If you're not using this one simple move to multiply normal dividend payments by as much as seven times over, you're missing out…
You could've used this move on Wal-Mart for example.
Top Stocks Pay You Income Legally…
They'd have paid you a total of 95 cents per share in dividends over the year.
So owning 1,000 shares would have made you $950 ― or $79 per month.
In a downward market, that's not bad...
But it's not enough for you and your family to live on.
By making the one simple move that I'll tell you about in this letter, you could have used your 1,000 Wal-Mart shares to pay you:
An extra $550 on February 4th
An extra $1,430 on May 1st
And an extra $3,850 on July 8th
That's a total of $5,830.
Add that to the normal dividends and you're up to an average of $565 a month worth of work-free income ― a whopping seven times more than the normal shareholders were paid!
Owning 2,000 shares of Wal-Mart and applying this "income on demand" move would have paid you an average of $1,130 per month… for the past 12 months.
And let me be clear ― this additional income has nothing to do with selling your stocks, buying bonds, or even buying stock options.
Even better, this one simple move lets YOU decide how much stocks could pay you in work-free income. And lets YOU decide when you get paid.
In fact, this income secret is so powerful that I've recently decided to publish a new high-end research service dedicated on showing you how to apply this one simple income-multiplying move.
And I'm not the only one who likes this strategy…
The New York Times says, "this is an excellent strategy to use in up, down and sideways markets. This is a strategy used to reduce risk and generate income...
Smart Money Magazine agrees, too. Saying, "[This strategy is] a way to have your cake and eat it..."
CBS Marketwatch claims, "One interesting twist on [this strategy] is that it can turn a non-dividend-paying stock into a dividend-payer…"
Come the beginning of January, readers will pay $1,495 a year for this new "Income on Demand" research service.
But as long as you're one of the first 428 people to respond to this letter you'll receive a free subscription to our new "Income on Demand" service… for life.
Before I tell you how to claim your spot, let me show you another example…
How to Force Any Stock To Legally Pay You Income…Even if they Never Pay a Dividend!
Apple Inc. doesn't pay a dividend.
Yet by owning 1,000 shares of Apple and applying this "income on demand" move you could have legally:
Gotten paid a nice $2,690 "On Demand" payment on April 7th
Demanded a massive $14,600 payment on April 25th
And pulled in a whopping $13,700 work-free income check on October 20th
That's a total of $30,900 of income from the Apple stock.
Or an average of $2,582 a month.
All while normal shareholders received not one cent.
That's the best part.
Even if a stock has been recently forced to cut its dividend, you could use Income on Demand to make sure you get paid a monthly check.
Better yet, even if a stock has never paid a dividend, Income on Demand will show you how to legally force any stock to help pay your monthly bills.
And best of all, even if you find those rare recession proof stocks that won't have to cut its dividends, you can use Income on Demand's strategy to multiply their income payments seven times over.
So how did I discover this secret to generating income?
Seven Months After Hiring Our Newest Options Guru…He Showed This Income Secret To Me In A Private Meeting
You may already be familiar with options guru Wayne Burritt…
As editor of our Easy Money Options newsletter he's shown subscribers gains of 37% on Financial Select Puts, 89% on Proctor & Gamble calls, and a nice 169% by playing S&P 500 puts.
All in the short 7 1/2 months that we've been publishing his service.
But what most people don't know is that Wayne's been working behind the scenes to launch a new, work-free high-end service designed to show you how to multiply a normal monthly portfolio income by up to seven fold ― simply by making one easy move when you get in on a stock.
And while other readers will pay $1,495 a year for Wayne's new research service, you can receive "Income on Demand" for free, for life.
What's the catch?
To claim your free subscription, you have to be one of the first 428 readers to respond to this letter. I'll explain everything in just a moment.
But you'll have to hurry…
Stocks Pole Position
"Substantial doubt," say auditors at Deloitte & Touche. They've been studying GMs figures. The numbers make them wonder whether the automaker can continue as a "going concern."
Here at The Daily Reckoning, we've got substantial doubt about a number of things.
As to GM, we share the auditors' concern. The world is full of car factories. Most of them can make cars better, faster, and cheaper than GM. Meanwhile, demand for autos is not growing as quickly as the global growth in auto-making capacity - especially in America. Not that we're trying to pass judgment. Let the Mr. Market do that!
But GM has friends in high places...ready to lean on the scales of Mr. Market's justice. The automaker has already borrowed $13.4 billion. It is asking for another $30 billion. But what kind of a dope would lend $30 billion to a company whose own auditors say they're worried that it might go out of business?
Then again, who would lend money to AIG four times in a row...after discovering each time that the company was in worse shape than before?
If you guessed anything but 'the US government,' you are not paying attention.
The rest of the world's lenders are idiots too - but of a different sort.
Allow us to simplify the world's credit markets circa 2009: the world's lenders are eager to make loans to the world's biggest debtor; they don't trust anyone else. The world's biggest debtor, meanwhile, lends to the people private lenders don't trust - the borrowers who can't pay the money back.
Meanwhile, sales are falling; profits are collapsing; dividends are disappearing; stock prices are plunging.
Yesterday, the Dow closed down 281 points. Oil held at $43. Gold rose $21. The correction in gold could be over. If that's the case, the yellow metal's price still has a ways to go...and you'll want to be part of this epic rise. Get in while the price is still relatively low. See here.
