This Week in Barrons - 1-27-13

This Week in Barrons – 1-27-2013

The Untouchables




Do you remember the old TV series starring Elliott Ness as the unstoppable crime fighter – The Untouchables?  This week there was an a lot of buzz concerning a "Front Line" video that emphasized the fact that no high ranking banking officials have been put in jail for the banking (housing) meltdown of 2008 - 09.  Despite hundreds of whistle blowers, and millions of lines of testimony from accountants, the Lords of Wall Street's biggest houses got away without a scratch.  Watch the video below.  It’s about an hour long, but moves quickly and is incredibly well done – showing you exactly (step-by-step) the moves that "blew up" the financial system.  http://www.pbs.org/wgbh/pages/frontline/untouchables/



Speaking of Untouchables:  CFTC (Commodity Futures Trading Commission) commissioner Jill Sommers unexpectedly resigned this week.  On one hand this is great news because she is one of the commissioners that allowed JPM to virtually dictate the silver market.  But also, Ms. Sommers has consistently backed the “too big to fail” banksters, and was prominent in the investigation of John Corzine’s – MF Global melt down.  Ms. Sommers did NOT resign in order to spend more time with her family.  This is all about John Corzine and MF Global.  Some new appointees to that investigation were going to make life very difficult for Ms. Sommers, so she ‘bailed’ before the heat started to rise.

Continuing with The Untouchables:  just days after the above film hit and stirred up so much controversy, President Obama appointed Mary Jo White as the new head of the SEC.  At first glance, you notice that she was a former prosecutor, and Obama made a point of saying just how tough this gal is and how she's going to clean up the Street. 
And what was omitted from Ms. White’s bio was that after her role as ‘prosecutor’, her most recent role was in the private sector DEFENDING Wall Street kingpins.  That part must have slipped people’s minds.  The New York Times noted that Ms. White “has defended some of Wall Street's biggest names, including Kenneth D. Lewis, a former head of Bank of America."  But not many know that she also was deeply involved in an SEC scandal involving Morgan Stanley’s CEO John Mack.  She also prevented Mr. Gary Agguire, (a ‘foot soldier’ in the SEC who was trying to investigate John Mack for fraud, corruption, and insider trading) from doing his job and ultimately got him FIRED.  Once again, we have yet another fox guarding yet another hen house.   


So in the course of one week we've gotten a very damaging video about the callousness of Wall Street and the impotency of our Government officials.  We've had Ms. Sommers, a commissioner that's knee deep in the John Corzine / MF Global scandal resign unexpectedly, after two new commission appointees were noted as possibly making life tough for her and that investigation.  And we have Ms. White, the new head of the SEC who was billed as someone who will save us from the Wall Street crooks, but who made the bulk of her money DEFENDING those same Wall Street crooks. 



Often I need to go to a movie to see a script like this.  In my opinion the fraud now is worse than it was back then.  As we enter the ‘get all you can, while you can’ phase of the economy – I’m wondering where Elliott Ness is when we need him.  

The Market:

Do you remember the old Fifth Dimension song: “Up, Up and Away”?  The market has been on a tear for the month of January and it doesn't appear like it's over.  I've said that I felt that this market would ultimately attack the all time highs set in November of 2007, and we're well on our way there.  The part that I missed was thinking that when we got to the recent highs, we would take a pause, back up a bit, and regroup.  That didn't happen.  We just powered up. 



Well now things get a bit dicey. Yes I still believe we ultimately challenge and then set all new highs on the DOW and S&P.  The printing presses are cranked up all around the world, and that money always finds its way to the markets.  But we have been up 10 days out of 11.  The S&P is on a track to set a 7-year streak.  Despite the money printing and the celebrations, we are terribly overdue for a pause. 



If we do see a profit-taking spell this next week – I don't believe it will be a big dip. I would be surprised if it were more than just a small percentage drop.  In fact, I think the dip would be buyable.  But because we feel a ‘dip’ is lurking, it makes it harder to dive in and just buy-buy-buy.  



We are not far from the all time highs.  In fact the DOW is less than 300 points away.  The Central bank liquidity has to go somewhere, and right now it's going into stocks.  As we approach the new high, I would suspect that we will see some ‘fits and starts’ in order to get past it.  But ultimately I do think we pull it off and post all new highs in the not too distant future.  So I continue to "lean long", but I’m certainly not shy about taking profits.  In fact, if you're NOT in the market right now, you might be best served waiting on a pull back before you commit too much capital.

