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hope you got off the railroad tracks before the train wreck! I have to say that I feel good about the fact that I'd been cautioning my readers since the market highs of October 2007, and that subscribers who heeded my warnings escaped the worst of the tumult. But, if like so many retirees who got caught sitting on their hands...if your blue chip investments...your 401K ...and the value of your home are now down 25% ...30%... or God forbid even 40% or more... ...please, I don't want you to despair... I don't want you to give up on the market...nor do I want you to do nothing and just hope your investments will all come back.Just as I warned readers of the current mess, I'm telling you now that, for the ill-prepared, the worst is yet to come. Government sponsored poverty! If you're unhappy now with where your current investment strategy has gotten you, believe me, continuing on the same course could lose you even more. Remember, hope is not a strategy! And you can count on Congress and Federal Officials to absolutely make things worse -not better-than they already are!Even in my worst nightmares, I never dreamed that Washington (and all the rest of the world's money capitals as well) could make such a mess of things! Remember, it was at the direction of Congress that banks were encouraged (at the risk of being fined) to make loans to marginally-qualified borrowers with cheap, centrally supplied money. As a result, in the U.S. and across Europe as well, consumers enjoyed a extended period of state-sponsored euphoria made possible by easy credit. Easy-money created more home buyers, more demand, and higher real estate prices. Escalating (and unrealistic) home values were used like savings accounts as millions tapped into low-interest home equity loans. There was no market for cautiously-lent money. Banks that correctly priced interest for the risk involved lost out. I mean ask yourself, why would anyone borrow at a higher interest rate from a cautious bank when cheaper funds were available from a bank willing to take more risk?
Under this government-sponsored scheme, profits of easy-credit banks grew, and their stock prices multiplied. And, as Fed Chairman Greenspan and then Bernanke continued to prop up the economy with ever cheaper money, banks lost their customers, their managers, their share values, and many went bust. So let's be clear about the cause of this ongoing catastrophe. It was government-sponsored easy credit. It enabled the housing bubble that ultimately led to the bank failures and the credit crisis. In the U.S. the blame rests squarely on Alan Greenspan and Ben Barnanke and across the pond, it was the likes of Gordon Brown. So, now we have Geitner and Bernanke and the rest of the G7 Central Bankers trying to set things right? Why would they succeed now when it was the Fed's brilliance that got us into this mess in the first place? We can only "hope". Let's be clear, all Governments and all elected officials are interested in deferring pain, being popular and getting re-elected. Governments and banks around the world including the U.S., Britain, Australia, Russia and now the pan-European banks are all in deep serious trouble because they promoted cheaper and easier credit than the market could sustain. And now, with its bailout and its buyouts, Washington is giving us yet more of the wretched stuff that got us into this mess in the first place. Don't think for a moment that Washington is going to solve this problem over night. You've got to take charge of your money yourself. That's why I'm urgently suggesting that, given what's happened and were we are now, you need to make a careful reevaluation of what you're doing with your money. In this stock market, with rising unemployment, recession and with serious inflation about to ravage what's left of our economy, you need a solid, sensible plan that will not only protect you from further losses, but also help repair the damage.
You can choose to get caught up in the panic and fear spreading across this country. Or you can choose to put a never ending stream of cash into your pocket. It's your choice... I suggest you choose cash! But I caution you...everything is different now than even just six months ago! The old rules no longer apply. All of the traditional safe havens are at risk! If you are a retired investor, or you're investing for retirement and interested in generating safe, high-yield income, you need to reexamine your holdings now in light of the tectonic shifts in the market and the world economy. I'm telling you, nothing is the same. If, like the DOW, you've been down as much as 25, 35 or 40% since 2007's highs, don't give up. When you understand the 3 paradigm shifts that are now reshaping the market and the world economy, you can make the kind of prudent investments that will put you back on the road to long-term financial security. This time it really is different!
year and a half ago, when the DOW hit 14,145, you had to be deep into an overwhelming maze of confusing numbers to appreciate the approaching train wreck. When the talking heads were reassuring viewers the "Goldilocks economy" was still just right, I was advising my readers to avoid Wall Street's high-flyers and into which low-risk securities to put their money. Early 2008, when the market was flying high, few Wall Street professionals wanted to publically acknowledge the danger signs. (Of course those who shorted the market got rich during the selloff.) Early 2008, if I'd told you that Merrill Lynch and Bear Sterns would be gone, would you have believed me? If you heard me say then, that AIG, the world's biggest insurer, would go belly up, would you have wondered if I'd lost my mind? If I'd told you a year ago that Congress would be forced to pass an $850 billion bailout to save the U.S. (and the global) economy from a total meltdown, would you have listened? If I'd told you in October 2007, when the market was hitting its recent high that you needed to prepare your investments for an economic disaster the likes of which you'd never seen, would you have dismissed me as a Chicken Little? I've been sounding the alarm for some time now and offering specific, what-to-do protection against what has turned into a catastrophe for millions of individual investors. And although sadly, most retired, or soon-to-retire, investors didn't avoid painful, life-altering losses, my defensive strategies proved highly effective in limiting the damage. While the S&P 500 has been off as much as 50% from 2007's high... And the DOW has been down more than 43% for the same period... Subscribers who took my advice to buy gold have seen their money actually grow since I first made my recommendation ! Get out? Stay the Course?