One out of every five mortgaged houses in America is now underwater. And a record 5.4 million Americans are either behind on their mortgage payments or in foreclosure.
House prices are still going down. You have to be a Lloyd Bridges to explore the U.S. housing market now.
This unprecedented drop in house prices has put millions of households underwater too. Martin Feldstein estimates that U.S. households have lost $12 trillion. It will take a decade of savings at a high rate to replace this money, he says.
The savings rate has soared...from below zero in 2006 to over 3% now. Rising savings will take $500 billion a year out of the consumer economy, Feldstein believes.
No wonder retailers are reporting weaker and weaker sales. In February, only Wal-Mart reported higher sales. Wal-Mart benefits from the 'trading down' effect. Now, when people spend money, they want cheaper alternatives...
Meanwhile, the cop who had the Wall Street beat when the biggest heist in history was going on...and who engineered the loans to AIG and GM...is now the chief of police. Tim Geithner said he was working night and day on Obama's rescue plan, "because we know how directly the future of our economy depends on it."
But as our old friend Marc Faber points out, neither Mr. Geithner, Mr. Bernanke, nor any of the men who rule us, seems to have any idea what they are talking about. As Chairman of the New York Fed, writes Faber, Mr. Geithner "did not seem to 'know,' in the period preceding the crisis, how the future of the economy depends on a sound financial system!"
Faber goes on to explain that not only did the key players fail to understand what was going on - when it was obvious to him, us and millions of others - they then misdiagnosed the problem and prescribed the wrong treatment. They thought it was a liquidity crisis; so they threw billions in cash at dying institutions.
At every step of the way, the feds have been clueless, hopeless, and defenseless. It was the feds who lent money at negative real interest rates for more than five years. It was the feds who pretended to "regulate" and "control" the marketplace...claiming to protect investors from fraud and malfeasance. It was the feds who licensed the banks...set banking standards...blessed derivatives because they "distributed risk more widely" (Greenspan)...urged people to buy adjustable rate mortgages (Greenspan again)...praised sub-prime lending because it encouraged home ownership...and even told consumers to "go out and buy an SUV" in order to give the economy a boost (Fed governor Robert McTeer).
The feds piled up the tinder...poured on the gasoline...and lit the match. And now, what do you know...they've all joined the fire department!
*** One small step for the Bank of England; one giant step towards bankruptcy.
"QE". It does not refer to the Queen of England...but the latest codeword in central banking - quantitative easing. The Bank of England said yesterday that it would buy government bonds itself. This is known to economists as "monetizing the debt." Because the bank takes in debt...and turns it into cash. Just like that.
The European Central Bank took a little step too. It cut rates - as did the Bank of England - by half a point. That brings the BoE down to 0.5% and the BCE to 1.5%.
Mervyn King, head of England's central bank, said he was going to quantitative easing because, in effect, nothing else had worked. They were already lending money to English banks below the consumer price inflation level...which is to say, at negative real interest rates. But the banks weren't cooperating. They took the money...but there it sat. They didn't lend it out.
That is why it is obviously NOT a liquidity crisis. The problem isn't that the banks don't have enough cash...or access to cash...it's that they don't know what anything is worth. They can't make a loan, because they can't be sure of getting the money back.
We've already laid this out for you, dear reader. We're going to do it again, in case you weren't paying attention: this is not a liquidity crisis...and not a recession either. It's a depression. In a depression, the economy needs to adjust to a NEW REALITY...whatever it may be.
Martin Feldstein, mentioned above, provides more figures. In the new reality of 2009, there's about half a trillion less in consumer spending...because consumers are saving money, rather than spending it. And you can take out another $250 billion just from the crack-up in the housing industry. No building...no construction jobs...no financing jobs...no selling jobs...no furnishings...etc. etc.
That's $750 billion less each year to support American's retail...and indirectly, wholesale...providers.
The Obama administration is trying to make up for this private spending with public spending. But his plan, as bold as it is, will only put back about $300 billion each year. That leaves a $450 billion shortfall...which could easily remain for the next 10 years.
This is the new reality that every business, investor and household in the country must live with. Revenues will go down. Sales will go down. Profits...earnings...dividends...you know where this leads.
Well....
Actually, none of knows where it leads...exactly. From today's perspective, it appears to lead to a Japan-like slump...a long period of adjustment to the new reality...delayed, worsened and stretched out by the efforts of our leaders.
But then...there's that QE.
Worried About the Economy?
Are you concerned about your financial future? Or maybe you're worried that the world just isn't safe anymore…
If so, you're not the only one. In fact, people across the country are feeding their fears by purchasing firearms…
Take Florida, for example. Floridians are applying for concealed weapons permits in record numbers � and the state government is buckling under the weight of a massive backlog of concealed weapons permits, according to the St. Petersburg Times. The state has even been forced to hire more than 60 temporary workers to deal with the flood of applications.
But it doesn't seem as if law enforcement is interesting in quelling the panic. "Once the economy gets bad, crime always goes up," a police officer told the St. Pete Times, "People get desperate whenever things are not going the way they feel like they should be going, and they'll do things they normally wouldn't do."
