This Week in Barrons - 12-1-2013

This Week in Barrons – 12-1-2013

A Nice Couple of Thanksgiving Stories:

Because Thanksgiving is my most favorite holiday, I would rather not dwell on the #WalMartFights, or any other goings on that turned caring individuals into ferocious zombies – fighting, punching, and tasering each other over junk they don’t need and often with money they don’t have.  (Yes, in one instance a fight over an electronic device caused one woman to use a Taser on another.)  I would rather talk about 2 thoughts – submitted by SF – that should leave a smile on your face. 

Many years ago, Al Capone virtually owned Chicago.  Capone wasn't famous for anything heroic, but was notorious for immersing the windy city in everything from bootlegged booze and prostitution to murder.  Capone had a lawyer nicknamed "Easy Eddie." He was Capone's lawyer for a good reason - Eddie was very good.  In fact, Eddie's skill at legal maneuvering kept Al Capone out of jail for a long time.  To show his appreciation, Capone paid him well.  Not only was the money large, but Eddie received special dividends, as well.  For instance, he and his family occupied a fenced-in mansion with live-in help.  The estate was so large that it filled an entire Chicago City block.  Eddie lived the high life of the Chicago mob, and gave little consideration to the atrocities that went on around him.  Eddie did have one soft spot, and it was for his son that he loved dearly.  Eddie saw to it that his young son had clothes, cars, and a good education.  Price was no object.  And, despite his involvement with organized crime, Eddie tried to teach him right from wrong.  Eddie wanted his son to be a better man than he was.  Yet, with all his wealth and influence, there were two things he couldn't give his son; he couldn't pass on a good name or a good example.  One day, Easy Eddie reached a difficult decision.  He wanted to rectify wrongs he had done.  He decided he would go to the authorities and tell the truth about Al "Scarface" Capone, clean up his tarnished name, and offer his son some semblance of integrity.  To do this, he would have to testify against The Mob, and he knew that the cost would be great.  But he went ahead and testified.  Within the year, Easy Eddie's life ended in a blaze of gunfire on a lonely Chicago Street.  But in his eyes, he had given his son the greatest gift he had to offer, at the greatest price he could ever pay.  Police removed from his pockets a rosary, a crucifix, a religious medallion, and a poem clipped from a magazine.  The poem read:  "The clock of life is wound but once, and no man has the power to tell just when the hands will stop, at late or early hour.  Now is the only time you own.  Live, love, toil with a will. Place no faith in time.  For the clock may soon be still."

Changing gears a little bit.  World War II produced many heroes.  One such man was Lieutenant Commander Butch O'Hare.  He was a fighter pilot assigned to the aircraft carrier Lexington in the South Pacific.  One day his entire squadron was sent on a mission.  After he was airborne, he looked at his fuel gauge and realized that someone had forgotten to top off his fuel tank.  He would not have enough fuel to complete his mission and get back to his ship.  His flight leader told him to return to the carrier.  Reluctantly, he dropped out of formation and headed back to the fleet.  As he was returning to the mother ship, he saw something that turned his blood cold; a squadron of Japanese aircraft was speeding its way toward the American fleet.  The American fighters were gone on a mission, and the fleet was all but defenseless.  He couldn't reach his squadron and bring them back in time to save the fleet.  Nor could he warn the fleet of the approaching danger.  There was only one thing to do.  He must somehow divert the Japanese aircraft from the fleet.  Laying aside all thoughts of personal safety, he dove into the formation of Japanese planes.  Wing-mounted 50 caliber guns blazed as he charged in, attacking one surprised enemy plane and then another.  Butch wove in and out of the now broken formation and fired at as many planes as possible until all his ammunition was spent.  Undaunted, he continued the assault.  He dove at the planes, trying to clip a wing or tail in hopes of damaging as many enemy planes as possible, rendering them unfit to fly.  Finally, the exasperated Japanese squadron took off in another direction.  Deeply relieved, Butch O'Hare and his tattered fighter limped back to the carrier.  Upon arrival, he reported in and related the events surrounding his return.  The film from the gun-camera mounted on his plane told the tale.  It showed the extent of Butch's daring attempt to protect his fleet.  He had, in fact, destroyed five enemy aircraft.  This took place on February 20, 1942, and for that action Butch became the Navy's first Ace of W.W.II, and the first Naval Aviator to win the Medal of Honor.  A year later Butch was killed in aerial combat at the age of 29.  His hometown would not allow the memory of this WW II hero to fade, and today, O'Hare Airport in Chicago is named in tribute to the courage of this great man.  So, the next time you find yourself at O'Hare International, give some thought to visiting Butch's memorial displaying his statue and his Medal of Honor.  It's located between Terminals 1 and 2.

