Some Old Favorites and David Walkers Interview Show. Update March 11, 2010

Marc's Notes:
Let's take care of business! Show #65, The U.S. COMPTROLLER interview with David Walker, the head accountant for the U.S. Government is now free on the "FREE SHOW" tab on the left of the site. Hear what he has to say about our debt. He should know, he is "their" chief accountant. If you doubt what I have been telling you, listen to him.

Next, the DREAM PORTFOLIO and SUPER DIVIDEND PAYERS LIST were both update in the 2010. Subscribers get the new editions. Those wanting it no not subscribing, click on each or the YEAR SUBSCRIPTION.

Update on Natural Gas. Our "gamblers" play with options is near the SELL point as time is eroding. SELL all options you just bought when UNG was at 9 ( you bought in at 9 or over) if UNG goes under 8. SELL the OPTIONS in any case by the end of next week. This short term play is not going our way and it is time to "bite the bullet" and take the loss. Sometimes the bear gets us. Long term holders of UNG or GAZ or USL, place a stop (not a stop limit) at 50 % of your buy in price or higher. Otherwise we hold until it plays out. They ain't gonna give it away.In any case, these purchases should always be a very small percentage of your monies, less them 1/10th of a percent to 1/100th of a percent of your total stock monies as always indicated in these news letters.

Visiting old Favorites:

I thought I would take a look back at some old recomendations in the last 4 years and see where they are now and what we said about them.

DBC and DBA. Agriculture commodity funds. These were called our "grocery funds" and protected us against inflation. They served the purpose well and then when the market crashed, prices came down with it. These pay no dividend and still should be held by high net worth individuals for protection.

CGMFX is the mutual fund we suggested when we started the show. It rocketed higher up many times then also came down with the crash. We recommended selling it with the manager switched his emphasis to financials stocks. Holder of CGMFX over the past many years put all others to shame. It was one of the highest gaining mutual funds of ALL of them and was a NO LOAD fund to boot. It really creamed the funds perhaps suggested by all those Grass Valley investment firms of which many were loaded with fees to add insult to injury.

Tanker stocks like NAT and FRO. These paid massive 20% dividends for many years and we cleaned up on these until the crash. They came down fairly hard like everything else and reduced their dividends below where I would like them. We still hold GLNG  GOLAR and SHIP FINANCE SFL and hold no grudges against FRO or NAT. Would I own them again? Sure. Great companies. Special note. DIANA SHIPPING was on the Super Dividend Payers list but stop paying a dividend so we sold it. It saved its dividend money and now is doing great and actually gained 100% since 2009. Other stocks that stop paying us should also have been sold.

OBCHX Oberweiss China Fund. A great little China play. Rose nicely over the years. We sold most of it in 2006 and 07 prior to the crash as we did most stocks in preparation for what was coming, but I still own some.

Uranium Stocks- URPTF. This funds rose 50 % off my buy in point, where your buy in is like all our reco's: It depends when you started reading or hearing me. The earlier in the decade, the better, and only IF you followed my portfolio in its entirely and didn't try to pick and choose. In any case, this fund rose like a rocket at which time we made a general statetment to UNLOAD half of all your commodity plays. If you followed that advice, you did well. If not, you rode this fund to now about a 50 % loss where it is oscillating now aournd 6 or so. I still own some URANIUM and with oil rising and OBAMA turning toward cleaner energy and mentioning nuclear, it is looking to be a long term play once again.

BEARX  Contrary fund. I love this fund and would never sell it. It held up great during the rally where other short funds got totally hammered. It paid a healthy dividend and continues to do so although its dividend this year was not so good. I would NOT RECOMMEND BEARX now as they sold the fund and the new company now charges a load to buy it, but long term holders like me that paid no fee should continue to hold it. It is a great hedge against a crash.

Other "contrary funds": These all are insurance against what is coming, so although they are down with the market up, this is what they are SUPPOSED to do. Like house insurance, you will be glad you have them when the market burns down again.

INDIA FUND- IFN. I loved this 30 % dividend payer but last year it stopped paying so I said sell it. I still own a small amount of it since it represents INDIA coming on the grid.High net worth individuals should probably own some for a restart of dividends possibility and participation in one great growing country.

UNWPX - Gold and Precious mineral fund. I continue to hold this at our initial buy in around 9 and more around 14. I was looking for a double from 14. It pays a nice dividend for a fund, about 4 or 5 % once a year, and now sits at 17 or so. Another way to hold gold and silver and other minerals and get paid to do it. It will rise and fall with gold.

Other gold funds like RGLD, AUY, TGLDF, URESX, CDE, NXG and others are all WAY up since we started recommending gold so you should continue to hold and take profits as they climb. I am not a huge fan of GLD or SLV although we mentioned them years back as a way to play gold and silver markets. The tax in regular accounts are higher then normal stocks so thats why I dont favor these. They also sell more stock then they have gold as they sell short gold as well. For these reasons you can hold GLD and SLV in retirement accounts but if gold starts really moving, like a hundred dollars a day, I would dump it. You dont want liquidity problems in fast markets if these guys dont own everything they promised.

Physical gold and silver is up 300 % since our first shows in 2005, just like we anticipated and you should continue to add both at every chance you get.

Foreign Currency Funds. We started out with the Yen, The Euro, The Aussie, TheSwiss Franc and Canandian Dollar. We SOLD the Euro a year or so back in anticipation of its problems and that was a great foresight. We SOLD the Yen just about a month or 2 back because it basically had gone as high as the Japanese said they would let it go and it pays nothing. It is a partner of the US DOLLAR, of which I am no fan. For now, the Franc , the Aussie and the Canadian is all I will hold. 

Everbank Silver, Gold and BRIC cd's. These NO DOWNSIDE RISK cds had no fees, had no downside risk and was FDIC insured, yet you made the gains if the underlying asset went up. Everbank has other foreign currencie accounts but charge you an in and out fee which I do not like. For now, monitor these newsletters. I am looking for Everbank to come out with a NO DOWNSIDE CD again based on something I like.

Interest Rate Funds like RRPIX and TBT. These are US DOLLAR hedges and have gone nowhere since the dollar is meanderign about. These are insurance only and I recomend holding them if you have cash in the bank.

SRS or SKF   ULTRA SHORT  ULTRA GAMBLERS  Real Estate and Bank Short contrary funds.

These 2 high flyers went from like the 10's to the 300's and back again! WOW!  I sold many options on these. Now that play is not possible as the stocks have been slowly eroding with the market rally. I hold a small amount as crash insurance only. I don't sugggest you do unless you are a real gambler.

DXO- Our gambler oil play worked great as oil had hit 36 bucks, down from 150. I said the Saudi's had our back on this play so we had a 50 % downside with a 1000 % upside potential. Like our natural gas play, buy when blood is in the streets. We bought DXO in the low 3's and 4's if recall and sold it as it rose nicely.

Safe money funds like SHY  SHV   BIL  TIPS  and  others we have listed. These have always been suggested as your safe harbours and where most of your money should have been and should be for now. These have done what we wanted them to do. Keep your money. And thats what WAS most important and IS most important still. 

Over the years there have been many recomendations and suggestions on this newsletter and the best way to utilize the site and letter is do READ them. I will continue to bring you the most up to date and honest market and economic reporting I can. Stay tuned to the show and share it and this newsletter with your friends and family. Subscribe if you like, but most of all, sty informed!

All for now,

Marc