RF's Financial News

RF's Financial News

Sunday, August 6, 2017

This Week in Barrons - 8-6-2017

This Week in Barrons – 8-6-2017:

Mile long lines in front of Amazon’s recruiting centers this week for $10 to $14/hr. jobs.

Thoughts:
   Yes Virginia, the 4.3% unemployment number is fake news.  I say that because on Friday, we received the latest Non-Farm Payrolls Report that revealed that the U.S. created 209,000 jobs in July.  But before you high-five each other, 158,000 of those jobs were created via the fictitious birth-death model.  We learned from the Morningside Hill study that 81% of those fictitious Birth/Death jobs are NEVER converted into real jobs.  But that still resulted in 81,000 jobs being created in July – right?  Well, the devil’s in the details.  The report went on to show that 54,000 full-time positions were eliminated, while another 393,000 full-time positions were converted into part-time positions.  From my point of view, any employment model that loses 54k full-time jobs and converts another 393k full-time positions into part-time ones is not a good one.  Then I wondered, with over 100m people dropping out of the labor force (many wanting back in) and if the above picture is any hiring indication – is there a conclusion here?   Looking back over the past 6 months of Non-Farm Payrolls Reports:



   For the past 6 months, we are averaging only 62,000 real jobs being created each month.  When I add to that number the 300,000 baby-boomers that are retiring each month, that means corporations are NOT filling 238,000 monthly human vacancies.  But is there something much bigger at work?  For example: If small business is the engine to our country’s growth – are we failing to grow our small businesses?  Factually:
-       The number of jobs created by businesses less than 1 year old has decreased by almost 50% from the 1990’s.
-       With the rate of business formation slowing dramatically, the pace of business closures now outpaces business births for the first time.
-       Long-established companies now represent a larger share (over 70%) of all U.S. firms.  That wouldn’t necessarily be a problem, except that research has shown that young businesses account for nearly all net new job growth.  Older businesses, by comparison, tend to collectively shed from their payrolls almost as many workers as they add.

   Millennials have the best shot at leading an entrepreneurial recovery, as by 2020 they will represent the largest age segment of the U.S. population.  However, millennials aren’t starting nearly as many new enterprises today as baby boomers were creating when they were the same age.  In fact, the rate of business formation by Americans ages 20 to 34 has fallen sharply since 2010.  Currently: 51% of entrepreneurs are between 50 and 88 years old, 33% are between 35 and 49 years old, and 16% are under 35 years old.  That in part can be attributed to home ownership among millennials (traditionally a prime source of savings and potential collateral) plummeting during the financial downturn of 2008.  Also, the ever-growing mountain of student debt has left many young adults without the savings they might have put toward a business venture.
   Finally, entrepreneurship education is at an all-time low.  Currently, only 4% of the businesses started each year make it into their 2nd year.  76% of these entrepreneurial failures are directly attributable to managerial incompetence.  The good news is that the entrepreneurial climate could be changing – whether our universities want to admit it or not.  As SF reported this week, the largest VC in the technology sector (Kleiner Perkins Caufield & Byers) is shutting down its seed-stage investment arm.  As other firms follow suit, young entrepreneurs could actually be forced toward the ways of old: learning how to sell to real customers and grow organically – rather than thinking their first step is raising money via pitching to bunches of bankers/investors.
   If these employment tasks sound daunting, don’t worry NASA is currently hiring a Planetary Protection Officer – salary up to $187,000.  The job description includes: “making sure humans don't contaminate planets, moons, and other objects in space, and to help prevent any alien microbes from spreading to Earth.”  I hear Will Smith is updating his resume.


Markets:



