Current Issue - July 2013

Do you like to barbeque? Next time you start the grill, wait till you have a decent flame and then throw on a load of gas. Bingo—explosion. You’d be lucky not to blow yourself to kingdom come. Well, at the economic grill, monetary chef Bernanke continues to douse the economic fires with high-powered monetary fuel. The monetary base is the foundation for growth in all the broad monetary aggregates, which used to result in powerful economic growth. In the early '80s, base growth began to have less influence on economic growth. Since the Obama team took over in Washington, base velocity has cratered, indicating that the Fed's money printing is having even less incremental effect on economic growth. The Fed is pushing on a string, if you will.

The fraud of the Fed, the expropriation of citizens, the debasement of the currency, and inflation—all of these are creating dry rot in the foundation of the U.S. economic system. Outcome analysis clearly shows that money printing is a destructive process, 100% guaranteed to lead to a bad end, and it's tied hand and glove to excessive military spending to fight wars. America's financial weather is black and threatening. You will want to add to your high barrier-to-entry stocks. Here I am referring to blue-chip, dividend-paying rails, consumer staples, telecoms, and utilities of every ilk. This month I especially recommend utilities, with their regulated monopoly status and guaranteed return on invested capital. Now that the sector has corrected, my favorite utilities fund is putting off a 3.85% yield. More >>

Economic Analysis - July 2013

Each month, I provide you with an Economic Analysis supplement to the issue. This supplement provides you with a bird's eye view of the indicators that I monitor on a regular basis. The incisive, story-telling charts included in this supplement are updated every month and range from "The Leaders" to "World Currency Reserves/World Gold Reserves." There will always be great new material as well as timely reference dates, and my comments spell out the meaning of each chart for you. Download in pdf format.

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Bond Market Takes a Hit

June 19, 2013 The yield on 10-year Greek bonds were 10% last week. That's 2% points higher than they were on May 22. Related Posts: More Alarming than the Debt Ceiling Debate A Troubling Trio of Economic Indicators More »

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Question
An IR subscriber Asks:

My portfolio has done quite well over the last three years, but I'm at a loss as to when to sell any of the stocks. Do you ever make sell recommendations for individual stocks, and if so where would I find this info?

Answer
Dick Says:

It is not often that I make an outright sell recommendation in Intelligence Report. If I do make a sell recommendation you will find it in the text of my monthly report. I make investments with the intention of holding long-term, and I advise the same approach for you. If I delete a stock from my Monster Master List, it is usually to make room for a new name, not because I believe the stock should be sold. Most often, you will do just fine, long-term, with the names I delete from my Monster Master List.

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