This week we are going to hear over 100 S&P companies announce earnings, and the market will experience some wild swings surrounding that news.  I have been watching the energy patch lately, and it's been doing well.  Some names that you might want to watch this week are: LNG, NBR, and NOG.

Tips:

My current short-term holds are:

-       LLTC – in at 36.60 (currently 36.70) – stop at entry

-       ORCL – in at 35.14 (currently 35.38) – stop at entry

-       LNG – in at 21.03 (currently 21.00) – stop at 20.80

-       PAY – in at 34.04 (currently 35.94) – stop at entry

-       PTEN – in at 19.78 (currently 20.14) – stop at entry

-       NOG – in at 17.30 (currently 17.31) – stop at entry

-       HD – in at 61.53 (currently 67.83) – stop at 65.60

-       MS in at 18.50 (currently 22.72) – stop at 21.00

-       SPY in at 141.97 (currently 150.03) – stop at 148.00

-       SIL – in at 24.51 (currently 20.76) – no stop yet

-       GLD (ETF for Gold) – in at 158.28, (currently 160.73) – no stop ($1,656.40 per physical ounce), AND

-       SLV (ETF for Silver) – in at 28.3 (currently 30.25) – no stop ($31.18 per physical ounce).

To follow me on Twitter and get my daily thoughts and trades – my handle is: taylorpamm. 

Please be safe out there! 

Disclaimer:

Expressed thoughts proffered within the BARRONS REPORT, a Private and free weekly economic newsletter, are those of noted entrepreneur, professor and author, RF Culbertson, contributing sources and those he interviews.  You can learn more and get your free subscription by visiting: <http://rfcfinancialnews.blogspot.com> .

Please write to <rfc@getabby.com> to inform me of any reproductions, including when and where copy will be reproduced. You may use in complete form or, if quoting in brief, reference .

If you'd like to view RF's actual stock trades - and see more of my thoughts - please feel free to sign up as a Twitter follower -  "taylorpamm" is my handle.

If you'd like to see RF in action - teaching people about investing - please feel free to view the TED talk that he gave on Fearless Investing: http://www.youtube.com/watch?v=K2Z9I_6ciH0

To unsubscribe please refer to the bottom of the email.

Views expressed are provided for information purposes only and should not be construed in any way as an offer, an endorsement, or inducement to invest and is not in any way a testimony of, or associated with Mr. Culbertson's other firms or associations.  Mr. Culbertson and related parties are not registered and licensed brokers.  This message may contain information that is confidential or privileged and is intended only for the individual or entity named above and does not constitute an offer for or advice about any alternative investment product. Such advice can only be made when accompanied by a prospectus or similar offering document.  Past performance is not indicative of future performance. Please make sure to review important disclosures at the end of each article.

Note: Joining BARRONS REPORT is not an offering for any investment. It represents only the opinions of RF Culbertson and Associates.

PAST RESULTS ARE NOT INDICATIVE OF FUTURE RESULTS. THERE IS RISK OF LOSS AS WELL AS THE OPPORTUNITY FOR GAIN WHEN INVESTING IN MANAGED FUNDS. WHEN CONSIDERING ALTERNATIVE INVESTMENTS (INCLUDING HEDGE FUNDS) AN INVESTOR SHOULD CONSIDER VARIOUS RISKS INCLUDING THE FACT THAT SOME PRODUCTS AND OTHER SPECULATIVE INVESTMENT PRACTICES MAY INCREASE RISK OF INVESTMENT LOSS; MAY NOT BE SUBJECT TO THE SAME REGULATORY REQUIREMENTS AS MUTUAL FUNDS, OFTEN CHARGE HIGH FEES, AND IN MANY CASES THE UNDERLYING INVESTMENTS ARE NOT TRANSPARENT AND ARE KNOWN ONLY TO THE INVESTMENT MANAGER.

Alternative investment performance can be volatile. An investor could lose all or a substantial amount of his or her investment. Often, alternative investment fund and account managers have total trading authority over their funds or accounts; the use of a single advisor applying generally similar trading programs could mean lack of diversification and, consequently, higher risk. There is often no secondary market for an investor's interest in alternative investments, and none is expected to develop.

All material presented herein is believed to be reliable but we cannot attest to its accuracy. Opinions expressed in these reports may change without prior notice. Culbertson and/or the staff may or may not have investments in any funds cited above.

Remember the Blog: <http://rfcfinancialnews.blogspot.com/>
Until next week – be safe.

