Website / Forecasts & Strategies Questions Financial Questions Website / Forecasts & Strategies Questions How can I read my newsletter online? How do I write Mark? How do I access the Hotline? How can I contact you if I have problems or further questions? How can I read my newsletter online? You now have two ways to read the current issue of Forecasts & Strategies. First, listed under the section titled "Current Advice," you will find the articles in the current newsletter separated out individually. This lets you go directly to the articles of most interest to you.
Second, you can view and print the entire newsletter by clicking on "View/Print Entire Issue" from either the Home Page (right-hand column), or from within the "Current Advice" section. If you wish to print out current issues, you'll need to have Adobe Acrobat Reader installed and operating. (If you don't have it, we've provided a link for you to download the program for free.) (return to top)
How do I write Mark?
You can send Mark an email about any question relating to his advice by clicking on the "Ask Mark" link on the navigation bar. Please be aware that Mark can't always answer each question individually, but that he does read each email and responds to many of the questions through the Hotline or monthly issue. (return to top) How do I access the Hotline?
Locate the "Current Hotline" section and click on the link for the current hotline. Previous Hotlines can be viewed using the site's Search and Archives section on the navigation bar. (return to top)
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Financial Questions
How do you pronounce "Skousen?" I filed an extension and was audited! Buy stocks anonymously? Mailbox privacy? Personal consultations? Buy or lease? Wouldn't supporting the Libertarians undermine your cause? What do you recommend for a 20-year IRA investment? How do you select the brokers you mention so often? Do you practice what you preach? Do you manage money? What does A.E.I.O.U stand for?
How do you pronounce "Skousen?"
My surname is often misspelled and mispronounced. Skousen is Danish and is pronounce "Skowson," where the "Skou" sounds like "cow." (And that's no bull!) (return to top)
I followed your recommendation for avoiding an audit by filing a late return. I filed an extension, but a couple of months later I was audited. Obviously, your method doesn't work!
A: I said that filing a six-month extension on your return will reduce, not eliminate, your chances of an audit. The only way to completely avoid an audit is to file the short form and pay half your income to the government! I got the idea from tax attorney Randy Bruce Blaustein, who publicized the technique in his best-seller, How to Do Business with the IRS. It's possible the IRS are onto his idea. That's always the drawback of publicizing good tax ideas. (return to top)
I would like to buy some stocks anonymously. How can I do this?
Most foreign securities are issued in bearer form so you could buy stocks anonymously through a Swiss bank or other foreign brokerage firm. The foreign broker would have your name and address, but you could close out your account after you purchase the stock and take delivery of the certificate. In the U.S., the SEC requires all securities to be registered in some name. But you can obtain registered stock in your company name, a trust or even in "street name." Street name stock is registered in the name of a major brokerage firm, and all major brokerage firms own street name stock for their own account.
From a tax point of view, purchase only securities with no dividends so no 1099 form is reported to the government. (return to top)
It does create quite a stir for me to be getting mail from Mark Skousen. How can I live a low-profile lifestyle with a guy like you in my mailbox?
Having privacy comes at a cost! Use this plan to control the kind of mail you receive: 1. Make sure all your mail goes to a post office box or to your business address -- never to your home. 2. When ordering through the mail, use a company name unrelated to your personal name. 3. Tell companies you order from that you don't want your name and address rented. 4. Contact Direct Mail Marketing Association, 6 East 43rd St., New York, NY 10017 to request your name to be removed from as many mailing lists as possible. (return to top)
I have some questions regarding deposits abroad. Would it be possible to consult with you by phone or in person?
Writing, researching and speaking occupy my entire time, so I severely restrict the number of personal consultations I do. I do occasionally meet with people when I am at an investment conference, which is the best time to catch me.
I no longer offer personal consultations on financial privacy questions, such as how to transfer large sums of money outside the country. Because of the legal nature of these questions, you'll have to go elsewhere for answers. I am not a lawyer. (return to top) Okay, Dr. Skousen, since you're so smart, what's the answer to this one: Buy or lease? My car dealer says that a lease is a much better deal, but I'm still not sure. What's your view?
The answer may surprise you: buy a formerly-leased car!
You have three options: (1) Lease a new car, (2) buy a new car or (3) buy a used car. The first option is clearly the most expensive. Yes, leasing has its advantages. You get a luxury car with nothing down, low monthly payments, hassle-free repairs and a guaranteed buy-back. One out of every four cars is leased today. But there is no free lunch. You pay for this convenience out of your pocketbook. And buying a new car means losing 20% or more of the value of your purchase the day you drive it off the lot.