Crime isn't the only factor driving sales. In several news accounts, gun buyers have said they're buying now because they fear stricter gun laws are inevitable under the new administration.
This gun craze is especially interesting since firearms have long occupied a relatively stagnant market space. Take rifle production, for example. From 1973-2005, the number of rifles produced each year decreased on average 3.8%. Shotgun production dropped on average 2.9% for the same period.
Revolvers have seen their production numbers dropping at an average of 4.6% a year. The only segment of the U.S. firearms industry that's actually growing is pistols. Its growth is a 1.9% average each year. Not much to get excited about here…
However, sentiment is rapidly changing. And we think you should seriously consider firearms. No, we're not advocating the purchase of guns… Instead, you should check out a couple of small-cap gun makers. These companies have withstood the test of time. Now, they're enjoying more publicity and rising share prices…
First up is Smith & Wesson Holding Corp. (SWHC: NASDAQ). This company has been making guns longer than any of us have been on the planet. It's also a trusted brand that has expanded its offerings over the past few years…
After a tumultuous few years, the best stock has posted a strong 2009. Shares are up about 80% since Jan.1.
The gun maker has big plans. Smith & Wesson has moved into the rifle market and wants to take full advantage of this expansion. In February, the gun maker announced it plans to nearly double its annual revenue and improve margins and market share over the next few years.
Sturm, Ruger & Co. (RGR: NYSE) shares have enjoyed similar success this year. As of this morning, the best stock is up more than 80%. The firearms makers reported huge increases in revenue and backlog during Q4, and several analysts have upgraded the best stock to a strong buy.
Ruger stock might even be too hot to handle right now. It's posted most of its gains in just a few weeks. Short-term technicals show the best stock is way overbought, so it might be best to wait for a pullback before jumping in…
The Downfall of the American Consumer
Angela Merkel to Eastern Europe: Drop Dead!
You remember that famous cover story of the New York Daily News? New York was nearly bankrupt in 1975. The city asked the feds for a bailout. To his everlasting credit, Gerald Ford had the backbone to just say 'no.'
Had he given the city a bailout, Ford might have won his race against Carter. He believes that that headline cost him the New York vote...and the election. Then again, had he given New York a bailout...the city might be more like Detroit.
The kindness of strangers is one of life's delights, but once you begin to count on getting something for nothing you are on the road to Hell. At least, that is our view here at The Daily Reckoning.
Welfare ruined the lives of millions of people. (More on that...below...)
Easy credit - coming largely from the Fed and the kindness of strangers in Asia - ruined the American consumer.
Bailouts, handouts, bribes and giveaways threaten to sink whole industries.
And now the whole world economy will be ruined by printing press currency - something-for-nothing money coming from the central banks.
But that will take time...maybe years. For the moment, we are enjoying the show...
Europe is plagued by debt too - just like the United States. Individual households are generally in better shape than those in America, but governments tend to have more debt than the United States. And in the fringe countries of Europe - Ireland, Spain, Greece, Italy, Poland, and the Ukraine - consumers borrowed far too much money to buy houses. Unemployment is soaring to 15% of the workforce in Spain. Irish banks are going under. And in Eastern Europe, the problems are worse. Typically, a man who wanted to buy a house found that he got a better interest rate if he took out a mortgage in euros than in his home currency. In Poland, for example, many homeowners must now make their mortgage payments in euros, while they earn their money in zlotys. As the financial crisis developed, the zloty fell against the stronger euro, by half. This leaves the Polish householder paying twice as much on his mortgage.
Not surprisingly, consumers are in trouble...so are the banks than lent them money...and so are the countries where they live. Nine of these nations - an Eastern European bloc - got together and asked the European governing council for help. They said they needed $380 billion to get through this crisis. Angela Merkel, speaking for the French and Germans, said no. She might have mentioned, too, that they had already spent $380 billion recapitalizing Europe's banks.
In America, the government is more accommodating. It is spending trillions to try to bailout the entire global economy. And by the look of things...it is failing.
O! Bama! Where is thy bounce? The whole world needs it.
The Dow did not bounce much yesterday. It was up only 31 points. A disappointing showing. Usually, you can count on a healthy bounce after a big drop, such as top stocks got on Monday. But this market has been short on bounces. After Obama got elected, we expected a big bounce. Instead, there was a feeble ricochet of about 15%...and then, top stocks headed down again. In the United States, they've lost 20% so far this year.
And the more the government tries to pump up the ball, the flatter it seems to get.
HSBC said it was cutting 6,100 jobs...closing offices all over America...and trying to earn back the $10 billion it lost in the US consumer finance business.
AIG is getting another $30+ billion - after burning through the last $133 billion. 'Can't let this insurance giant go under,' say the pundits, "or the whole insurance business will go down.'
AIG was "irresponsible," said Ben Bernanke in his little chat with Congress yesterday. He said they made speculative bets that they shouldn't have made.
But what did he expect? The Fed - under the leadership of Alan Greenspan - threw the biggest financial party in world history. What did they expect the pros to do...stay home and watch TV?
And now the IMF says the global banking system needs another $500 billion. The real figure is probably two to three times that amount. But who knows? We're still in a period of aggressive price discovery. Until we find out what's in their vaults...and what it is worth...we won't know how much it will cost to save them.