R.F. Culbertson

<mailto:rfc@getabby.com>

<http://rfcfinancialnews.blogspot.com>

This Week in Barrons - 1-20-13

This Week in Barrons – 1-20-2013

Currency Wars
On Friday, CNBC had a short interview with Kyle Bass.  Kyle told David Faber of CNBC that Japan has basically lit the fuse and is going to implode within a couple years.  Naturally Faber tried to give him a couple jabs, but Kyle stood firm saying that all of the components for this economic-bomb to go off are in place:

-       Japan currently spends 25% of its revenue on interest payments, and with higher rates (via inflation) the entire situation becomes ridiculous – as every 1% rise in their interest rate costs them another 25% of revenue!

-       Currently 20% of Japan’s exports go to China, which could easily be cut in half due to political tensions.

-       Current movements in Japan’s currency (devaluation) will not give them any competitive advantage in the market place. 

Kyle Bass goes on to site massive problems in Japan starting within 2 years. These problems join the cesspool of problems in Europe, China and the U.S., and a current trend to “get what they can, before it all blows up".  In other words, Kyle shows how Japan is using yen to buy up Western assets.  Japan badly wants OUT of it’s own currency.  China is using Dollar denominated assets to buy up resources all over the world, because China badly wants OUT of any US Dollars.  The world seems to be in a constant devaluation mode, seeing who can reach the bottom first.

This week we found out that Germany wants to bring all of its gold back home. Just 7 months ago Germany was writing articles about how having a large portion of their gold abroad was good for them, because it let them deal in the currency markets so quickly.  Now, just months later they've decided that the only place for their gold is at "home".  What changed?  Could it be Japan's new insistence that they're going to have inflation versus deflation, and now the global currency war has finally hit full throttle.  You bet it has.   

I've been predicting a massive economic reset between all the major countries, but nobody knows when.  As Kyle Bass said: “When countries have been messing with their currency for 70 years, it's hard to pick the exact date when it all goes boom in the night.”  Factually you can easily see this coming.   

The Market....

This week has been five of the slowest trading days that I can remember.  I thought that since JPM and Goldman Sachs were both releasing earnings this week – if they were good – they’d pick up the pace and push us higher.  That didn’t happen, despite Goldman Sachs posting a "stellar" quarter.

Well, for months I suggested that the market was going to challenge the near term highs of DOW 13,600 and S&P 1,475.  Since the 19^th of November, the DOW has moved from 12,500 to 13,650, and the S&P has moved from 1,353 all the way to 1,486.  In other words, we made it!  My theory was that we'd run up to the resistances, fade back some, regroup, push on through, and challenge the ‘all time’ highs.  Well, we've made it to the resistances, now it's up to them to either power through, or back off.  I can make a case for either; therefore, we need to proceed with caution.  I personally think that we will fall back just a bit, and then push for the highs.  As we exceed the all time highs, then I think we flame out, and enter a long drawn out bear market.

Someone asked me how I come up with my daily picks?  Often, my answer revolves around matching individual stock price dislocations with market trends.  For example: a month ago two major gun makers: RGR and SWHC fell from $60 to $40, and $11.50 to under $8 respectively – when Vice President Biden was tasked with fixing our gun laws.  Combine the general tone of the market going up, with the power of the NRA gun lobby, with the new ‘fear related’ gun sales, and investing in either of these stocks would have earned you a quick 15%, and there’s still room to run.  The same scenario is playing out with Boeing (BA).  Often you can look at a sector and see a quick dislocation such as when Wynn (an extremely well run casino company) turned in a magnificent quarter, and other casino stocks such as Las Vegas Sands (LVS) could be a beneficiary of that ‘bounce’.  Therefore buying LVS around $52 – looking for a $10 push to the upside (it’s all time high) – isn’t that bad of a sector related play. 

Many have written in terms of silver and gold.   Just this week the United States Mint announced that it has temporarily sold out of 2013 American Eagle Silver Bullion coins.  As a result, sales are suspended until they can build up an inventory of those coins, which should be the week of January 28^th, 2013.  So demand is exceeding supply, which should cause a spike in silver. 

The silver announcement was quickly followed by one from the German Bundesbank, of their intention to repatriate a portion of their gold reserves held in foreign central bank vaults.  Many view this as the beginning of the next phase of not only the gold bull market, but also the global currency war that began last year when the Swiss pegged the Franc to the Euro, and China dumped more than $100 billion in U.S. Treasuries on the market.  Do not believe for a second that the Bundesbank is doing this for political purposes.  Germany is furious with the US for artificially keeping the price of gold down, and for trying the patience of our allies in the same way that happened back in the 1960's when Charles De Gaulle began redeeming France's trade dollars for gold because the U.S. didn't maintain the dollar to gold ratio.  Both of these elements are ‘outward, fundamental signs’ of a rising price for gold as well as silver.

