Money Matters Update- December 18, 2013. READ FOR IMPORTANT INFORMATION

Now this is just plain bad - No one can survive financial madness like this. Note this is a GLOBAL chart so the payback will be global in scope.

Marc’s notes:
Well, it has been a bit since I last updated all of you on what is happening in the markets.

First off the total once again for Turkey Matters was over $10,000.00 to the various food banks and thank you! We did it again and helped feed the hungry! God Bless all of you.

The Money Class went great and thanks to all who attended. I have time in January to give another if there is a need for it and also have plenty of time for consults before little league starts up. Speaking of baseball, if you own a business and want low cost advertising, you can get a huge 2 foot by 4 foot sign at Condon Park in Grass Valley from February to November for only $150.00 and the league pays for the sign and the graphic! Just email me! Bigger signs are also available for a slightly higher cost. Also if you have boys or girls age 4 thru 18, sign them up to play baseball! Go to Grassvalleylittleleague.com for early bird discounts.

December is upon us as is a new Fed meeting which concludes today Wednesday December 18 and we will know whether a real taper is on the menu. I think they will do what they always have done lately and talk about it but not do it. Even talk however might scare markets for a day or 2. We will know today. What ever they say put no stock in it. “It won’t be enough” is my call for years now.

QE is on the menu forever. They might (might) taper a bit but remember they still print 85 billion (with a B) each and every month and that is an ungodly sum. This money blows markets higher and commodities higher and bond bubbles bigger. Beware bonds in 2014! Losses await bond holders of just about any color!  (See this week’s UNION article).

For now the stock market is trying to decide which way to go and I believe we will see a market reaction tomorrow of some sort. Be careful adding stocks but add them over time for sure. Only add the big dividend payers, the first 2 or 3 dozen on my Super Dividend Payers list for safety yet income. Link here:

https://moneymanagementradio.com/cart/super_dividend

Gold meanwhile continues down and my call of a possible level of $900.00 and silver at $15.00 is looking like a good call. This will likely end the correction and what a correction it has been. The next leg for gold up will take it into the thousands and silver into the hundreds. You can add small amounts here but I think more downside erosion is in the cards for now.

The key is the US dollar and interest rates now. The final straw. It is not broken yet but each passing day brings us closer. It will get ugly, very.

For now though, keep dancing!

Watch for budget deals and fights in January again as the circus of the absurd continues. Little real cutting will be accomplished and the US will continue to overspend like a drunken housewife with gold credit cards. Congress will never do what needs to be done and the public would never stand for it anyway. We will therefore take the painful low road and I mean painful. Not yet but we approach it with every passing day.

The Swiss annuities are no longer available but those that have them denominated in Swiss Francs are dancing the jig as the Franc rises. As I said, the Swiss Bank wanted to peg it to the Euro and they did for a long while, but I warned they could not keep it up indefinitely. The pressure builds and now the Franc is pressing hard up against going over 111. Your annuity values will skyrocket soon! Hang!

For those invested in other currencies, hold those and do not fret. They will rise slowly over time as well.

Special Note: Those holding RCS on our Super Dividend Payers List should sell this security now. It is falling with rising rates. VIPSX should also be sold. Use others on the list.

Business on my street is tight. Revenues are down across the board. Membership drives at public media outlets like TV and Radio are down. Donations are down. Advertising is down. The slowing economy is now also about to get worse as any Fed Taper will cause more problems. Those companies and entities not reading the tea leaves correctly and not preparing for further slow downs will suffer balance sheet bleed off. Economics is harsh and the “creative destruction “arm of the cold hard facts will crush what entities ignore the fundamentals. Business in not built on hope or hype but on sound practices. Those not using sound business practices will fall by the roadside to be replaced by those that do. Pain awaits many.

The average Joe is finding out the “recovery’ was nothing more then a bubble blown in a select number of assets benefitting from Fed money, like stocks, bonds, and real estate. Other then those assets rising in price, the economy is running a mild fever and is low on iron. It is weak and will get weaker as it “won’t be enough”. They cannot print enough money to solve it because printing money does not solve anything. Printing money drives up stock prices only. It enriches the rich only. It also causes inflation that makes the poor unable to buy food and basics. The scam that QE works is becoming obvious to all.

For the average investor and working stiff, my advice remains the same. Work hard and save. Work all the overtime you can and save. Use funds to follow the “plan” of buying a basket of investments and keep much cash in savings accounts. Add to IRA’s and college savings plans. Add some dividend paying stocks but ONLY THE HUGE ONES on my Super Dividend Payers List. (The first two dozen or so) and stay away from the rest.

If you are of higher net worth, add physical gold and silver and foreign currency funds and consider moving some money offshore. I can help with all of that by sending me an email. 2014 remains to be interesting and I suspect we will see more fireworks this coming year then in 2013.

All the best and email me with any questions you may have.
Marc

PS: Look for my special report on:"How to buy stocks on sale or get paid NOT to buy them". It will be available through special order only and will be announced on this newsletter! A few more weeks!

Soon to replaced Ben- Wall Street will be sad to see him go but his replacement Janet Yellen will add more zeros to this bill.