This Week in Barrons - 12-9-12

This Week in Barrons – 12-9-2012

The Fiscal Cliff – Watch that First Step!

We're seeing a market torn apart by a lot of opposing forces. The big one is the threat of the ‘fiscal cliff’, where on January 1^st (if we don't get a compromise) there will be higher taxes and automatic program reductions put in place.  This is why many companies have decided to pay out dividends now, so that they're taxed at this year’s rates versus possibly being taxed at the much higher rate next year. 
But with the path we’re on as a country, it really doesn’t make that much of a difference whether we hit the “fiscal cliff” or not.  Certainly if both sides of the aisle stand staunch and don't reach a compromise, the ‘fiscal cliff’ will speed up the arrival of the nightmare.  Both sides are bickering over tax increases of a few hundred Billion dollars over 10 years.  Excuse me, but we ‘racked up’ $1.6 Trillion in debt THIS YEAR.  This was simply tossed on to the $15.7 Trillion in debt that we already have – and then people realized that we’re going to hit our spending ceiling again (very soon) and we have to raise the debt level (again).  

Treasury Secretary Geithner suggested this week that we don't even bother Congress about the debt ceiling any more, that we should have an unlimited debt ceiling.  If that wasn’t so sad, you could laugh – but allow me to explain.  Let’s assume that the US was a stand-alone nation – creating and consuming everything within our borders.  As more and more people decided to use the benefits of our social programs such as Disability, Social Security, Medicare, Medicaid, Food stamps, Welfare, Unemployment payments, etc. – eventually there would be a problem when outflows of dollars from those funds exceeded the inflows created by hard-working people.  At that point the Government would have to resort to printing more money.  But given we’re just trading within our ‘four walls’; a nation could live like that for a long, long time.  Of course in the end, the hard-working folks would look at themselves and say: “What – are we nuts?  Why are we working when we could do nothing and get paid too?"  And eventually the nation would die, NOT because of the debts or even the inflationary printing, but because no one would want to work to produce the fuel and products we all need.

Now, because we are NOT an isolated nation – but rather trading in our currency on a daily basis – the question that always comes up is: “What is that dollar worth?”  I.E. when we buy oil from Saudi Arabia and pay in dollars, they constantly evaluate the value of that dollar.  If the dollar was backed by something physical, then the foreign producers could feel good about accepting them for their hard work and resources.  But when Mr. Geithner says “let’s have no debt ceiling and just borrow for as long as we wish”, every trading partner on the planet is looking on in disbelief.  Saudi Arabia doesn’t want our inflated dollars any more.  They still drudgingly accept them, because that is the way the system is set up around the world, but we see some interesting things taking place.  It is now common for virtually all of our trading partners to instantly take those dollars and rush out and buy up "real things".  For example the Chinese are using dollar denominated assets to buy up land, buildings, toll roads, oil, coal, iron, gold and silver.  Brazil has gone so far as to call us a currency manipulator, and has imposed tariffs on our imports. 
The reason we're facing an economic crisis of epic proportions is not simply: (a) because we're becoming a socialist state, (b) because many of our jobs have gone idle and our standard of living is falling, (c) because of our spiraling debts, (d) because of our horrific inflation in food, education and medicine, but rather it’s because the rest of the world is tired of selling us goods and services in return for paper that is constantly worth less. 

Our politicians can argue over the fiscal cliff all they want, but it’s like the Captain of the Titanic wondering where to place the deck chairs.  Yes, falling over the fiscal cliff will cause some sharp and immediate economic pain, but in the grand scheme of things it changes nothing.  This is why I've been harping on Gold since 2001, and Silver since 2007.  By the way, if you live in California, New York City, or Hawaii, and if we go over the fiscal cliff, the highest marginal taxpayers will be paying over 50% of their income in taxes.  How long do you really think individuals and corporations will continue to pay over half their income in taxes?  You will see more ‘off-shore’ banking and tax loopholes being taken advantage of than ever before.  Government revenues won’t increase – but rather individuals and corporations will just manage their businesses differently.

The Market:

First:               The Ben Bernanke is going to give us a Christmas present this week by replacing the outgoing "twist" with some new version of pumping billions in to the system.  (Yawn).  Despite the Billions that The Ben Bernanke has printed:

-       The DOW is at the same level it was in March,

-       500,000 people stopped looking for work, and

-       370,000 people had to sign up for first time unemployment.

Unless The Ben Bernanke replaces the twist with something much bigger, the market will yawn about it.  We already know what $80 billion a month has given us.  Will anyone rejoice over $85 B – nope!.  But if Ben shorts out and goes crazy, hiking the buying to say 100 billion, then yes – the market will pop higher on the news.