So what do these two stories have to do with each other?  Butch O'Hare was "Easy Eddie's" son.  Happy Thanksgiving.

The Market:

The broken record plays on and on. Once again for what seems like the 50^th time, the market is sending signals that it is exhausted and wants to take a nap.  The signals tell us that it would like to correct some of the insanity that has pushed it to daily, all -time highs.  But we've seen the market set up to correct in the past, only to be jammed higher as desperate people push freshly printed fiat money into the system, eeking out returns. Will they do that again, or are we going to see a quick drop of a few percent?  Recent history shows us that the market will ignore all the technical signs, and just shovel ‘new month’ money into the market and move it ever higher.

This week brings in the month of December, and will indeed usher in ‘new month’ money as pensions and insurance companies invest some of the monetary inflow they have received for the month.  It is likely that the inflow will keep the market (at minimum) flat and potentially up if the inflows are large.  But I am a tad concerned later in the week.  At some point, fund managers are going to want to ‘lock in’ some of their gains, and you can only do that by liquidating positions.  The second week of December is often when this happens, and then we often jump back up and the market runs to yearend.  I am looking for that to happen again this year.

However, there are quite a few things out there that could send a ripple through the global markets.

-       The Middle East is turning ugly as Saudi Arabia and Israel appear ready to make a strike on Iran's nuclear ambitions.

-       In Asia, China and Japan are rattling swords at each other, as China established "No Fly Zones" overtop their two disputed island countries.

-       And North Korea has restarted a nuclear facility.

So there's no shortage of things to be concerned about.

Thanks to DS for the following thoughts surrounding the latest Fed minutes.  The minutes show that the Fed expects inflation to be tame for years to come. That means that they are unlikely to raise rates or unwind QE anytime soon. Moreover, the Fed may actually add measures that expand QE to address falling prices and demand if there is another economic shockwave. 
The takeaway:

-       The Fed does not expect inflation to be anywhere near the 2.5% level that would trigger a rate hike through 2016, and

-       Any external shock – the meltdown of a country in Europe or terrorist attack in the developed world – would certainly draw more and varied QE with interest rates at zero. 



This gives our stock market a natural ‘upward and onward’ bias, and the bond futures a reason to continue to rally.

I have been leaning long into this yearend push, taking some profits along the way.  I think if more gains are coming, we should find them in technology, and in some retail stocks.  I'm thinking Starbucks (SBUX) may have some room to run, as do some of the technology companies behind the gadgets and games.  The key is the XLF, which is the financial Exchange Traded Fund (ETF).  The market cannot get far without the criminal bankers, so if the XLF starts to fade, a market pullback will indeed happen. 

Tips:

The market should have a natural upward bias for the week – especially with Friday’s retail sales exceeding expectations.  I couple things I’m looking to get involved with this week:

-       FXY – buying March, $97 PUTS for between $3.30 and $2.65.  The Japanese currency is being ‘destroyed’ and I’m looking for it to bottom around $88.

-       For a speculative play look at ONTY.  It got over the $2/share price last week, and could ‘technically’ run as far as $5 – but it’s not for the ‘weak of heart’.

-       Buy-the-dips on the 3D printers.  They corrected and sorted wheat from chaff with DDD and SSYS coming out on top.  My advice is buy-the-dip – especially DDD – covering it with a weekly covered call.

-       Look at RiteAid (RAD) in the healthcare space.  (FYI – I still like GILD and INCY.)  RAD broke out last week – and at $5.96 – buying shares and selling the $6 calls could net you 4% for the week.

-       ACI at $4.08 is attractive – and covering it with the $4 calls gives you over 5% for the month.

-       NPSP at $26.41 is on a tear.  Look at NPSP under $35 or buy the February calls.

-       Twitter (TWRT) at $41.57 – but ONLY for the $41 or $41.50 ‘covered calls’ – yielding 2% for the week.

-       Finally – GDXJ has ‘literally’ been left for dead.  It’s the Junior Gold Miners that has fallen 41% in 2013 – after falling 43% in 2012.  When gold wakes up (and it will) these Junior Miners will rocket higher in epic fashion.  Remember the goal here is to ‘buy low’ and ‘sell high’. 

