Saturday, April 4, 2009

Stocks Investment Philosophies

The classic investment philosophy taught to preceding generations has been "buy and hold." There is little question that "buy and hold" worked well over long periods of time and those who bought stocks and held them for 20, 30, or 40 years often had a decent gain, even after inflation. Today, however, we might be hard pressed to convince a 60-year old who has just seen his 401(k) or other portfolio drop by 40% or 50% in the past year that buy and hold is the way to go. Undoubtedly, someone will say just hang on, it will come back, but the fact is it won't if the investments were in Washington Mutual, or Bear Stearns, or Lehman Brothers, or the like. That money is gone forever and many times with it the quality of a retirement.

I don't mean to say that I am completely against the buy and hold approach to investing as long as the investor has an answer to the question: Hold until when? I personally use a technical approach as the trigger to exit a position, but whatever an investor is going to use as an exit strategy, I believe anything is better than hold until I die. Unfortunately those brokers who have sold the public on the buy and hold strategy rarely include any strategy to get out when things turn south -- and at some times, the markets always do turn south.

Among my objections to buy and hold are the possibilities that a stock can go to zero, that an investor may have an important need for his money at a time (like now) when stocks are depressed, that a drop of 50% means a position must move back up 100% just to get back to even (and that doesn't usually happen very fast), and that the investor who holds until death may never enjoy the qualities of life that any gains may help provide (though his heirs probably will).

Having lived long enough to watch a lot of people live their lives, I am convinced that more folks need additional streams of income so they can pay their bills each month than need to have buy and hold positions that may or may not show great gains at some time in the future when the money is needed. If we just look at someone today who is about to retire and who had relied upon investments in a 401(k) to get him through his retirement years we can easily see how he would be better off having created additional streams of income instead of having been resigned to a buy and hold investment. Social Security may provide a stream, but we know that at the very best it can provide only a small portion of the solution for the new retiree whose investments in both equities and real estate have been devastated.

My personal investment philosophy does have a place for a modified buy and hold strategy. The modification is that I have an exit plan when the market begins a move against me. Perhaps even more importantly, however, I believe that creation of diverse streams of income from different sources can be a critical element in assuring financial comfort. My new book, "Smart Investors Money Machine" (Wiley & Sons 2009), that is scheduled for release shortly addresses many of the ways almost any of us can create these streams of income with just a little effort. Most of us need money now, at the end of the month, so we can pay our bills, but few of us have streams of income besides our jobs to enable us to pay those bills. The fact is, as I demonstrate in "Smart Investors Money Machine," that there are many ways we can create added streams of income that bring in regular cash without a great deal of time and effort. Generally the most time and effort required to add these streams of income is expended in learning what to do and how to do it. As I explain in the book, the methods can be relatively easy to learn and can be very rewarding in terms of enhanced lifestyle and permitting more time for the things we enjoy.

Bottom line for me is that I'd much prefer enjoying a number of income streams than agonizing over losses in a 401(k). Who wouldn't? The fact is, that nearly everyone can add streams of income in their lives once they have the know-how.

FNB (F.N.B. Corporation)
Company Profile
In spite of the recent issues concerning banks and the banking industry, FNB has been able to maintain an uptrend since early this month. As of late Friday, the 10 day moving average was above the 20 as the stock traded just above the $7 mark. While this one could stall for a while or even retrace, I have it on my radar as a possible entry if it can stay above the 20 day MA and get off the $7 mark.

JOSB (Jos. A. Bank Clothiers, Inc.)
Company Profile
In reviewing volatility on Friday, I came across a skew in JOSB that could lead to a favorable situation in a calendar spread on JOSB. The implied volatility of the Apr 30 calls was near 79% while that of the Jul 30s was about 14 points less. Situations like that can sometimes be the set-up for a calendar spread selling the Apr premium while buying the July. I'll need to look at the beginning of the week to see if the situation remains.

DBC (PowerShares DB Commodity Idx Trking Fund)
Company Profile
This ETF that tracks the relatively depressed commodity index gapped up on Thursday to jump through a resistance. By late Friday it was still holding just above that level so it could well represent a potential buy if it can remain above the newly forming support around the $20.60 level.

GIS (General Mills, Inc.)
Company Profile
Our Success Trading Group members scored another winning trade this week with a winning trade on McDonald's (Ticker: MCD). We currently have a position in General Mills, Inc. (Ticker: GIS) which we like at its current price for new positions.

Profit from Aristotle’s “Reverse Osmosis”

From the very beginning of civilization, coastal villages and towns have dealt with one common issue: how to provide drinking water to the local population.

In fact, the most scientifically blessed societies began working on desalination techniques more than 2,500 years ago. You are probably familiar with one of these early scientists...

After years of failed attempts by generation after generation, the great philosopher Aristotle became quite interested in the process of removing salt from water. Actually, his interesting technique is more like removing water from salt.

Most scientific breakthroughs in this field have come from various thermal processes. That's where you heat up the saltwater until it boils and then capture the steam as it separates from the salt.

Unfortunately, every thermal desalination breakthrough still expends far too much energy to make it economical. (Saltwater has a slightly higher boil point than plain old water.)

However, Aristotle was one of the first to try a completely different method…

Instead of boiling, capturing, and cooling the salt water, our philosopher envisioned a filtering process, where the saltwater would pass through one or more materials to screen out the salt. Unfortunately, the technology just wasn't possible in his time.

The first working filtration model was introduced in the 1950s, when researchers stumbled on various membranes. However, this technique didn't come cheap either. The pumps early filtration de-salters used were extraordinarily expensive.

After decades of research, newer, more efficient, and less expensive pumps came to market in the 1990s and early 2000s. Unfortunately, with so many researchers scrambling to put the first efficient pump out, patents were spread thin across the industry.

On top of working through the intellectual properties mess, thermal desalination-based companies have lobbied to keep the filtration ― now commonly called "reverse osmosis" ― plants at arms length from the major markets (i.e. Saudi Arabia, United Arab Emirates).

Because of these efforts, as well as more technical restrictions, reverse osmosis plants are primarily just a fraction of the size of their thermal counterparts.

That's starting to change. Some tightening of intellectual properties, breakthroughs in pump technologies, and rising water prices are creating a renewed interest in Aristotle's vision.

The few companies in the reverse-osmosis field are very tiny. The largest is Calder AG of Switzerland. Unfortunately for that company, its DWEER products ― which were revolutionary a few years back ― are falling behind recent shifts in pump technology.

Calder has three major reverse osmosis competitors. Two are private and the third is far too small to mention here. If anything changes, you'll be the first to know…

Have We Seen the Last of the Bear Raids?

So is that it? Is the downturn over? After bouncing off of 6500, or more than half its peak value, and with Citigroup briefly breaking $1, the Dow Jones Industrial Average has rallied back more than 1200 points. So, is it safe to go back in the water? Best to figure out what went wrong first -- what I like to call a bear-raid extraordinaire.

The Dow clearly got a boost from Treasury Secretary Tim Geithner's new and improved plan, announced on Monday, to rid our banks of those nasty toxic assets. The idea is to form a "Public-Private Investment Fund" to buy up $500 billion to $1 trillion worth of bad assets -- mostly mortgage backed securities (MBSs) and collateralized debt obligations (CDOs).

While it's true that private interests can conceptually help establish the right market price for these assets, the reality is Mr. Geithner's public-private scheme won't work. Why? Because the pricing paradox remains -- private parties won't overpay, yet banks believe these assets are extremely undervalued by the market. As Edward Yingling, president of the American Bankers Association, said recently on CNBC, "You have to go into the securities, examine the securities, examine the cash flow. I've seen it done, and the market is so far below what they're really worth."

The Treasury can't just keep throwing money at the problem, but needs instead to figure out what's really been going on -- the aforementioned bear-raid extraordinaire that's crushed Citigroup and Bank of America and General Electric, among others. Only then can Mr. Geithner craft a real plan to fight back.

In a typical bear raid, traders short a target stock -- i.e., borrow shares and then sell them, hoping to cover or replace them at a cheaper price. Once short, traders then spread bad news, amplify it, even make it up if they have to, to get a stock to drop so they can cover their short.

This bear raid was different. Wall Street is short-term financed, mostly through overnight and repurchasing agreements, which was fine when banks were just doing IPOs and trading stocks. But as they began to own things for their own account (MBSs, CDOs) there emerged a huge mismatch between the duration of their holdings (10- and 30-year mortgages and the derivatives based on them) and their overnight funding. When this happens a bear can ride in, undercut a bank's short-term funding, and force it to sell a long-term holding.

Since these derivatives were so weird, if you wanted to count them as part of your reserves, regulators demanded that you buy insurance against the derivatives defaulting. And everyone did. The "default insurance" was in the form of credit default swaps (CDSs), often from AIG's now infamous Financial Products unit. Never mind that AIG never bothered reserving for potential payouts or ever had to put up collateral because of its own AAA rating. The whole exercise was stupid, akin to buying insurance from the captain of the Titanic, who put the premiums in the ship's safe and collected a tidy bonus for his efforts.