Ford and GM sales have been cut in half - sales fell to a 27-year low in February. Blockbuster is eyeing Chapter 11. And skilled immigrants are leaving the US.
*** Obama has, of course, announced his $3.6 trillion budget...and all that goes with it. Including a $1.7 trillion deficit. But his estimates were based on a recovery in the last part of this year. That seems increasingly unlikely. Our guess: the deficit will go over $2 trillion.
Congress has hunched over the numbers. The solemn chicanery of federal budgeting is underway, in other words, as politicians pretend to weigh the merits of the spending plan...
Of course, they are spending other peoples' money...and none forgets it. The idea is not to reduce spending, and certainly not to return it to its rightful owners, but to make sure it goes to the groups most important for re-election. Besides so much of this money is borrowed from future generations...and foreigners...and who-knows-whom...it is like money from Heaven.
As any system of government matures, more and more people are able to get a purchase on it. It could be a tax break...a licensing requirement that keeps out competitors...a tariff...a subsidy...a job...free food or a welfare check. And as more and more people get something from the government, more and more have a stake in making sure the government stays in business. This phenomenon contributes to the stability of the institution in the short run...in the long run, it guarantees its failure. For each little hustle is a cost...like a leech on the back of a water buffalo. The animal may be strong and fit; but put enough leeches on him and he'll wither like a dried up grape.
Of course, after a while, the beast begins to stagger and people notice something is wrong. Then, the reformers come out...promising change. But change is just what people don't want and just what the system won't permit. There are too many leeches - and the leeches vote.
Obama's new budget is the biggest bag of leeches to come along since the Roosevelt Administration. We have not seen it in detail. But from what we've gathered from the press reports, it has something in it for almost every bloodsucker.
The raw numbers are breathtaking. Whereas the feds have taken about 21% of the nation's income in recent years, now they're going to take 28%. The deficit alone will equal more than 12% of total GDP.
Put the feds together with state and local hacks, altogether they will consume 40% of the nation's total output. Whoa...that's put it close to the levels of such free-market bastions as Zimbabwe and Algeria, both with 43% of spending done by government...and Hugo Chavez's Venezuela, where the government spends 41% of GDP.
By contrast, in France, that socialistic, bureaucrat-saturated country with the croissants, 53% of GDP is spent by the government. But wait...in France healthcare is a government industry and so is the passenger train system. In America, 17% of GDP is spent on healthcare. As for the passenger trains...forget it...in America, we scarcely have any. So, if you add the 17% spent on private healthcare to the 40% you actually get a total higher than that of France. Ooh la la...the age of big government is back!
Who pays?
Ah...that's an interesting subject in itself. Obama says he's going to soak the rich. But the rich are already pretty well marinated. Reagan's tax cuts freed them to earn more money - and pay more taxes. Now, the top 5% pays 60% of the costs of government. The bottom 40% pay no taxes at all. They get all government 'services'...which is to say their boondoggles...
What the "Fear Gauge" Is Telling Us Now
Don't look now, but the administration that swore it was ignoring the daily gyrations of the stocks markets has suddenly turned bullish.
While Wall Street tumbled earlier in the week, President Obama remarked, "What you're now seeing is profit-and-earning ratios are starting to get to the point where buying top stocks is a potentially good deal if you've got a long-term perspective on it."
And while the long-term view has been the bedrock pitch of fund managers everywhere for decades now, the market simply wasn't buying it�even from the new President.
In fact, since the new administration grabbed the wheel of this burning bus, the S&P 500 has dropped another 15% for a total decline of 52% over the last 52 weeks.
Hope, it seems, has turned back into fear.
That has every trader on Wall Street fixated on the VIX fear gauge as a window into the market's next move.
You see, the VIX is one of the so-called contrarian indicators. That is, it tells you whether or not the markets have reached an extremely high level of fear. If so, that tends to be a sure sign the markets are about to stage a reversal.
The idea here is if the wide majority of traders believe the world is coming to an end, the market is usually ready to turn the other way.
Of course, "the crowd" hardly ever gets it right. (So much for the rational market theory.) So, the smart money simply uses the VIX indicator as a sign to bet against them all.
There is only one small problem with this time-tested strategy... But, first, it's important to understand how the VIX works because, in a sense, we're not in Kansas anymore.
So, What Is the VIX Indicator?
Developed by the Chicago Board Options Exchange in 1993, the CBOE Volatility Index (Chicago Options: ^VIX) is one of the Street's most widely accepted methods of gauging stock market volatility.
Using short-term near-the-money call and put options, the index measures the implied volatility of S&P 500 index options over the next 30 day period.
But because it is basically a derivative of a derivative, it acts more like a market thermometer than anything else.
And like a thermometer, there are specific numbers that tell the market's story.
A level below 20 is generally considered to be bearish, indicating that investors have become overly complacent. Meanwhile, a reading of greater than 30 implies a high level of investor fear, which is bullish from a contrarian point of view.
In fact, the old saying with the VIX is, "When the VIX is high, it's time to buy." That's because when volatility is high and rising, it means the crowd is scared. And when the crowd is scared they sell, and stock prices fall dramatically, leaving bargains for money-making traders.
What the VIX "Fear Gauge" Is Telling Us Now
Unfortunately, given the depth and breadth of the current bear market, what has worked in the past with the VIX indicator has been largely tossed out the window.