Secondly:      The Unemployment Data released on Friday was nothing short of embarrassing.  According to the Bureau of Labor Statistics we made 146,000 new jobs last month and unemployment fell to 7.7%.  Are you kidding me?  You're asking me to pay no attention to:

-       the adjustments in the past 2 reports which removed 50,000 jobs from each monthly total,

-       the household income which fell - again,

-       the unemployment rate going down because of another wave of folks leaving the job market. 

These numbers are basically fake, and will be revised over the next several months.

Finally:           For all you chartists, if you look at the big picture over 20 years, you see a pretty classic "jaws of death" pattern – basically a huge megaphone.  In the past this has always led to a massive melt down. 
Soon we will be entering the sixth year of all of the QE-type gimmicks – that have been used to keep us treading water.  During that time food stamps have hit an all time high and continue to grow, and the amount of people signing up for disability has outpaced the amount of folks getting a job.  We now face: (a) higher taxes, (b) increased costs associated with Obamacare, and (c) foreign nations not wanting our treasuries or our currency.  It is my opinion that at some point in 2013, the market will start to head south, and will do so in spectacular fashion.

But in the short term, we're still in a situation where everyone wants to end the year on an up note.  December and January are usually two of the best months of the year for stock gains, and you can see how badly they want it to happen.  It is still my guess that a "deal" announced concerning the cliff, will send stocks sharply higher and yes we'll end the year "up" and probably see good gains in January going into February.  I’m trying to "lean long" for that very possibility.  I think we "should" have one more market spurt higher and it could be a really strong one.  But that will mark a multi generation high and we'll sink considerably lower from there.  However, if we don’t get a  ‘fiscal cliff’ deal by Christmas, I suggest we could see a massive sell off in a short time.

Tips:

We sold out of AAPL for a nice profit this week – and depending upon Monday’s action – may dive back into it at the 535 level. 

I’m beginning to hear more and more of this type of discussion that David S brought to my attention:  Although gold prices hit a one-month low ($1,701.55 an ounce) this week, Peter Schiff (CEO of Euro Pacific Capital) and Anthony Grisanti (President of GRZ Energy), think that gold prices are going to come back with a vengeance.  Peter Schiff says:  “I think gold will go $3,000 to $5,000 higher.  A lot depends upon how much money are we going to print? How long are we going to try to keep interest rates artificially low?  And how long is it going to take before the world realizes that we’ve been conning them?  The Federal Reserve’s massive easing over the past four years and the exploding U.S. debt burden are very bullish for the precious metal.  We're asking the world to give us money indefinitely so that we can live beyond our means.  When the world figures this out and decides it doesn't want to play this game anymore, it's going to mean a much bigger drop in the dollar.  Consequently the Fed will have to print even more money to keep interest rates artificially low, and gold prices will skyrocket."

My current short-term holds are:

-       AAPL – in at 525.35 (currently 586.30) – stop at 572.00

-       DBA – in at 28.30 (currently 28.82) – stop at entry

-       SIL – in at 24.51 (currently 22.46) – no stop yet

-       GLD (ETF for Gold) – in at 158.28, (currently 165.14) – no stop ($1,704 per physical ounce), AND

-       SLV (ETF for Silver) – in at 28.3 (currently 32.03) – no stop ($33.05 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 - 12-2-2012

This Week in Barrons – 12-2-2012

The New Normal:  “Why work hard for $60,000, when you can earn $14,000 and sit around collecting another $50,000!”

I realize that welfare benefits, Medicare, and cutting the spending side of the fiscal cliff – are all painful topics to discuss.  Thanks to James T. - if you somehow believed that it was the top 1% that is stealing from the middle class, please realize that it is also those individuals at the bottom of the economic ladder that rip off the middle class – courtesy of the world's most generous entitlement system.  It’s horrific when you can do as well working one week a month at minimum wage as you can working a $60,000/year, fulltime, high stress job.  This chart tells the story, and is fairly self-explanatory:

Money Earned in a Year        $3,625         $14,500         $30,000        $60,000

  +Payroll and Fed Inc. Tax   (    278)        (   1,225)        (   4,574)       ( 13,034)

  +Childcare Cost                    ( 2,400)        (   9,600)        (   9,600)       (   9,600)

  +Mississippi Inc. Tax            (    109)        (      725)        (   1,500)       (   3,000)

  +Earned Inc. Tax Credit         1,450              5,020             2,163                     0

  +Food Stamps                         6,312              6,312                     0                     0

  +National School Lunche      1,800              1,800                     0                     0

  +Temp. Assistance(TANF)    2,040                      0                     0                     0

  +Medicaid and CHIP            16,500            16,500           10,890                     0

  +Section 8 Rent Subsidy       1,450              4,350                      0                     0

  +Utility Bill Assist (LIHEAP)  1,240                  845                      0                     0

Total Disposable Inc.         $31,630          $37,777         $26,379         $34,366

This chart shows that a one-parent family of three making $14,500 a year (minimum wage) has more disposable income than a family making $60,000 a year.  Then I realized that a family provider working only one week a month at minimum wage, makes 92% of that same $60,000 a year – ugh!