This is no time to sit back and wait for things to get better. These are treacherous times, whether you own blue chips stocks, money market funds, or even if you've got your money stuffed in a mattress. It's time to collect your thoughts and get ready. It's time now to take advantage of the 3 major forces that are reshaping the market and the world economy. Understand them... master them... and you can convert their incredible power to defend against losses and build profits no matter what happens to the stock market, and to the U.S. and the world economies. There are 3 things that make this market and this economy different from anything you've ever seen before. Three factors that require you to take a careful look at what you're doing with your money: One is massive deleveraging by overextended hedge funds.
he recent "get-me-out-at-any-price" free fall in commodity-related stocks is clear evidence that the hedge funds have been manipulating prices. The temporary SEC regulations that limited short selling were another consequence of the massive influence of hedge funds, as is the historic volatility we've seen in the markets recently. Every investors looking for a quick way to make up for recent losses may find the $4 trillion in hedge fund money now sitting on the side lines a tempting argument to bottom fish. Don't let Wall Street sucker you again into what is certain to continue to be an incredibly volatile and unpredictable market! You don't need to react, you need a plan.
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hen the House of Representatives failed to pass the bailout, the market punished them with a dramatic 777-point selloff. But, after our elected officials finally agreed to fix everything with the biggest government bailout in history, the stock market responded with the worst selloff in history! Among the many historical extremes of the recent panic, declining issues outnumbered rising ones by a 25-to-1 ratio ...the trading volume of declining issues swamped advancing volume by 45 to 1... 749 common stocks hit new 52-week lows on the New York Stock Exchange, with just four new highs...and market volatility reached one of its highest levels on record. I know that, historically, these kinds of overwhelmingly negative investor sentiment have always marked the end of major market declines. But there's never been a time before when the Federal Government had to bailout private business. While we may or may not see a President Obama induced rally, I'm still preparing for more bad news with defensive plays that will generate steady income while withstanding whatever comes along. Third, and most far reaching, is a global economic slowdown that began with the meteoric 500-plus percent rise in the price of crude oil.
es, crude oil prices dropped dramatically from last summer's highs. But, for reason's I will outline below, it's only a matter of time (probably only months) until crude is back to $100 a barrel on its relentless march to $147 a barrel and higher! And nothing going on in the world today--not even all the bank failures and the credit crisis--will have a greater impact on your future wealth and what kind of lifestyle you may or may not enjoy. Let me explain: When oil first hit $100 a barrel, it was heralded as "the cruelest tax on your wealth." It is, because it impacts everything. I call it: "Oilflation." It's just getting started, but it's already wreaked havoc on the broader market, and if you don't act, it could destroy your lifestyle. To understand how the world has changed and how to alter your investment strategies so you not only survive, put prosper, let's begin at the beginning: In 1999, as the easy-money groundwork was being laid for the current credit crisis, the global economy silently underwent a second monumental shift... a shift that in the short years to come promises to give rise to an inflationary era--the likes of which America has never before seen. I'll tell you want it was in a minute. This shift was probably the single most significant to occur since America abandoned the gold standard in 1973--though nobody seemed to notice it at the time--even though it was an event that changed everything: The Second Part of This Incredible Mess!
ew people--even on Wall Street today--seem to understand an event that shook up global energy markets... that totally realigned global economic powers... and that has already had a serious impact on the global economy. Not to blow my own horn, but in my recent book, The Oil Factor, I was among the first to alert investors to this change. In fact, it's how--despite the financial massacres that have occurred this decade--we have managed to help others profit through what has been the worst period in recent economic history. We knew something that it seemed no one in any major Wall Street investment house knew--or at least something that no one was willing to admit... When oil was still trading at $27 a barrel, we knew that global oil prices were headed skyward. In fact, for the next 6 years running we predicted higher oil prices each year. After the book, I became known as "the $100 oil guy." And I was scoffed at by many of my peers. But I'm sure you well know what happened in the years that followed. The Beginning of the End!
n 1999 a momentous transformation occurred in the dynamics of the global oil market. Oil prices became supply-driven. And the reason that happened was largely due to OPEC. For the first time in OPEC's history, they were no longer just another player in the oil arena. Rather, they had become the controlling player.
The only countries outside OPEC with the ability to increase production were a handful from the Former Soviet Union and Africa. But the increases we've seen from these regions this decade have been negligible. To put it another way: By 1999 the world was using all the oil that non-OPEC countries were capable of producing. Prior to that, any shortfalls in OPEC's oil supplies--due to wars, political instability, terrorist attacks or whatnot--could always be made up by other countries. But in 1999, Britain and all the other major non-OPEC oil-producing countries hit a point where they could no longer do that. They were already pumping at full capacity. Supply was barely keeping up with demand. The result is that now, we are fully reliant on OPEC--a politically unstable region--to make up for any shortfalls in our global energy supply. This has not only sent global oil prices soaring skyward, but it has precariously awarded OPEC with almost complete control over oil prices. As you'll learn in this report, this event, coupled with a continued rising China and India, by the decade's end could easily drive oil prices up to $100 a barrel again, and give birth to an inflationary era the likes of which America has never before seen. Just like in the inflationary '70s, P/E ratios will plummet across the board. Great growth stocks--like Cisco, Dell and IBM--may watch their stock prices crash 50-90%-- even as their fundamentals remain strong and growth powers forward.
This country was the only major economy that made a determined effort to become energy independent after the last oil shocks of the '70s. I'll tell you about this miracle growth economy in this report, and show you why it is poised to weather the coming inflationary storms better than any other country. Plus I'll tell you about the #1 company destined to reap the greatest rewards from the coming global energy crisis. It's among the biggest companies in the world. It's won countless awards and accolades--yet most Americans don't know its name--yet! This company is the ultimate oil-shock proof, inflation-proof investment to own today. It's stock took a beating in the recent sell-off and is positioned now for significant long-tern appreciation. Before I tell you its name, let me first tell you why in today's economic world, it is truly one of the best investments you could make...The Coming Oil
Shocks:
espite all the media spin... the recent temporary retreat in crude oil prices... and the hype about alternative energy... few people have a true picture of the real state of our global energy situation. As Dr. Colin Campbell (one of the world's leading oil geologists) said at a conference on peak oil in 2004: "If the real figures were to come out, there would be panic on the stock markets. In the end, that would suit no one."