My current short-term holds are:

-       TSO in at 50.56 (currently 58.63) – stop at 57,

-       JNJ – in at 94.50 (currently 95.24) – SOLD @ $95 - $0.50 gain,

-       CCJ – in at 20.50 (currently 20.48) – stop at 19.80,

-       OC – in at 38.44 (currently 39.31) – stop at entry,

-       AXP – in at 84.14 (currently 86.41) – stop at entry,

-       SIL – in at 24.51 (currently 11.65) – no stop,

-       GLD (ETF for Gold) – in at 158.28, (currently 120.93) – no stop ($1,237.80 per physical ounce), AND

-       SLV (ETF for Silver) – in at 28.3 (currently 19.29) – no stop ($19.43 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, R.F. 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 Mr. Culbertson at: <rfc@culbertsons.com> to inform him of any reproductions, including when and where copy will be reproduced. You may use in complete form or, if quoting in brief, reference <rfcfinancialnews.blogspot.com>.

If you'd like to view RF's actual stock trades - and see more of his thoughts - please feel free to sign up as a Twitter follower -  "taylorpamm" is the 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@culbertsons.com>

<http://rfcfinancialnews.blogspot.com>

This Week in Barrons - 11-24-2013

This Week in Barrons – 11-24-2013

A Fed Insider "Fesses-Up", and then there’s Bitcoin!

The latest ‘Annual Survey on Global Prosperity’ reported: “With the exception of the United States, all countries in the Americas have improved their overall Prosperity Index score in the last five years.”

The non-partisan Legatum Institute in London looks at a host of measures (economic, social and governmental), to determine where countries are making the greatest strides toward increasing prosperity for their people.  If you’re living in the U.S., I (unfortunately) do not bring good tidings.  The U.S. currently ranks 11^th among the world’s most prosperous countries.

-       In the ‘Economic Sub-Index’ of the total report, the U.S. has fallen out of the Top 20 due to our: declining domestic savings rate, declining high-tech exports, declining 5-year growth rate of our per-capita GDP, declining confidence in our financial system, and our declining access to food and shelter.  Less than 1/3 of Americans think that it’s a good time to find a job, and 70% believe corruption is widespread in U.S. business and government.

-       On the Entrepreneurship & Opportunity (E&O) sub-index, the U.S. has fallen to 13^th.  Other than Hong Kong being 10^th, the nations with the greatest E&O readings are all in Europe.  The irony has Old World economies upstaging the land that birthed entrepreneurial zeal and opportunity.  We are becoming what Europe was, while Europe is becoming what we were.

-       Our Safety & Security have fallen to 31^st, and our Governance as fallen to 11^th.   Only 35% of Americans have confidence in the people we elect to office (vs the global average of 52%).

-       We placed 16^th on personal freedom – after Europe, Uruguay, Australia, New Zealand, and others.

-       We ranked 9^th in Social Capital – meaning more Americans have served as volunteers or donated to charity than did our global peers.

-       And we are 5^th in Education. 

But the Legatum Institute’s report was NOT the most disturbing news of the week.  On Monday, John Crudele of the New York Post caused a stir with an article declaring that the reason the unemployment numbers (heading into the 2012 presidential election) were falling was because they were FAKED.  Apparently President Obama needed something concrete to point to concerning the economy, and the labor department complied by simply MAKING-UP some of the data.  The part that I find most entertaining is that when those numbers came out, I wrote about them as being fake.  Jack Welch came out and openly said: “Just like being back in Chicago, Obama FIXED the jobs numbers to make himself look good.”  The world called us both liars. 

Along the lines of fake numbers:

-       The number of people ‘Not in the Labor Pool’ continues to cause our unemployment index to decline.  If we simply measured unemployment the same way we did in the 80’s – our unemployment rate would be over 16% - instead of the 7.2% currently being reported.

-       Currently ‘food and energy’ are not included inside the inflation index because they are ‘too volatile’.  I don’t know about you, but a large percentage of my monthly budget is spent on food and energy – go figure?

-       Oh, and IF something (legitimately) costs more, the government says that because it’s more technologically advanced, it is (in fact) costing you less.  I kid you not.  The government tells us (for example): if a car cost $18,000 last year, and costs $18,720 this year – it’s actually cheaper because bundled into the new car are technological improvements that will save lives and prevent accidents.  So that car (according to our government) actually went DOWN in price.  Really?

