends and spends, with no evident heed for tomorrow. 

The justification for heedless increases in government spending — even worse, increased spending with borrowed money — is along the lines of Pres. Franklin Roosevelt's famous comment that "If we borrow funds, then we owe it to ourselves." The modern justification, as a Federal Reserve official once explained to me, is that "As long as we can afford to pay the interest on the debt, it'll be OK."

But the people are not blind, let alone stupid. It is clear that the federal debt just grows and grows. How much longer can this last?  Today many informed citizens understand that the national debt is way too big. The rate of growth is out of control. We don't "owe it to ourselves." We owe it to the Chinese, the Japanese, the Middle Easterners. And we cannot afford to pay the interest anymore. Well, not if we want to be able to do anything else as a nation except work like tax-slaves to pay interest on past debt.

By any technical measure, the federal government is insolvent — except for that quaint custom of inflating the currency with fiat dollars. So really, the nation is long overdue for a national discussion on the fundamental nature of its money. Hence the Tea Parties.

The Pittsburgh Tea Party Crowd

In Pittsburgh a crowd of several thousand (estimates range from 2,500 to 5,000) formed last week in the city's old, historic Market Square. Market Square dates to the 1700s, and perhaps the bedrock still recalls the events from the days of George Washington. The mid-April weather was characteristically lousy, with drizzle and rain falling in 50-degree temperatures. If you were there, it was because you wanted to be there.   

The Tea Party attendees struck me as a cross section of Western Pennsylvanians. There were many Steelers jackets, and ball-caps with military logos and veteran patches. I asked around, and met business owners and office workers, factory workers, lawyers, health care providers, restaurant workers, and a few people who are, as they put it, "between jobs." There were off-duty cops and firefighters, courthouse employees, bus drivers and even a few bikers resplendent in their leather and tattoos. 

The Tea Party brought out the creative side of attendees as well, with people dressed in Colonial period costumes. To my observation, it was an orderly and respectful crowd, filled with sincere people who appeared to know their American history. My gut feeling was that the Tea Party attendees understood why they were out standing in the cold rain. (One 30-something woman told me, "I've never been to a political rally in my life. But I'm just scared for the country's future. We're going to be broke.")

The makeup of the crowd was young and old, men and women. There were retirees (as indicated by their hats and T-shirts), middle-aged people, and young people complete with pink hair and metal in their ears. There were parents with children. (One participant told me, "I brought my son with me because I want him to remember this day. I think we're at the beginning of something that's going to change the country.") There were white and black, Asian and Indians.

Many Tea Party attendees carried signs, all apparently homemade. The verbiage ranged across a conservative to libertarian political spectrum. Some signs were historical, with deep roots in the 1913 coup d'etat of American Progressivism under Pres. Woodrow Wilson. ("The Fed is Illegitimate." and "Abolish the 17th Amendment.") You don't see many signs like that these days, that's for sure.

Other signs were rock-ribbed statements of protest about taxes and spending. ("Give me Liberty, Don't Give Me Debt." and "Born Free, Taxed Beyond the Grave." and "Abolish the IRS, Support the Fair Tax" and "Wall Street Banks Got Billions, and All I Got Was This Lousy Sign.") 

Other signs — not many — knocked Pres. Obama; but I would not characterize the Tea Party as just an anti-Obama rally. There were indications of deeper dissatisfaction with the federal government, at a systemic level. One sign knocked the "Bush-Obama Ripoff." Other signs were along the lines of "Abolish Congress," which is not exactly realistic, considering the wording of the U.S. Constitution. (Vote the bums out, maybe?) 

One sign hit on the corruption of the process of governance, stating, "Big Fraud from Little ACORN Grows." These were not the usual mass-produced, "union-label" signs that you see at those "other" kinds of political rallies. I'm sure you get the idea.

The Tea Party Organization

The 2009 Pittsburgh Tea Party was organized by a suburban housewife, albeit one with an MBA from the Harvard Business School. From what I heard, a few politicians volunteered to speak. The terse reply from the organizers was along the lines of, "No, this is where the people will speak. You politicians need to shut up and listen."

There was no indication that the Tea Party was an "Astroturf" event. The Tea Party received almost ZERO media coverage in the days leading up to it. It had all the markings of a "flash rally," organized on the Internet. The local talk radio guys scarcely mentioned it, to my knowledge. (If they did, I missed it.) The local newspapers gave no advance publicity. The local TV stations were too busy covering the usual pabulum about car crashes and house fires. If it doesn't bleed, it doesn't lead.