Because these derivatives were part of the banks' reserve calculations, if you could knock down their value, mark-to-market accounting would force the banks to take more write-offs and scramble for capital to replace it. Remember that Citigroup went so far as to set up off-balance-sheet vehicles to own this stuff. So Wall Street got stuck holding the hot potato making them vulnerable to a bear raid.

You can't just manipulate a $62 trillion market for derivatives. So what did the bears do? They looked and found an asymmetry to exploit in those same credit default swaps. If you bid up the price of swaps, because markets are all linked, the higher likelihood (or at least the perception based on swap prices) of derivative defaults would cause the value of these CDO derivatives to drop, thus triggering banks and financial companies to write off losses and their stocks to plummet.

General Electric CEO Jeff Immelt famously complained that "by spending 25 million bucks in a handful of transactions in an unregulated market" traders in credit default swaps could tank major companies. "I just don't think we should treat credit default swaps as like the Delphic Oracle of any kind," he continued. "It's the most easily manipulated and broadly manipulated market that there is."

Complain all you want, it worked. In early March, Citigroup hit $1 and Bank of America dropped to $3 and GE bottomed at $6.66 from $36 not much more than a year ago. Same for Lloyds Banking Group in the U.K. dropping from 400 to 40. Citi CEO Vikram Pandit recently announced that the bank was profitable in January and February. (How couldn't they be? With short-term rates close to zero, any loan could be profitable). Never mind they still had squished CDOs, it was enough to get some of the pressure off, for now.

Oddly, with the new Treasury plan, these same bear raiders are still incentivized to manipulate the price of swaps to depress toxic derivative prices, especially so with the government's help to get hedge funds to turn around and buy them. Perversely, they may get rewarded for their own shenanigans.

This week's Treasury announcement of private buyers isn't going to magically change the depressed prices of these toxic derivatives. The Treasury needs to fight fire with fire. If I were Mr. Geithner, I'd pull off a bull run -- i.e., pile into the CDS market and sell as many swaps as I could, the opposite of a bear raid. If the bears are buying, I'd be selling, using the same asymmetry against them. Sensing the deep pockets of Uncle Sam, the bears will back off. Worst case, the Fed is on the hook for defaults, which they are anyway!

With the pressure of default assumptions easing, prices of CDOs should rise, which not only gives breathing room to banks, but may actually get these derivatives to a price where banks would be willing to sell them, replacing toxic assets in their reserves with cash or short term Treasurys, which ought to stimulate lending.

So are hedge funds villains? Not especially. The bear raid probably saved us five to 10 years' of bank earning disappointments as they worked off these bad loans. Those that mismatched duration set themselves up to be clawed. Under cover of a Treasury bull run, banks should raise whatever capital they can and dump as many bad loans before the bear raiders come back. Let the bears find others to feast on, like autos, cellular, cable and California.

Move Your Money Out of the Country…and Soon

We are patriots. We have proudly served in our country's military, have extended a helping hand to its public sector, and have plowed our entrepreneurial enterprise into its once fertile soil. We love America, but these days, America does not love us back. It takes without giving and squelches free enterprise. These days, America is no longer the land of the free, especially when it comes to the market.

Just look at the headlines, seemingly ripped from the pages of Atlas Shrugged: Unconscionably large bank bailouts. Punishing regulations and tax requirements. An arctic business climate. Government money bombs. Riots and protests. Slowing trade. Protectionist rhetoric. Demonized corporate executives. Even pirates hijacking cargo ships. One can guess what will happen next.

We predict the next several years will usher in larger, more obtrusive governments, resulting in a decline of personal liberty and financial privacy. The world will become increasingly polarized between two groups: those who consider government intervention a great idea, and the rest of us who happen to be sane.

As such, you can bet your last falling dollar on some absolute certainties: bank nationalization is a given, at least de facto if not de jure; taxes are going up on those of us with any money left; the Fed's money blitzkriegs will spark a blaze of inflation; and financial privacy will be a thing of the past in the United States.

The obvious and necessary solution is to position one's finances outside of the United States, and to do so now, while the narrow and finite window of opportunity is still open.

To be clear, evading (or even avoiding) taxes at this point is not a wise move, given the size and scope of the ever-growing IRS. But there are significant advantages to expatriating your capital now:

For starters, you will actually have control of your own money. Yes, in certain instances you'll be obliged to tell the IRS exactly where it is and what you're doing with it, but no government agency will have the authority to reach into your overseas pocket and freeze or expropriate (read: steal) on a whim just so Team Obama can give it away to pay for someone else's McMansion.  Plus, when exchange controls are implemented and Americans are forbidden from wiring money overseas, your capital will already be secured in another jurisdiction, where you will be free to do what you want with it.

Secondly, you will no longer have to assume the risk of insolvent banks or go through the hassle of petitioning the government to get your FDIC insurance bailout. Many overseas banks are far better capitalized than those in the United States, and some of them are in jurisdictions with constitutionally protected banking privacy.

Lastly, and probably most importantly, moving money overseas gives you a last chance at diversifying out of the dollar, which, in a very short period of time, will barely be worth the paper on which it's printed.

Bank and Brokerage Accounts

Opening a foreign bank or brokerage account is easier said than done; the United States government severely restricts where and under what terms you can open a bank account, invest in a fund, or engage in other economic activities that facilitate the protection of and access to your assets. As the signatory on an overseas account, you are required by law to inform the federal government on Treasury form TDF 90.22 by the end of June each year. Ostensibly, this has been done in the name of fighting money laundering, but it has the effect of severely restricting your freedom of financial movement.

Many foreign banks simply won't work with you…don't worry, it's nothing personal. Uncle Sam has been beating them down since the Reagan years, and between Qualified Intermediary rules, tax treaties, and the USA PATRIOT Act, Sammy gives himself a lot of regulation to bury the opposition with.

There are some jurisdictions that are still excellent banking centers; Switzerland may have rolled over, but Panama, Uruguay, Singapore, and the United Arab Emirates have thus far ignored the call for "greater transparency" (read: government access to private finance).  

Some individual banks, like Credicorp and Global Bank in Panama, or Banco Itau in Uruguay will not work with U.S. citizens anymore, but there is still opportunity with the hundreds of remaining banks in these jurisdictions. 

Similarly, opening a foreign brokerage account is a shrewd move, not only to move your money overseas but also to have greater access to financial markets. Remember when world markets tanked on Martin Luther King Day 2008? If you were a U.S.-based investor and wanted to sell, sell, sell, you had to wait a full 24 hours until the markets opened after the holiday on Tuesday morning. If you had been invested with global depository shares through a foreign brokerage, you could have saved yourself several points and gotten out in time.

We would suggest looking at Verdmont Capital and PanaAmerican Capital in Panama, and Saxo Bank in Denmark.

Bullion Storage

If you have gold, it would be highly beneficial to get it out of the U.S. ― stat. If you do keep it in the U.S., your only truly reliable and private option is to store it yourself in a safe that you bury in your backyard.  Otherwise, move it out of the U.S. now before Team Obama pulls an FDR and takes your gold from you.  

At the moment, gold is not considered a monetary instrument by the U.S. Customs and Border Patrol, so there is no legal requirement to declare your bullion upon leaving the United States. Some countries, like Taiwan and Uruguay, require you to declare gold in excess of a certain value to customs officials upon entry.

We recommend Panama, Austria, Switzerland, and the United Arab Emirates as locations to store bullion; one particular favorite is a location called Das Safe ( in Vienna where anonymous safes start at 400 euro/year.

Real Estate

It might sound counterintuitive after the subprime debacle, but real estate is a sound option for moving money outside of the United States; there are zero reporting requirements. It's your business where you own property, and (so far) no one else's. You can purchase property in a private way by setting up a corporate structure to hold the assets so that they're not in your name (Panama is an excellent jurisdiction to set this up), and although there are many places with depressed real estate markets, there are also many with good growth potential: in Latin America, we would recommend Panama, Colombia, Uruguay, and Chile. In Europe: Slovakia, Albania, and Poland. In the rest of the world: Lebanon, Hainan Island (China), the Philippines, Cambodia, and New Zealand.

Time is of the essence ― start looking for your safe haven now.

In response to the article by Samantha Buker a couple days ago, a Shooter writes:

Pardon me if I am incorrect, but didn't FASB install the current version of mark-to-market only a couple of years ago? I believe we did quite well without it for, let's say, about 80 years from the Great Depression. Why should we let some mortgage deadbeats bring down the entire banking system? More to the point, if the installation of mark-to-market was recent, doesn't it suggest the possibility that the entire financial crisis has been a contrived event? Instead of more rants about quantitative models, I'd like to hear some serious analysis on that. Steve Forbes is claiming that mark-to-market and the removal of the uptick rule are together responsible for the recession turning into a crisis.

Hmmm… Good point. I asked Sam and here's what she said:

The market also did quite well without the trading of derivatives.