“Market bubbles are everywhere.”… Allan Greenspan

  The Bank of International Settlements (BIS) warned on June 24 that markets have become “irrationally exuberant – as a result of a riskier FED on a diet of high liquidity, inflated asset prices and depressed market rates.”  FED chair Janet Yellen has also noted that stock market valuations look rich by historical standards, and that the FED is going to begin to ‘start selling down’ its balance sheet with more details to follow in September.  To complete the trio, ECB President Mario Draghi also signaled that Eurozone risk has shifted away from deflation, leaving bonds to look expensive.  So three warning shots were fired, leaving me to assume that this most recent lunge forward in stock prices is creating the necessary headroom when the FED shifts from buyer to seller.
   We're extended, and we’ve gone over a year without a 3% wiggle.  This week we saw: auto sales decrease across the board, credit charge-offs rise sharply, and tax receipts (profits) come down 5% since the second quarter of 2015.  Wells Fargo continues to be a story within itself, and to reinforce the mass amount of dishonesty that must breed within that banking culture.  I have never seen a major company so dishonest, so disrespectful of corporate integrity, and so criminal with their customers.  Last week, in addition to defrauding and stealing from a few million people via fake accounts and made up charges – they admitted to yet another ‘error in judgment’ as another 800,000 more bank customers were improperly charged for auto insurance.  Tim Sloan, the new CEO of Wells Fargo said (in typical, insulting banker speak): “We need to take responsibility for our mistakes.”  What Tim should do is jump on his corporate jet, take his $25m salary, and spend the next 20 years knocking on customer doors and apologizing to every single person Wells Fargo has ripped-off – all the while also offering to do their dishes and clean their bathrooms.
   Next week will bring us over 30 S&P companies reporting earnings with Amazon’s August 11th report looming overhead.  Friday will bring us the latest in inflation numbers, and the path toward the FED shrinking their $4.2T treasury bond and mortgage-backed securities portfolio will be delivered in September.  I’m looking for another rally to new highs starting later in the week, but only if the SPX (2,476) remains over 2,450.  If we see a strong break below 2,450 with follow-through below 2,440, then we should conclude that the top has been made, and a multi-month pullback toward 2,300 has begun.  I expect the pullback to set up the next rally phase toward 2,600 in 2018.


Tips:



   Above is a condensed chart of the largest winners and losers within the DOW – year-to-date.  The chart displays how many points the stock itself gained, and its corresponding point contribution to the DOW’s rise to new highs.  Last week the S&Ps (SPX = 2476.83) and the NASDAQ (QQQ = 143.65) did a lot of nothing.  The financials (XLF) are holding up the S&Ps while Apple (AAPL) continues to support the NASDAQ.  Although ‘big tech’ and the Russell (IWM) are moving lower, if the XLF can remain above 25 – then the SPX has a clean shot to make it to 2,500.  However, if the XLF and AAPL start to roll over – they could cause some serious sell-side activity.  If Apple (AAPL) breaks down – look at buying the August 11th QQQ Strangle for $0.41 = (Buying the 141.50 Put and the 145.50 Call for $0.41).
   What’s scary to me is that many of the natural market correlations are breaking down.  For example: the financials are rallying AND the bonds are rallying.  This doesn’t make sense because as bonds rally – interest rates fall.  Falling interest rates go directly against the FEDs initiatives and also are bad for financials.  So, having both rally doesn’t pass the ‘smell test’ and beaks a natural correlation.  Another example is that money managers are buying junk bonds (HYG) and Argentinian debt (that has defaulted more times than I care to count) before buying Ford – a stock that is paying a 5.5% dividend.  This warped ‘search for yield’ is distorting a lot of natural market correlations.
  
Stocks to watch:
FAANG:
-       This week Apple’s (AAPL) earnings propelled the DOW to breach the 22,000 mark.  Apple also announced that production of the iPhone8 is on schedule and slated to launch in September.  It also plans to release a new version of its smartwatch by the end of the year that will be able to perform many tasks without needing an iPhone to be in range.
-       Amazon (AMZN) and many competitors are set to present their earnings next week.  Video is one of Amazon’s biggest investments, and is expected to exceed Netflix's spend (NFLX) for the year.
-       Facebook (FB) is seeing rising advertising revenues pushing its stock price closer to the $175 mark.  The social media giant will soon begin to sell a home-based video chat device – with a laptop-sized touchscreen and built-in smart camera technology.
-       Netflix (NFLX) is battling for supremacy with Amazon in the lucrative market of India.  The online streaming service will air two new original TV shows that will cater to local viewers.  One of the new series, "Again" is a supernatural female-led detective series set in New Delhi.  Marisha Mukherjee (of ABC’s ‘Quantico’) will be the writer of the show.
-       Google (GOOGL) shares were down most of the week.  Although their second-quarter revenue grew by 21%, the cost to get that revenue grew by 28%. 