Tips:

My current short-term holds are:

-       HD – in at 61.53 (currently 65.40) – stop at 63.60

-       MS in at 18.50 (currently 22.48) – stop at 21.00

-       SPY in at 141.97 (currently 148.35) – stop at 146.00

-       SIL – in at 24.51 (currently 21.97) – no stop yet

-       GLD (ETF for Gold) – in at 158.28, (currently 163.00) – no stop ($1,686.60 per physical ounce), AND

-       SLV (ETF for Silver) – in at 28.3 (currently 30.79) – no stop ($31.90 per physical ounce).

To follow me on Twitter and get my daily thoughts and trades – my handle is: taylorpamm. 

Please be safe out there! 

Disclaimer:

Expressed thoughts proffered within the BARRONS REPORT, a Private and free weekly economic newsletter, are those of noted entrepreneur, professor and author, RF Culbertson, contributing sources and those he interviews.  You can learn more and get your free subscription by visiting: <http://rfcfinancialnews.blogspot.com> .

Please write to <rfc@getabby.com> to inform me of any reproductions, including when and where copy will be reproduced. You may use in complete form or, if quoting in brief, reference .

If you'd like to view RF's actual stock trades - and see more of my thoughts - please feel free to sign up as a Twitter follower -  "taylorpamm" is my handle.

If you'd like to see RF in action - teaching people about investing - please feel free to view the TED talk that he gave on Fearless Investing: http://www.youtube.com/watch?v=K2Z9I_6ciH0

To unsubscribe please refer to the bottom of the email.

Views expressed are provided for information purposes only and should not be construed in any way as an offer, an endorsement, or inducement to invest and is not in any way a testimony of, or associated with Mr. Culbertson's other firms or associations.  Mr. Culbertson and related parties are not registered and licensed brokers.  This message may contain information that is confidential or privileged and is intended only for the individual or entity named above and does not constitute an offer for or advice about any alternative investment product. Such advice can only be made when accompanied by a prospectus or similar offering document.  Past performance is not indicative of future performance. Please make sure to review important disclosures at the end of each article.

Note: Joining BARRONS REPORT is not an offering for any investment. It represents only the opinions of RF Culbertson and Associates.

PAST RESULTS ARE NOT INDICATIVE OF FUTURE RESULTS. THERE IS RISK OF LOSS AS WELL AS THE OPPORTUNITY FOR GAIN WHEN INVESTING IN MANAGED FUNDS. WHEN CONSIDERING ALTERNATIVE INVESTMENTS (INCLUDING HEDGE FUNDS) AN INVESTOR SHOULD CONSIDER VARIOUS RISKS INCLUDING THE FACT THAT SOME PRODUCTS AND OTHER SPECULATIVE INVESTMENT PRACTICES MAY INCREASE RISK OF INVESTMENT LOSS; MAY NOT BE SUBJECT TO THE SAME REGULATORY REQUIREMENTS AS MUTUAL FUNDS, OFTEN CHARGE HIGH FEES, AND IN MANY CASES THE UNDERLYING INVESTMENTS ARE NOT TRANSPARENT AND ARE KNOWN ONLY TO THE INVESTMENT MANAGER.

Alternative investment performance can be volatile. An investor could lose all or a substantial amount of his or her investment. Often, alternative investment fund and account managers have total trading authority over their funds or accounts; the use of a single advisor applying generally similar trading programs could mean lack of diversification and, consequently, higher risk. There is often no secondary market for an investor's interest in alternative investments, and none is expected to develop.

All material presented herein is believed to be reliable but we cannot attest to its accuracy. Opinions expressed in these reports may change without prior notice. Culbertson and/or the staff may or may not have investments in any funds cited above.

Remember the Blog: <http://rfcfinancialnews.blogspot.com/>
Until next week – be safe.

