The Swiss National Bank drops a bombshell! What to do. Update January 16, 2015

gold bars

 

 

Marc’s Notes:

In what is being labeled the Swiss Surprise, the Swiss National Bank (SNB) rocked the financial world on Thursday when it announced it would do away with the peg of its currency the Swiss Franc to the Euro.

For three years now, the SNB had exchanged francs for Euro in an effort to keep the franc from rising in value. The franc had been on a rocket ride to the moon prior to the peg as there were purchases from investors buying francs in an effort to take refuge in what has been historically regarded as one of the safest and most stable currencies in the world.

But as the Euro plummeted in value over the last few years, and with more QE promised by the European Central Bank (ECB) the SNB had to keep giving up its francs while accumulating more and more Euros, losing billions in the process.

Even more surprising just a month ago the ECB had reiterated its promise to keep exchanging francs for Euros.

So goes the old saying once a government denies something you can be sure it’s true.

Last Thursday suddenly and without warning the SNB eliminated what it called its “temporary” program announcing the peg was over and the Euro plummeted while the franc skyrocketed. The change in value between the two currencies reached a stunning 30% within minutes. Quite an event considering currencies rarely move more the a few pennies in a day if that.

Only time will tell who and how many bit the big one on this turn of events but you can be sure those owing money in Swiss Francs, of which there are many, are reeling big time as now they essentially saw what they owe jump by a stomach churning amount. 

Even more disturbing is the massive bets currency traders hold with each other and some obviously were bets on the movements of the Euro and the franc.

You can be sure many hedge funds, traders and even large banks took massive hits when the revaluation took place. The world has not heard the last of this event. Look for some big blow ups in the days and weeks to come.

If you have been a follower of Money Matters and this newsletter, you know I have always said, once the franc peg materialized, they would not be able to keep it up forever. Those holding our FXF fund and Swiss Annuities in francs emailed me every so often asking if they should sell their franc denominated assets. I always said a resounding NO and now you know why. It was only a matter of time. They couldn’t keep it up and now the franc will begin its rise again.

What happens now is anyone’s guess.

As if the markets didn’t need more to digest!

Much like oil plummeting and now causing problems in other markets, the Swiss Franc versus the Euro issue has added to the uncertainty.

The problem is a familiar one and the symptom a reoccurring one. Banks, hedge funds and large investors all bet on the price of oil, Euros and Swiss Francs and now that both have plummeted in value the losses will surface. Because both oil and the Euro had huge moves, those losses are going to be massive.

Somewhere in there its possible some losses may be VERY huge and if that firm is big enough to cause systemic damage, we could be looking at another “too big to fail” scenario.

Remember the Long Term Capital Mgt. fiasco in 1997 where a large hedge fund made a bet on the Russian Ruble and when it went under so did LTCM?

So big were their losses the Federal Reserve had to oversee a bailout cobbling together a handful of big banks to come up with billions, all in the name of saving the system.

Now that the banks are even bigger and more intertwined than ever, as we found out in the real estate crisis, too big to fail spells bailout in Fed language and could we be hatching another one as we speak?

It’s too soon to tell of course but the move in oil and the Euro have been massive, happened very fast and both were totally unexpected by the lion share of financial firms alike.

It’s those types of unforeseen black swan events that can cause massive heart attacks in the circulatory systems of the global financial machine.

Gold took off as the thought that perhaps currencies are too dependent on central banks to maintain their value and isn’t that the point we have been trying to make?

If that type of move could happen on one central bank policy move, how safe are other paper currencies?  Does the crash in the Euro make us question the validity of paper currencies everywhere? And what about the impact a central bank can have on global markets? Causing massive losses within minutes of an announcement?

This type of quick avalanche due to a policy statement is exactly why we should NOT have central bodies managing anything! Free markets rarely bring about such rapid and drastic movements. But central banks obviously can!

So the flight to a stable and honest money took place and gold took off! As we have said, gold is currency insurance. Insurance against this type of idiocy. Insurance against central bankers and their dangerous policies. Do you have insurance on your house? Than so should you have insurance on your money and gold is that insurance.

How much and what else should you hold? That is why I wrote the Dream Portfolio. It’s a consult in a box and gives you all the tools to spread your money out in a variety of real assets. Not just stocks and bonds which is in my opinion an accident waiting to happen.

I just updated it and it’s on the site at moneymanagementradio.com.

Link here:

http://www.moneymanagementradio.com/cart/dream_portfolio

For a more conservative approach (although the Dream is very conservative) I also just updated the conservative portfolio. If you are older, have less money or just more worried about keeping your money, this one is for you.