And unfortunately, thanks to the monumental mess we've got ourselves into, this time there's no easy way out. No easy solution. The math is simple. Limited supplies just can't keep up with soaring global demand. For example, in just 150 years we have burned through oil reserves that took an eon to form. And no significant world-scale oil discoveries have been made since the North Sea and Alaska in the 1970s. In fact, in 2003 the top 10 oil companies spent $8 billion on exploration, but only found less than $4 billion worth of oil and gas. And in the last few years, the 70 largest energy companies returned well over $100 billion to their shareholders in dividends and share buybacks, rather than spend the money on exploration. What's more, for the first time ever, Saudi officials admitted to the world's leading industrial powers that OPEC will not be able to meet Western oil demand in 10-15 years. The world's wells are running dry and they are already pumping at capacity. By 2015 the global economy will need an additional 18 million barrels per day. Where will this extra oil come from? That's the problem. It won't come. At least not fast enough--and not in the quantities we need. We are careening toward an era where supply-side shocks will become the norm--resulting in regular super-spikes that will cause global industry, and the corporate world to wheeze. Any interruption in the supply chain will have dire effects. But What About Alternatives?
hile we believe there will be many technological revolutions in the production of hydrogen fuel cells, solar energy, biofuels, wind power, thermal depolymerization, hydroelectricity, it's too little too late. We should've started decades ago. The problem is, we are talking about the need to retrofit the current $45 trillion global energy infrastructure in order to produce, transport and distribute these new forms of energy. No matter how great a scientific energy revolution, it will still take years--if not decades--to retrofit t the planet. The crisis is still upon on us. Even when we struck oil 150 years ago, it still took generations for that energy source to become widespread. Oil slowly transformed economies over time. It didn't happen overnight. The industry took lifetimes to develop the infrastructure to get oil to where it is today. To discover the wells, erect the refineries and build the pipelines that are needed to extract, transport, refine, process and distribute the 83 million barrels of oil the global economic engine needs each day to keep running. To supplant this existing structure with a new one would require a monumental effort. The cost alone would be in the tens of trillions of dollars. And because of the complexity and magnitude of the project it would take decades. The problem is we should've started decades ago. But we never did. We never planned for the day of energy reckoning. And now it is upon us. The pumps are running at full capacity. Populations are exploding. China and India, and many other emerging economies are undergoing sweeping industrial transformations. Our energy needs, according to the U.S. Energy Information Administration, will soar a staggering 54% by 2025. Thanks to a lack of planning on the part of successive administrations, civilization in the coming years may face one of its most violent disruptions ever... The Costs of Your Tomatoes, Corn, Cotton, Beans and Peanuts are Headed for the Clouds.
When oil prices remain low, it doesn't just keep the price of our gas and our heating down, it also keeps the price of almost everything else down too. That's the inflationary or deflationary power that this black gold holds. The frightening thing is--and it's one the consumer has only begun to confront--is that when oil prices reach a tipping point--a certain threshold--then it begins to seep into every nook and cranny of the economy. Prices for all types of goods and services, from gas to broccoli, start to rise with them. We are just about at that tipping point today, and oil is about to spill over into every part of the economic universe-- causing not just consumers to wheeze, but all types of industries from airlines to auto-manufacturers from chemical companies to paper mills, from plastic producers to textile suppliers, from the agricultural industry to silicon chip makers...
For example, though few are aware of it, oil accounts for a large chunk of agricultural costs, due to petroleum-based fertilizers, herbicides, pesticides, irrigation and transportation. In 1999, when oil was just $16.55 a barrel, it accounted for 22% of agriculture's overhead. At $70 a barrel, it accounts for nearly 50%! At $100 oil, that percentage will climb to 70%. At $200 oil, it will be a devastating 83%. While in the past six years, farmers and growers have absorbed some of these costs, more and more (as you've probably noticed) they're having to pass them onto you--the consumer. This means that the costs of your tomatoes, corn, cotton, beans and peanuts will be headed for the clouds. And this is just one of the industries that will begin to pass the soaring costs of oil onto you--the consumer. Soaring Profits in an Oil-Strapped Future
s the oil price continues to climb, as demand grows steadily and supplies crash, once again, its impact on our lives, and on the global economy will become more pronounced. Sky-rocketing oil prices will rock global markets, and send the investment arena spinning. It will be the fuel that will fire this new inflationary era. Blue chip investments will become volatile. Many more will crash and burn. And if you think your dividend checks from your bluest of blue chips will save you, think again. The rules will have changed. And the markets will deliver millions of unsuspecting investors some nasty surprises. During the inflationary '70s, markets constantly zigged and zagged. From 1967-82, U.S. stock markets went through their worst 15-year period ever--even worse than the Great Depression. We experienced 5 bear markets. Investors became irrational. They punished even the era's greatest growth stocks. The P/E ratio of the S&P crashed from 16 to less than 8. Retail stores, cosmetics, beverages, food stocks all plummeted, with cosmetics leading the way, losing 45.6%. Pepsi, Avon, Gillette, Kellogg's, Hershey, Wal-Mart, Ford, GM, Dow Chemical, DuPont all watched their stock prices crash 10-90%. And if you think the oil-shocked, inflation afflicted '70s and mid-2000's were bad, the coming era will be much worse. It will be the '70s on steroids. And it is retirees on fixed incomes that will be hit the hardest. They will suffer the shock of negative real returns. The modest rates of interest they will get on their CDs, money-market funds and bonds will not be able to keep pace with inflation. Their monthly income checks will buy them less and less. Their dollars won't fly them very far. The rising costs of everything will not only eat away at the value of their investments, but it will erode away the very quality of their lives. Their social security checks, their dividends, their yields will wither in the face of soaring costs of living. That's why I'm writing to you today. To tell you about the market's small clutch of alternative investments that will be hardwired to benefit from the enormous challenges facing the global economy today--rather than be crushed by them.