And Yes, I'm ranting because, based on what Congress did to Herz, we see that the "mortgage deadbeats" are still holding the reins.

Mark to market, if you read Herz's testimony, was a relatively recent event...and it did allow for more forced transparency of what the banks were holding asset-wise.

The savvy investor, like Dan Amoss, reads between the SEC lines and finds these flaws BECAUSE of mark to market.

Hence, when the weak were caught in their dirty undies...the market hung them out to dry.

And another Shooter writes in with words of encouragement: "If people think things are bad now; all I can say is: CHEER UP ― IT'LL GET WORSE!"

Gold Stocks to Soar On Obama Budget

This one comes straight from USA Today:

"This is change, whether you believe in it or not. And not just pocket change.

Following through on many of his campaign promises, President Obama wants to spend about $3.6 trillion next year to pull the nation out of recession and begin major new initiatives in health care, energy and education."

Of course, the "altered" budget has dwindled down quite a bit since the first proposal hit the presses...

... It's only about $3.5 TRILLION now!!!

Well pop the champagne corks and take another mallet swing into the heart of the dollar - which is already on its death march.

My friends, we're staring right down the throat of hyperinflation.

And if it has you a little more than ticked off, you're not alone.

But don't let any of that anger get the best of you.

The truth is, since these wreckless, multi-billion dollar bailouts/TARP/stimulus bills started destroying our dollar, another investment's been on an absolute rampage... gold.

In fact, many world-class analysts agree that its rally is just warming up. Some are predicting that it could easily break $2,000 an ounce before long.

And if you're thinking of taking advantage of it before it surges any higher, get this...

Our international gold guru, Greg McCoach, recently uncovered a powerful investment loophole... one that allows everyday investors to collect double the gains made by physical gold prices.

Read that again. Double the gains!

Best part is, you don't need a loaded bank account, knowledge of the gold market, or even hours a day, researching companies to get started. Twenty five bucks and five minutes is all it takes!

And in your report below, he outlines every profitable detail. He even shows you exactly how you could start taking advantage of this surge today - while it's still early!

What I'm about to share with you is no coincidence.

It's not a temporary trend, either.

Instead, it's a money-making phenomenon so powerful that our team of researchers spent eight months investigating its validity.

First, let me say that these charts are NOT duplicates.

The one on the left represents the closing price of physical gold over the past six months. The one on the right is the investment we're following extremely close. Now, at first, they appear virtually identical. And they should... one is directly based on the other.

But that's where the similarities end. How so? Just check out the two charts again... only this time, with gains attached:

From September 10 of 2008 until September 22nd, physical gold prices soared 19.65%... but the diamond in the rough we uncovered soared an astonishing 45.46% - more than doubling the gains gold attained!

I know. It looks crazy. And I don't blame you.

In fact, when we first heard about this opportunity, we couldn't believe it either.

Scratch that - we thought our source had been drinking a little too much Makers Mark.

After all, how could an investment exist, directly related to gold prices, that pays you DOUBLE the gains gold makes?

... a 25% gain pays you 50%... a 50% gain doubles your money... and so on!

It seems completely illogical.

And that's why we kept this discovery under wraps since March.

You see, before we could show you an opportunity this powerful, we needed to know exactly what we had. We also needed to know how and when would be the best time for hungry investors like you to start taking advantage of it.

I'll give you the full details of how it works below. First, let me show you...

How Capitol Hill could make you filthy rich

Imagine for a moment, that you knew about certain factors - already in place - that would cause the price of gold by... say... as soon as next month to start skyrocketing.

Even better, you knew you were facing a "bottom" in gold prices... and that this imminent surge could last a couple of years.

Taking advantage of this one-of-a-kind investment at the right time, you'd be able to ride the coming wave and easily collect a fortune - safely pulling in twice the gains gold makes.

Best part is, unlike other investors who are buying expensive futures contracts or even physical gold, you don't need a lot of money to get started. In fact, you can begin collecting "The Doubling Effects" with just $25.

All you need to know is when...

Well, thanks to the boys on "the Hill," we don't have to look for any crazy trends around the corner, pore through complicated computer models, or rely on so-called overpaid experts to tell you when gold prices are going to surge.

Truth is, all you have to do is thank the combined +$700 billion bailout from Uncle Sam.

In fact, it's because of the banking industry's last ditch efforts to stay afloat that we're now staring straight at the largest inflationary period in years.

And it'll blow wide open...

You see, broke USA doesn't really have the cash on hand for this unprecedented funding... and if you think for a second that every single employed American is going to be taxed an additional $5,000 this year to pay for it - in an already stretched thin economy... think again.

In reality, the only option that the Fed has is to print more (and I hate to call it this) Monopoly Money.

That much cash is already set to send an inflationary shockwave across the entire nation.

As I'm sure you know, when there's inflation - even the rumor of inflation, the gold price does something beautiful... it skyrockets.

And the proof that gold's already revving its engine is all around us...

The private sector's recently gobbled up in excess of $30 billion worth of T-Bills - enough to guarantee a negative return - over fears of the coming economic crash.

On top of T-Bills, investors seeking safer investments are buying so much physical gold that bullion dealers as well as producers can't keep up.

In just the past month, gold prices have steadily soared almost 14% - with another 50% surge expected in the near term.

And that's just for the short term. I haven't even mentioned the juiciest part.

History To Repeat: Why Gold Prices Could Super Spike To $5,000...Making you a massive fortune along the way!

Right now, gold sells for around $1,000 an ounce.

But what if you knew about the factors at play, happening this very moment, that could soon make the $1,000 mark look like pocket change?

Heck, with the investment tool we uncovered, with gold at $1,000, you'd be turning every $5,000 into $7,500.

Now, just to get an idea of what to expect in the future, after 2009's inflation already has you sitting on a mountain of cash, let's take a quick look at our last massive gold super spike...

During the great gold bull market of the 1970s, the average monthly gold price increased from under $35 to over $675 an ounce... representing a 1,833% gain.

If today's gold bull market makes similar moves forward, gold prices could skyrocket well past $5,000 an ounce. Just take a look:

Now gold prices at $5,000 may seem like a stretch, especially considering the metal hasn't had much strength over $1,000. Nevertheless, $5,000 gold is absolutely possible. Here's why:

How a Gold Bull Market Works

Every major gold bull market in modern history has consisted of three main stages:

1. Currency Devaluation Stage

2. Investment Demand Stage

3. Mania Stage

During these three stages, gold prices typically rise in a parabolic upswing, which ultimately results in a sharp, skyrocketing price spike. (Take a look at the 1970s gold bull market chart above, as an example of this phenomenon.)

So far in today's gold bull market, we've seen evidence of the first two stages:

During the first stage of a gold bull market, prices increase because of currency devaluation.

So far in this bull market, a dramatic drop in the value of the US dollar against other world currencies has lifted gold prices over the past 7 years - breaking the $1,000 per ounce mark. In fact, this devaluation is evident in the 42% drop of the U.S. Dollar Index between the summer of 2001 and spring 2008.

And now, thanks to the massive banking bailout that we can't REALLY pay for, we're about to add some TNT to an already highly-explosive situation.

In the second stage, gold prices continue to grow due to increased investment demand. Attracted by the modest gains of the first stage of the gold bull market, investors begin to buy gold as an investment, which further snowballs the price of gold higher.

And with today's screaming demand for physical gold, the introduction of gold ETFs - and similar products - investment demand has had incredible strength since the beginning of this gold bull market, growing in terms of both tonnage and dollar demand.

Again, the first and second stages of a gold bull market generally return considerable gains. In fact, gold prices in this bull market have increased as much as 306%.

Of course, with the investment tool that I'm about to show you, that modest 306% return could have stuffed your pockets with more than 600% gains!

Don't worry if you missed it. Truth be told, it's the third and final stage of a gold bull market that can turn everyday investors into instant millionaires.

How the mania stage of a gold bull market could hand you several thousand percent gains in very... very short order

Everyone knows there's no rush like a gold rush. And a speculative mania can kindle an inferno of popular greed that rivals that of the Conquistador's legendary lust for gold.

During the third stage of a bull market, mania buying finally turns gold's parabolic upswing into a blistering price spike.

Make no mistake, mania stage already started. And this time, it's happening across the entire globe...

Earlier this year, the U.S. mint suspended sales for its American Eagle 1 ounce gold coin.

The South African Rand Refinery, makers of the infamous Krugerrands, admitted that they were temporarily bone-dry.

Australia's Perth Mint announced they were no longer selling gold to citizens.

Germany's Bundesbank refuses to sell their gold to the public, claiming it as a strategic asset required for the confidence and stability of the euro.

The World Gold Council recently reported an all-time quarterly record ($32 billion) for gold as investors seek refuge from global financial meltdown. That's an astounding 45% increase from the previous record - ever.

And this rapidly spreading shortage is only the beginning of what is bound to launch gold prices to levels of mass hysteria... making those on top of the wave filthy, filthy rich.

Now let me tell you how you can...