Link here:

https://www.moneymanagementradio.com/cart/conservative_portfolio

Both tell you where, what, how much and why. For the price of a dinner out you can get the real way to make AND safeguard your money. Add in the Super Dividend Payers List and you will be on autopilot with your finances.

Link to Super Dividend Payers List:

https://www.moneymanagementradio.com/cart/super_dividend

 

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I just had a great show interviewing Mish Shedlock, a brilliant analyst and observer of markets. Listen to what he had to say about these markets and you will hear a familiar theme. The show is #203 and will be posted soon. Shows 202 and 201 are up now.

That’s all for now but look for a MONEY CLASS finally! Sign up early and save 25% on the class. The class will cover money, investing, real estate, stocks, bonds, where to invest, how to open a brokerage account, planning for retirement, inheritance and more.

There is no sales pitch as I don’t sell anything. Unlike those other “classes” advisors give where they try to get to sign up with them and then they charge you up the wazoo, this class is just that, a class for you to learn, . Learn about money and more comes your way!

Regular fee is $199.00. Email me now and save $50.00. Classes will be held in Nevada County on a day that meets with your schedule. They take about 3 hours and you can ask me questions as we go. Add spouse for $75.00. To get the discount, send me an email.

Class will be held sometime in March or maybe even February depending on response.

Email me at: marc@moneymanagementradio.com

That’s it for now. A blurp on the Super Dividend Payers List is attached.

 

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"Do you employ on of these to handle your money"?

An open challenge to any and all investment advisors and firms.

Pick a date in the future. Notify me of that date. Then we wait one year to the day. If any advisor or firm beats the combination of the S&P 500, the Nasdaq, the S&P 500 and the Dow equally weighted, deducting all your fees, commissions and loads, I will pay you the sum of $1,000.00.(one thousand dollars). Your portfolio must be in a valid customer account and hold at least 20 positions for diversification.

If you don’t beat the equal weighting of the three indexes, you pay me. It's that simple. Let’s see if anyone or any firm is willing to put their money where their mouth (and investment strategy) is.

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Good news! I have just updated the Super Dividend Payers List again for the New Year! Even if you go the list in October on the last update, this is a NEW updated list as of January first!

This list has always had great dividend payers on it, many of which I own or have owned myself for years but this latest version has some great stocks I have found which you should consider right away. I have arranged the list so the first 60 stocks are in order of importance as I view them!

The first few are money generators and the “Monsters of the Midway” as I call them and as of January 2, 2015 I updated it again!

Let talk about the FIRST stock on the list. (I made this super easy! Just get the list and look for the first one listed!).

This company owns over 95% of its market! It is valued at over one tenth of a TRILLION dollars! Talk about HUGE!

Its spews cash like an uncorked fire hydrant!

It has a balance sheet like Fort Knox and generates tens of billions in profits and has for decades. I bet you use this product everyday as almost every person on the planet does whether they know it or not! It has increased it R and D spending despite its complete dominance which tells me it’s not sitting on its heels!

It pays a healthy dividend compared to other companies of this size. It has beaten almost all the Dow stocks in performance and this year rose over 30 %!

You know this name yet few own it. That should all change once you get the list!

It’s paid a dividend for over 30 years and right now yields gobs more than a savings account. The real jewel in the crown is it’s been a few years since it raised its dividend and in October I said it might raise its dividend and guess what? It just did!

I hope you got this stock in October but if not, an increase in dividends says gobs about the company’s strength and management’s confidence in what’s to come. Now is the time to get this monster of the midway!

What makes this money pot even sweeter is the company is planning to buy back almost 1 in 10 of its outstanding shares within a year or so and at today’s prices it will spend somewhere in the neighborhood of 20 billion dollars to do so! When a company buys back its own shares it means less shares on the market and that mean profits as shares likely rise! They may even buy back the shares you hold (if you dare want to sell that is!).

It also shows us that management thinks its own shares are a deal! What a better vote of confidence could there be! Again, it is the first stock on the new UPDATED SUPER DIVIDEND PAYERS LIST just out this week!

The second stock on the list is one I have recommended to friends and family alike. It’s also a MONSTER of a company and again, odds are you interact or use this product every single day in almost everything you do. It has oodles of cash and the very best of ratings of any company on the planet. It gushes cash and owns its market. It one of the best stocks I can recommend and is usually the FIRST stock I have anyone buy! It is listed second on my list and if you buy BOTH you will own the finest of companies on Earth and both pay you to hold them!