It seemed to me that the attendees of the Pittsburgh Tea Party were there of their own volition. I sensed no mind-control from the evil Fox-News Network, and I wasn't even wearing my radio-blocking aluminum skull-cap. Contrary to the defamatory stereotype pushed by the incompetent mainstream media (the LA Times characterized Tea Party attendees as "insane"), the Tea Party people seemed to be decent folk, able to think for themselves and form independent opinions. And many Tea Partiers have apparently formed the opinion that the federal government is spending the country into ruin. To those of us who follow the issue, it's a valid point.

The Tea Party Festivities

The Tea Party stage was decked out with flags. Festivities began with a musical mixture of patriotic tunes and Country-Western music. The Tea Party kicked off with a brief welcome from the organizers, followed by a moment of silence in memory of three Pittsburgh police officers who were killed in the line of duty a couple weeks ago. Then a prayer. Then the Pledge of Allegiance. Then the national anthem. In other words, it was as patriotic as the 4th of July. Nothing radical.

The first speaker discussed the ever-expanding federal budget. If you've seen the movie I.O.U.S.A., produced by Addison Wiggin of Agora Financial, then it was nothing new except that this was a Tea Party protest in downtown Pittsburgh. And criticizing federal spending in downtown Pittsburgh is not something that happens very often.

Another speaker gave a spirited history lesson about the origins of the Federal Reserve. It was Creature from Jeckyll Island-kind of stuff.  It was surprising (to me) how much of the discussion the crowd appeared to understand. It was astonishing, really. I think that most of the Federal Reserve scholars in town must have been in the audience, because people seemed to know exactly what the guy was talking about. 

A third speaker gave a solid speech about the evils of ever-expanding government. This guy is a multi-millionaire who built his own nationally-ranked high-tech business and made a fortune. He's met a few payrolls in his career. He discussed the exploding levels of federal expenditures. He hit on the ballooning national debt, and asked rhetorically how the nation ever intends to pay just the interest, let alone the principal. 

And so it went, with more speakers giving talks along the same lines.

The Hecklers in the Crowd

Of course, a few hecklers showed up to make noise. While one of the early speakers was discussing how federal borrowing is crowding out private investment, a group of five (I counted them) people started to chant, "O-Bam-A! O-Bam-A! O-Bam-A!" 

At first, the crowd ignored the hecklers. Then the hecklers realized that they were having no effect, so they yelled louder. Eventually, it was kind of hard to hear the speaker. A few members of the Tea Party crowd turned to the hecklers and told them to shut up, have some respect, etc. That was like throwing kerosene on a fire. Now the hecklers were hollering at the top of their lungs.

There were a few TV cameramen from local stations covering the event. Needless to say, the camera-guys rushed over to film the hecklers in action. By now the five hecklers were having a great time, yelling and making enough noise to disrupt the proceedings. Then some Pittsburgh cops and event organizers walked over to tell the hecklers to keep it down.

The cops must have said something, because the hecklers broke up and started walking around the edge of the Tea Party crowd, yelling epithets like, "You're all racists. You can't deal with a black man in the White House." To which a black guy standing next to me said, "I'll bet these punks are ACORN activists." He turned and talked right at one of the hecklers, saying, "Why are you causing a disturbance? Get out of here. Go home to your mama." So the heckler called the black guy an "Oreo," as well as a few other words that I thought were banned from modern vocabulary. Then a Pittsburgh cop walked up to the heckler and politely asked him to "move along, unless you have some other reason to be here." Pittsburgh's finest.   

Media Coverage

The local media gave almost no coverage to the Pittsburgh Tea Party. The TV stations focused on the hockey playoffs between the Pittsburgh Penguins and the Philadelphia Flyers. One station ran a short, insubstantial fluff piece, with plenty of attention to the five hecklers.

The Pittsburgh Post-Gazette, located three blocks from Market Square, buried its next-day coverage within a critical, anti-Tea Party story distributed by the Washington Post. The photo on the inside pages of the Post-Gazette was from a Tea Party in Cincinnati. On its editorial page, the Post-Gazette ran an insulting cartoon by the predictable and pedestrian Rob Rogers. The cartoon showed three raw-looking, hirsute men sitting around a table, sipping tea and bellyaching (get it? Tea Party?) Meanwhile, the circulation of the Post-Gazette is falling and the newspaper is laying off staff. Gee, I wonder why people don't bother to read the Post-Gazette?

What Were the Tea Parties About?