Double your gold profits with this unique investment tool

Earlier this year, one of the world's leading international investment managers launched a new, one-of-a-kind investment vehicle designed to double the monthly return of gold prices.

Mind you, this investment has been all but ignored by media since its launch. Gold, after all, has never been understood or appreciated by the mainstream, despite its historic economic significance.

Still, for every 1% increase in the price of gold, this new gold investment vehicle delivers a positive 2% return!

There's no investment club to join. You won't have to open a special account to get in on the action. It trades on the NYSE. Plus, it's completely liquid... and easy to add to best stock account you own right now.

To top it off, as you already know, now is the time you want to be in gold!

Yes, gold prices have pulled back since mid-July, as the U.S. dollar found strength as a result of foreign buying.

And it's likely that the U.S. dollar will continue to remain strong in the short-term, subsequently holding back the price of gold.

But it simply won't last long.

Sooner or later the U.S. dollar will collapse. It's imminent.

In fact, we're already uncovering tons of evidence to prove that it's already started.

And it's launching the mania buying stage to previously unthinkable levels...

... Making this new gold investment vehicle a true "no-brainer."

Now, very briefly, before I get into the details of how you could start collecting DOUBLE gold's profits, let me introduce myself...

Secrets of a Mining Speculator

Hi. I'm Greg McCoach.

For the past eight years, while other investors played stale blue chips (some of which straight up collapsed), I've been showing home-run investments to people just like you, year after year.

You see, in January of 2000, I set out to create the most profitable mining investment advisory service the world's ever seen - the Mining Speculator.

We didn't want to waste time with top stocks that dawdle on their way up the ladder. We're investing for one reason - to become filthy rich.

Since we started, we've found some of the most undervalued stocks on the planet. We've grabbed our piece just before the biggest gains occur. And this goldmine of a gold investment is no different.

We scour the earth for these opportunities as protection against the financial uncertainties that have engulfed the U.S. and world markets. As the saying goes:

"Periods of great crisis also offer great opportunity."

Right now - without question - the best opportunities for investors to protect themselves against the coming financial reckoning are with precious metals and in particular, with this gold investment that promises double the returns.

In addition to our picks in the metals sector, we dish out the most accurate and truthful - sometimes painful - economic commentary that we can find to help investors just like you sift through the massive amount of disinformation put out by the mainstream media.

And just so you can form a better picture for what I'm talking about, below I've added a few excerpts from past investment alerts that have helped us uncover some of the most explosive plays in the market - well before anyone else catches wind...

December, 2005, the dollar vs the strength of gold:

"First we have gold over $500 an ounce and oil is back over the $60 a barrel level. Both appear like they will continue to go higher... These things are significant because in the happy picture of America's finances and the world economy, they shouldn't be [that high]. If everything were so rosy then these things certainly would not be happening."

January, 2006, a housing and foreclosures warning... long before the bubble burst:

"We will see more personal bankruptcies than we have seen in recent years as an alarming number of consumers that opted for interest only and adjustable rate mortgages are faced with an ugly reality, and no chapter 7 bankruptcy protection."

February, 2006, as the Dow first broke 11,000:

"We are [soon entering] a period where investments in precious metals will severly out-perform those in the general market. More importantly, investments that typically have been good performers in the past few decades, (i.e. money in the bank, T-Bills, bonds, and blue chip top stocks), now have great risk associated with them. Most investors of course don't see it this way, but I believe they will soon learn for themselves the hard way."

November, 2006, when other "experts" were calling gold's ceiling at $720:

"I expect that in the year 2007, we will start to see a major run for the exits away from the dollar. How bad this gets is anybody's guess, but the bottom line is that this will be incredibly bullish for gold and should take the yellow metal to new all-time highs. Most likely over $1,000 an ounce."

I could go on all day. But the point is, as you can see, some of what we had to say was shocking and, frankly, hard to swallow at the time. However, as you can see, all of these events have happened or are happening now. And many investors like you are now sitting on massive fortunes.

Bottom line, some people just don't have the stomach for the index-busting gains from the opportunities we set ourselves up for so early. If you think this isn't for you, don't worry. It's not for everyone.

But if you think you can handle it, and want to not only protect your wealth from this economic insanity but also profit like you never imagined, I want to give you a fresh copy of my latest report.

It's called, "How to Double Your Gold Profits: The World's Only Investment Vehicle Yielding Double the Monthly Return of Gold Prices." And I want you to have it for FREE.

How to get started doubling your gold profits

All you have to do is take a risk-free $25 trial of my Mining Speculator advisory.

Mining Speculator isn't your normal investment advisory. It is, however, the definitive resource for investors seeking profits-and protection - in a gold and precious metals bull market with no end in sight.

It's where investors burned by the financial crisis are now turning... as a safe-haven alternative to the agenda-guided mainstream financial media. Truth is, in our Mining Speculator portfolio, we disqualify 99.9% of the gold, mining and precious metals plays out there.

But when we're fully 100% behind a company, like this rare gold opportunity, you'll get the trade recommendation in a moment's notice. We tell you what to buy, when to sell, and when to hold... so you can enjoy the greatest gains possible.

Plus, you'll also receive - every month - profit producing research, including my special Mining Speculator reports and urgent updates, as well as unrestricted access to the Mining Speculator site... all for just twenty five bucks every three months... or $79 a year - that's less than $0.22 a day!

In other words, for less than a pack of Bazooka Joe, you can begin receiving my Mining Speculator advisory, in addition to getting a free copy of my new special report, "How To Double Your Gold Profits: The World's Only Investment Vehicle Yielding Double the Monthly Return of Gold Prices."

The companies you'll learn about and that I want to share with you today have the potential for payoffs, so large, you may never go back to your broker for advice again. Let me help you make those returns.

But I can't promise the deep discounted price I'm offering will remain that low for long. My publisher's already talking of hiking the price several hundred dollars more per year.

Not that I can blame him. I've seen other services boasting a fraction of the returns I've delivered to investors like you over the years (charging as much as $5,000.)

However, locking in a one-year membership guarantees that you receive the Mining Speculator at that low rate even after other people could be paying more.

And, if you're not completely satisfied with the quality of service and commentary we offer, simply cancel before 30 days and I'll refund every penny!

That's it! Not a single question asked!

How many other services have you seen that offer you a refund this good?

Plus, if you decide to cancel, you can keep my newest research report, "How to Double Your Gold Profits: The World's Only Investment Vehicle Yielding Double the Monthly Return of Gold Prices." It's yours FREE.

But like I said, gold's already started surging. And it's not turning back any time soon.

Basic Stock Market Introduction

Many times, the number one hurdle that you face is not being able to picture succeeding.

If you can't see it, how can it happen?

After reading this email you will know what it takes to make it in the stock market.

Let's create that picture now...

It all starts by clicking on a link - you have now taken an action - proof that you want to succeed.

You answer questions that allow us to figure out what you are looking for and how the stock market can fit into your life.

You get a call and you gain an understanding of how you can customize the stock market to fit your lifestyle.

You start working one on one with a stock market coach - someone who actively trades, is passionate about the market and loves to teach it to others.

Your coach teaches you:

A system for buying top stocks based on easy to learn technical indicators.

A system for selling that strictly adheres to the concept of risk vs. reward - this is how you learn to let go of the losers and hold on to the winners.

How to build, grow and maintain your best stock list so that you have top stocks to choose from and are organized to the point that you can capitalize on opportunities rather than squandering them.

*If necessary, we will also walk you through the process of opening a trading account and extend "professional" courtesies to you such as: free trades, preferred pricing and state of the art technology.

You will begin to understand that technology today is more advanced and user friendly than it has ever been. You can customize orders based on parameters you learn with your coach and make trades while you are at work!

You will start small, the initial goal is to gain "proof of concept."

This allows you to see that the system works and by trading in small lots you are more focused on "the right and wrong" than the money.

You will start to develop your list and make trades.

You will have weekly calls with someone who has had a passion for the stock market for more than a decade - me.

These calls will make sure you stick with it and get results.

You will become part of an exclusive stock community that has learned to trade the same way that you have so that the ideas shared are always relevant and valuable.

You will succeed in the stock market.

Mobs, Messiahs and Markets

At this very moment, the public markets are teetering on the brink of a major change of direction…$500 trillion in derivatives could be ready to explode…$15 trillion in worldwide stock market capitalization could disappear…the average American house could lose 20 - 40% of its value…as 5 million families are forced into bankruptcy.

Couldn't happen? Do you believe Ben Bernanke won't let it happen? Or that Wall Street will find a way to avoid it?

If so…you are thinking just like you're supposed to think. That is, you're not thinking at all. Crowds don't think. And they don't protect themselves until it is too late.

Crowds aren't as unpredictable as people suspect. They follow a hidden logic -- which is encoded in all our genes. Once you understand the secret, you'll avoid being a victim of government, fads and fashions, and mass market sentiments…

Have you ever wondered why certain people always seem to come out on top -- no matter what life throws at them?