While Wall Street is slow to catch up on the massive mega-trends that are unfolding today, and how they will impact investors, we've been putting them to work for years. For example, one group of alternative income plays, and one that is hardwired to benefit from the global energy crisis, can be found in international energy and resource stocks--yet many of these picks are off the Wall Street radar, and are trading with low PEs. For example, while the big U.S. oil giants stand to benefit from the coming global energy crisis, and promise to be a safe harbor in the volatile years to come, there's an even better way to play this. There is a select number of foreign-based global energy companies, with decades of reserves and experienced management teams, who also enjoy one powerful advantage over many U.S. energy companies: They are perfectly poised to benefit from the unprecedented growth going on right now in many of the world's major emerging mega-markets, including China, India, Brazil and Russia. Plus these global energy plays have the additional benefit of enjoying revenues and profits denominated in currencies set to soar against the U.S. dollar in the years to come. TThis means every time one of these emerging market currencies edges up against the dying dollar, the income and capital gains you'll get from these global energy behemoths will grow that much bigger! You'll be able to buy a little bit more. And as the years roll by, and as the dollar continues to plummet, these growing new income sources will become ever more critical to your purchasing power, and your future. And in our opinion there is one oil and energy income play destined to outperform all the rest... The Brazilian Energy Miracle
ime to reinvest in the World's #1 Inflation-Proof Oil Stock! While ExxonMobil, Conoco Phillips, Chevron and other oil super-mergers dominated the headlines, we were making big profits on another oil company--whose reserves are even bigger than many of these oil superstars, and whose prospects for growth far outshine them. Long-term, this is the best oil play of all, no question. But, as the storm clouds were gathering, we took cover. And gladly so since our favorite energy company got clobbered. This is a classic case of the baby being thrown out with the bath water and I'm just waiting for the best moment to put this company back on my buy list. It could be only a matter of days, and I want you to be prepared with all the facts. Most Americans never heard of this mammoth Brazilian energy company, yet it enjoys a number of unique and significant advantages over practically every other energy company in the world today. Firstly, it's just found a giant new field with potential recoverable oil reserves between 700 million and one billion barrels--catapulting its already huge pool of reserves to 9.6 billion barrels--that's more than ConocoPhillips! It's also already producing 1.8 million barrels of oil per day. Even at today's prices it's sitting on a pot of black gold worth much more than two thirds of a trillion dollars. But as global oil supplies evaporate, and oil prices escalate, this company's pot of black gold will only grow more valuable. But if that wasn't reason enough to invest, this company goes one giant leap further. Not only is it one of the world's biggest oil producers, it is also one of its biggest alternative energy producers. And within as little as a decade it could be producing, consuming and exporting just as much alternative fuel, as it does oil. The alternative energy industry is one of the few sectors in the coming years that will enjoy such staggering growth that not even soaring inflation will be able to temper it. And this company is an almost unrivalled global leader and pioneer in alternative energies. It is the biggest distributor of what the U.S. Department of Energy calls: "The fastest growing alternative fuel in the country." You've no doubt heard of it by now. It's called BioFuels. And everyone from Willie Nelson to Richard Branson...from Bill Gates to the Google Billionaires are getting in on them. But this little-known energy giant has been a pioneer in BioFuels for decades. And this is where the investment opportunity gets very interesting. For this company lies in the only major economy on the planet today that bothered to learn from the last energy crisis: The one economy that set upon an ambitious path toward energy-independence. Today, it has achieved just that, and now enjoys a thoroughly snug and highly envied position among an oil-addicted world. This country is Brazil. And as far back as the '70s it began transforming its #1 crop--sugarcane--into the fuel of the future. Now as the rest of the world and global industry wheezes as oil-prices climb higher, Brazil is poised to not only weather the coming energy storms, but get rich off them. Add to that the fact, that it is also one of the four biggest and fastest-growing emerging mega-markets on the planet, and you have an investment poised for growth... The Brightest Star in the Energy Universe
he #1 company destined to reap the greatest rewards off the coming energy crisis is Brazil's biggest energy company: Petrobras (Petroleo Brasileiro) It enjoys a unique position shared by no other energy company in the world today. Not only it is one of the world's biggest oil producers, it is also the world's biggest BioFuel distributor. It is perfectly positioned to ride what will most probably turn out to be two of the greatest bull markets in stock market history. It is decades ahead of practically every other company in the world in its production and distribution of renewable energies. (continued below...) |
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Meet the Gurus Who Will Guide You Through the Oil-Shocked, Commodity-Strapped, Inflation-Afflicted Times Ahead...
From the 19th Floor of our 5th Avenue office, we enjoy a unique birds-eye view of the financial landscape, that not even Wall Street's most seasoned veterans enjoy. Our office is filled with a dynamic team of researchers, writers, analysts and economic forecasters headed by the acclaimed and well-known bastion of finance, Stephen Leeb. Here are just some of the members of our dynamic team who will help guide you through the volatile times ahead.
These are just some of the advisors that make up the dynamic team at Leeb's Income Performance Letter. To gain access to their latest and hottest tips sign up for Leeb's Income Performance Letter today. Just fill in the Charter Membership Savings Certificate today.