But it's not just the Pittsburgh Post-Gazette that's missing the boat. The talking-head androids of Big Media also missed the point of the Tea Parties. To the extent that there is any remotely accurate reportage going on, the focus seems to be that the Tea Parties are well-off people bitching about high taxes. Even the Gallup Poll organization took the bait, publishing a recent report stating: 

"A new Gallup Poll finds 48% of Americans saying the amount of federal income taxes they pay is 'about right,' with 46% saying 'too high' — one of the most positive assessments Gallup has measured since 1956. Typically, a majority of Americans say their taxes are too high, and relatively few say their taxes are too low."

But focusing on the level of taxation is the wrong issue for Gallup to track. It struck me that the Tea Party attendees in Pittsburgh were worried more about the use of their tax dollars, and the explosion in federal deficit spending. The Tea Party movement strikes me as more about the dangerously growing size of the federal government. From what I could gather, the Tea Party attendees opposed the unalterable trend of endless federal growth. And coupled with this there is, of course, a deep fear about the eventual decline in value of the dollar.

Like I said earlier in the article, it's about time for the U.S. to have a national discussion about the nature of its money. What is a U.S. dollar any more? Where does national wealth come from? We ought have that national chat while we still have some money, and while we can still create wealth. Because a lot of people appear to sense that something important is coming to an end. 

And when things fall apart, we'll be in for a generation or two of very tough times. So the political class, and its Big Media androids, are ignoring the Tea Party movement at their peril.

Jun 7, 2009

The Eye of the Economic Hurricane

Yesterday was beautiful in London. We wandered along the banks of the Thames and crossed Waterloo Bridge over to Covent Garden. Everywhere, people were sitting out on the grass...standing outside pubs...walking hand in hand. Everyone had the same idea - to take advantage of the nice weather before it goes away.

Last year, London had a beautiful summer too. But we were gone that week and missed it.

Alas, many of the best things in life are fleeting. And thankfully, so are the worst things.

What put us in such a reflective mood were yesterday's news reports. The Dow rose again - up 19 points this time. Gold edged closer to the $1,000 mark - at $984. Oil traded at $68. And the dollar fell to only $1.43 against the euro.

These trends - not to mention the broad rise in commodities and stocks worldwide - lead many investors to think that the fair weather is back, permanently. Asset prices are rising. Investors are less afraid of risk. Hallelujah - a dove with a sprig of green in its beak!

Of course, it may be true. But our advice, dear reader, is to take an umbrella with you anyway. As far as we can tell, nothing has happened to disturb the major weather pattern that began developing two years ago. Anyone could see it coming years in advance. "You gotta expect trouble when the average house is more expensive than the average person can afford," we kept saying.

But it was only when high winds hit the housing market that the newspapers took notice. Then, for 40 days and 40 nights the rain came down.

First, the house flippers were caught off guard. They were in the middle of flipping condos when all of a sudden the wind shifted and sent their contracts aloft. Mortgage rates were rising and buyers disappeared. The flippers lost their deposits and walked away from empty buildings.

Then, resets and higher rates blew the roof off the subprime market.

Then, the whole housing sector was getting knocked down - builders, suppliers, and financers.

Next came the credit crunch...when major lenders and investment banks realized that they were in heavy seas. Their ships were swamped with mortgage-backed debt and derivatives...and their captains were morons. Lehman went down. Wall Street abandoned ship. And the feds sent out rescue planes.

By late in 2008, everyone was taking shelter. Businesses were cutting payrolls. Banks were squeezing their reserves. Consumers were staying at home. And GM was hiring bankruptcy lawyers.

Everything was falling in price - houses, office buildings, stocks, commodities...practically everything except the US dollar, US bonds, and gold... These three were seen as the only safe refuges for storm- tossed investors.

But on March 9, 2009, came a lull. Reluctantly, investors came out of their storm shelters. The skies lightened...the sun shined. Oil has gone up 53% since then. Stocks worldwide are up about 30%.

And now...people say "the worst is behind us."

We meteorologists here at The Daily Reckoning watch the skies like everyone else. But we also read reports from big storms of the past. And what we notice is that this doesn't look like the passing storms of the '80s or '90s. It looks to us like a major change in weather patterns. To be more precise, it looks to us like the Great Storm of the '30s. Do you remember that one, dear reader? No? Well, we don't either, but we've read the histories. It was a doozy. And it began...well...just like this one.

In 1930, six months after the initial storm front passed, world output was down about 15%. Today, it is down about 15%, too. Stock markets were only down about 20% in mid-1930. Today, they're down about 35%. And world trade slipped about 15% in the six months following the onset of the Great Crash of '29. Today, it is down 25%.

One thing you notice is that like the Great Depression, this downturn is global. A collapse in world trade followed the Crash of '29. It is usually blamed on two protectionist bumblers in Congress - Smoot and Hawley. But in a real depression, trade falls anyway. World commerce needs to readjust to new realities...whatever they are. That's happening again now.