They make money when others lose it. When social upheavals…or market disasters strike, they somehow manage to avoid being in the wrong place at the wrong time.

'You can't beat the market,' say the scholars. But some people do…more or less consistently. Some people see the early signs of market booms and busts…and some people are able to resist the lure of temporary fads and destructive manias. In fact, they even seem able to turn these mass movements into exceptional private opportunities!

It is as if they were programmed differently from the rest of us…as if they understood -- naturally -- how things worked….

You can't change your own personal programming…
But you can learn to recognize the patterns…
And profit from them…

In the end, the margin between success and failure, profits and losses, defeat and victory is VERY NARROW. And the little margin of success can often be traced to a single insight.

This insight is what you will find described in this remarkable new book.

It shows you why the winners have always been those who can stand outside the mass delusions of their time and see things for what they really are.

An Epic Disaster in the Making

Look what happened during World War II. In Eastern Germany in 1945, old men, women and children went about their business as if nothing was wrong. Soviet Army tanks were already cutting into their homeland. Millions of Soviet troops were advancing rapidly. Yet the civilians didn't try to get away until the very last minute -- when it was too late. They had been told by their leaders that the German army would stop the Russians at the border. Tragically, they believed them!

Yet…SOME people saw the situation much more clearly. They understood how crowds are easily manipulated and misled. They understood how the Nazis had manipulated public opinion from the very beginning…and how irrational crowd sentiments always lead to disaster. These people got out of the way long before the real catastrophe came. The same is true in markets…

The crowd always wants to believe that everything will work out. Most of the time, it is right. Major debacles do not come along every day.

But they do come along from time to time. And that is when you need to start thinking. That is when failing to see how mass sentiments motivate, inspire and direct people and turn fatal.

The Most Important and Entertaining Book You'll Read This Year…

Mobs, Messiahs and Markets is a new book by William Bonner and Lila Rajiva. Read it and you'll have the inside story on markets, politics, fads, fashions, trends and wars. And most importantly, you'll  be much better able to make sure you're not their next victim.

You'll also be better able to invest your time and money better…free from the claptrap of what Bonner and Rajiva refer to as 'dangerous, destructive public thinking.'  It is also a joy to read.
What makes this book so fascinating is that it looks at history and current events in a new, rollicking way.

For example, why do people buy expensive, gas-guzzling Hummers? Why do men take Viagra…why is there a $700 billion trade deficit? And how do these things connect to the investment markets? You'll see that a lot of what we see in life is actually founded on lies…fraud…and exaggerations. It all seems incredibly complicated and confusing until you understand the key element -- the sociobiological reason behind the everyday swindles we take for granted.

You'll read how this relates to the debt bubble, the real estate bubble, the trade deficit, sex, lies and the follies of the American empire! All of this is explored and depicted in this thought-provoking work.
After reading Mobs, Messiahs and Markets you'll be able to understand the spectacles of modern life, from five-year plans to financial manias, to wars to end all wars…

But let us return to the immediate threat you face. Today, the threat of real war seems far away. But the threat of financial disaster is close at hand. No one knows how close, but it is there.

Two million homes are expected to be foreclosed this year. Hedge funds, mortgage companies and individual investors are all taking a beating

Builders are going out of business. Mortgage lenders are declaring bankruptcy. New financial innovations -- hedge funds and derivatives -- may be sitting on trillions of potential losses. Two Bear Stearns hedge funds already went broke. Then, investors were shocked when Bear refused to allow them to take their money out of a third troubled fund.

The biggest U.S. mortgage lender, Countrywide Financial Corp., was forced to borrow BILLIONS because of ongoing credit trouble. And between July 13 - Aug. 6 of this year, more than $1.2 trillion of market value was erased in the U.S. alone.

Meanwhile, Americans count their wealth in dollars. What exactly is the greenback worth? No one knows. The dollar just fell more than 3% against the yen -- its lowest since July 2006 -- on signs that the U.S. economy is suffering from the subprime meltdown. It is at an all-time low against the euro. And against the British pound, it is at a 27-year low. Not only that, but the dollar index dropped below the 80 mark for the first time in 15 years -- a key psychological benchmark.

But here's the important point: Since it has been cut loose from gold in 1971, the value of the dollar is no longer controlled by the bankers, or the printing presses or even by economic fundamentals; instead, it has become controlled by CROWD DYNAMICS. In other words, the fundamental building block of American wealth is itself a feature of the same mass sentiments at work in the rest of the markets.

But history has shown us that crowd dynamics alone do not hold up a paper currency for very long. Instead, currencies rise and fall alongside the empires that create them, and the U.S. dollar will not be spared.

Delusion Turns Into Catastrophe…

Empires, paper currencies, credit bubbles, economic booms, wars and witch hunts all go through the same predictable stages…because they are all driven by the same crowd sentiments. They all begin in hopeful fervor. And then they mature…decay…and collapse. Until now, no one really understood why or how…People merely referred to these events as the 'madness of crowds' or the 'overreaching' of empires. Groups of people 'go a little crazy' from time to time, they said.

Instead, the progress of mass folly is foreseeable -- not in detail, but in broad outline.
One thing leads to another…delusion to catastrophe…triumph to defeat: Mass man is set up to fail. Whether he is participating in politics, war or public markets.

This new book by best-selling author Bill Bonner and political journalist Lila Rajiva picks up where Charles Mackay'sExtraordinary Popular Delusions and the Madness of Crowds leaves off. For the first time, it reveals how groups of people -- such as the groups that determine market prices -- believe things that couldn't possibly be true…and do things that are not really in their best interests.

When a nation is on the upswing, the average person can swing along with it…and enjoy a reasonably decent life. But inevitably, all public spectacles must have their victims…their lemmings…their cannon fodder…their market losers. And when things go bad, the average man is the one who suffers. He is the man who patrols Baghdad's streets…and pays Wall Street's salaries. He is the man who sends his money to the House of Representatives so it can be spent on boondoggles while his own house is lost to foreclosure. He is the victim of mass sentiments…

The insight you will gain from this astonishing book is CRUCIAL to your understanding of politics…history…investments…and more!

As far as we know, no other book…no other thinkers…no other writers have ever really gotten to the bottom of it.

The Secret Life of Crowds….

It seems so obvious: In the stock market, for example, the crowd runs stocks up to outrageously high levels and then it suddenly becomes fearful and drives them down to where they are outrageously cheap.

All you have to do -- once you understand the pattern…is to keep your eyes open. You CAN buy low and sell high. Plenty of people do already.

But there's more to it. There is the fact that YOU ARE PART OF THE CROWD…and unless you are careful, you will see things the way the crowd sees them.

This is the real secret. The way we think is a result of millions of years of evolutionary selection. Man himself has lived in groups, under the influence of others for at least 50,000 years.

Before that, pre-man also lived in groups, hunted in groups…survived in groups…for thousands and thousands of generations. He is the product of a group…and can barely exist out of it. What's more…groups have powerful taboos and incentives to hold the group together…and make it VERY DIFFICULT to go against them.

But today, there's one difference that it is vital for you to understand:

Groups today are much, much bigger than the tribes in which man's instincts evolved. And that changes everything. Because you can no longer know

people firsthand…and you can no longer see the dangers and opportunities with your own eyes…

Studies show that your brain is hard-wired to work best in groups of a certain size…and no more. Look at a primitive tribe…or even the organization of the army. You will always find groups of about that same 'magic number.'

When you have a group of that small size, people can cooperate based on mutual trust, simple rules of behavior and easily understood hierarchies. The idea of 'human scale' has been touched on in a number of popular books -- but authors have consistently missed the point: As the size of a group approaches or exceeds the magic number, it begins to go haywire.

And the secret to understanding politics, markets, wars and fashions today is this:

Today's groups are huge. But they are still made up of individuals -- each of whom is programmed to operate on SMALL-GROUP principles.

As groups get bigger, group interaction becomes inappropriate…counterproductive and, often, disastrous.

You'll see how the authors demonstrate this in their descriptions of historical events…from the madness of the beautiful Mitford sisters…to the monstrous programs of Mao…to the comically inept performances of Benito Mussolini and Che Guevara. (Did you know that Che was once a central banker? Guess what happened to Cuba's economy when Che was running things?)

Even the most illustrious public leaders are often mind-bogglingly stupid. Alexander the Great…arguably the greatest general of all time…marched his troops through the desert where tens of thousands of them perished from thirst and hunger. Didn't he bother to stop and ask for directions.

Napoleon attacked Russia, and later Hitler attacked Russia -- neither bothered to properly outfit their troops!

You'll see how large lies hold large groups together…giving them a sense of purpose and a direction. That is what Hillary Clinton meant by her 'politics of meaning' quip. And it is also the best way to understand popular slogans, such as Hitler's need for 'Lebensraum' (living room) for the German people…or the Japanese desire to dominate a 'co-prosperity sphere' before World War II…
Of course, we have our lies now…bigger than ever: stocks for the long run. Every vote counts. No child left behind. The war against terror. Ethanol now. Most people are so deeply immersed in public thinking that they never question them.