The 3rd company is now being removed so skip over this company. (RIG). If you own it, consider selling it now. 

The next stock on my list (#4) is a drug company that owns multiple patents and the most commonly drugs. It’s a leader in its field but it’s also been beaten up due to what I deem as temporary setbacks. I love beaten up stocks as they can go up again AND pay you huge dividends while we ride! Its pays a 5.7 % dividend and has a cheap price to earnings ratio of 14. Another blue light special and the 4th on my Super Dividend Payers List. Since October it has gone down even farther making it an even better buy so if you didn’t get it on my last update, consider looking into this stock now!

One more thing: being in the pharmaceutical business, the Ebola scare could send this companies stock soaring!

The next two stocks are just as monstrous and a must have in any solid portfolio. #5 has been around for over 60 years with a 35 billion market cap. Its dividend growth has been superior and is ranked in the top 4 of the strongest companies as rated by the top rating agencies. #6 is another of the best run companies in the world and has an arsenal of products used every day worldwide. Both of these companies are the best of the best and companies you never sell! Just collect the checks!

I added another monster stock in position #7. This company I know you have heard of and is the dominant provider of the internet backbone. It generates close to 50 billion in sales and added 8 billion since 2010! It has a super reliable dividend.

#8 is the world’s largest data storage provider. In 2013 it made 23 billion in sales! Like the other monster stocks above, it gushes cash and gives it back to shareholders in the form of reliable and hopefully ever growing dividends!

#9 is arguably the largest company in the world. Strong is not the word for this company but SUPER strong is! Due to the recent fall in oil this stock is on SALE and if there is one stock I would recommend to my family this is the one!

This new list is even better than the October version and if you already are a subscriber download it now. If not a current subscriber, I would ask why not! These first 9 stocks are the ONES to own first and then keep going down the list. It’s packed with monster stocks that rule the world and you should consider owing each and every one of them. The New Year rally may be upon us and grab these companies before other investors bid up their prices!

My list has sported solid payers for years. The first 60 or so on the Super Dividend Payer List sit among the world’s finest of companies and if you haven’t heard of every single one of them, I would be VERY surprised. I KNOW you have used their products in your everyday lives.

Right now stock picking is tantamount to profits. Today’s markets are not the buy and hold markets you are taught. I have said since about 2011 you should only own about 10-20 % in stocks and only hold the biggest and baddest companies on the planet.

The first 60 or so ARE those companies!

For the price of a dinner out, you can own this list for you and your family to use. My own father uses dividend payers for his daily income and makes over $3000 a month JUST IN DIVIDENDS from some of these same companies!

This market is not for your average everyday mutual funds nor your small, speculative stock picks. It is a market where you should only own the most defensive of stocks in the biggest and safest of companies!

That’s why this list was developed. Sure there are some high flyers on the list and I usually (at least right now) only recommend the first 60 or so but I have stocks and funds on the list which pay 10, 11, 12, 13, 14, 15 and even 16 % in dividends a year! If you need even more income and can tolerate risk, there are many of these ultra-high paying stocks and funds to select from.

Of course, no one can guarantee which way any stock will go or whether they will raise, lower or cut their dividend and I can’t either, but most of these first 60 or so are names you know of and whose products you use. The smaller ones you may not have heard of but the returns you will LOVE.

Get on the fast track and start seeing checks in your account instead of fees that rob you and your family of your hard earned income. See the list I use. See what I own and buy for my own family and friends. Get started today by clicking here to get my SUPER DIVIDEND PAYERS LIST. You can buy the list outright or better yet, for a few dollars more, sign up for website membership and get all my updates to this list and my others portfolios AND the entire series of Money Matters topic shows for 2 years! I will even give you one year FREE with a two year subscription! That’s makes 3 years of the most complete coverage and analysis of the markets and your money!

If you already are a member, you get the updated list for FREE as a paying member!

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Don’t delay. Click here and start cashing checks and get these monster dividend payers before everyone else starts discovering these hidden jewels and drives their stock prices up, up and away.

CLICK BELOW or paste on your browser:
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Stay tuned and as always, I am constantly scouring the planet for the safest and most profitable investments for all of my fans! Keep tuned and keep the faith.

That’s all for now.

Wishing you the happiest and most profitable of New Years!

Marc

PS: Want to see how I do using my “Special Report” methods (available on my website under special report) and see how I do using real money? Follow me on Twitter under “marccuniberti”.

 

Link here to the special report:

http://www.moneymanagementradio.com/special-report