This Week in Barrons - 1-12-2014

This Week in Barrons – 1-12-2014

In the Short-Term:

Last week I talked about what I feel is coming in the long-term.  I talked about currency resets and other elements that will take years to develop.  But what will happen before we get there?  For the past 6 years, we have seen the Fed ‘make’ the markets go – where they want them to go.  The Fed:

-       Supported the economy enough to keep it functioning,

-       Invented enough economic reports to keep citizens from being afraid, and

-       Pushed the idea of ‘consumption’ to the point of being vulgar.

Not long ago, ‘The Ben Bernanke’ announced that the Fed was reducing their asset purchases of $85 Billion/month by $10 Billion/month.  This was termed ‘tapering’.  This week we found out that the Fed is continuing to ‘invest’ all of the ‘interest’ that is coming due back into the market, and (you guessed it) that amount just happened to be - $10 Billion/month.  Therefore, The Ben Bernanke really didn't cut anything.  He started at $85 Billion/month, added the interest payments that would have made it $95 Billion/month, and ‘tapered’ by $10 Billion to get us exactly where we started.  But that is exactly the problem; we only know what we’re being told.  Remember, a lawsuit had to be filed against the Federal Reserve in order to find out that they had actually printed $16 Trillion and sent it to Europe during the height of the financial crisis.  So telling us the correct information is NOT the Fed’s strong suit.

But, let’s put that aside for a moment.  We all know that a large percentage of the stock market gains in 2013 were as a result of the Fed printing money, pushing it into banks, and the banks investing it into the stock market.  If the Fed curtails printing, then common sense will tell you that stocks will fade-off accordingly.  I know that TV’s ‘talking heads’ will say that the economy is accelerating, and the Fed can cut out ALL their printing by September or October.  But honestly, NO amount of increased economic activity is going to produce $1.1 Trillion worth of ‘free-money’ cash flow – ready for the banks to invest into the capital markets.

This leaves us in a quandary.  While we are seeing pockets of economic strength and activity, it’s just not at the level we need to keep our markets where they are without Fed money.  Last week we heard from FedEx that they are going to borrow more money in order to buy back a couple billion dollars worth of their own stock.  This does two things: (a) It reduces the ‘float’ (the amount of stock available for purchase) – thereby causing investors to pay more to buy the existing stock, and (b) It artificially boosts FedEx’s earnings per share (EPS) – a common measure of CEO effectiveness.  For example:

-       If you’re the CEO of FedEx – you need to show EPS growth,

-       You know that your earnings are going to stink like 3-day old fish,

-       You know that you can’t increase sales, or reduce costs any further,

-       Therefore, the only element you can change is the number of shares outstanding, which allows your existing profits to be divided over fewer shares.

-       So if you reduce the float by 10%, you have increased your earnings per share by 10%, without impacting the economy (jobs) at all.

Well – you say: “So What?”  Consider this:  the Fed’s money has a few intended consequences – the most important of which is to keep interest rates low.  Will interest rates remain low if the Fed continues to ‘taper’?  No.  If the Fed wasn't in the market buying up U.S. debt (and keeping mortgage rates low) – we would NOT be looking at 2.9% rates for 10-year Treasury bonds, or 4.2% mortgages.  We would (instead) be looking at 4.5% 10-year rates, and 6.4% mortgages.  We would NOT be seeing corporations borrow money in order to buy back their own stock (because interest rates would be too high to pay back the loans).  And we would NOT be seeing a DOW at 16K.

In other words, talk is cheap.  The Fed can say that they’re going to stop printing, if the Fed money stops – interest rates rise, and the economy and stock market stall and fade.  It’s my view that the Fed will NOT decrease the amount of their printing this year at all.  As Ms. Yellen takes over the helm at the Fed, she will not be willing to enter into the New Year with a crashing stock market.  I'm fairly confident that she'll keep the monetary spigot wide open.

However, this does introduce another short-term problem.  Stocks are expensive right now.  Because there have been more pre-warnings this quarter than we have seen in 10 years, analysts have reduced their expectations.  Expensive markets at a time when companies are struggling to beat already lowered estimates – means that no company can ‘bluff’ its way higher if the Fed's money supply dries up.  As sad as this seems, I think we need the Fed’s money supply in order to make more ‘goofy’ excuses as to why stocks should be going higher.  It’s sad because we have a stock market at all-time highs, while our nation is seeing:

-       A record number of citizens on disability,

-       A record number on food stamps,

-       A record number on Government assistance, and

-       A record number of Part-Time workers.