R.F. Culbertson

<mailto:rfc@getabby.com>

<http://rfcfinancialnews.blogspot.com>

This Week in Barrons - 1-13-13

This Week in Barrons – 1-13-2013

Gun Wars

The President has selected Joe Biden to form a task force charged with doing something substantial about gun violence in this country.  That has spawned vocal discourse from everyone including: Piers Morgan calling us lunatics for not outlawing guns, to a recent Marine writing to Maxine Waters: "I will not be disarmed".  I am afraid that this could really blossom into something ugly.  The lines are being drawn in the sand.  I personally know of folks that haven't so much as broken a speed limit, yet they will lie under oath if someone asks if they have firearms in the home.  That is how dramatic this situation has become.

In terms of Constitutional rights, in many scholarly opinions – the 2^nd Amendment of the Constitution has nothing to do with hunting rifles, or being able to defend your home.  It is written to allow a populace to defend themselves against a Government run amok.  The scholars then connect the dots and say this gives the American people the right to be armed as well as your Government’s troops.  The argument then goes: “Let’s not get carried away, how about just allowing the American people to be armed as well as the drug cartels.”  And the end result of both of these arguments is that automatic, assault rifles like the AR-15 and 30 round magazine clip should be available for purchase by John Q. Public.

One item that everyone brings up is that there is too much violence, and if we got rid of assault rifles the violence would go away.  Factually, according to the FBI in 2011 there were:

-       1,694 murders by ‘cutting instruments’ such as knives,

-       1,659 murders by ‘blunt objects’ such as clubs and hammers,

-       728 murders by ‘personal weapons’ such as fists, hands and feet, and

-       323 murders by ‘rifles’ (including automatic, assault, etc.). 

BUT, in 2011 there were 6,220 murders committed by hand guns!  Ouch.

I think it’s the hypocrisy that bothers me more than anything else.  The politicians pushing for gun control all have either gun permits to carry, or armed guards for their family.  I was watching NBC’s Meet the Press (hosted by David Gregory) interviewing the President of the NRA (disparaging guns, and how people don't need them), yet in a discourse we find that David sends his children to a school that’s guarded daily by a dozen armed guards. 

Many of us look to other countries and notice that they have much stricter gun control laws and their violent crime rates are much lower than ours.  Unfortunately, no country on earth has had a history of gun ownership like the US.  England as early as the 30's was banning as many guns as possible, while the U.S. was encouraging gun ownership.  Back in 1996, after a horrible mass shooting, the Australian Government decided to do one of the biggest "forced buy backs" of all time.  Rifles, shotguns, handguns of all shapes and sizes were to be turned into the police for a "fair price".  There were 681,000 guns turned in – about as many as are registered in Newark, NJ alone.  The magnitude of the U.S. problem is almost a factor of 1,000 higher.  Estimates are that a program like the Australian ‘forced buy back’ (if declared in the U.S.), would draw in approximately 50 Million guns.  That would leave approximately 250 Million still in circulation.  At this point it’s truly the magnitude of the problem that is tough to get anyone’s arms around.   

We (the U.S.) have a 200+ year history of gun ownership, and over 300 million guns in circulation.  So (on average) there are as many guns in circulation as there are people.  Some of these guns are in the hands of lunatic psychopaths, and many in the hands of local gangs and drug dealers.  Unfortunately I don’t see a way to legislate this into anything more than: (a) increasing background checks, and (b) closing the current purchasing loopholes that exist with gun shows.   

 
You can't legislate morality, so politicians go for the symptoms like guns for the dramatic effect.  Transforming America is going to take a lot more time and a change in mind-set, and potentially will not go well for a lot of traditional Americans.

The Market....

So far, the market is doing what I figured it would do – slowly, creeping up to challenge the recent "highs".

The S&P has already gotten over the 1470 level and has its eyes set on 1475. The DOW is just 140 points from challenging the triple top high at the 13,600 level.  My suspicion for months has been that if we got a fiscal cliff deal, we'd be challenging these highs.  Well, we got a form of a deal, and sure enough we're challenging the highs.

I had purchased some SPY contracts several weeks back in anticipation of this very move.  I got in at the 141 level, and saw the SPY close out Friday at 147 and change.  That's an impressive move for a basket of stocks in a matter of weeks, but I’m thinking that there is more to come.  Again, I’m looking for the S&P to challenge 1475 and the DOW to challenge 13,640.  I tend to think that the first attempt at going over these levels gets pushed back, and we see a 2 or 3 % pull back before they quickly try again.  But yes, at some point I feel we break free and run to challenge the all time highs.

So, the feeling here has been "lean long" and take some profits along the way. This past week we sold our stakes in: Goldman Sachs (in at 128 – out at 136),  and RGR, SWHC, NTFX, LNKD, CLF, AUY all for nice profits.  We even dove in and out of TRIP (during the week) for a nice profit as well.  FYI - my yardstick is 8%.  Meaning, that if you can make 8% on a trade, I often cash in half and leave the remaining half in play.