Bigger Groups. Bigger Lies. Bigger Opportunities.

The secret to making a lot of money in the financial markets, says George Soros, is to 'find the trend whose premise is false and bet against it.'

The group that decides stock market prices includes millions of people. There are 300 million people in the United States of America. And there are billions of people who make up the modern, globalized economy.

How can all of our small-group breeding help us understand how to operate in such large groups? And what does all this mean to the price of beans in Thailand? Or the price of Microsoft stock? As it turns out…quite a lot.

And it means a lot to you too. Because our small-group instincts inevitably lead to big group trends…whose premises are usually false. And with this new understanding of crowd psychology -- that is, the psychology that works on markets -- you can anticipate these trends and how crowds will react to them. In short, you'll be ready to make money in the public markets. And protect yourself.

That is why it is absolutely imperative that you read this book now…at this very crucial moment for the global markets as well as for the U.S. empire.

Mobs, Messiahs and Markets shows you that what is happening now in the markets and in politics is not new. It's all part of the pattern of group dynamics. Same winners. Same losers. You can be a contrarian, say the authors. Or you can be a victim. Taking you through a brief, outrageously offbeat history of the modern world, it shows you why the winners have always been those who can get away…or stand on the sidelines.

For example, Mobs, Messiahs and Markets tells a short history of the Great Crusades -- from the Arabs' point of view. You'll see that the Crusades were supposed to be an expression of religious fervor or political power, but they were really an outlet for the same kind of mass man delusions that run up stock prices!

Or take the European witch hunts of the 17th century. As many as 40,000 - 100,000 people were accused of witchcraft and killed. What was really going on? Did people just go a little crazy? Or was there a combination of thought and action that we can learn from? (You'll find the answer rather surprising…)

If one lesson in history is clear -- crowds act in unintelligent, often suicidal ways -- World War I was one of the greatest public spectacles of all time. Generations of historians have tried to explain why Europeans did such a self-destructive thing. Militarism, nationalism, interlocking alliances, and imperialism -- many are the 'explanations' they have come up with. None are very satisfying. But after reading Mobs, Messiahs and Markets you'll see World War I in a new light too -- as a showdown between vast, modern societies run by premodern men. They had no real reason to go to war…so they went to war without reasons!

These were huge groups…operating as though they were small tribes.

Authors Bonner and Rajiva spend a lot of time looking at history. 'Without history, what else is there?' they ask. 'Reading history,' they say, 'you can see the lies groups told themselves in the past. Then you begin to wonder about the lies we tell ourselves now.'

Why Leaders Lead in the Wrong Direction

How do YOU survive wrongheaded public thinking? You'll get your answer by ordering you copy of Mobs, Messiahs and Markets today…

After just a few pages of Mobs, Messiahs and Markets, you gain an entirely new perspective that could change…and maybe save your life.

Have you ever wondered why, for example, not just one…but BOTH candidates for president seem to be losers? There's an explanation…and you'll find it in this groundbreaking book.

And have you wondered why it is so hard to have a reasonable discussion of politics with friends and neighbors? It is as if people spoke different languages.

Why is it, too, that people who are able to do their work, and conduct their PRIVATE lives, with reasonable success…will often have PUBLIC ideas -- about politics, culture and economics that are completely absurd?

If they drove a car with the same recklessness, they'd soon be dead!

Surviving and Prospering in a Groupthink World

Mobs, Messiahs and Markets ends by giving concrete advice on how readers can avoid what the authors call the 'public spectacle' of modern finance and become, instead, 'private' investors -- knowing their own mind and following their own intuitions.

In the book, you'll discover:

Why the 'little guys' will NEVER get a fair shake in investment markets and how to make sure you're not the pros' next victim

The surest investment for the final stage of a great public spectacle…

Why you should never buy what you want to buy…nor what others want you to buy

Get your name in the paper? Not if you can help it…you'll see why

How to understand mass moods with the clarity and precision you need to profit from them

And that's just the beginning. Mobs, Messiahs and Markets lays out the foundation to overall financial success…

It shows you why the winners have always been contrarians, dissenters and original thinkers.

You'll also learn that there is always more to the story than what you can get in 30 minutes on the TV news channels -- and explains how that to REALLY understand the story, you have to understand how the news is selected by the media…and how the mobs are manipulated by certain special interests…and, finally, how mass sentiments have a life of their own.

Here's the Bottom Line

Over the next few years, many people are going to be ruined; fortunes will be wiped out. New groups of people will acquire wealth and power…while some of today's most powerful and richest people will be destroyed.

Every public spectacle must run its course, say authors Bonner and Rajiva. There is no stopping history.

But individuals cannot only avoid being victims of history, they can be its success stories. They can be among the few whose investments go up when the great mass of people lose money. They can also master the trends and fads that dominate modern life.

Get Your Copy of Mobs, Messiahs and Markets Today

There's one last detail you should know…

This is the first time Bonner and Rajiva's newly released book has been made available to the public.

If you act right now, you can grab your copy of Mobs, Messiahs and Markets for a phenomenal deal.

Bonner and Rajiva's book is AVAILABLE NOW for only $18.45 -- at least 40% off the cover price.

But here's the most important reason why you should act quickly…

We're faced with the biggest financial threat of our time. This is perhaps the one time that you cannot afford to NOT read this book.

In Mobs, Messiahs and Markets, you'll gain profound insight on how to steer clear of the mob sentiments…and you'll discover how you can use the information detailed in this fascinating book to improve you own financial future.

The world's finest investors, writers and thinkers agree, Mobs, Messiahs and Markets is the most important and entertaining book you'll read this year…

Learn how to protect yourself…your friends and family members today!

Make one of the most important decisions of your financial life.

I urge you to get your copy today and secure this limited-time discount. Order now and you'll get a minimum of 40% off the regular price!

I know you'll be glad you did.

Why NXTH is a Sweet Deal

Today's featured company is easy to call a sweet deal because quite frankly, the company is built around the literal interpretation of that phrase. But a deeper look beyond the superficial appeal of a bold new sweetener that not only displaces the bad stuff but adds the good stuff, reveals a business plan with an enormous market opportunity. NXT Nutritionals Holdings, Inc's (OTCBB: NXTH) innovative sweetener "SustaNectar" can be used in a virtually infinite array of commercial applications including the company's proprietary line of beverages and food products..As this market rallies toward recovery, one must wonder if all that investment capital sitting on the proverbial bench awaiting opportunity will look toward 'better mousetrap' ideas in lucrative markets. Time will tell.

Most importantly perhaps is that NXT isn't a company mired in focus groups, hoping that its products might someday sell. As you'll see below, the company is already in OVER THREE THOUSAND stores and sales are ranking well.

For certain, it is not often that an investment arrives with a business plan that has the potential to benevolently alter how a plethora of foods and drinks are flavored. As you go through your routine today, ingesting, digesting, etc. contemplate how many times you've consumed or encountered an artifcially sweetened item. Have a coffee, a cola, a protein bar. Imagine if those items were sweetened by a product that not only reduced calories but ADDED healthy ingredients.

That perhaps, begins to describe NXT Nutritionals Holdings, Inc's (OTCBB: NXTH), a sweet new story that may well be on its way.

The Sweetener of the Future... has arrived.

The foundation of NXT Nutritionals Holdings, Inc's (OTCBB: NXTH) is inarguably, SustaNectar, which can dramatically change the playing field for commercial sweeteners. In fact, SustaNectar's unique composition introduces a new, extraordinary category of functional foods called SweetaCeuticalsT

SustaNectar's secret is a multiple nutraceutical delivery system that offers practical and versatile sweetness to all kinds of food and beverage applications and provides safe, low glycemic, low calorie, healthy, nutritious energy. Like fruits and vegetables, SustaNectar is rich in nutrients, fiber, and plant based antioxidants as represented by proprietary botanical blended bioactive compounds of cinnamon, golgi berry, grapeseed and bittermelon extracts. 

SustaNectar is a delicious contributor to health building benefits even after it sweetens and the sweetener is an ideal composition of active ingredients for all dietary conditions and ages, including diabetes and obesity. 

This is a sweetener that gives back health benefits beyond the typical sweetening experience using the help of millions and millions of time released probiotic bacteria to enhance immune and digestive system functions with every serving,.

SustaNectar is heart, dental, blood sugar, immune and digestive system friendly and  SustaNectar can be used in hot and cold foods, beverages, as well as in baking or other recipes.

Better yet, NXT's Healthy Diary® smoothies are now in 3,000+ stores in 14 states, ranking 6th in category sales nationwide with only regional distribution. The Drinkable Yogurt Market is a 6% share ($221 Million) of the massive $3.5 Billion Yogurt Market that is growing annually by 5% in the US and 10% globally, providing much room for sustainable growth. No other smoothie products in the marketplace today have Healthy Dairy's® combination of appealing packaging, the health benefits of SUSTA TM alternative sweetener, and the company's compelling taste profile. 

