Is Gold finally ready? Is the Dow ready to crater? Central banks go crazy with the printing presses! Update January 31, 2015

Is this in our future? Central bank policies could make this a reality

Marc's notes:

Talk about pushback. The financial industry (have I hung those guys a few times?)is launching a massive lobbying effort to squash the White House’s plan to establish new rules for investor service companies (financial advisors and firms etc.) who manage trillions of dollars in retirement funds.

At issue is a Labor Department proposal to require brokers to act in their retirement clients’ best interest, a standard known as fiduciary duty. Under current rules, brokers are held to a ‘suitability’ standard, meaning they must reasonably believe their recommendation is right for a customer.

It might seem like a moot point but the new wording could open up a Pandora’s box as to what exactly is the advisors duty as to in what capacity they will be held accountable to when it comes to handling investor funds and what they put those funds into.

We will see what comes out of this but it is interesting the White House is taking this to task. All of you know my position on this. I have stated it many times:
Advisors and their firms in my opinion act in the interest of mostly themselves because stocks just move in concert with the market and the recipes they use are based on out dated methodologies that perform no better than investing in the market indexes in general.

Speaking on this topic, not one financial advisor or firm has taken me up on my bet of $1,000.00 that they can beat the general market indexes. NOT ONE. That is what I call not having faith in their system and definitely not putting their (actually your) money where their mouth is. If they are so confident they are worth the fees they charge you and can do better than the market, why hasn’t any of them stepped up and taken my bet. It’s because they know I speak the truth, plain and simple.

As for the markets, my call of “it won’t be enough” so many years ago is playing true in spades. No matter how much QE central banks do, they just keep doing MORE OF IT because it has done little to fix the world’s economic problems. The grand game of currency wars (Money Matters shows # 157 and #101) continues. More QE in Euro land, China and Japan to name a few. Each new round of QE launches another salvo in this war in an attempt to weaken each of their currencies so their corporations can sell more stuff.

It’s a “beggar thy neighbor” strategy that just goes back and forth. It’s the topic of another show I did called “You print I print”. (Money Matters show #98).

One country does QE to weaken their currency then the other does it to weaken theirs and back and forth they go. It fixes nothing but does cause inflation. Not in all things mind you but some things. In all things eventually however.

The real story is an overdose of global debt from years of overspending which the market tried to correct in the 2008/09 crisis. The central banks of the world failed to recognize the problem (incredibly) and embarked on the foolhardy remedy (a remedy of which it is not) of creating paper dollars to paper over debt. Although paper dollars (QE and bailouts) are just more debt, the central banks, acting like heroin dealers, fed the economies of the world the same thing that made them sick: monetary heroin.

Like heroin, it seems to solve the problem but only temporarily. The addict then needs ever increasing amounts to keep from going through the horrible effects of withdrawal, which in the case of our economies is recessions and depressions.

Case in point: Note the repeated QE programs undertaken over and over again with the same results. For 6 years now, ungodly amounts of cash have been conjured up by the minions at the world’s central banks yet they keep repeating the process as the economies never are able to stand on their own.

This will end very, very badly.

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Greece elected the liberal party who now threatens to do what we thought they would do. Finance Minister Yanis Varoufakis set the clock ticking on Greece’s standoff with the ECB on Friday saying he’s ready to take his chances without a financial backstop rather than submit to more austerity. Now the fireworks start and you will witness what happens when the drugs are cut off.

Our markets are now in another downtrend off nearly 1000 Dow points from it making the second assault on the 18,000 level, possibly setting up the “double top” I have recently warned about. December 4^th and December 29^th both were near the top of the Dow range and now it’s kissing the 17,000 level again.

If this recent fall pierces the 17,000 level and remains there a whole new level is possible with the next resistance level on the Dow I read as around 16,500 then 16,000. We will see. Take heed of my recent warnings last week to be careful on adding any new monies to the markets and if you are heavy in stocks consider taking some profits off the table.

The US dollar also looks to be topping here. This incredible dollar run has hammered the price of oil, commodities and most other foreign currencies. My opinion is the Yen and Euro have much farther to fall and the US dollar will come under pressure as US corporations, whose profits have been hammered due to the strength, cry to Washington to launch a US salvo in this ongoing currency war and set out to weaken OUR dollar. The currency wars are ongoing. The rot of central bank planning is imploding the financial currency systems of the world.