That's because the combined forces of the credit contraction and the economic downturn have pushed the fear levels well beyond those time-worn figures.
In fact, at the height of the market meltdowns in October 1998 and August 2002, the VIX failed to go above 50. However, in today's tumultuous markets, the VIX routinely trades above 50, while a reading of 30 would be something of a welcome sight.
Take a look the VIX's new look:
As you can see, the old 20-30 routine has been left completely in the dust. So as a market thermometer, the VIX readings of old have lost their meaning completely.
Instead, what the current readings on the VIX are telling us is something that's not exactly news: that this current crisis is like nothing the markets have ever seen before, especially when compared to more recent experiences. As the markets go "off the charts," so has the VIX indicator.
As a result, options investors are essentially paying twice the ten-year average on the VIX to insure stocks against losses well into the future.
In fact, according to Bloomberg, "Contracts to protect against a decline in the Standard & Poor's 500 Index for two years cost $15,160 on the Chicago Board Options Exchange at the end of last week, compared with $6,875 in 2007."
That's a signal that investors in these contracts see the current bear market extending into 2011.
The 20-Year Solar Panel Stocks Market Guarantee
Solar panel stocks are at a major crossing point.
In 2008, record oil prices caused a big push for clean energy. Demand for polysilicon drove prices up and producers' share prices went along with them. Those who controlled the bulk of the supply chain and buffered themselves against price spikes were able to make the most out of the panel-price runup.
Then oil and the global economy fell off a cliff.
Now, solar panels are down from $4.20 per watt to just over $3... a 30% drop.
The Silicon Key for Solar Market Success
Computer sales are abysmal and could get weaker deep in the worldwide recession, and the virtual halt in microchip production means silicon is far into oversupply.
The gears of consolidation are turning, though, with the recession putting semiconductor manufacturers out of business and leaving industrial-grade silicon in the hands of fewer and fewer firms.
"When this recession ends," The New York Times's Bits blog forecasts, "the chip industry that emerges on the other side will look rather different than it did heading into this thing."
We don't have to wait for the recession to end for that transformation...
The government of Taiwan just announced on March 5 that it will set up an island-wide Taiwan Memory Company, which will crank out DRAM chips for phones and household gadgets, under the auspices of the country's economic ministry.
If Taiwan Memory Company can kickstart global semiconductor production (as the nation is disproportionately powerful on the international semi scene), which will then flow into a stimulated computer market, silicon prices could go back up quickly.
In that scenario, companies that used their vertical integration strategies to pick up lower-priced silicon will watch their competitors get squeezed in the spot market.
Oil prices are creeping back up, and major government incentives mean that solar panels are doubly attractive�costing a third less and heavily subsidized as part of various countries' stimulus packages.
We may be near a bottom in polysilicon and oil at the same time, and solar panel prices are set to recover fast.
The 20 Year Solar Panel Market Guarantee
Expectations have been tempered across the global equity market, with earnings and forecasts settling deeper into a prolonged funk. Caution is the key for both lenders and project heads.
Yet we're hearing about credit loosening up for renewable energy projects in Europe, where the state development bank of Germany, KfW, is stimulating solar production through '09.
The only catch is, the solar panels used to reach Germany's expected 2+ GW of installed capacity in 2009 will have to last 20 years or more...
Fine by us! Top producers like Q-Cells issue standard warranties of 20 years or more, with panels operating at greater than 3/4 capacity throughout that time.
Tight lending has forced Q-Cells and other producers to get their industrial bona fides in order. The ones who can't prove their cost advantage and come up with solid payback plans simply won't get loans, and their blueprints will get snapped up by the survivors... if those plans are deemed worthy of continuation by the remaining larger, more creditworthy firms.
At its root, a warranty is a pledge from producer to consumer.
In 2009, though, a warranty as much a handshake between creditor and debtor as it is anything... think of all the fright surrounding Detroit automakers and whether the Pontiac you buy today will be free to fix if GM goes under. GM can't sell cars because it can't stand behind them, and lending to GM is too speculative if new sales aren't picking up.
It's not a vicious circle�it's a vortex. And it's sucking in company after company, in nearly every industry.
No one wants a shoddy solar panel either... Not utilities like Germany's E.ON, who want to buy excess capacity from companies and households with installations, and certainly not the home and business owners who are tapping investment tax credits and want energy savings to put them at parity with coal or gas-generated electricity.
For us investors, though, it's even more important to know there's a two-decade time horizon for quality clean energy stocks.
That's the warranty you need, even if you don't think a single solar panel will ever sit on your rooftop.
And if you're looking for solar stocks that pass the 20-year test, take a look at some of the Green Chip International portfolio stocks we've picked precisely because they've got the goods to make it through this recession and beyond.
Stocks Market: The Next Falling Knife
I'll be the first to admit...
My style of trading isn't for everyone. Just for those with the desire to make money.
But it's a style�above all else�that's working... even in today's market. After all, it's the numbers that tell the tale. And our numbers speak volumes.
In fact, my team of traders and I have plowed through 4 different sectors, amassing huge gains in every one of them for our readers (many of whom had little to zero prior options trading experience).
But these profits are only getting started.