Therefore, the stock market and the general economy are tied directly to the stimulus provided by the Fed.  If they keep the spigot open, there is no reason why we can’t see the market at 18K or 19K by year’s end.  Of course that’s not right – but if the banks are going to take in free money, and not lend it out, they will certainly place the bulk of it into the stock market as they’ve done in the past.

So in the short-term, the dollar is debased and the stock market moves higher.  I think a way out of this mess would be to: (a) open the oil fields, (b) build 10 refineries, (c) cut the EPA and other government ‘red tape’ on businesses, and (d) lower the barriers to entry for a small business.  But nobody will do that – not with virtually every year being an election year.

I think that this market moves higher by double digits this year.  One interesting element to make note of – is that during the past couple of months we have seen some ‘major’ selling from the likes of Warren Buffet and other billionaires.  Insiders are selling more of their own stock at the fastest pace since 2007.  All the while J. Q. Public is thinking that it’s time to jump aboard the stock market train (again).   Realize – often when this happens – the train has already left the station and it’s J.Q. Public who suffers.

Next week, I will focus on Gold and Silver.  Many are wondering if the precious metals have had their ‘day in the sun’ and are now going to take a ‘pause’.   Next week I’ll put my cards on the table.

The Market:

On Friday, we received the Government’s take on how many jobs we produced in December.  The expectations were for over 200K new jobs.  The real number came in at an incredibly lousy 74K.  As if to add insult to injury, with 347K people ‘giving up’ looking for work – the unemployment rate actually FELL to 6.7%.  We are now at the point that (out of a total U.S. population of 320 Million) – 91.8 Million are no longer in the work force.  This level of labor participation rate has not been seen since 1978.  Just about one-third of all the people in this country do NOT have a job!  And our stock market is at all time highs.  What’s wrong with this picture?

The ‘talking heads’ are dismissing Friday's jobs report as an anomaly, but I believe it actually tells the correct story.  The jobs we are creating are part-time and low paying.  The good news is – that because the employment number was so bad, it would be hard for even the Fed to support increased tapering.  So as disgusting as this sounds, chances are good that the jobs report will be accepted as a need for a stimulus continuation and will push the markets higher.

Over the past week, a lot of stocks did some ‘backing down’.  A sector that did move higher was the ‘transports’.  One of the old adages of the market is that it can't be a real ‘bull market’ unless the transport sector confirms the move higher.  Well, the transport sector did that – on a decidedly lousy week.  That said, I thought that we’d start this year fairly robust and then trail off during earnings season.  It is possible that the game plan has changed, and we are seeing a bit more backing and filling earlier in the month than I expected.  

The market players are quite expert at making ‘average folks’ believe we're in an economic sweet spot.  While driving the other day, I listened to a talk show where the caller asked the question: “With the stock market at all time highs, and with corporate profits soaring, why does anyone think that Obama's policy aren't working?"  Be careful here, as this is the thinking that gets J.Q. Public investing in the ‘buy high – sell low’ strategy.

You can lean long, just be cautious!

Tips:

Virtually everywhere I look, people are talking about the 3D printing space.  This week’s Consumer Electronics Show (CES) caused some stir surrounding 3D printing companies: 3D Systems (DDD) and Stratasys (SSYS).   One investment firm even raised its estimates on Friday for DDD to $98, and for SSYS to $165.  CES did bring out some interesting announcements – for example:

-       The CubeJet – a sub-$5,000 printer that combines ColorJet printing technology with the ease-of-use of less expensive Cube printers,

-       The Touch, a $499 3D sculpting/design mouse,

-       The ChefJet and ChefJet Pro - for printing edible confections,

-       The CeraJet a sub-$10,000 printer for creating color ceramic objects, and

-       The Cube 3, a sub-$1,000 device that is the first plug-n-play consumer printer.

Rivals to these two market makers were busy launching sub-$1K 3D printers – all emphasizing ease-of-use.  These newer companies can't match the software support and web marketplace ecosystems DDD and SSYS provide, but will provide low-end pricing pressure.  FYI: 3D Systems now trades at 74X 2014’s estimated earnings per share, and Stratasys trades at 57X 2014’s estimated earnings per share.