If you want to save money, check the classifieds and buy a late-model used car, preferably two to three years old with low mileage (25,000 or less). Look especially at used-car lots operated by major dealers. That's where the bargains will be found over the next few years, as a glut of leased cars come onto the used car market. (return to top)
I was surprised by your endorsement of Harry Browne and the Libertarian Party. Doesn't a vote for the Libertarians simply take away a vote from the Republicans and the political change this country so desperately needs?
In a close race, you have a point. But look at it this way. A large vote for Harry Browne and the Libertarians sends a message to Washington: More and more Americans favor less government. The Libertarian Party is much the same as the old American Socialist Party. It was never much of a vote-getter, but it had tremendous influence. Norman Thomas, the perennial Socialist candidate, finally stopped running because he said the Democrats had adopted his platform. (return to top)
You often change your investment recommendations according to the investment climate. Are there any investments you would recommend for the long-term, say 20 years, to put in an IRA and forget?
My 20-year crystal ball is a bit cloudy. But while there are no guarantees that everything will be rosy in the year 2018, right now I'd recommend a diversified portfolio of growth stocks, plus a "natural resources" hedge. Investing in only a couple of blue-chip stocks such as an AT&T or Pepsi, is extremely dangerous. Given the dynamics of the telecommunications revolution, who knows where AT&T will be in 20 years. And Pepsi may not be able to keep up with Coca Cola. Better to choose a combination of mutual funds, such as Janus Worldwide Fund, Schwab 1000 Index Fund and a natural resources fund. (return to top)
The brokers and dealers I most often recommend have been carefully screened, based on a long-term relationship I've established with them. Sometimes these brokers contact me initially with the idea, but I don't usually recommend stockbrokers unless I've seen them in action for at least five years.
Talking with these brokers can help you learn more about my favorite investment recommendations, since my advice often goes contrary to the establishment view. Average stockbrokers will likely argue and try to sell you some alternative investment their brokerage firm is trying to sell.
We have a strict policy at Eagle Publishing, Inc. regarding stockbrokers and recommended investments. Under no circumstances do I receive compensation for a recommendation, nor do I solicit it. Also, Eagle Publishing has a strict policy forbidding me or any other member of their staff to make any transaction based on information from the newsletter until a day after the information is published on the web or in print. My subscribers always come first! (return to top)
Most of the time. But not every investment is suitable for everyone, including me. For instance, I don't need as much income as a retired person. I opt for more growth. I have bought the following investments mentioned in my newsletter: Convertible Holding Capital (NYSE: CNV), Janus Fund, Janus Fund Worldwide, Fidelity Select Utilities, Fidelity Select Precious Metals and Minerals, Capiello-Rushmore Emerging Growth, Mutual Shares, 20th Century Ultra, Scudder's New Asia (NYSE: SAF) and Scudder's New Europe (NYSE: NEF), among others. I have also purchased a variety of junior gold and diamond stocks, for speculative purposes only. (return to top)
Why don't you start a mutual fund, or at least manage money? That's what I call a "simplified" investment portfolio!
I don't normally manage money (other than my own), nor have I started a mutual fund. Granted, such a move could simplify your financial life, but I don't think it would help you in the long run. Managing money is a full-time job, crowding out time available for newsletter research, speaking and meeting investors. It requires heavy concentration every day -- selecting stocks, buying and selling, marketing, working with attorneys and government agents (including 50 state agencies), etc. Registration and dealing with the SEC are no picnic. The side effects are 18-hour days, sleepless nights, no vacations and little family life. No wonder Peter Lynch (manager of the Magellan Fund) quit!
I want you to succeed by making your own investment decisions and managing your own money. There are some good money managers out there, and I recommend some through Forecasts & Strategies regularly. But my purpose in writing Forecasts & Strategies is to assist you to become a better investor, to take advantage of changes in investment trends and opportunities, and to avoid the pitfalls. Simply setting up a mutual fund might make you (and me) richer, but would we be any wiser? I hope to make you rich and wise. (return to top) What does A.E.I.O.U stand for? A.E.I.O.U. comes from the tombstone of Frederick III, the first Hapsburg emperor. Many believe it's Latin or German for "Austria will rule the world." For me, it means, "Austrian Economics Is Overall Universal." I write about this in my book, "Austrian Economics for Investors" (Laissez Faire Books, 800-326-0996, $12) and mention it in my newsletter, Forecasts & Strategies, on occasion. (return to top)
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