Biotech:
-       Flexion Therapeutics (FLXN) is developing a long-lasting corticosteroid injection (Zilretta) that may significantly improve pain in patients suffering from osteoarthritis of the knee.  Once FDA approved (expected on Oct. 6), FLXN patients would shift to quarterly corticosteroid shots as treatment to avoid pain and to eliminate knee replacement surgery.
-       Keryx Biopharmaceuticals (KERX) received FDA approval on Auryxia for use in chronic kidney disease patients on dialysis.  FDA will soon analyze (decision by Nov. 6) if there is a possibility to use the med in patients who are not on dialysis.  If approval is granted, Auryxia's sales could exponentially increase.

Weed:
-       Cara Therapeutics (CARA) is a marijuana stock, but is also a painkiller in chronic kidney disease patients with uremic pruritis.  Cara is planning to meet with the FDA very soon to discuss the design of a pivotal phase 3 trial that could begin prior to year's end.

Recommendations:
-       American Express (AXP) – Bullish with financials (XLF) strong,
-       Alibaba (BABA) – Bullish with a run into earnings:
o   Sell the August 11th – 147 / 149 Put Credit Spread, or
o   Buy the August 18th – $150 straddle,
-       Nvidia (NVDA) – Bullish, with a run into earnings,
-       Amazon (AMZN) – Bullish, has come down and running into earnings,
-       YY Inc. (YY) – Bullish, with run into earnings, and
-       D.R. Horton (DHI) – Bullish, with a run into earnings.

To follow me on StockTwits.com to 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 subscription by visiting:

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 <http://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 StockTwits 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:

Startup Incinerator = https://youtu.be/ieR6vzCFldI

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.  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. 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


Sunday, July 30, 2017

This Week in Barrons - 7-30-2017

This Week in Barrons – 7-30-2017:



Creativity is thinking up new things – Innovation is doing them.”  Theodore Levitt


Thoughts:
   Maybe I should write about:
-       August 1st being the most important date in crypto-currency history, that I can remember.  People often analogize Bitcoin to the ‘Dutch tulip mania’, but I can remember them saying those same things about the Internet.  With over 800 crypto-currencies and block chain innovations, I believe where there’s smoke – there’s fire.
-       Or the California farmers that are abiding by President Trump’s new immigration and minimum wage policies by firing their human workers, and replacing them with robots that can pick fruit 4 times as fast.
-       Or the White House signaling its frustration over their inability to pass any major legislation by firing Sean Spicer and hiring Anthony Scaramucci. 
-       Or Japan announcing that it’s thinking of releasing thousands of tons of radioactive water from the Fukoshima power plant into the Pacific Ocean and letting the ocean neutralize it.
-       Or Washington State that just passed a law allowing ‘big brother’ to watch and ‘ticket’ all automobile drivers caught grooming or eating while driving.
-       Or maybe it’s the announcement and delivery of the most affordable Tesla to date – the Model 3.



   In the U.S., we believe in our people, or what I often refer to as the WHO part of the equation.  Sure, we like our technology, and our devices are cute.  But what really ignites us and gets us going in the morning are our people – the individuals behind the development.  Tesla is the vision of Elon Musk who risked his entire PayPal fortune on its success.  Make no mistake, Elon has his detractors, especially on the political right and in the Wall Street Journal – who can’t stop talking about subsidies and economics.  But to quote BL: “Those are the people cleaning up after the elephants in the now defunct and forgotten circus.”  Elon positioned Tesla on the bleeding edge, convinced others of the possibilities, and DELIVERED.  He was able to: (a) start a car company from scratch (which is no small feat), (b) change the way automobiles are sold and serviced (at malls not auto dealerships), and (c) change the way the world views the internal combustion engine (causing nations to outlaw its existence past the next 3 to 20 years).
   The original Tesla Model S was a proof of concept showing that it was possible to make a long-range, reliable electric vehicle.  The Model X showed that an electric SUV was also possible.  But neither was affordable to the masses.  Although the Chevy Bolt has shown that 238 miles of electric range is possible for less than $40,000, their volume aspirations are modest and their attention to detail lacking.  Tesla’s Model 3 starts at $35,000 (but looks like a ‘million bucks’), goes 0 to 60 mph in 5 seconds, and will ramp production to a half-million per year within a few years.  I would encourage you to read Motor Trend’s Model 3 review:  http://www.motortrend.com/cars/tesla/model-3/2018/exclusive-tesla-model-3-first-drive-review/.  There's commerce, and then there’s revolution.  Steve Jobs revolutionized the phone (iPhone), and Tim Cook commercialized it.  I believe in both of the revolutions surrounding the Model 3 and Bitcoin.