The parabolic nature of this industry should bring pause to investors.  DDD needs three years of 30% revenue growth and zero stock gains in order to get their existing revenue levels down to even 10X levels.  Even more concerning for DDD investors is that their ratios are now so far ahead of their primary competitor SSYS, that DDD is making SSYS the better ‘value’ investment.  The likely outcome is that DDD will come back to Earth (over time) while SSYS will remain grounded at these levels.  The 3D printing industry remains in a fantastic bull mode, but investments typically don't end well at these lofty multiples.

We previously outlined a ‘covered call’ investment strategy that has certainly helped us in an up-trending market.  Next week we’re going to outline a ‘sister-strategy’ that will add some support in ‘down-trending’ markets as well.

This week I sold my XHB – Mar 2014 $33 Calls for over a 40% gain, but USO, UCO, and even FXY did come under pressure.  I added some ATVI and NVDA this week and put a ‘toe in the water’ with DECK and SINA.

My current short-term holds are:

-       USO – April 2014 $37 Calls – in USO at $34.51 (currently $33.28)

-       FXY – March 2014 $97 Puts – in FXY at $96.47 (currently $93.82)

-       EMC – in at 24.74 (currently 25.35) – stop at entry,

-       DDD – in at 82.60 (currently 94.25) – stop at 93.00,

-       SSYS – in at 126.63 (currently 133.65) – stop at 132.00,

-       SIL – in at 24.51 (currently 11.36) – no stop,

-       GLD (ETF for Gold) – in at 158.28, (currently 120.43) – no stop ($1,249 per physical ounce), AND

-       SLV (ETF for Silver) – in at 28.3 (currently 19.39) – no stop ($20.18 per physical ounce).

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

Please be safe out there!

I'd like to recommend a website - http://www.simpleroptions.com    It's an excellent resource and 'honestly' - I've been following them for over 6 months and they're more right than they are wrong with their predictions, and that's a rarity in this climate.  Please check them out on my recommendation.

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 - 1-5-2014

This Week in Barrons – 1-5-2014

Where do we go from here?

Fortunetellers always have their gimmicks: a crystal ball, a deck of cards, a board, or a book of ancient sayings.  In 2013 crystal balls were sometimes in the shop for a tune up, cards were slightly smudged, boards were a little warped, and books of ancient sayings was often gibberish.  What I ultimately rely on is information.  With enough information we can see ‘dots’, and with enough ‘dots’ we can connect them.  And just like the ‘connect the dots’ children's books – often a picture emerges.

In the past we were able to predict:

-       Gold’s run over $1,000 when it was just $290,

-       The Iraq war,

-       The housing bubble,

-       The credit bubble,

-       The banking system collapse,

-       And a handful of other big ticket items.

The issue with ‘connecting the dots’ is: What if the information ‘behind the dots’ is fabricated or at minimum – incomplete?  The old computer saying is: ‘garbage in – garbage out.’  Recently I remember:

-       The NSA telling us that they don’t spy on us – and we all found out otherwise,

-       Banks telling us that they don’t ‘fix’ rates – and then the LIBOR scandal surfaced,

-       The ‘Too Big To Fail’ banks getting slapped with fines for money laundering,

-       Bernie Madoff scamming people out of billions,

-       Our own IRS hunting down and ‘auditing’ anyone that had questioned Obama,

-       Sub-Prime mortgages (comprised of part-time McDonalds and Wal-Mart workers buying $800k homes) were being AAA rated,

-       Presidents telling us that there would be ‘No New Taxes’,

-       Our unemployment rate being 7%, when it’s clearly around 15%,

-       The Housing industry telling us that they are strong – when those same housing permits and applications are hitting multi-year lows, and 

-       Our government telling us that gold and silver are worthless – while demand for the physical metals hits all new highs. 

The issue I need to watch (over the next several years) is the blatant inaccuracy of the data – upon which I make my decisions.  This inaccurate data tends to ‘fog up’ the crystal ball and makes short-term predictions extremely difficult causing money to be misallocated, energies misspent, and wrong decisions made.

My fear is that ‘going forward’ these data distortions will become greater and louder.  Remember the phrase: “The truth will set your free.”  Well, first you need to find the truth.   For example:  Sun Zhaoxue (the most influential leader in the Chinese gold industry – President of the China Gold Association and President of China Gold Group (China's largest gold mining company) recently said:  “The United States intends to suppress the price of Gold to ensure the Dollar's dominance."  Now:

-       Wouldn't suppressing the gold price be a global manipulation?                         Yes.

-       Wouldn’t that be illegal?                                                                                      Yes.

-       Will Uncle Sam ever admit doing it?                                                                   No.