The other thing you notice is that this adjustment takes time...and takes the losses much further...much deeper...than anyone expects. The actual bottom in the '30s didn't come until 2 to 3 years after the crash. And it took stocks all over the planet down to about 65% below their peaks. World output eventually fell to only about 2/3rds of what it had been in the late '20s.

It took two decades and a major world war before the world was back on its feet.

Now here's Ian with some news on the fate of the Hummer:

"As you've likely heard," writes Ian in today's 5 Minute Forecast, "a Chinese company will soon own the Hummer brand. Heh, let's count the ways this transaction epitomizes the new economic landscape:

"1. A Chinese company now owns an automaker that will build and sell cars in the U.S. - a first.

"2. That company - Sichuan Tengzhong Heavy Industrial Machinery - doesn't even make cars. For its first foray into passenger automaking, it's chosen Hummer, perhaps the world's most challenging and polarizing brand.

"3. Business is so booming at Tengzhong HIM (its core is road construction and energy equipment) that the company will completely self-finance the deal...not one yuan borrowed from the Chinese government.

"4. While neither party will disclose the price, Hummer was likely sold for a song...less than $500 million.

"5. The White House is billing it as a victory: It's 'good news for the 3,000 Americans who will be able to keep their jobs, the two American plants that will remain open and the more than 100 Hummer dealers that should be able to stay in business all around the country,' said Bill Burton, a presidential spokesman.

"6. Tengzhong claims its long-term goal is to make Hummer a legit brand in China, where there's already demand for the vehicle that embodies American excess and overcompensation.

"We'd be delighted if the Hummer takes off over there...nothing wrong with making something that China wants to buy. And if Americans stop buying them, even better...

"...would you really miss these things?"

Each weekday, Ian brings readers The 5 Min Forecast - an executive series e-letter that provides a quick and dirty analysis of daily economic and financial developments - in five minutes or less.

The 5 is free to subscribers of our paid publications, such as the Hulbert #1 Performing Investment Letter, Outstanding Investments.

And now back to Bill, in London:

"Treasuries Tumble," announced a cover of Barron's recently. Oh my. Long bonds are down 20% since January.

Pity the poor Chinese. They've got $768 billion worth of them.

And pity poor Tim Geithner. He's over there right now on a fool's errand, lying to the Chinese:

"Geithner Tells Chinese its Holdings Are Safe," says the Washington Post.

Reuters went on to report:

"His answer drew loud laughter from his student audience, reflecting skepticism in China about the wisdom of a developing country accumulating a vast stockpile of foreign reserves instead of spending the money to raise living standards at home."

More on Geithner's visit to China later in the week...

"Those people did not become French in the last five months," says Mitch Daniels, Republican governor of Indiana.

He was referring to the people who re-elected him. His point was that Americans are not necessarily in favor of socialism. They may be fed up with what they see as the failures of capitalism. But they're not ready to vote for Nicholas Sarkozy.

But the country has clearly moved towards more government intervention in the economy. In 1986, 40% of Americans thought government regulated the economy too much. Now, 40% think it doesn't regulate enough. And get this... The Economist reports the results of a worldwide poll. When asked if "people [were] better off under free markets," 75% of Indians say 'yes' and so did about 72% of Chinese. But put the question to Americans and only about 69% think so.

Even Italians are more in favor of free enterprise than Americans. Go figure.

The Economist passes along the thoughts of an American lawyer to explain it:

"The disaster in the housing and mortgage markets shows that free markets don't always get incentives right or generate the information people need to make wise decisions. There may be times, he adds, when government is better suited to giving people the information they need."

Ha. Ha.

Information? What information was it that people didn't have? All the information was not only available - it was free. We reported it here at The Daily Reckoning - for free. Day after day...we read the headlines and passed along the statistics. What was hidden from view? What was unknown?

This information was available to the government too. Its thousands of regulators, representatives, researchers, and consumer advocates had computer terminals and newspaper subscriptions. They even had thousands of PhDs in economics whose JOB IS TO STUDY THE ECONOMY!

If government were really able to give "people the information they [needed]," you'd think that one of these earnest meddlers would have whispered to Secretary of the Treasury...or maybe to the head of the Fed: "Hey...better tell the voters to watch out...this thing is getting out of control."

But do you remember a word from the Secretary of the Treasury...from the Fed...from the SEC...from the other busybody parasites who live on the public payroll? We don't. All we remember is how they told us to "buy an SUV" and how derivatives "spread the risk to those who are able to bear it" and how "subprime mortgages help increase home ownership."

The government, do a better job of running the economy? Ha. Ha.