The Markets:


“Watch out for ‘fake’ earnings data.”

   We’re in the middle of earnings season, and no one cares that the earnings reported are all ‘adjusted’.  The analysts and CFOs give out earnings estimates, and then CFOs play their fuzzy math accounting in order to find a way to beat those same estimates.  For the longest time the joke was about the ‘penny’.  Over and over again, giant corporations doing billions of transactions and employing thousands around the globe – would announce their earnings and ‘coincidentally’ beat them by a penny.  Which lead everyone to believe that the CFOs and analysts were ‘so good’ that they could figure out millions of payments, insurances, employee options, currency fluctuations, etc. – in order to put out a number and months later exceed that same number by a single penny.  Wow (wink-wink).  It became so common that traders would joke about it.  Now, they have transformed their estimates into more believable numbers, but in doing so attached the ‘non-GAAP (Generally Accepted Accounting Principles)’ moniker to it.  I know that sounds a bit snarky, but for example: this week on CNBC, Phil Lebou (their car guy) was raving about GM's incredible earnings.  Factually, GM’s ‘non-GAAP’ earnings per share were $1.85 – up 6% year-over-year, while their ‘GAAP’ earnings per share were $1.09 – DOWN 40% year-over-year.  See the dramatic difference that ‘fake’ data can make?
   The bottom line is, if a company beats its earnings per share estimates and does it on revenues that are LESS than last year's quarter – they did it by cost cutting and creative accounting.  Maybe they laid off employees or unscrewed every other light bulb – but it’s sales that tell the truth.  Either sales are up, or the company didn't grow and had to get ‘non-GAAP’ creative.  With GM, their revenues ($37B) were DOWN 1.1% year-over-year.  So, let revenues be your guide, and just because a company beats on the bottom line doesn't mean they did it by growing organically.
    This past week the FED said: “We will start taking down the balance sheet relatively soon, and a gradual increase in rates is called for.”  This means that we can look forward to September to see what they’re going to sell and how often, and they will bump rates again in December.  For now, no one’s paying attention because our FED has become the boy that cried wolf, and we’ve heard it all before.
   If we look at Friday’s European action, despite Draghi saying that QE is still in force, the German DAX lost over 200 points.  Someone, it seems, doesn't believe that QE is going to be extended forever.  I think the Central bankersters will ‘jawbone’ that they're going to back the economies, to keep markets from panicking – all the while actually beginning to unwind things.  I could be all wet and they continue to drive this market to DOW 30K – but ask yourself: “Who does that help?”  It continues to help the 1%, and helps the 5% with stock holdings, but that still leaves 94% of the world getting nothing out of the deal.  In fact, it does nothing for the entire economy.  In the strangest twist of fate, it isn't a ‘crash’ that would hurt the economy the worst, it would be a market that continues to soar forever.  Why?  Because with interest rates at 0 - 1%, savers, insurance and pension funds can't make any money – so they need to buy stocks.  But because stocks are so expensive, the average person can only buy a few shares.  And the higher the markets go, the less corporate CEOs are going to use that buying power to do much more than enrich themselves.  So, I think that we're going to hear about asset reduction at the FED, and QE reduction in the ECB sooner rather than later.  It will be small talk at first, and surely padded with niceties, but silent actions will begin to follow. 
   Like usual, we have the same old question: What next?  I don't think it's a secret that I believe the market is way overbought, stretched and is as unrealistic as it gets.  But I also know that if Central banks keep printing, the lions share winds up NOT in the little hands, but in the stock market.  That's just a fact.  So, while we SHOULD head lower, the market can't unless the Central Banks allow it.  Logic says that we roll over; however, momentum and QE say that we go higher – which means we will most likely continue higher.  Logic loses to money printed out of thin air every time.