The chart below shows our deficits far outpacing our revenues.  Fair warning, this is setting up for one heck of a fight in Congress over Fiscal Cliff Part 2.

In any event, I’m still remaining confident.  I’m currently carrying some HD, MS, (see below) and I think there is a bit more upside to this market before the resistances start to show some force.  That said, I will not be afraid to take profits and then reload on any pushdown.

Tips:

My current short-term holds are:

-       HD – in at 61.53 (currently 63.62) – stop at 61.60

-       MS in at 18.50 (currently 20.12) – stop at 19.00

-       SPY in at 141.97 (currently 147.10) – stop at 143.00

-       SIL – in at 24.51 (currently 22.41) – no stop yet

-       GLD (ETF for Gold) – in at 158.28, (currently 160.80) – no stop ($1,660.00 per physical ounce), AND

-       SLV (ETF for Silver) – in at 28.3 (currently 29.45) – no stop ($30.37 per physical ounce).

To follow me on Twitter and get my daily thoughts and trades – my handle is: taylorpamm. 

Please be safe out there! 

Disclaimer:

Expressed thoughts proffered within the BARRONS REPORT, a Private and free weekly economic newsletter, are those of noted entrepreneur, professor and author, RF Culbertson, contributing sources and those he interviews.  You can learn more and get your free subscription by visiting: <http://rfcfinancialnews.blogspot.com> .

Please write to <rfc@getabby.com> to inform me of any reproductions, including when and where copy will be reproduced. You may use in complete form or, if quoting in brief, reference .

If you'd like to view RF's actual stock trades - and see more of my thoughts - please feel free to sign up as a Twitter follower -  "taylorpamm" is my handle.

If you'd like to see RF in action - teaching people about investing - please feel free to view the TED talk that he gave on Fearless Investing: http://www.youtube.com/watch?v=K2Z9I_6ciH0

To unsubscribe please refer to the bottom of the email.

Views expressed are provided for information purposes only and should not be construed in any way as an offer, an endorsement, or inducement to invest and is not in any way a testimony of, or associated with Mr. Culbertson's other firms or associations.  Mr. Culbertson and related parties are not registered and licensed brokers.  This message may contain information that is confidential or privileged and is intended only for the individual or entity named above and does not constitute an offer for or advice about any alternative investment product. Such advice can only be made when accompanied by a prospectus or similar offering document.  Past performance is not indicative of future performance. Please make sure to review important disclosures at the end of each article.

Note: Joining BARRONS REPORT is not an offering for any investment. It represents only the opinions of RF Culbertson and Associates.

PAST RESULTS ARE NOT INDICATIVE OF FUTURE RESULTS. THERE IS RISK OF LOSS AS WELL AS THE OPPORTUNITY FOR GAIN WHEN INVESTING IN MANAGED FUNDS. WHEN CONSIDERING ALTERNATIVE INVESTMENTS (INCLUDING HEDGE FUNDS) AN INVESTOR SHOULD CONSIDER VARIOUS RISKS INCLUDING THE FACT THAT SOME PRODUCTS AND OTHER SPECULATIVE INVESTMENT PRACTICES MAY INCREASE RISK OF INVESTMENT LOSS; MAY NOT BE SUBJECT TO THE SAME REGULATORY REQUIREMENTS AS MUTUAL FUNDS, OFTEN CHARGE HIGH FEES, AND IN MANY CASES THE UNDERLYING INVESTMENTS ARE NOT TRANSPARENT AND ARE KNOWN ONLY TO THE INVESTMENT MANAGER.

Alternative investment performance can be volatile. An investor could lose all or a substantial amount of his or her investment. Often, alternative investment fund and account managers have total trading authority over their funds or accounts; the use of a single advisor applying generally similar trading programs could mean lack of diversification and, consequently, higher risk. There is often no secondary market for an investor's interest in alternative investments, and none is expected to develop.

All material presented herein is believed to be reliable but we cannot attest to its accuracy. Opinions expressed in these reports may change without prior notice. Culbertson and/or the staff may or may not have investments in any funds cited above.

Remember the Blog: <http://rfcfinancialnews.blogspot.com/>
Until next week – be safe.

R.F. Culbertson

<mailto:rfc@getabby.com>

<http://rfcfinancialnews.blogspot.com>