Did you ever wonder why Obama was so focused on health reform?  It is so that those who have no interest or ability in working can make as much as representatives of America's endangered, middle class.

-       First, working one week a month, saves a lot on childcare.

-       Second, by only working one week a month you have minimal deductibles and copays – so you virtually get total medical coverage for next to nothing.

-       Third, the low-income parent will have more energy to attend to the various stresses of managing a household.

-       Fourth, say that one-week-a-month worker maintains an unreported cash-only job on the side – then the deal gets even better than the $60k a year job.  And some economists estimate that there is $1 Trillion in unreported, earned income each year in the United States.

Now where it gets plainly out of control is if one throws in Supplemental Security Income (SSI).  SSI pays $8,088/period for each "disabled" family member.  A person can be deemed "disabled" if they are totally lacking in the cultural and educational skills needed to be employable in the workforce.  If you add $24,262 a year (for three disability checks), now the lowest paid welfare family would again have far more take-home pay than the $60,000 a year family.

The topic of wealth redistribution in America is truly a touchy subject.  But this chart matches the disposable income chart recently released by the Congressional Budget Office – who just released a key paper titled: "Share of Returns Filed by Low- and Moderate-Income Workers, by Marginal Tax Rate, Under 2012 Law".

Perhaps the most disturbing set of figures resides below, and tries to summarize our unsustainable welfare burden:

-       For every 1.65 people employed in the private sector, 1 person receives welfare assistance, and

-       For every 1.25 people employed in the private sector, 1 person receives welfare assistance or works for the government.

Currently there are 110 million privately employed workers, and there are 88 million welfare recipients and government workers – rising rapidly. 

As much as everyone keeps throwing stones at the top of our social order, the facts show us that individuals at the bottom of the entitlement food chain also make out like a bandits.  On our path to socialistic welfare – we’ve long surpassed capitalistic/communist China – because in capitalist/communist China you actually need to work to eat. 

The Market:

 -       Monday was a surprisingly mild day for profit-taking day.  After a blistering run during the holiday week, a bit of "let’s take some off the table" was certainly appropriate.

-       Tuesday dawned with flat futures and I thought we could either plunge back down, or "hold the line" and work off the excess.  There was a lot of overhead resistance to slog through in order to move higher.  The only reason most of the traders weren't selling was because they knew if a "deal" is announced concerning our “fiscal cliff” a lot of folks that sold dividend stocks would rush back in, and they didn't want to miss that.  But Senator Reid came out and said that he wasn’t seeing much progress toward the fiscal cliff, and that sent stocks down for the day. 

-       Wednesday was the forever reversal day.  If you spend enough time looking at the market, you begin to notice that often Wednesdays reverse what ever happened on Monday and Tuesday.  In fact it’s so common, it’s termed "reversal Wednesdays".  In any event, Wednesday dipped in the morning as we heard some rumblings about the "cliff", and soon we were testing support at the 12,800 level (an area I said would be important).  Then Boehner made some comments about how he's optimistic about the cliff and up we went.  So, from a morning dip of 100 points we ended the day positive by 107.

-       The remainder of the week was spent treading water ending with the 13,025 line for the DOW, and the 1,416 line on the S&P. 

The market has spent 2 days above the DOW 200-day moving average of 12,994, and that’s a good thing.  That should mean they’re willing to push this market up and challenge the next resistance at 13,100 and then 13,200 on the DOW – 1,426 on the S&P.  I’m leaning long on the side that has traders not being left on the sidelines when a ‘fiscal cliff’ deal is announced.  If that happens we should be challenging the October highs and the all-time highs by late January.  Unfortunately the markets are dominated by ‘fiscal cliff’ news right now, so it’s great for day trading, but will cause some ‘angst’ for longer term investors for sure.

Tips:

My current short-term holds are:

-       AAPL – in at 525.35 (currently 586.30) – stop at 572.00

-       DBA – in at 28.30 (currently 29.45) – stop at entry

-       SIL – in at 24.51 (currently 22.89) – no stop yet

-       GLD (ETF for Gold) – in at 158.28, (currently 166.05) – no stop ($1,710.90 per physical ounce), AND

-       SLV (ETF for Silver) – in at 28.3 (currently 32.44) – no stop ($33.20 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 - 11-25-12

This Week in Barrons – 11-25-2012

“Control your own destiny or someone else will.” … Jack Welch

I remember hearing Clint Eastwood say: “I have a very strict gun control policy: if there’s a gun around, I want to be in control of it.”  Well, this week, it seems that drug lords along with Raymond Yans (the president of the UN's International Narcotics Control Board (INCB)) are lining up to challenge marijuana legalization in Colorado and Washington.