-       Does John Q. Public know that our Government is secretly beating down the price of gold in the paper market?                                                                                  No.

-       Will CNBC, the N.Y. Times or the WSJ ever tell us of that manipulation?          No.

As far as long-term predictions go, the most common misconception is that ‘Gold has no place in a fiat monetary system’.  Most people believe that when President Nixon closed the gold window in 1971 and our currency became ‘fiat’, that gold just shriveled up into a worthless ball of dust only used in jewelry.  Nothing could be further from the truth.  Every day Governments electronically ship tons of gold back and forth because gold is the basis for the entire ‘petro dollar’ setup.  Historically, J.Q. Public could walk into a bank and exchange dollar bills for gold.  Then, in 1933, the rules were modified so that only Governments could make this exchange.  In 1971 President Nixon realized that France and other nations were draining our gold reserves – so he ‘closed the gold window’.  Then came the ‘deal’ with the Saudi’s.

Currently, the most important commodity on the planet is oil.  The ‘deal’ with the Saudi’s is that the Saudi’s can only sell oil for U.S. dollars.  In public, the Saudi's go along with this because the U.S. offers them protection via armed forces.  The second part of this deal was that the EPA would be created, and (under the guise of keeping the environment protected) it would keep U.S. oil sequestered – not competing with Middle Eastern oil.  (FYI – when the pact was signed (1971) oil was trading for less than $4 dollars a barrel.)

Behind the scenes a system evolved where U.S. dollars would come to the Saudi’s in exchange for oil, and the Saudi’s would exchange some portion of those for Gold bullion.  This gold is never physically moved from place to place – but rather sits in vaults (bullion banks) where it can be ‘leased out’ to handle financial ‘gold’ and other commodity future transactions.  For example: as gold miners need money to pay bills – these gold miners will come to bullion banks and in exchange for future deliveries of gold, receive present day ‘cash’.  Then as the miners produce the physical gold, they repay their loans to the banks in the form of gold bullion.  This all gets very confusing, but every major economy has a gold reserve, which gives it the right to buy and sell commodity goods around the world.  Therefore, the idea of gold being some worthless relic is nothing but a smoke screen.

Knowing that gold has functioned as the true behind the scenes money for all these years, we now have to take into account the fact that around the globe, people are very tired of the U.S. and its behavior.  The Chinese have called us currency manipulators, and they make no apology for saying publicly that they are tired of the deliberate debasing of our dollars.  They also know that since it is only our Petro dollar arrangements that have allowed us to remain the global reserve currency, they want desperately to do two specific things:

-       One, turn as many of their U.S. dollar reserves into gold as possible, and

-       Two, use as many of their U.S. dollars to purchase tangible items.

This trend is not China specific.  There are currently 13 countries with trade pacts involving doing their oil business in local, or regional currency, thereby by-passing the dollar.  This started when Saddam Hussein decided to sell his oil for Euro's.  It wasn’t long after that – when he was blamed for terrorism and killed.  The same fate befell Gaddafi, as he was beginning to trade Libyan oil in diverse currencies, and then for pure gold.

But China has nuclear weapons, and an army of unparalleled size.  At some point China is going to announce that they have enough gold that they can back their Yuan with a percentage of gold, and it should be part of a new global reserve currency.  That would be the ultimate tipping point.  The day the U.S. can't just print trillions of dollars and force others to use them, is the day the U.S. comes to grips with something every other country already knows – if you live beyond your means, bad things happen. 

If the U.S. can’t balance its budget and needs to borrow money from other countries by selling debt (Treasuries) – the game ends, because nobody will want our U.S. dollars because they are decreasing in value and are not needed to purchase oil.

This end is coming, but it’s a change of such magnitude that trying to predict the timing of it is extremely difficult.  Every resource will be utilized to keep it from happening.  Nothing will be off the table: not wars, not banking holidays - nothing.  However, the end of the U.S. financial reign is mathematically inevitable.  Therefore, for the long-term picture – massive disruptions are in store.  Gold and silver will exert themselves as the underpriced money they truly are, and become considerably more valuable.  Inflation will rage.  Living standards will drop. 

I next week’s letter I will be outlining my thoughts for 2014.  I think in 2014 we will witness some very exciting times.  Let’s ride them out together.

The Market:

The New Year has dawned and (thus far) not lived up to its financial hype.  The first trading day of the New Year brought us a down session.  The second day brought us some pops and drops, but in the end, we didn't even regain half of what we lost the day before.  But that came on the back of what I could only call an exceptional year in the capital markets.  So what will the remainder of this New Year bring?