The Addition of Critical Management

In evaluating small companies, regardless of their apparent market promise and potential, a critical element is always the depth and acumen of management. In theory, when a company lands a superior talent within its industry amid a chorus of competitive choices it should say something about the quality of the company which the expert has joined and lent his name. Obviously, there is also the benefit of the new executive's core skill set, relationships, knowledge base etc. This is perhaps exemplified by NXT Nutritionals Holdings, Inc's (OTCBB: NXTH) recent announcement that it has added a former Burger King senior exec and accomplished business veteran to its Board of Directors.

NXT Nutritionals Holdings, Inc. Announces Mark Giresi, Former Senior Executive at Burger King and The Limited Brands Joins Board of Directors

HOLYOKE, Mass.----NXT Nutritionals Holdings, Inc. ("NXT") (OTCBB: NXTH) a developer and marketer of proprietary, patent-pending healthy natural sweeteners, food and beverage products, announced today the addition of Mark A. Giresi to its Board of Directors. Mark Giresi is a seasoned executive with almost 25 years of experience in various senior executive positions in the food and retail industries in the U.S. and internationally.

Mr. Giresi was Senior Vice President of U.S. Franchise Operations and Development for Burger King Corporation (NYSE: BKC), responsible for the restaurant operations and support to almost 8,000 franchise-owned and operated stores together with all real estate investments in the U.S. business. >From 1993 through 1998 he held the position of Senior Vice President, Worldwide General Counsel and Secretary for Burger King. During that time, he was also a member of the Board of Directors of Restaurant Services, Inc., the independent purchasing cooperative for the U.S. Burger King System. He began his career with Burger King as a real estate attorney in 1985 and has published numerous articles and spoken on various franchise and intellectual property law topics. Mr. Giresi was a member of the first United States - South Africa Commercial Law Delegation established by the United States Department of Commerce and the government of South Africa.

After his tenure at Burger King, Mr. Giresi joined Limited Brands, Inc., (NYSE: LTD) a $9 billion specialty retail business trading under the Victoria's Secret, Bath & Body Works, White Barn Candle Co., and Henri Bendel brands. Mr. Giresi joined Limited Brands in February, 2000 as Vice President of Store Operations and in August, 2001 was promoted to Senior Vice President, Chief Stores Officer for the Company's almost 4,000 retail stores. Most recently, he served as Executive Vice President, International, leading the development of the Company's International growth strategy and the day-to-day management of the growth of Victoria's Secret and Bath & Body Works outside of the United States. In May 2005, he was appointed EVP, Retail Operations, responsible for the Company's Real Estate, Store Design and Construction, Visual Merchandising, Store Operations, and Loss Prevention and Brand Protection functions. He was on the Executive Committee of the Company, responsible for its strategy and the overall business performance of its branded specialty retail businesses.

Mr. Giresi has served on several philanthropic and business association boards, including the Board of Directors of the Beacon Council, the business development agency for Miami-Dade County, Florida, the Miami Philharmonic and the International Franchise Association. He currently serves on the Board of Directors of UFood Grille (OTCBB: UFFC) a franchised restaurant business, Fiduciary Trust International of the South, an investment management firm, and the Boys and Girls Clubs of Columbus, Ohio, where he served as the Treasurer and a member of the Executive and Human Resource committees.

Mr. Giresi is a past recipient of the Italian-American businessman of the year by the National Italian American Foundation in South Florida. In 2004, he received the Champions Award from Safe Horizons, a leading domestic violence prevention organization in New York City. He is an attorney at law of the State of New Jersey. He earned a law degree in 1983 from Seton Hall University and a Bachelor of Science degree in accounting in 1980 from Villanova University.

"I welcome Mark to NXT's Board of Directors. We have great confidence that his knowledge and experience will be a great asset to the Company," said Michael McCarthy, President and CEO of NXT Nutritionals Holdings, Inc. "His proven track record with these globally branded companies will be exceptionally valuable as we launch our SUSTAT brand in the coming months."

About NXT Nutritionals Holdings, Inc.

Headquartered in Holyoke, MA, NXT Nutritionals Holdings, Inc., through its wholly owned subsidiary NXT Nutritionals, Inc., is a developer and marketer of proprietary, patent-pending healthy natural sweeteners, food and beverage products. The common ingredient for all of the Company's products is its all-natural sweetening system SUSTAT, a minimal calorie, all-natural, nutritional sweetening system. SUSTAT currently serves as an ingredient and sweetener for the Company's nonfat all-natural Healthy DairyT yogurt smoothies and is marketed as a standalone product as well. More information about the Company may be found at Top Stocks Market

Forward-Looking Statements

Under The Private Securities Litigation Reform Act of 1995: The statements in the press release that relate to the Company's expectations with regard to the future impact on the Company's results from new products in development are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties. Words such as "expects", "intends", "plans", "may", "could", "should", "anticipates", "likely", "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management. Readers are urged not to place undue reliance on the forward-looking statements, which speak only as of the date of this release. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release. Additional information on risks and other factors that may affect the business and financial results of NXT Nutritionals Holdings, Inc. can be found in the filings of NXT Nutritionals Holdings, Inc. with the U.S. Securities and Exchange Commission.

Friday, April 3, 2009

The New World Order Bulit By G20 Summit

In London, last night:

"You weren't here today," began the cab driver. "You missed the excitement. You know, the G20 summit. They held it here in London...

"Some lads got out of control. They smashed a window over at the Royal Bank of Scotland, and then broke up the computers and so forth...

"Nothing very important, but the media makes a big thing of it. They kept talking about that G20 summit - as if they were going to change the whole world - New World Order and all that...but what could they change? These hotshots at the banks took some bad bets. Now they've got to pay for them. What's all the fuss about?"

Clearly, our cab driver should go back to school. He could study macroeconomics and learn about counter-cyclical fiscal stimulus...and the multiplier effect...and the need to restore liquidity to the financial sector. Then, he could be spouting the same claptrap as other commentators. He could get on board with the plans to save capitalism from...well, from capitalism! It's all very well for the capitalists to make money, he will discover, but when they begin to lose it, well government has to step in and bail them out. The "creative" part of capitalism is fine...but spare us the destruction, okay.

Yesterday, the heads of state of the world's 20 leading countries decided to put more muscle into their efforts to stop capitalism's downswing. Notably, they decided to treble the budget of the IMF. In all, today's International Herald Tribune tells us it's a "One Trillion Dollar Deal."

Gordon Brown pronounced it a "New World Order," which sounds a lot like what George Bush I was aiming for 15 years ago. One world government. One multi-national police force. Harmonized tax collection. (No more tax havens...nowhere to run...nowhere to hide...) Keep the masses happy with bread and circuses...and "wars" against imaginary and unnecessary enemies. (The War on Terror and now - the War on Depression.)

Hey, maybe we'll all have to speak Esperanto, too...

But at least now the IMF will be about to bailout more bankrupt governments before it goes broke itself.

Most of the money is coming from a country that doesn't have any: the U.S.A.

Look up. What do you see? Why, it's our Dollar Crash Flag. The dollar's days are numbered. What's the number? We don't know. But whatever it was a week ago, it is a smaller number now.

Yesterday, the dollar gave up a little ground. The euro rose to $1.24. Oil went up to $52. Gold, however, fell hard - down to $904. Gold stocks, on the other hand, did rather well.

Hugo Chavez was in the Mideast this week at a meeting of oil producers. He called for a new petro-currency...which, we suppose, is a currency backed by oil. The Associated Press:

"Venezuelan President Hugo Chavez sought Arab support Tuesday for a proposed oil-backed currency to challenge the U.S. dollar in his latest swipe at Washington's dominance in global financial affairs."

He probably won't get very far with that. But he's not the only one looking for a solution to a crisis that hasn't happened yet.

The dollar's been king of the monetary mountain for a long time. But it had better be it's back ...give a little of the food to a dog before eating it itself. Rivals are plotting against it. Much of the world wants to dethrone "King Dollar," says the French financial journal, La Tribune. China has already called for a new reserve currency based on IMF Special Drawing Rights. What's more, it's worked out bilateral agreements with many of its neighbors to swap goods, rather than use the dollar as a common unit of exchange. This week, it went further afield, making a deal with Argentina. This is the first deal of its kind in the Latin American world. But it's probably not the last. People see trouble coming with the greenback. They don't want it to hurt their sales of raw materials to China.

The Russians, too, have called for a new reserve currency. They, like the Arabs and Chavez, are sellers of raw materials. They don't want to get stuck with dollars that are losing their value.

That's the real New World Order...the United States will find it harder to stay in the driver's seat of this bus...and the U.S. currency will no longer give Americans an automatic ticket to the first class section...

More news from Ian in rainy Baltimore:

"First Friday of the month, you know what this means...time for the U.S. employment scene to hit a new low," writes Ian in today's issue of The 5 Min. Forecast.