-       Finally, Carl Icahn caused a market sell off this week, by saying that almost all of the stock market’s earnings reports are ‘a mirage’.  Carl Icahn is right.  If banks (for example) were forced to report their holdings on a ‘mark to market’ basis they would all be found to be insolvent.  Instead, Congress has allowed banks to do ‘mark to model’ accounting.  What this means is: when a bank repossess a house on which they granted a $700K mortgage (but today is only worth $425K), the bank does NOT have to carry that $275K loss on their books.  They can ‘mark the asset’ to what they thought it was worth in their ‘model’ – presumably the $700k – and breakeven.  Wow!

Speaking of things decreasing in value, since the day the Federal Reserve was created, our currency has lost ‘buying power’ / ‘value’.  The U.S. dollar is worth approximately 7 cents in comparison to what it could buy back in 1915.  So our Fed has done a yeoman’s job of destroying the ‘value’ of our currency.  This is disturbing to anyone who SAVES dollars because those same dollars (in the future) end up buying fewer goods and services.

Throughout history, the most successful way of preventing monetary inflation has been through holding gold and real estate.  I often hear that the only way we can get back to a more stable world of monetary value is by going back to some form of gold standard.  Frankly, that is false for several reasons.  Having a gold or silver backed currency does NOT prevent depressions – remember the 1930’s.  But even more important to the concept of sound monetary policy is something the world needs in abundance and lacks abundantly - honesty, morality and truth.  Without those concepts, any currency will be perverted no matter what it is backed with.

Years ago, entire empires used precious metals as their daily coinage.  But the king, or Senate would soon outspend the amount of gold in their vaults.  So they would shave the gold from their coins, making them smaller and lighter.  They would add a less expensive alloy to their coins.  Over the years, fraud and dishonesty proved to be the downfall.  Therefore, even a ‘gold backed’ currency, would not prevent any country from lying about the amount of gold in their vault.  While holding physical gold and silver at the individual level has been a pretty good way to preserve wealth, it is not the ultimate answer to a stable currency.  A sound currency comes from honesty, and that’s something we severely lack.

However, in 2009, a new currency arrived on the scene that has the ability to CHANGE HISTORY.  Historical and existing currency systems fail due to greedy, criminal people that lie about:

-       The amount of currency they have made,

-       How much (in precious metals) is there to back it up,

-       The value of the currency, and

-       The velocity of people using the currency.

Bitcoin is entirely new, and completely different.  We all knew computers would change the world in a most profound way, but not many ventured to think computers would change the historical meaning, distribution, and the VALUE of money.

Bitcoin is digital currency that is:

-       Transparent to everyone and immune to criminals,

-       Un-Printable and Un-Deniable (in terms of) what is out there, and

-       When you buy and sell with it, there's a permanent and public record of the transaction. (That is how the entire Bitcoin ‘float’ is tracked.  The record only notes the landing address or code of the person that took delivery.  It does not identify the owner.)

-       Finally, Bitcoin has no nationalistic boundaries.  It is the same Bitcoin in Japan as Canada, as Korea, as Italy, and therefore no currency adjustments for geography.

Because of these virtues, Governments are scared.  They are scare of not being able to control it, print more of it, keep it from people, distort it or in any other way take charge of it.  For 6,000 years, man has wanted a way to put the power of money into the hands of the people and let the market set the value.  Bitcoin does just that.  It's too early to tell whether Bitcoin is the real answer to our problems, but the barn door is open.  The world now has a digital currency with most of the positives of a normal currency and NONE of the negatives.

Because ‘people’ control the treasuries of our nations, no money system is above abuse.  Certainly a currency backed by some amount of gold is far preferable to the junk that is currently being created.  Bitcoin is a new form of currency that man's greed can't abuse.  Honestly, it’s good that the NY Post decided to run that article on ‘faking’ the numbers – because just maybe it will serve as a wake-up call for one, or some, or many.

Thanksgiving is my favorite holiday – and I hope that your Thanksgiving is spent with family and loved ones.

The Market:

In keeping with the ‘currency’ theme, the People's Bank of China has hinted strongly that they no longer need a huge stockpile of reserve currency.  This suggests that they are going to stop hoarding dollars.  Which means that they would (by extension) stop buying U.S. Treasuries.

If this ‘hint’ is true, then it will be one of the most significant economic impacts of the last 20 years.  For over two decades the U.S. has enjoyed inexpensive Chinese products because China has purchased our dollars, and kept their own currency low.  If they are going to let the Yuan begin to float more freely, not only does the cost of Chinese imports rise, but who will buy U.S. Treasuries?  Without China purchasing our treasuries, interest rates would have to soar, and our own Fed would then have to purchase more treasury debt as well as print more money.  Obviously, this would get ugly very quickly.