While most of the talking heads are predicting another 8 to 10 percent rise in the markets, I think our markets could perform very differently.  I actually don't mean that we might roll over and fall like a stone.  I’m considering the real possibility that (depending upon what Ms. Yellen has up her sleeve) we could see the markets rocket to 18,000 on the DOW.

Here’s the issue:  The U.S. economy is not a DOW 16,000-point economy.  At very best we're functioning at the 8 – 9,000 level.  But because of the Trillions the Fed has printed and injected into the system, we're at unseen levels.  There are many ways this can play out, and the long-term situation is very interesting to explore.  But in the short-term, we have some immediate ‘issues’ to deal with.

-       One is, the 10-Year note flirting with 3%.  Despite the bravado suggesting that it isn't a ‘big deal’ – rising interest rates are indeed a ‘big deal’.  So we need to watch that.

-       Secondly, the big investment names such as Warren Buffet and George Soros (and others) have been dramatically trimming their investment positions.  When the big guys start pulling money ‘out of the system’, they generally have a hunch that things aren't going to be so rosy going forward.

-       Finally, there's absolutely no doubt that (at some point) the money-managers (that have made a ton of money during the big market run) will want to ‘lock in’ some of those profits.  You ‘lock in profits’ by selling.

On the other hand, we have the ‘New Year’ money, the January effect, and earnings reports starting later this week.  So, there is good reason to believe that this market could indeed climb higher for the next couple of weeks. 

There is a ‘Tug-O-War’ going on.  In the long-term, the petro-dollar collapses, inflation soars, and the U.S. economy enters depression.  In the short-term however, there are many reasons that we could set all new highs – again.  I think (this coming week) we see a circling of the wagons, and a market ‘levitation’ into earnings season and the Non-Farm Payroll report on Friday.

Tips:

I did some ‘tax loss’ buying on New Year’s Eve.  That means that I purchased a basket of stocks that were ‘tossed out with the bath water’ – literally on New Year’s Eve – in hope of seeing them bounce in the New Year.  These stocks included:  ARIA, HSOL, AFOP, STML, CAVM, LNKD, TGT, TSLA, and ULTA.  Let’s see if they bounce over the next 2 weeks.

-       USO and UCO (oil ETF):  pulled back substantially this week.  I’m looking for our March and April CALL options to regain their dominance – and this offers a good buying opportunity.

-       FXY (Japanese currency ETF):  Although the Japanese Yen rose slightly this week – the PUT options continue to fall.  March and April FXY – PUT contracts continue to do well.

-       XHB (the housing sector ETF) continues to do well – up over 55% for the month.

-       The entire 3D printing sector is continuing to run higher.  ‘Triple D’ (DDD) and SSYS are the true stalwarts in the group – but don’t forget smaller names like XONE and VJET.

-       Look at:  ATVI and XLU (could be elephant trades forming) on the long side.

-       Look at:  SINA as a buying opportunity.

-       Look at:  FCX as a way to play the gold bounce only playing it through copper.

-       Also if AAPL, GS, or AMZN ‘gap down’ on Monday – look at this as a buying opportunity.

My current short-term holds are:

-       USO – April 2014 $37 Calls – in USO at $34.51 (currently $33.75)

-       FXY – March 2014 $97 Puts – in FXY at $96.47 (currently $93.22) – room to run,

-       XHB – Mar 2014 $33 Calls – in XHB at $31.74 (currently $33.15) – room to run,

-       HD – in at 81.07 (currently 82.09) – stop at 81.50,

-       EMC – in at 24.74 (currently 25.00) – stop at entry,

-       DDD – in at 82.60 (currently 96.88) – stop at 93.00,

-       SSYS – in at 126.63 (currently 136.00) – stop at 132.00,

-       FCX – in at 34.95 (currently 37.32) – stop at 36.50,

-       SIL – in at 24.51 (currently 11.61) – no stop,

-       GLD (ETF for Gold) – in at 158.28, (currently 119.23) – no stop ($1,238 per physical ounce), AND

-       SLV (ETF for Silver) – in at 28.3 (currently 19.46) – no stop ($20.12 per physical ounce).

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

Please be safe out there!

I'd like to recommend a website - http://www.simpleroptions.com    It's an excellent resource and 'honestly' - I've been following them for over 6 months and they're more right than they are wrong with their predictions, and that's a rarity in this climate.  Please check them out on my recommendation.

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>