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In fact, Petrobras already helps fuel 48% of Brazil's cars with BioFuels. It also exports BioFuels to many other countries too, including India, Venezuela, Nigeria and even to us here in the U.S. Plus it's just penned a new deal with Japan, with many more countries showing keen interest. And now it's building the world's first major BioFuel pipeline. What's more, it plans to spend billions of dollars on its BioFuel and oil production and distribution facilities. The company is poised to become one of the brightest stars in the energy universe. And it's about to leap into the consciences of not just the American public, but the international public too! On top of that, the company has won countless awards, including best company in Central America, world's best refiner, plus an award for transparency. Plus it has also just won the award that the New York Post refers to as: "the business world's equivalent to the Oscar." This event covered 600 nominations for companies performing in all sectors in more than 30 countries. And it ranked #1! On top of all that, the company's stock took a major hit and is currently trading at a totally unrealistic PE ratio. But this beat-up stock won't remain cheap for long. And on top of all that, this company can also offer you income. Its dividend, thanks to its breath-taking growth and skyrocketing profits should be rising for literally decades to come! What's more, this investment looks destined to be an outstanding currency play. Brazil is in the throes of a sweeping industrial, agricultural and technological transformation. It is fast becoming a leader in not just energy, but in outsourcing, infotech and telecommunications. Annual Foreign Direct Investment is exploding. In the past decade FDI has gone from next to nothing to tens of billions of dollars a year. Its GDP is projected to soar a staggering 10-fold in the next 40 years. And already Brazil is exceeding these predictions by a wide margin. The country is currently the fourth biggest emerging mega-market on the planet. And when the world starts to withdraw from its oil addiction, Brazil will power ahead. Its currency at the moment is one of the most undervalued in the world, and should rise to a stunning degree against the U.S. dollar in the years ahead. That means your capital gains and your dividend checks should grow fatter and fatter, as the dollar grows leaner and leaner. It's a perfect way to protect yourself from oil shocks, falling dollars and rising inflation. Now, here's another way to survive the coming onslaught: The company is poised to become one of the brightest stars in the energy universe. And it's about to leap into the consciences of not just the American public, but the international public too! On top of that, the company has won countless awards, including best company in Central America, world's best refiner, plus an award for transparency. Plus it has also just won the award that the New York Post refers to as: "the business world's equivalent to the Oscar." This event covered 600 nominations for companies performing in all sectors in more than 30 countries. And it ranked #1. The New Income Kings!
he Brazilian energy and new income king, Petrobras, is just one of the outstanding inflation-proof investment opportunities you'll learn about in Leeb's Income Performance Letter.
Only a few dozen of them exist today. And even though they invest in odd things like macadamia orchards, basketball teams, psychiatric centers and pipelines they have outperformed practically every other asset class in the last decade--thanks to a 20-year old tax loophole--which allows them to enjoy the benefits of one of the most extravagantly subsidized, and unfathomably profitable industries in the world today. It is the one investment above all others--that no matter what happens--will still do well. Now they can offer you fat rising yields for the rest of your days-- practically tax-free. We'll tell you our two top picks!
There's a small clutch of generations-old stalwarts that we believe will shock Wall Street and defy the markets! They are those players with the money, the marketing resources, and the distribution channels required to successfully penetrate the world's biggest new mega-markets: China and India--what we call Chindia. They are among Wall Street's most unloved stocks, and right now many of them are trading at 1993 prices. We believe they will be the surprise winners of the next generation. They are the ultimate buy and forget stocks. They will sail tall and strong in a sea of sinking equities. We'll tell you our two top picks. Sign up for Leeb's Income Performance Letter today and we'll rush you a copy of this hot-off-the press special report! But these great new income plays are not the only way to ride out this inflationary market safely. In fact, there's another aspect of this market, that although stands to crush many a player, and many an investor, has the potential to make those on the right side of it very rich indeed...
ow while the credit crisis has the stock market in a panic and rising oil prices are guaranteed to fuel a new era of runaway inflation, there's a third powerful force rewriting the rules. In fact, another deeply inflationary force is already at work and promises to send inflation to highs we've not seen since it hit 19.6% back in 1947! Combined with the current banking crisis and the impending, still unacknowledged energy crisis, by the beginning of the new decade this third force will boost inflation far beyond the tipping point--where it will take on a life of its own. It's not a matter of if inflation is coming or not--it's a matter of how high will inflation go before it begins to rupture the very fabric of American society. Get ready for even more gut-wrenching market reversals...new mindsets... and dramatic shifts in the usual way of doing things...
The other major force that will help drive inflation to unprecedented levels is the coming commodity crunch. This crunch is already starting to bare down on global industry. And it is heating up thanks to a number of profound economic events that were set in motion many years ago now. The first was the collapse of communism. The second was the rise of the Internet. These momentous events in history allowed 3.4 billion new players to suddenly become an integral part of the global economy virtually overnight. Communist and socialist cultures, not to mention subsistence farming and struggling agricultural communities, that were once almost completely isolated (even barricaded) from the global trading game--suddenly within the blinking of an eye became an integral part of it. The information revolution melted the iron curtain, opened up the world's last major trading and communications channels, and drew these new players onto an already creaky and crowded industrial stage. Together these two events changed the shape, redistributed the power, and greatly expanded the size, complexity and reach of global commerce in a way never dreamed possible... And now these new capitalists are hungry to taste of all the fruits, and enjoy all the wonders that the great American Experiment can bring. Soaring global demand for all types of commodities will place unprecedented strains on an already stressed system. Largely we are facing a colossal commodity crunch--everything from oil shocks to zinc gaps...from copper crunches to silicon squeezes.