Tips:



   Last week the broader market held up well with the main indices even setting new record highs.  The S&P 500 ended the week flat but it managed to post a new record high of 2,477.83.  The NASDAQ Composite Index reached new heights of 6,422.75, and the DOW moved higher each trading day reaching an end of week level of 21,806.88.  The barometer of stock market volatility (the VIX) fell to an all-time low last week.  The drop may be attributed to the expanding domestic and global economic growth, increasing corporate earnings, and favorable interest rates.  The FED elected to keep short-term interest rates unchanged after the latest Federal Open Market Committee meeting last week.  The FED also provided more information on the winding down of its balance sheet, and is expected to hike interest rates one time this year plus two more times next year.
   Positive fundamentals are preventing a bear market, but short-term swings can’t be discounted.  A handful of stocks are driving the marketplace higher: Microsoft, Facebook, Apple, Google & Amazon.  After their earnings announcements, Google, Microsoft and Amazon all sold off.  Facebook held its own, and it’s up to Apple (with earnings on Tuesday) to take the NASDAQ higher.  A Thursday note by a J.P. Morgan analyst that mentioned market correlations breaking down created some short-term volatility, and reminded me how powerful this next Apple report is going to be – Tuesday after the close.  Also I’m watching the transports (IYT) this week, as they dropped over 200 points in a day – going from 9,500 to under 9,200 (7%) in the last 2 weeks.  Does this cast a short-term downward shadow on the markets?   It may.  Also, someone placed a $265m dollar bet this week that the volatility index (VIX) is going to be significantly higher by the 3rd week in October.  If the VIX were to move higher, the market (most certainly) would move lower.  Does this ‘someone’ know something's coming – other than the debt ceiling?  Along with the VVIX volatility options (UVIX) rising significantly over the past 2 weeks, if Apple comes out and disappoints – I fear that the market will absolutely ‘clobber’ the NASDAQ and in specific the technology sector.



   As of late I’m beginning to see sizable action in some of the trailblazing marijuana stocks.  Over the past 12 months, the average marijuana stock with a market cap over $200m was up by a phenomenal 332%.  My short list of trailblazing marijuana stocks include:
-       Axim Biotechnologies (AXIM) – up 2,363% to $8.16 / share,
-       Aurora cannabis (ACBFF) – up 465% to $2.16 / share,
-       Aphria (APHQF) – up 209% to $5.23 / share, and
-       Canopy Growth Corp (TWMJF) – up 191% to $7.32 / share.

   Aurora Cannabis is a Canadian medical marijuana group and the ONLY medical cannabis company to have recorded a profit in its most recent quarter. Aurora hasn't been as fast to generate profits like rivals Aphria with straight quarterly profits, and Canopy Growth (positive in three of its past four quarters) but in its latest quarter, the company has been spending handsomely on its massive Aurora Sky project.  Upon completion of the project, Aurora will have the most advanced and automated commercial grow farm on the planet.  ACBFF continues its stride above the $2.00 level ending Friday around $2.16 per share.
   Aphria is also another Canadian-based medical-cannabis producer and retailer that saw its market value decrease by 24% in just two weeks.  The company lost $2 million for the quarter after an unprecedented streak of 5 consecutive quarterly profits.  Aphria justified the losses by announcing they have been spending heavily on its capacity expansion with the expectation that recreational marijuana may soon be legal in Canada.  The stock is now hovering over the $5.00 level – and hit $5.23 on Friday.

Recommendations:
-       UVXY (VIX futures) – Sold August 4, +26 / -27.5 Put Credit Spread,
-       Aurora (ACBFF) – Long stock @ $2.16 / share,
-       Aphria (APHQF) – Long stock @ 5.04 / share,
-       Activision (ATVI) – Earnings Run (Bullish) / Sold Aug 4, +61 / -62 PCS,
-       Alibaba (BABA) – Earnings Run (Bullish) / Sold Aug 11, +52.5 / -55 PCS,
-       Nvidia (NVDA) – Earnings Run (Bullish) / Sold Aug 18, +160 / -165 PCS,
-       Regeneron (REGN) – Earnings Run (Bullish) / Buy Aug 4, 505 / Calendar,
-       Shopify (SHOP) – Earnings Run (Bullish) / Buy Aug 18, +90 / -100 CDS,
-       Bio-Tech Index (XBI) – Earnings Run (Bullish) / Sold +77 / -79 PCS.

To follow me on StockTwits.com to 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 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 <http://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 StockTwits 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:

Startup Incinerator = https://youtu.be/ieR6vzCFldI

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.  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. 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