Gold is sniffing out the currency malfeasance as we speak. When the Swiss uncoupled their currency from the Euro, it set in motion the realization that currencies everywhere are suspect and very susceptible to central bank shenanigans. The only currency they cannot manipulate is precious metals. A new gold bull looks to be upon us. I added gold stocks 2 weeks back. Gold may have one more rout to complete but it looks as if golds day is coming again. Got gold?

Speaking of gold, let’s look about how they relate to currencies shall we?

My Dream Portfolio and during my consults, it is advocated investors hold a basket of three select currencies in addition to all your other holdings. One of those currencies is the Swiss Franc either through a Swiss annuity or Franc holding vehicle of some sort.

I often get emails about these currencies weakening and if investors should sell. The decision to sell is always left to you, but I have always said by holding foreign currencies as well as your US dollar holdings, if one falls the other has more purchasing power. This is true today as well even with the other currencies falling.

The other side of the equation is your US DOLLARS NOW BUY MORE! The “teeter totter” of balancing one currency against others is working to a TEE.

Gasoline is cheaper, some commodities like sugar and corn are cheaper and most of that reduction in price is because the US DOLLAR IS GAINING AGAINST OTHER FOREIGN CURRENCIES. One day that process will reverse and you will see prices HERE IN THE US GO UP even more but your foreign currency holdings will then also RISE.

The Swiss franc is already reversing and rising so the plan is functioning as it should. You can’t have all your holdings rise in concert. That rarely if ever happens. (See my Dream Portfolio for all holdings- just updated this month).

Also offsetting currency falls is the gold holding. Gold has risen hundreds of percentage points in major currencies in the past decade so this also offsets the fall. If you are following the Money Matters plan you are well protected and making gains while others go nowhere. As for GOLD HOLDINGS, you should be starting to consider adding gold stocks and funds (you should already have your physical gold in hand).

Do not add just any gold stocks as many will NOT SURVIVE nor will any of your money invested in them.

You must be careful what gold assets you buy. I just made a new list of some gold stocks and funds that are the best of the best and most pay handsome dividends to boot. You can get this list as a BONUS just for signing up for a 2 year membership now. You not only get a year free (that is 3 years for the price of 2) but you also get the “GOLDEN STOCKS FOR GOLDEN RETURNS IN THE NEXT BULL MARKET”.

Now may be the time to start loading up on gold. I said the time would come and with currencies everywhere falling and central banks now printing incredible sums, the paper currency wars will have their inevitable end. Like a nuclear war, there will be no winners EXCEPT those that use the “golden bunker”.

Don’t wait. Gold stocks could be ready to double, triple, quadruple or even go up TEN TIMES should the next gold run be approaching!

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US corporate profits from giants like Caterpillar and Procter and Gamble (among others) are looking bleak this earning season. The strong US dollar is hammering profits.

The exception being Apple who blew it out of the box selling more stuff than ever. I own Apple and have been advising clients to do the same. Apple failed to close above its recent high however so caution is warranted.

Internet king Alibaba got hammered on its earnings and although I like this stock for a long term play, there were accusations of improprieties and I would stay away for now.

If more “issues” surface, this stock could get hammered even worse. Let us wait until the dust settles before dabbling.

Oil is in the dirt and the fallout from oils collapse will show up soon in huge losses on some balance sheets. Adding only the largest of oil companies with strong balance sheets is warranted. The fall in oil might not be over. My list of what energy companies are now on sale is on my SUPER DIVIDEND PAYERS LIST. With oil company stocks down, the dividends are even better!

Speaking of dividends, a few of my “lobbyist companies” have doubled and one of them is popping as we speak. See the Super Dividend Payers List and see the stock after Lockheed Martin. Although Lockheed has doubled already, the one under it looks ready to SKYROCKET! It just posted monster earnings.

Link to the list here:

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

Bonds are an accident waiting to happen. Only short term US Treasuries are suggested.

With Greek bonds again in the news, bonds of all sorts are at risk. Ignore at your own peril! I have a safe list of bonds on the SUPER DIVIDEND PAYERS LIST and two of those bonds funds have just hit NEW HIGHS!

In conclusion, consider the upcoming MONEY MATTERS CLASS. It is only $199.00 and email me now for a discount! Early birds save 25 %.

That’s all for now but be careful. This market is not for the young.

Show this Thursday. Tune in,

Marc

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