Given the severe problems the West faces (Europe, debt crisis, high unemployment), how can stocks be making new highs this year?
The answer is simple. All stock and commodity prices look forward, and what do they see? Well, the markets see some light at the end of the tunnel. Europe is finally adopting some austerity and, in America, the election is forcing our leaders to finally own up to our fiscal problems.
Greece received a reprieve from default through a 130-billion-euro bailout from the European Union/International Monetary Fund that required the acceptance of some austerity measures. The rioting in Greece demonstrates the high degree of entitlement Greeks feel about the public-welfare system over there. I worry about the kind of response we’ll see in the United States when Congress is finally forced to impose some discipline on runaway spending. Austerity measures are inevitable in the United States, no matter who wins the presidential election in November.
Iran and the Middle East remain hot spots, and the threat of an embargo on Iran has pushed oil prices to new highs.
What to do? Stay well diversified to protect your wealth. Our ideal portfolio is profiting handsomely. The 19 recommended stocks and mutual funds in my Forecasts & Strategies investment newsletter are up by an average of more than 13% so far this year, and my stock of the year is ahead 66%!
Yours for peace, prosperity, and liberty, AEIOU,
Mark Skousen, Ph.D
Newsletter and trading services
WHAT DOES “CAFÉ” STAND FOR?
Each Thursday, you will receive the Skousen Investor CAFÉ e-letter. Why CAFÉ? It stands for “Center for Austrian Finance and Economics.” As long-time subscribers of my newsletter know, I am a big fan of “Austrian” economics and use the principles of “Austrian” economics to make investment decisions. The founders come from the University of Vienna in Austria — Carl Menger, Ludwig von Mises, Joseph Schumpeter and Friedrich Hayek, among others. I’ve written extensively on this sound school of economics. For more information, see this interview.
Everyone Loves a Bargain!
“When I see a good thing going cheap I buy a lot of it.”
—Heddy Green, “The Witch of Wall Street”
I offered a bargain opportunity at the Orlando Money Show last month for my new book, “The Maxims of Wall Street.” I brought five boxes and completely sold out after I announced the bargain of a lifetime: buy the first copy for $20 and you pay only $10 for each additional copy. Investors love a bargain! They bought three, four and sometimes five copies for themselves, friends, relatives, brokers, students, etc.
I want to offer the same deal to my readers, but for this month only: Call Eagle at 1.800.211.7661 and mention the special Money Show offer, and I’ll charge you only $20 for the first book and $10 for an additional copy afterwards. I’ll autograph each copy (still the first edition). Mention code MAXIME to take advantage.
What’s the book all about? For the past 30 years, I’ve compiled more than 800 sayings, proverbs, poems, and sage advice from the top financial gurus. The book makes an ideal gift for students, friends, your favorite stock broker or your money manager. Warren Buffett, Jack Bogle, Richard Band and Alex Green all love the book and refer to it often. I just got a letter from a long-term newsletter subscriber, Rodolfo Milani, managing director of Dominick & Dominick in Miami. He ordered a bunch of copies, telling me, “I find them to be ideal gifts for my best clients.”
“Maxims” is available on amazon.com for $24.95, plus shipping and handling (S&H), but if you order directly from Eagle Publishing this month, you pay only $20 for the first book and $10 for each additional copy afterwards, and I’ll pay the postage. I’ll autograph each copy (still the first edition). Mention code MAXIME to take advantage of this special offer. (For orders to Canada or other foreign countries, add $5 per book for S&H.)
|•||Investment U “Bullet Proof Your Portfolio” Conference, March 21-24, Grand Del Mar Resort, San Diego, California:
Click here, or call Agora Opportunity Travel at 1.800.926.6575.
|•||Las Vegas Money Show, May 14-17, Caesar’s Palace:
To register, call 1.800.970.4355 and mention priority code 026653 or click here.
|•||FreedomFest, “The World’s Largest Gathering of Free Minds,” July 11-14, Bally’s/Paris Resort, Las Vegas:
To register, call 1.866.266.5101 or go here. The early bird special to register ends March 15, so you’ll want to act quickly.