Apparently, the voters in Colorado and Washington were unaware that they would have to fight off not only the UN, but also global drug czars in their effort to exercise their local sovereignty.

Mr. Yans (in a letter this week) reminded the United States that we agreed to the 1961 Single Convention on Narcotic Drugs, signed by 185 States, that placed marijuana under control, and limited its use for medicinal purposes.

The INCB President requested the Government of the United States take the necessary measures to ensure full compliance with the international drug control treaties within the entire territory of the United States, in order to protect the health and well-being of its citizens.
 It is clear that the INCB (and the drug lords) have not been listening to nearly every independent study presented to the U.N. (including the most recent report in 2011 by the Global Commission on Drugs) concluding that the global war on drugs has failed, and that governments should end the criminalization of drug use.

It’s one thing to be threatened by drug lords, it’s quite another to be threatened by the UN.  I find it amazing that the UN can step in and try and tell our "sovereign" states what they can and cannot do.

On another matter, I remember listening to Tony Robbins say: “We need to control our consistent actions – because it’s not what we do once in a while that shapes our lives, but rather what we do consistently.”  A while back we talked about our 401K’s and IRA’s – and how the US would look at the trillions sitting in these accounts and begin to drool over them.  Just this week a vision of a new "National Retirement System" was leaked.  Under this system Americans will turn over their private retirement savings to the federal government in return for a government-controlled annuity.

Basically it’s ObamaCare for your retirement accounts.

Under the guise of 401K’s and IRA’s being unfair to the poor and disadvantaged, a government-sponsored program administered by the PBGC (the government’s Pension Benefit Guarantee Corporation) is in the early stages of taking over the administration of private retirement savings accounts.  Fair warning – going forward – know where your money is.

Change happens when you decide to take control over what you do, instead of craving control over what you don't.

The Market:

500 points in a week was a pretty strong bounce.  Last week we suggested that it might be time to play with the DIA’s and SPY’s (the Exchange Traded Funds (ETF’s) for the DOW and the S&P) and that a bounce was near – but we never thought 500 points was in the cards.  We suggested that some of the old leader stocks would bounce well, and Apple (AAPL) did just that. 

Calling that bounce was fairly easy.  We were down about 1,000 points in a month, were oversold from every technical indicator, and were just inches away from a traditional "10% correction".  As I said, that was the easy part – the hard part is trying to figure if this bounce has run it's course and we're going to fade back, or if we have just seen the start of a powerful year end rally that sweeps us into the "January effect" and we challenge the Sept/Oct highs at 13,600.  I can make a case for either scenario.

This coming week should hold the key.  This week (along with being perfectly set up for a bounce) was also the Thanksgiving Holiday week, and everyone is usually optimistic around this time.  With lower holiday trading volumes, they often just jam things higher because there's no opposing down volume.  But come mid next week (when volumes return to normal) we will see just how much profit taking and short selling is in store, and by week’s end we should be able to figure if we're going to continue ‘up, up and away’ or not. 


After a blistering run like we just had, the only question at the beginning of this week is: how much of a pullback will we see?

-       On the downside, if the DOW fails the 12,800 level, and/or the S&P fails 1,380 – we could go right back to the November lows.

-       On the upside, watch for them to try and take out 13,200 on the DOW and/or 1,426 on the S&P and then continue to us push us higher. 



I'm leaning toward the idea that we're going to see some mild profit taking and then they'll come right back in and buy, in anticipation of a "fiscal cliff deal".  That should take us up to challenge the October highs.  I could even see them punch through that resistance level and hit almost the all time highs by late January.  Again, it's too early to tell but that's where I'm leaning right now.

Tips:

As David S has written us – for reduced volatility with excellent return – take a look at an ETF that mimics Pimco’s Total Return Bond Fund – BOND.

On Monday – via Twitter – I’ll be posting about 15 stocks with buy in prices – that look good both technically and fundamentally. 

In terms of my broken record picks – they’re still Gold and Silver.  John Paulson continued pounding the gold drum this week, and George Soros increased his gold holdings by 49% in the third quarter of 2012.  16 analysts believe that Gold will rise every quarter next year and average $1,925 an ounce in the final three months – an increase of 12%. 

My current short-term holds are:

-       AAPL – in at 525.35 (currently 571.98) – stop at 562.00

-       DBA – in at 28.30 (currently 28.73) – stop at entry

-       SIL – in at 24.51 (currently 23.37) – no stop yet

-       GLD (ETF for Gold) – in at 158.28, (currently 169.74) – no stop ($1,727.90 per physical ounce), AND

-       SLV (ETF for Silver) – in at 28.3 (currently 32.98) – no stop ($33.34 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>