What Wall Street doesn't realize is that it takes years to educate and train the workforce required to build this essential infrastructure. What's more it takes even more years to build the oilrigs, the copper mines, the refineries, the zinc mines, the pipelines, the power stations, the supertankers, the mega-machines, and the distribution networks. It takes up to ten years to build a nuclear reactor. Seven to get a copper mine online. Five to build an oil rig. Six to lay an international pipeline. And, most of these projects have been shelved. The Human Capital Crunch!
nother great problem is that the engineers and the upper management (the key sector) are largely baby-boomers, and they're all retiring. Unfortunately they're retiring at the worst possible time. In the '70s, we had a glut of mining engineers, geologists and surveyors. The industrial world was awash with them. They were among the hottest, and most sought after professions, and they helped flood the market with what seemed an endless supply of cheap natural resources. But as the green organizations, the popular press, the scientific community and the conservationists began sounding the alarms about global warming, acid rain and pollution, these professions became the dirtiest in industry. America's engineering classes are empty. What will this spell for the future of our country? And as economic booms pursued in electronics, computers, telecommunications, healthcare and finance, these old economy careers and corporations were the thorn on industry's side... The amount of undergraduates signing up for programs in the natural resource sector dropped dramatically. In 1981 we were graduating 700 mining engineers a year. Today we are graduating a mere hundred. The amount of universities offering mining engineering degrees has dropped from 25 to 15. One school closed in 2001, after graduating only one student. InIn the '80s, everyone had geared up for an industrial world, but these vital commodities no longer seemed critical to global commerce. The commodity industry had spent billions ramping up production. New mines. New machines. New steel mills. Demand had been met, and exceeded. Suddenly, a new technology-driven economy was awash with old resources that it didn't need. But an expensive industrial resource machine was already in place. Powering it down proved financially crippling. Oil companies were forced to merge. Copper mines were forced to shut. Furnaces died. Refineries went offline. And commodities began their 18-year bear market. The Commodity Conundrum, why a U.S. recession won't stop inflation:
n 1980, there were only 1.7 billion players on the industrial stage. As the decades went by, with communism collapsing, the Internet exploding, and mega-markets like China and India industrializing, this brought billions more new players onto the global stage.
What they did, in essence was wire the East, and the emerging economies for commerce...for industrialization... for capitalism. These fiber optic cables tied them to the west in an intimate way that was not possible before. They became like commercial tethers to the free market. It was a monumental investment that come 2000 fell very flat for the companies that laid them. But despite the Great Tech Wreck, the groundwork was laid. The East, Central America-- even Africa (a market of 3.4 billion people) were suddenly part of the global economy, and were hungry for everything the west had enjoyed for many years, like TVs, mobile phones, dishwashers, dryers, PCs, bright lights and flashy cars... Now we have over six billion people drawing on the finite resources of the planet. And in just a single generation, we'll have another two billion. It would seem that the tables have turned, and we have come full circle again. But this time, society, finance, industry are far more complex, and require far more resources to keep it going. And the infrastructure that once provided an excess only two decades ago, is now woefully under-equipped to handle today's demands.
And with the next great wave of industrialization--bigger than any we've experienced in the past--the situation will become dire. It, coupled with the global energy crisis, will turn Wall Street on its head. Industries and corporations--once thought immune to such squeezes--will be affected. Commodity crunches have already begun to bear down on many a player. In the very near future, we'll be hearing that: Rubber shortages are deflating tire companies... zinc gaps are closing in on sunscreen manufacturers... copper crunches are impacting electric and construction companies... silver shortages are tarnishing the profits of watch-makers and jewelers... the energy crisis is crippling chemical companies, automakers, food producers, airlines and all kinds of manufacturers--even silicon squeezes are taking the breath out of computer company's profits. Why the Bailout Can't Stop The Deathly Inflationary Spiral
And that will hurl us into the next deadly leg of the inflationary market. It's the critical point at which the inflationary psychology takes over. As investors begin to realize that they can get a much better deal from hard assets than from stocks and bonds. It is then that the Wall Street crowd will flock en masse into oil, gold, silver, platinum, copper and other commodity investments--putting even further upward pressure on commodity prices--sending the price of these investments to dizzying heights--thrusting us into the very same deathly inflationary spiral that almost ruptured the fabric of American society in the '70s. While this will spell terrible news for the broader market, for commodities (and for those invested intelligently in them) it will mean... ...riding one of the greatest bull markets history has ever seen! The power will have shifted once again from the New Economy to the Old Economy. The New Economy, and its industries will be dependent on these commodity producers. Their available supplies, their infrastructure, and their volatile values will have the power to determine the fates and fortunes of companies, industries--even entire countries! The tables will have turned on global industry. The commodity kings will rule once again. And the time to reposition yourself is now! There is every reason to believe that this new commodity bull (that'd been waiting in its chute for 18 years) will far outrun the one that came before it. In fact, we've had three major commodity bull markets in the last century. And each one had outrun its predecessor. And it's about to do it again. In 1982, then Chairman of the Federal Reserve Paul Volcker, managed to put the breaks on the economy by raising interest rates far above the rate of inflation, nipping the inflationary beast in the bud, current Fed Chairman Bernard Bernanke will have no such luxury open to him.
here is one major reason why Geitner, Bernanke and Congress will be unable to tame the inflationary beast... and why the Fed will be forced to sit by and to tolerate previously unacceptable levels of inflation... If Bernanke were to apply Volcker's medicine to the markets, and raise interest rates to a height that would temper growth, he'd get far more than he bargained for. It wouldn't be just a recession he'd dump us into a Second Great Depression. Problem is, unlike the '80s, we are drowning in a sea of debt. That's what took down Bear Sterns, Lehman and Merrill Lynch, but it's not just the banks that are in a world of danger. According to a 2007 Financial Report from the U.S. Government, Department of the Treasury, unfunded promises amount to...