"663,000 Americans lost their jobs in March, the Labor Department claims today. That puts the official unemployment rate up to 8.5%, the highest its been since 1983. March's loss marks the 15th month in a row of net job losses. Since the recession began, the government estimates 5 million Americans have lost their jobs."


"Today's number stands in line with the jobless claims details earlier this week - a record 5.7 million people are currently filing for unemployment benefits.

"But from a trading perspective, as dark as this might sound, today's jobs number was a non-event," continues Ian. "March's losses were just a bit higher than the Street anticipated, and the small details were mostly in line with expectations.

"The only real surprise came in the form of a big January revision. The government added 86,000 lost jobs during the month, to a January tally of 741,000. That's actually the biggest monthly drop in 59 years. Such a number would have sent top stocks to the woodshed back in early February, but since the revision is now so backward looking, there isn't much traders can do. Clever trick, eh?"

Each weekday, Ian and Addison bring readers the The 5 Min Forecast, an executive series e-letter that provides a quick and dirty analysis of daily economic and financial developments - in five minutes or less.

The 5 is free to subscribers of our paid publications, such as Breakthrough Technology Alert, which has their subscribers poised for major profits, as the Obama Administration places science at the top of their agenda. Learn all about how you can benefit from the market story of the decade by clicking here.

And Bill with more thoughts:

The rest of the world is enjoying tweaking the nose of the United States of America. The U.S. dollar has dominated world markets for more than half a century. Even before that, it was a favorite for many of the world's peoples. England ceased having the world's largest economy in the last decade of the 19th century. It was surpassed by the United States...and then by Germany. And since then, it has been surpassed by Japan, China and France too. Even California has a bigger economy than Britain.

Both Britain and its pound were victims of WWI, with the United States and the dollar taking the lead position.

But what goes around, comes around. Now it is the dollar's turn. Maybe not this year. Maybe not the next. But it will have to get knocked off the top of the mountain sometime.

One of our French dear readers wrote to say he thought it wouldn't happen for another 10 years. Maybe he's right. As we predicted more than five years ago, the United States is sinking into a Japan-style slump. Unless it begins printing money - hell-for-leather - it is doomed to follow Japan. This from MarketWatch:

"The great recession of 2008 and 2009 is likely to be not only the longest downturn since World War II, but also the most geographically widespread recession since at least the 1970s.

"For the first time on record, all 50 states were contracting at the same time, according to the state coincident indicators for February released by the Federal Reserve Bank of Philadelphia on Tuesday. The state-by-state indicators have been tracked by economists at the bank since 1979."

Of course, if it prints money too aggressively, or if people THINK it will print too aggressively, it could follow Zimbabwe. Either way, we want off this train...

As GM goes, so goes the nation. Obama assured the nation that America would be the leader in car manufacturing. Alas, it is probably not to be. What makes Germany and Japan so competitive today is the fact that their industries were destroyed in WWII. They were forced to rebuild...amid tough competition. The United States, on the other hand, never had the benefit of aerial bombardment. And its auto industry has had such huge advantages - it was practically doomed from the beginning. Detroit has ready supplies of steel...rubber...plastic...labor - everything you need to make a modern automobile. Japan and Germany had to import almost everything. U.S. automakers also had a much bigger domestic market than either of its competitors...protected by two grand oceans. And it had vastly more open road...and gasoline that sold for only a fraction of the price in Japan or Germany. U.S. automakers would have to be numbskulls to blow this opportunity.

Of course, that is exactly what they did.

Not that it is any of our business. How they run the auto business is entirely up to them, as far as we're concerned. We just note, and not for the first time, that you've got to get in the habit of compensating for your strengths. Because it is your advantages that will kill you, not your weaknesses.

Why are Americans broke? Because they had the world's strongest economy and the world's most trusted money. As a result, everybody wanted to lend them money.

Why are the Chinese sitting on the biggest pile of money on earth? Because they had to live under one of the worst governments in history...because they were starving only a few years ago...and because nobody would lend them any money.

Now, what Americans have is the world's most powerful military machine...immensely more powerful than the closest rival. In fact, the word "rival" has no sense to it. In order to match the United States, you'd have to put together all the rest of the world's military forces. Even then, they'd be no match for the United States...neither in technology nor in organization.

With that, we invite you to imagine how the world's most successful military will destroy itself...just as the world's most successful economy just did. Cursed with far too much money...and far too much luck, (its major enemy just gave up!) it's just a matter of time before the Pentagon finds its own road to Hell. Maybe it already has!

Are we rambling? Maybe...but we were stuck on the Eurostar on our way back to London when we wrote this part. What else is there to do but ramble?

Out in the street, the demonstrators - including some who looked like professionals - got to tussle with police. The bankers generally laid low, but a few provoked the demonstrators. In the window of the Royal Bank of Scotland, for example, someone had pasted the words:


Others held 10-pound notes out the window...taunting the demonstrators.

All in good fund, as near as we can tell.
The facts are extravagant enough; the theories take our breath away

"The Great Depression in the United States," wrote Milton Friedman, " a testament to how much harm can be done by mistakes on the part of a few men when they wield vast power over the monetary system of a country."

What a wonderful time to be alive! We get to see things we had only read about in the history books...such as a Great Depression. A depression, of course, is a natural and recurring feature of capitalism. But a Great Depression usually requires lobbying.

The grubby facts are not in dispute and are hardly worth recalling. The Fed dumped on the fertilizer. Asset prices grew like weeds. Investors got carried away. Consumers let themselves go. Wall Street and the City lost their heads.

Then, the capitalists lost their money. Big deal. That's the way it's supposed to work. Capitalism is inherently dynamic and unstable...full of sturm and drang, boom and bust, creativity and destruction. It's always prone to blow itself up just when people count on it most.

As for the present crisis, even a central banker could have seen it coming. When you lend money to people who can't pay it back, you have to expect trouble. But that doesn't stop capitalists from whining to the authorities when trouble comes. Half fool, half-knave, governments mobilized; $14 trillion, or thereabouts, has been put up to prevent capitalism from correcting itself. Protectionism is on the increase - even while heads of state rail against it. Banks have been bailed out. In Europe they are shortening the life expectancy of automobiles. In America, the feds are effectively running the largest automobile industry...the largest insurer...and the largest mortgage finance business too. Soon, they may have a chain of hamburger joints. More mistakes...more chicanery - in other words, just what you'd expect.

Even their supposed friends say free markets have been exposed as a failure and a mountebank. That is why the G20 met in London yesterday - they are meant to decide what to do about it. Peter Thal Larsen in the Financial Times:

"The global financial system as we know it was forged by deregulation underpinned by a belief in free markets. That approach failed. The task now is to prove it can be set running again with better brakes and steering... By the end of the week, the world will have a clearer idea whether the system can survive."

William Pesek at Bloomberg: "There's no doubt the world that Reagan envisioned didn't work out. The 'Washington Consensus' of free markets, small government and unfettered globalization that characterized the 1990s also is over."

Meanwhile, over in the other camp, they are sitting around open fires...realizing that they are lost in the woods. The Nation magazine has a feature on "Re-imagining Socialism," in which Barbara Ehrenreich and Bill Fletcher write: "Do we have a plan, people? Can we see our way out of this and into a just, democratic, sustainable (add your own favorites adjectives) future? Let's just put it right out on the table: we don't."

With no ideas from the usual do-gooders...the world turns its lonely eyes in a novel direction. Who can save capitalism? The communists!

"Market forces, if left unchecked, will lead to asset bubbles and ultimately a disastrous market clearing in the form of a financial crisis like the current one," says a report from the Chinese central bank.

Everyone wants to be Chinese. Because the Chinese have money. And because they don't have free markets. It is widely believed that the Middle Kingdom can more effectively fight a downturn without democratic, consensus-driven institutions staying its hand.

But here is where we gasp for air. What theory holds that central planning - whether by Chinese communists or American Democrats - can do a better job of allocating capital than the people who own it?

There is none. That is why the world's leaders - and most of its economists too - permit themselves a luscious fib; they say they don't need theory at all. "Pragmatism" was the word on every pair of lips in London this week. Free from chains to dead economists, they say they will try "whatever works." Oh, the loveable lunkheads! Naïve enough to believe anything; receptive as a trashcan. "Pragmatism" in economics is as phony as the men who preach it. Every one of them has a dog-eared copy of Keynes' General Theory of Employment, Interest and Money in his briefcase and an ace up his sleeve. And every supposedly new, pragmatic idea they come up with is merely a version of the same quack cures that kept the economy in the hospital last time.

Perhaps you can paint a bridge pragmatically. If you don't like the color, you can change it quickly. But if you're building a bridge, an airplane or an economic system, you can't make it up as you go along. You have to have an idea of how it works before you start. Besides, results from fiscal, monetary and regulatory policies don't happen overnight. The feedback loop takes years. It took the Bolsheviks seven decades before they realized they'd been had. Friedman's critique of America's Great Depression policies didn't appear until 30 years after the event. In Japan, they still don't know what they did wrong. And by the time the feds catch on this time, they will have turned an ordinary depression into a great one.