Because the next falling knife... the next shoe to drop... is in a sector no one's talking about (yet):
EDUCATION. No Sucker Left Behind.
By now you know that the government plans on using stimulus funds to "help retool education" in the U.S, according to Education Secretary Arne Duncan.
Of course that comes as good news.
But there's another side to this story...
You see, as President Obama urges an end to government subsidies for student loan providers, a number of education top stocks are just beginning to swan dive into falling knife patterns.
Putting the kabash on these subsidies, according to Duncan, could save the U.S. billions every year. The only roadblock is congressional approval... but this one looks imminent.
Here's an excerpt from a recent New York Times editorial...
"The [new administration's] budget rightly calls for phasing out the wasteful and all-too-corruptible portion of the student program that relies on private lenders. And it calls for expanding the less-expensive and more-efficient program that allows students to borrow directly from the federal government. That means doing away with the Federal Family Education Loan Program, under which private lenders receive unnecessary subsidies to make risk-free student loans that are guaranteed by taxpayers."
A number of top stocks are going to get battered by this.
Suffice it to say, my team and I already have 3-plus months of analysis into which companies will fall the hardest.
And we're targeting top 3 stocks, specifically. The one that's really got us wide eyed is getting ready to fall off the cliff...
Comes to Health and Longevity
They're lying to you.
Your doctors, the drug companies, your HMO...
They're all perpetuating dangerous medical myths, and for all the wrong reasons. Sometimes it's to cut costs. Sometimes it's to sell more drugs. And sometimes it's just because they don't know any better. Think about it: Just because a doctor doesn't know he's wrong doesn't mean it can't kill you.
In fact, in the next 22 minutes, 100 people just like you across America will have died from the 7 most dangerous lies the mainstream medical establishment tells to patients every day. They aren't just 'little white lies,' either-they involve big-league killers like cancer, heart disease, stroke, diabetes, Alzheimer's and more...
You may have even already been told one or more of these 'killer' lies yourself!
But even if you have, there's no reason you have to succumb to it. If you keep reading, you'll discover these '7 deadly lies' of mainstream medicine-straight from the archives of the Health Sciences Institute (HSI), the one health organization that can save you from the fate so many of your misled neighbors have succumbed to because of these lies...
"Chemo and radiation are your best hope."
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"Your tests are showing that the cancer has metastasized to your lymph nodes. I'm going to have to start you on chemotherapy and radiation this week..."
I desperately hope you will never hear these words. We work night and day to make sure you'll have every weapon you need to stay cancer-free for the rest of your life. And even if you were to discover tomorrow morning that you already have cancer, you could still get well simply and naturally�without drugs, radiation, or chemotherapy. We've heard reports of success from our members all over the world. There are literally dozens of methods of knocking cancer out of your system...
The problem is that your doctor doesn't know about them. He's hopelessly stuck with the outdated cancer treatments he learned in medical school-many of which are now proven NOT TO WORK. But only a small sliver of the medical community knows the REAL CURES. You are now about to discover what may be the most remarkable cure of them all.
An 86% Cure Rate for Hopeless Cancer Patients
In 1999, a leading doctor in cancer treatment was sought out by a number of cancer patients who were so far gone that their bodies weren't responding to any of the standard therapies. Because they were classified as 'untreatable,' he decided to give them a new therapy that showed promise�a non-sugar component of a glycoside group called AGS.
Five years later, all of these patients were supposed to be dead, but 86% of them were still alive and kicking. So we know AGS works!
Since then, he has been seeing more successes, and his biopsy technicians are rubbing their eyes in disbelief at how fast it works.
The 24-Hour Miracle
It kills cancer cells in one day. Researchers have used AGS on deadly melanoma tumors, and cancer cell death comes at high speed�reported results have been in as little as 24 hours. Remarkable, huh? No, it's stupendous. Imagine: If you were diagnosed with cancer next Tuesday, wouldn't it be terrific to find out on Wednesday that it's definitely going away?
AGS shuts down tumors without dissolving them chemically. One of the hottest fields in cancer research is the tactic of 'starving' tumors to death by shutting off their blood supply-a gentle solution that beats chemotherapy by a mile and a half. Researchers used AGS on cancer cells that had spread to patients' lungs (once it's there, it usually goes everywhere), and incredibly, it shrank the lung tumors and stopped the disease in its tracks!
It beats even the new super-cancers. Here's the dirty little secret of chemo: It's rapidly creating new kinds of cancer that don't respond to conventional treatment at all. Just as germs become resistant to antibiotics, these new cancers are multiple-drug resistant. Near-frantic authorities are predicting four million people worldwide will soon die of these super-cancers. But insiders at a biotech firm investigating AGS recently leaked the incredible news that AGS has also been found to be effective in drug-resistant cancers. If the medical establishment would only wise up and get behind AGS, they could save three times more lives than have been lost in all the wars in U.S. history combined.
It has zero side effects. You've seen women lose every strand of their beautiful hair. That's because chemo and radiation attack growing cells, hair follicles being the first target. You've seen patients choose to die rather than continue to face the terror of nauseating treatments. But all this could be over with. Tests of AGS have concluded that it is non-toxic and carries with it no adverse effects. If you're quick on the trigger, you've spotted the meaning of this: AGS is so gentle that you can start taking it regularly as a preventive, to keep yourself cancer-free forever.