On top of all that government debt, Corporate and private debt have reached levels never before seen in American history. What's more, all that private debt has been funded largely with homes. In many cases, as we're seeing in droves, by loans people couldn't afford. Many U.S. home owners put way too much faith in the value of their houses--so much so that we've been willing to bet our futures on them. When Bernanke was raising interest rates, he made the repayments on all those adjustable home mortgages unsustainable. Those with adjustable rate mortgages have already been crippled by rising monthly repayments. And higher borrowing rates doomed the already moribund housing industry.  What's more, real estate values weren't able to keep up with the inflation rate. Housing--the one thing that once could be counted upon to keep the entire global economy afloat--became in danger of a total and long-lasting melt down. An event that could bring the entire house of cards down with it. Too Little, Too Late?
ernanke and Geitner find themselves face to face with one of the toughest jobs in the history of central banking. No wonder Greenspan wanted out. We're finally in a genuine recession, or even worse a full-blown global depression, the likes of which the world has never seen. Bernanke and Geitner are desperately trying to prevent a major long-term economic cataclysm, to save an economy and a market that for all intents and purposes are teetering on the brink not just of recession, but a devastating, life-altering depression! You think it's been bad? The last few months could be just a hint of what lies ahead! Another miscalculation on Bernanke's part, and the entire global economic universe could be sent spinning. And it's not just his own moves that he must consider. He must also increasingly consider the moves of the Central Bank of China, for they have begun to exercise more control and influence over our own markets than Washington. Increasingly Bernanke must dance to the beat of Beijing's drum. But one thing is for sure, whatever the Central Bank does, they really have but one viable policy left. And that is a policy of growth at any cost--expansion at any cost. The Central Bank must do whatever it can, despite the crisis in the banking industry and soaring oil and commodity costs, to keep the global economy growing. To do that, Bernanke will have to ensure America is once again able to get the easy money it's enjoyed for so long. Unfortunately that means allowing inflation to reach levels that were previously unacceptable in the past.
Resource Wars...
nd if you have any doubt left that this new inflationary era is not about to descend upon us, consider the future of the federal deficit... To quote a famous song: "the only way is up." The government will need to keep spending an enormous amount on maintaining America's military machine. No matter who is President, its military superiority will be paramount in a world of diminishing oil supplies. In the future, America will have no choice but to flex its might to ensure it gets its fair share of this oil. As supply shrinks, resource wars will explode the world over. You only have to look at what's going on today to notice that all the world's hotspots also happen to be right beside major oil-producing regions: Nigeria, Iraq, Venezuela, Iran, Pakistan. This is no coincidence. But it's not just a trillion dollar military machine the U.S. needs to fund, it also needs to fund an aging and ailing population. The nation's workforce is getting older and retiring. What's more, those retirees are living longer and longer. This is expected to place a crippling strain on the system. The nation's future Medicare and Social Security bill is estimated to be as high as $81 trillion. This represents a multi-generational crisis... one that will impact not only your future, but your children's future as well. The only way America will be able to pay that bill is to print more dollars. Again a highly inflationary pressure...and one that will further plummet the value of the dollar. How to Outsmart an Inflationary Market
hile Bernanke and his followers at the Ministry of Economic Magic will try desperately to keep the official published inflation rate (the CPI index) below the psychological level of 5%, they will fail just to keep the country out of a depression. From January 2002 to July 2008, the inflation rate has risen almost five fold--going from 1.14% to 5.62% and headed way higher. As the London Time's recently warned... inflation is the "greatest concern" facing America today. One more oil shock...one more economic or geopolitical disaster...or even just the first hint of the super-bull market in commodities is all it may take to unleash the inflation monster on the markets.
That's why there has never been a more opportune time for an investment service like Leeb's Income Performance Letter. Inflation is a force Wall Street is not adept at following...a force your average analyst doesn't understand...yet it is about to become the most potent force directing and swaying future markets...a force that's been kept under tight control for over two decades. But only in the past few years has it begun to rare its ugly head. Fortune magazine calls it "the retiree's worst enemy." Others say it is, "the cruelest tax on your wealth." But while it can be one of the most destructive forces in the economic universe, as we've said there are ways you can profit from it. That's what you'll learn how to do when you sign up for Leeb's Income Performance Letter. In fact, another major benefit you'll receive when you sign up is a special report called Getting Rich From Upcoming Inflation. Copper Kings...
n Getting Rich From Upcoming Inflation: The Investor's Worst Enemy you'll learn about:
These investments are already profitable, and already rising. But once the energy crisis starts to heat up, and inflation starts to fly past 5%, these investments should ratchet up to dizzying heights very quickly. Wall Street will gape in awe as the broader market gets blown to bits, and these alternative plays reach valuations they haven't seen since the inflationary seventies. This may be your last chance to get in on them cheap. Sign up for Leeb's Income Performance Letter today, and we'll rush you a copy.  Booming Commodities...
etting Rich From Upcoming Inflation: The Investor's Worst Enemy and The New Income Kings: Hidden Asset Classes of the Hyper-Rich are just the first of many powerful benefits you'll receive as a charter subscriber to Leeb's Income Performance Letter. Each month you'll also get:
For example, many of the world's top producers of oil, gas, copper, gold, silver, platinum, copper, uranium--despite soaring commodity prices--are still greatly undervalued. We'll tell you about the most undervalued commodity producers with the greatest potential for growth. Producers that boast seasoned management teams, that are sitting on the largest reserve bases, and that have learned how to master the supply/demand squeeze. These commodity kings are among some of the most powerful long-term investment opportunities available on the market today.
