Friday, February 15, 2013

Felix Zulauf: World Headed Toward 1987 Style Market Collapse / February 14, 2013
Today world renowned money manager Felix Zulauf told King World News that global stock markets are careening toward a 1987 style market collapse situation.  Stock markets plunged in 1987, and the world is at risk of that situation developing once again according to Zulauf.  Felix Zulauf, founder of Zulauf Asset Management and 20+ year Barron’s Roundtable panelist, also said gold will head to new all-time highs during the coming market chaos.
This is the first of a three part written interview series that will be released on King World News today.  In these interviews the legendary money manager discusses why he believes central planners will fail, how this will lead to systemic collapse, gold repatriation, what investors should be doing with their money right now, how they can protect themselves going forward, and much more.
Eric King:  “Felix, you’ve had a chance to look at how things evolve globally each year as we go through this cycle.  How do you see the end game playing out at this point?  How do you think this will end?  Meaning, if the world doesn’t solve its situation in a conventional manner, as you said earlier, will we see a greater degree of chaos than the world witnessed in late 1979, early 1980?”
Zulauf:  “At some point in time we have to get rid of the debt that we have.  Obviously central banks are trying to do that by financial repression.  The consensus among the investment community is that financial repression will work.  I’m not so sure.
Financial repression means that they put interest rates below the inflation rate, and by doing that the debt to GDP levels of the different segments in an economy, the households, governments, etc., drops down over time.  Drops down to more reasonable and manageable levels.  I’m not sure that can be achieved….
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James Dines: Countries Are Now Printing Paper Without Limit—With Each New Piece To Chase Gold Higher / By Tekoa Da Silva / February 14, 2013
I had the great opportunity to connect with one of the most legendary investment newsletter writers in the world, James Dines, publisher of The Dines Letter, for a powerful conversation on markets, gold, & crowd psychology.
Throughout his 60 years of publishing, Mr. Dines has amassed a true library of personal writings, often times being the pioneering global voice of major long-term trend changes in markets and societies.
Of great interest, is his work in the field of psychology. Mr. Dines has documented about 90 of what he calls “High-States” and “Low-States” of thinking, such as the “high-state of service”, and/or “the low-state of stealing”. This philosophical framework contributes to Mr. Dines’ market calls, to which he and his readers have used to create absolute fortunes.
When asked how his life philosophies contribute to his investment work, Mr. Dines said, “I came upon the principle of truth…and there are levels of it, including ‘high truth’. I came up with about 90 of these ‘high states’ that are important in guiding us…for example ‘service’. If you come from serving people instead of taking from them, that immediately get’s your head straight in terms of making relationships work. It’s also important in investing, because you can’t lie to yourself. Nobody could deceive us as we could deceive ourselves. All that exists in the universe is truth—and resistance to it. So when you get down into truth, you can invest more intelligently, your relationships will be better, and you’ll be happier.”
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Bill Miller: Back on Top – What’s He Investing In?

A TV exclusive with legendary value investor Bill Miller. The only mutual fund manager to beat the S&P 500 for 15 years in a row, Miller’s Legg Mason Capital Management Opportunity Fund was the number one mutual fund last year. Where is he investing now?

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The Rise and Fall of South African Mining

by Andrew Hoffman
Miles Franklin

Aside from the MASSIVELY PM-BULLISH factor of limitless Central bank MONEY PRINTING, I have continually harped on the fact evidence points to gold and silver marginal costs of production approaching $1,500/oz and $30/oz, respectively…
GFMS Says 2012 Gold Mining Cash Costs Increased 17% to Most Ever
…thus, preventing production from meaningfully increasing…
Gold Production is Declining
…if at all
Silver Production in US Declines 8.7% in 2011
Naked shorting of hapless mining shares has further reduced miners’ ability to arrest inexorable production declines and counter surging costs; and I strongly urge you to enhance the deleterious “unintended consequences” of this nefarious Cartel scheme by “SELLING MINERS, and DESTROYING THE CARTEL”…
Continue Reading at…

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More Evidence of the "Renter Nation" -- And How This Company is Making a Fortune

Editor's note: Today we're featuring a guest essay by one of the most successful financial publishers in America, Bill Bonner, the founder of Agora. Mr. Bonner recently launched a new venture, Diary of a Rogue Economist to share his 30+ years of economics and market experience with as many interested readers as possible. We hope you enjoy his insights.

Stocks, bonds, gold -- all bounced around last week.

And as we've mentioned before, Americans continue to turn into "neo-serfs."
And here's the latest example...
"Wall Street is running a new profit game," writes Shabnam Bashiri at, "by buying foreclosed houses and renting them back to their former owners."

Yes... nice business. Even better than it looks. It's why the rich get richer... and the 1% are way ahead of the other 99%. Writes Bashiri:
"Every day, it seems a new report comes out praising the ongoing housing recovery. In Georgia, home prices are up 5% over last year, a year in which we also had one of the highest foreclosure rates in the country. Seems a little odd, doesn't it? Don't foreclosures usually drive down the market?
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You Won't Believe Where I Found Yields of Up to 14%

As the European crisis unfolds, businesses and consumers are forced to cut back spending on all non-essential services. Having enough money to cover the basics is enough of a challenge. From phone service to mail delivery to electricity, there are certain regular expenditures that simply can't be avoided.
Yet European stocks of all stripes have taken it on the chin during the past few years anyway, regardless of what type of economic exposure they have. And that has created some eye-popping dividend yields.
In fact, there's one sector in Europe that routinely sports double-digit yields these days: Telecom. Leading phone service providers, which tend to generate stable operating profits in any economic climate, haven't been able to avoid the European-wide sell-off. Check out the super-high yields you will find for these telecom stocks:
Make no mistake, consumers in these countries are feeling pinched these days, but phone bills are up there with death and taxes in terms of unavoidable certainties. Still, as all of these firms face the same industry dynamics, it's wisest to focus on just one two of these stocks for your portfolio, perhaps in the relatively stronger European economies of Germany, Austria or the Netherlands. (more)

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The Most Shareholder-Friendly Company on Earth: PM

Philip Morris International (NYSE: PM) is one of the most controversial companies we cover.
I understand not everyone likes investing in cigarette manufacturers, and that's fine...
But our job at StreetAuthority is to give you the most timely and profitable investment advice available.

In short... our job is to help you make money.

And in doing so, we wouldn't be doing our job if we neglected to tell you that although it may be controversial, Philip Morris is also the most shareholder-friendly company on Earth. 
In just four years, the company has raised its dividend 85% and bought back 467 million shares of stock. During that time, shares have returned roughly 100%.

Here's how Philip Morris returns value to shareholders on a consistent basis...

First, the company buys back its own stock month after month -- no matter what the market is doing. It's bought back a staggering 22% of its shares in the past four years.

There's no doubt that's a major reason this "boring" cigarette company has been doubling investors' money. (more)
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