Hard to believe, but new studies are starting to show that AGS works on colon, lung, ovarian, kidney, and brain cancers. And another physician, Dr. Paul Ling Tai, is now seeing amazing results in patients with the deadliest cancer of all: Pancreatic.
Worried About the Economy?
Are you concerned about your financial future? Or maybe you're worried that the world just isn't safe anymore…
If so, you're not the only one. In fact, people across the country are feeding their fears by purchasing firearms…
Take Florida, for example. Floridians are applying for concealed weapons permits in record numbers � and the state government is buckling under the weight of a massive backlog of concealed weapons permits, according to the St. Petersburg Times. The state has even been forced to hire more than 60 temporary workers to deal with the flood of applications.
But it doesn't seem as if law enforcement is interesting in quelling the panic. "Once the economy gets bad, crime always goes up," a police officer told the St. Pete Times, "People get desperate whenever things are not going the way they feel like they should be going, and they'll do things they normally wouldn't do."
Crime isn't the only factor driving sales. In several news accounts, gun buyers have said they're buying now because they fear stricter gun laws are inevitable under the new administration.
This gun craze is especially interesting since firearms have long occupied a relatively stagnant market space. Take rifle production, for example. From 1973-2005, the number of rifles produced each year decreased on average 3.8%. Shotgun production dropped on average 2.9% for the same period.
Revolvers have seen their production numbers dropping at an average of 4.6% a year. The only segment of the U.S. firearms industry that's actually growing is pistols. Its growth is a 1.9% average each year. Not much to get excited about here…
However, sentiment is rapidly changing. And we think you should seriously consider firearms. No, we're not advocating the purchase of guns… Instead, you should check out a couple of small-cap gun makers. These companies have withstood the test of time. Now, they're enjoying more publicity and rising share prices…
First up is Smith & Wesson Holding Corp. (SWHC: NASDAQ). This company has been making guns longer than any of us have been on the planet. It's also a trusted brand that has expanded its offerings over the past few years…
After a tumultuous few years, the best stock has posted a strong 2009. Shares are up about 80% since Jan.1.
The gun maker has big plans. Smith & Wesson has moved into the rifle market and wants to take full advantage of this expansion. In February, the gun maker announced it plans to nearly double its annual revenue and improve margins and market share over the next few years.
Sturm, Ruger & Co. (RGR: NYSE) shares have enjoyed similar success this year. As of this morning, the best stock is up more than 80%. The firearms makers reported huge increases in revenue and backlog during Q4, and several analysts have upgraded the best stock to a strong buy.
Ruger stock might even be too hot to handle right now. It's posted most of its gains in just a few weeks. Short-term technicals show the best stock is way overbought, so it might be best to wait for a pullback before jumping in…
Stocks Market: The Next Falling Knife
I'll be the first to admit...
My style of trading isn't for everyone. Just for those with the desire to make money.
But it's a style�above all else�that's working... even in today's market. After all, it's the numbers that tell the tale. And our numbers speak volumes.
In fact, my team of traders and I have plowed through 4 different sectors, amassing huge gains in every one of them for our readers (many of whom had little to zero prior options trading experience).
But these profits are only getting started.
Because the next falling knife... the next shoe to drop... is in a sector no one's talking about (yet):
EDUCATION. No Sucker Left Behind.
By now you know that the government plans on using stimulus funds to "help retool education" in the U.S, according to Education Secretary Arne Duncan.
Of course that comes as good news.
But there's another side to this story...
You see, as President Obama urges an end to government subsidies for student loan providers, a number of education top stocks are just beginning to swan dive into falling knife patterns.
Putting the kabash on these subsidies, according to Duncan, could save the U.S. billions every year. The only roadblock is congressional approval... but this one looks imminent.
Here's an excerpt from a recent New York Times editorial...
"The [new administration's] budget rightly calls for phasing out the wasteful and all-too-corruptible portion of the student program that relies on private lenders. And it calls for expanding the less-expensive and more-efficient program that allows students to borrow directly from the federal government. That means doing away with the Federal Family Education Loan Program, under which private lenders receive unnecessary subsidies to make risk-free student loans that are guaranteed by taxpayers."
A number of top stocks are going to get battered by this.
Suffice it to say, my team and I already have 3-plus months of analysis into which companies will fall the hardest.
And we're targeting top 3 stocks, specifically. The one that's really got us wide eyed is getting ready to fall off the cliff...
The 20-Year Solar Panel Stocks Market Guarantee
Solar panel stocks are at a major crossing point.
In 2008, record oil prices caused a big push for clean energy. Demand for polysilicon drove prices up and producers' share prices went along with them. Those who controlled the bulk of the supply chain and buffered themselves against price spikes were able to make the most out of the panel-price runup.
Then oil and the global economy fell off a cliff.
Now, solar panels are down from $4.20 per watt to just over $3... a 30% drop.
The Silicon Key for Solar Market Success
Computer sales are abysmal and could get weaker deep in the worldwide recession, and the virtual halt in microchip production means silicon is far into oversupply.
The gears of consolidation are turning, though, with the recession putting semiconductor manufacturers out of business and leaving industrial-grade silicon in the hands of fewer and fewer firms.