What's more, they will enjoy the added benefit of raking in revenues denominated in rapidly rising currencies. While most retirees and income investors will watch their income checks wither away, you won't have to. You can be enjoying an ever-rising stream of income checks by being invested safely in The Income Kings of Tomorrow. These corporate kings rank among the surest investment bets you could make today. You'll also learn about top-performing utility stocks, Real Estate Investment Trusts, Master Limited Partnerships, Convertible Preferred Stocks, and many more outstanding income investment opportunities.
Investments where you'll go from being a mere shareholder in a corporation to being a partner... and as a partner you'll reap much fatter rewards: things like fat yields (up to four times the size of the average S&P stock)...and the kinds of tax breaks you thought were only enjoyed by the hyper-rich. Although each of these opportunities is available right there on Wall Street, and costs no more (in fact even less) than the average mutual fund, most investors can't see them...but we'll show you where to look... In addition, you'll receive instant investment alerts, notifying you immediately of any buy/sell recommendation we make in our portfolio. What's more, we'll also send you important news bulletins and instant alerts on any kind of event that may be impacting our portfolio. This is the kind of blue-chip type service that other investors pay $1000-$5000 for. But as a subscriber to Leeb's Income Performance Letter you'll receive all these powerful benefits as part of the package. Your RISK-FREE Charter $39 Offer!
one-year charter subscription to Leeb's Income Performance Letter costs just $72. But as a special charter subscription offer, we are giving you the opportunity to sign up for just $39! That's $33 off the regular price. And if at any time you decide that Leeb's Income Performance Letter is not for you, we'll let you cancel and give you a full refund. Plus we'll let you keep all the issues and special reports you'll have received as our gift to you--just for giving us a chance. You won't owe us a thing! All you need do is just fill in the order form at the links below, and we'll rush you your Membership Benefits package immediately. Or for an even better deal, sign up for two years for just $78. (That's $66 off the regular fee). Plus we'll rush you a copy of my latest book, the upcoming New York Times best-seller, Game Over, How You Can Prosper in a Shattered Economy. In it, you'll discover:
We are fast approaching the tipping point in the economy, and most importantly your investments. Now is the time to take action. Don't waste another minute. Sign up for Leeb's Income Performance Letter today, and we'll rush you details on many of the top investments that can make you rich in the oil-shocked, inflation-afflicted times ahead. Sincerely,
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P.S. As oil and commodities ratchet up in price, more and more investors will exit the mainstream markets, and pile into commodities. Most however will wait, once again until it's far too late. But you have a once-in-a-generation opportunity today to get in on these investments before the Wall Street crowd. Oil, commodities, international resource stocks are now trading at very low levels. But not for much longer. This may be your last chance to buy oil, copper, gold, silver, Brazil, China, India, alternative energies at reasonable prices. In the scheme of things--these resources, metals and countries--have not even begun their bull markets yet. But once inflation edges up past 5%, these alternative investments will fly off the Richter scale!
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Dear
Investor,
As bleak as things may seem,
this market is ripe with a few solid, timely opportunities that are
perfect for the retired investor who's
looking to avoid risk, generate income, and grow the value of his
portfolio!
he question now is, will you believe me when I
tell you that, as bad as it is, as much as you may have already
lost, things could get a whole lot worse. That's why I'm urging you to reexamine your investment
strategy in light of what's happened and the even-bigger changes
that lie ahead?
Recession is
finally here.
Second is lingering aftermath of the
credit crisis.
From
1982-1998, the major oil producing countries outside OPEC, had the
ability to increase oil production in order to accommodate for
global growth. But in 1999, these oil-producing countries hit a
point where they could no longer increase production by any
significant amount. 
Traditional investment havens like CDs, bonds and
money-market funds will be turned into financial death traps.
Markets will grow increasingly irrational. But even as the broader
market gets blown to bits, there will still be one country...one
commodity...one investment destined to outshine all the rest. 
And
the truth is, long-term, crude oil is headed for a return of the
$147 barrel!
ou
rely on oil in more ways than you probably think about.
In
this report, you'll learn about the global market's most outstanding
recession and inflation-proof investment opportunities.
Gregory
Dorsey
David
Sandell
Genia
Turanova, 
In fact, one of the first benefits you'll receive
when you sign up for a risk-free trial subscription is a special
free report called The New Income Kings: Hidden Asset Classes of the
Hyper-Rich! In it you'll learn about: 
But
if you understand the key inflationary forces building in the global
economy at the moment, rather than be crushed by them, you can turn
them into the kinds of profits that only come when 3.4 Billion New
Capitalists Rush onto an Already Crowded Industrial Stage. 
In
most cases it's not the fact that we're running out of the resource
(for copper and silicon we still have millennia of supplies)--what
we're running out of is human capital and time. We simply don't have
enough workers, engineers, geologists, miners, scientists, chemists,
and architects to build the enormous infrastructure needed to keep
the global engine running. 
New
Economy giants like Cisco, WorldCom, Global Crossings raced to
connect the capitalist west to the emerging east. It spent over a
hundred billion dollars wiring the world for global commerce. 
Regardless
of how much U.S. consumers may cut back, the world wide demand for
the basics will cause one of the most colossal commodity crunches
the global economy has ever faced. 
ank
failures and liquidity problems are only a small part of the big
picture.
Why
Bernanke's Hands Are Tied 
Either way, we are fast approaching the
inevitable: The day when the inflation rate becomes not just another
figure--but becomes the one force above all others that will define
the parameters of the entire investment environment. The time to
prepare is now. 