This news was simply ignored by the equity markets this week.  Currently bad news is good news, mediocre news is better news, and good news is absolutely fantastic.  No matter what hits the wires, the market shrugs it off and pushes higher.  Did it matter that housing sales were down?  Nope.  Did it matter that the Regional Fed reports were abysmal?  Nope.  What about Wal-Mart, Dollar Tree, Target and dozens of other retailers saying that the consumer is tapped out?  Nope - lets hit another all-time high.

Now, history has shown us this behavior between 1998 and 2000, and again between 2006 and 2007.  Both times it ended badly, and I fear this sequel will end badly as well.  A major crash is coming, but no one knows the exact date.  It could be February, or in 2015.  We know that the fundamental elements of a sound economy are sorely missing, and ObamaCare, EPA rules, Global warming, Business Regulations and the host of other ills are only making things worse.  China abandoning the U.S. dollar makes things much, much worse.

The market continues to press higher, but on NO volume.  That means one of two things:

-       First, it could mean that everyone that wanted to be in the market is already in the market, and the banksters are responsible for keeping it going higher.

-       Or, it could mean that the last swell of money inflows has yet to happen, and as people can't stand the pressure – they will soon ‘just jump into the market’.

Low volume always signals an impending rug pull as the big players know what's coming, and don't commit new money.  The difficulty is that December is historically the strongest time of the year.  So, are the big players really going to do a 4 -6% pullback between now and yearend?  After all, the market has run considerably further than it should have based on real fundamentals, and every fund manager is thinking that he should ‘lock in’ these big gains.  The only way to lock in market gains is to sell your positions.  Therefore, yes there is a distinct possibility of some selling.  But I think as they lock in gains, the market will absorb the one or two day dips, and those late comers to the party will try and buy the dip, hoping to eek out every last dime this year has to offer.

I don't think this rally ends until late December (if then).  I think any pullback will be a 2 to 3% quick dip and will press back up.  I’m leaning long, but not over extending.  There will be more ‘taper talk’, that will cap some of the froth in the market.  But, unless they actually do taper the QE program, there's not much to worry about right now.  Earnings are over, and it's full steam ahead.

Tips:

This week I sold TGT flat, and MOS & CLF for a $1 (per share) gain.

Friday closed out the week strong, and that may cause a slight weakening at the beginning of this week.  But I think the market will digest the ‘all time highs’ and continue to move us higher.  I’m looking for a good entry on: Constellation Brands (STZ = $70.36), Russell iShares (IWM = $111.80), Smith & Wesson Holdings (SWHC = $11.97), and Federal Signal Corp (FSS = $15.99)

Looking around:

-       The 3D printer space sorted itself out – with virtually everyone coming out in favor of DDD and SSYS.

-       Green Mountain Coffee Roasters (GMCR) came out and sold more K-cups than anyone thought – and immediately sprinted higher on the news.  It’s becoming an interesting ‘weekly’ covered call options play.

-       I still like GILD and INCY in healthcare.

-       I like ACI – but only covering it with the $4 calls – giving you a 10% yield for 4-week hold.

-       Take a look at NPSP – the $23 in the money calls – are yielding a net 4% for the month.

-       AND – I like Twitter (TWRT) – but ONLY covering it with the $41 or $40.50 calls – giving you between 1.5% and 2% yield for the week.

My current short-term holds are:

-       TSO in at 50.56 (currently 57.24) – stop at 56,

-       JNJ – in at 94.50 (currently 95.24) – stop at entry,

-       CCJ – in at 20.50 (currently 20.47) – stop at 19.80,

-       SIL – in at 24.51 (currently 11.50) – no stop,

-       GLD (ETF for Gold) – in at 158.28, (currently 120.05) – no stop ($1,244.00 per physical ounce), AND

-       SLV (ETF for Silver) – in at 28.3 (currently 19.12) – no stop ($19.86 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, R.F. 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 Mr. Culbertson at: <rfc@culbertsons.com> to inform him of any reproductions, including when and where copy will be reproduced. You may use in complete form or, if quoting in brief, reference <rfcfinancialnews.blogspot.com>.

If you'd like to view RF's actual stock trades - and see more of his thoughts - please feel free to sign up as a Twitter follower -  "taylorpamm" is the 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@culbertsons.com>

<http://rfcfinancialnews.blogspot.com>