"When this recession ends," The New York Times's Bits blog forecasts, "the chip industry that emerges on the other side will look rather different than it did heading into this thing."
We don't have to wait for the recession to end for that transformation...
The government of Taiwan just announced on March 5 that it will set up an island-wide Taiwan Memory Company, which will crank out DRAM chips for phones and household gadgets, under the auspices of the country's economic ministry.
If Taiwan Memory Company can kickstart global semiconductor production (as the nation is disproportionately powerful on the international semi scene), which will then flow into a stimulated computer market, silicon prices could go back up quickly.
In that scenario, companies that used their vertical integration strategies to pick up lower-priced silicon will watch their competitors get squeezed in the spot market.
Oil prices are creeping back up, and major government incentives mean that solar panels are doubly attractive�costing a third less and heavily subsidized as part of various countries' stimulus packages.
We may be near a bottom in polysilicon and oil at the same time, and solar panel prices are set to recover fast.
The 20 Year Solar Panel Market Guarantee
Expectations have been tempered across the global equity market, with earnings and forecasts settling deeper into a prolonged funk. Caution is the key for both lenders and project heads.
Yet we're hearing about credit loosening up for renewable energy projects in Europe, where the state development bank of Germany, KfW, is stimulating solar production through '09.
The only catch is, the solar panels used to reach Germany's expected 2+ GW of installed capacity in 2009 will have to last 20 years or more...
Fine by us! Top producers like Q-Cells issue standard warranties of 20 years or more, with panels operating at greater than 3/4 capacity throughout that time.
Tight lending has forced Q-Cells and other producers to get their industrial bona fides in order. The ones who can't prove their cost advantage and come up with solid payback plans simply won't get loans, and their blueprints will get snapped up by the survivors... if those plans are deemed worthy of continuation by the remaining larger, more creditworthy firms.
At its root, a warranty is a pledge from producer to consumer.
In 2009, though, a warranty as much a handshake between creditor and debtor as it is anything... think of all the fright surrounding Detroit automakers and whether the Pontiac you buy today will be free to fix if GM goes under. GM can't sell cars because it can't stand behind them, and lending to GM is too speculative if new sales aren't picking up.
It's not a vicious circle�it's a vortex. And it's sucking in company after company, in nearly every industry.
No one wants a shoddy solar panel either... Not utilities like Germany's E.ON, who want to buy excess capacity from companies and households with installations, and certainly not the home and business owners who are tapping investment tax credits and want energy savings to put them at parity with coal or gas-generated electricity.
For us investors, though, it's even more important to know there's a two-decade time horizon for quality clean energy stocks.
That's the warranty you need, even if you don't think a single solar panel will ever sit on your rooftop.
And if you're looking for solar stocks that pass the 20-year test, take a look at some of the Green Chip International portfolio stocks we've picked precisely because they've got the goods to make it through this recession and beyond.
What the "Fear Gauge" Is Telling Us Now
Don't look now, but the administration that swore it was ignoring the daily gyrations of the stocks markets has suddenly turned bullish.
While Wall Street tumbled earlier in the week, President Obama remarked, "What you're now seeing is profit-and-earning ratios are starting to get to the point where buying top stocks is a potentially good deal if you've got a long-term perspective on it."
And while the long-term view has been the bedrock pitch of fund managers everywhere for decades now, the market simply wasn't buying it�even from the new President.
In fact, since the new administration grabbed the wheel of this burning bus, the S&P 500 has dropped another 15% for a total decline of 52% over the last 52 weeks.
Hope, it seems, has turned back into fear.
That has every trader on Wall Street fixated on the VIX fear gauge as a window into the market's next move.
Stocks Market: The Next Falling Knife
I'll be the first to admit...
My style of trading isn't for everyone. Just for those with the desire to make money.
But it's a style�above all else�that's working... even in today's market. After all, it's the numbers that tell the tale. And our numbers speak volumes.
In fact, my team of traders and I have plowed through 4 different sectors, amassing huge gains in every one of them for our readers (many of whom had little to zero prior options trading experience).
But these profits are only getting started.
Because the next falling knife... the next shoe to drop... is in a sector no one's talking about (yet):
EDUCATION. No Sucker Left Behind.
By now you know that the government plans on using stimulus funds to "help retool education" in the U.S, according to Education Secretary Arne Duncan.
Of course that comes as good news.
But there's another side to this story...
You see, as President Obama urges an end to government subsidies for student loan providers, a number of education top stocks are just beginning to swan dive into falling knife patterns.
Putting the kabash on these subsidies, according to Duncan, could save the U.S. billions every year. The only roadblock is congressional approval... but this one looks imminent.
Here's an excerpt from a recent New York Times editorial...
"The [new administration's] budget rightly calls for phasing out the wasteful and all-too-corruptible portion of the student program that relies on private lenders. And it calls for expanding the less-expensive and more-efficient program that allows students to borrow directly from the federal government. That means doing away with the Federal Family Education Loan Program, under which private lenders receive unnecessary subsidies to make risk-free student loans that are guaranteed by taxpayers."
A number of top stocks are going to get battered by this.
Suffice it to say, my team and I already have 3-plus months of analysis into which companies will fall the hardest.
And we're targeting top 3 stocks, specifically. The one that's really got us wide eyed is getting ready to fall off the cliff...
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