 The other day I was speaking about how I liquidated most of my McEwen Mining a few weeks back because of nationalization risk. Well, McEwen Mining just had their shareholder meeting and Rob McEwen cited this risk. They have mines in Argentina and if taxes on these mines go up, they may have to finance other mines in the company with outside financing. The stock has been getting crushed. This is why investing in mining stocks is actually starting to become a very dangerous game. The Gold/XAU ratio is extremeley high for a reason. I have been saying for the past year it is because of nationalization risk. If you have 30% of your wealth in the metals sector, out of that 30% I would have 90% in physical and maybe 10% in a mining etf. That's it. I am watching the destruction of these mining stocks and it is alarming. Maybe big banks are somehow in the know about something that is going to take place. Maybe they know about some upcoming monetary agreement in which all countries nationalize their mines after they get screwed from an upcoming U.S. dollar devaluation. I really do not know but this makes a little sense. Why would a country continue to give their resources to foreign shareholders on Wall Street after their treasuries get inflated away. Also, Jamie Dimon is on the board of the NY Federal Reserve. He will be the first to know about any upcoming monetary events. Maybe he has instructed JP Morgan to sell their portfolio of mining stocks knowing that most will be nationalized. Is the money flow in these stocks, or shall I say out of these stocks, signaling an alarm? Select mining stocks are cheap compared to gold. But maybe they are cheap for a reason. I remember selling Randgold Resources over $100 because of this risk. I even did a youtube video about it. Well, since then, there have been potential nationalizations and government coups in Africa. Re-evaluate every mining stock you own. There is no reason to sell your mining stocks in panic, but be extremely careful if the company has operations in Argentina, Bolivia, or Africa. Actually, you have to be careful about any country, including the United States. You may think you own gold, but you own a piece of paper called a stock certificate that just gives you rights to assets in the ground. What if those assets can never be realized because of a 75% tax rate or a government takeover? Again, these are just my opinions. But like I said in the past, you can never go wrong just owning an S&P 500 index fund, large multinational companies that pay a dividend, and physical gold and silver. There are also many mid sized companies that trade on the NYSE that are excellent companies. Fastenal being one of them. As for this whole Facebook hype, stay the hell away from this garbage. The insiders are cashing out. They need suckers to sell their shares to. They are hyping it as to bring retail investors back into the market. Once they open a brokerage account, they usually end up trading more garbage until they blow up their accounts, never to return for another 5 or 10 years. Wall Street loves these suckers. The commission revenue from retail investors is off the charts. This whole Facebook IPO is a scam. There is no intrinsic value in this company. Remember Myspace.com anyone? The May 2012 Investment Newsletter is now available. In it you will find out: What company will benefit the most from the Rail Safety Improvement Act of 2008 with ongoing contracts Who is the biggest beneficiary of continual use of cash, debit cards, and actually gets paid fees from banks! (No, it's not Visa or MasterCard) A South American company who is benefiting from the rising standards of living from Brazil and all of South American economies (but it is not a Brazilian stock) A small payroll services firm that could well be the next ADP A company that just came public in December that is drilling for oil in the Permian Basin and run by one of the best CEO's in the drilling business One of the best ways to time your stock purchases. (and it's not the VIX or some moving average nonsense) Where the market is heading in the short term Below is a screenshot of the first page. It is a 15 page report with charts included for each stock. To purchase, click the "Buy Now" button below.  None of the stocks recommended are penny stocks. They are all well established leaders in their field. The problem many investors have is that when the market sells off, they do not have a watchlist put together and are always looking at the same old tired names to invest in. With this list of stocks, you will be on your way to forming a watch list with top notch companies that you finially understand. These stocks can easily double or triple after their next correction. I have put together the research on these stocks after listening to conference calls, what their CEO's have said, reading all their annual reports, and listening to what the best analysts have said. Too many investment newsletters out there are focusing too much of their attention on gold stocks. As a stock investor, I think some gold stocks over the next 5 years will do great, but to ignore the countless great companies out there is a huge mistake. What good is it to recommend all gold or resource stocks only to have the sector correct and every stock recommended get demolished. Also, most small and mid size companies that sell a product will outpace gold and gold stocks in the future. For the cost of a stock commission, you will learn how to enter the market at the best time and how to capture high octane growth stocks that you will rarely ever hear about on CNBC or other financial media. I have been getting some requests to re-post the $10 two hour investment video. You can purchase it below. After you purchase it through paypal, just click the small orange button that pops up immediately after your purchase and it will take you to the link that provides your username and password.  |