2009-04-08

$9,554 in Benefits — Your Gift From Parachute Portfolio Library

Here's your chance to join an esteemed group of thinkers.

You can join the world's greatest contrarian investment minds…and let them help you grow your wealth despite the ongoing economic collapse.

Membership is by choice and therefore this invitation is limited.

When the San Francisco earthquake sucked insurance companies dry in 1906... and share dumping sheered nearly 9% from the Dow that next spring...

Four wealthy New York businessmen and a Boston economist decided to form a "secret" financial club that went on to include presidents and prime ministers, scientists, entrepreneurs, and billionaires.

Then there was famous economist John Maynard Keynes, who lost a bundle — nearly three-quarters of everything he owned — in the great Crash of '29.

He went on to form his own little cult of economic ideology, become a living celebrity, and went on to build personal investing wealth of nearly $30 million.

In 1947 and in the wake of World War II recovery, economic giants Friedrich von Hayek, Ludwig von Mises, and Milton Friedman quietly pulled "people with money" together again... in a small mountain town near Montreaux, Switzerland.

The influential group still meets today.

And as stagflation sapped the strength of the U.S. economy in 1978, another "secret" society formed. It was strictly limited to the top 30 investors, entrepreneurs, and economists of the day.

They call themselves the "Group of Thirty" and of course, they still meet today, headed up by none other than Fed Chairman and start economist Paul Volcker.

I'm guessing already that you had no idea some of these "secret" societies even existed.

In the past, they included some of the richest and most elite money minds of a generation... not just to help members rebuild and grow their personal fortunes... but with the goal of changing the course of history.

And I have the same ambition for the "secret society" I'm about invite you to join today.

Let me explain...

Your Chance To Get Rich While Making History

What I'm about to tell you about has been almost two years in the making... and I've already invested over $532,171 to make sure this day arrived. But now it's finally ready.

Introducing a new alliance of high-end "Big Picture" thinkers. People who not only seek ways to heal the damage this market has done, but who can appreciate a much larger, more intelligent approach to figuring out exactly what's going on in the markets today.

I'd like to invite you to join this new alliance.

And here's the thing: I'd like to invite you to join free for a full year.

That's right. I'll simply waive your membership dues... and send you everything full members in this new society will receive, at no charge for a full 12 months.

You'll find out how in just a moment.

First, here's a glimpse of what you'll receive if you accept my invitation...

You'll start immediately with what I call our Parachute Portfolio Library, a double-pronged wealth protection resource centered around the only two kinds of market moves you should consider making over the next 12 to 16 months ahead

Then you'll also get a copy of my 218-page book, The Demise of the Dollar and Why It's Great For Your Investments, which you'll want to read before the inevitable greenback implosion ahead

You'll start receiving published updates every single week... plus additional members-only briefings every month... both with updates on everything in the recommended portfolio plus advanced private research on the markets, the world economy and — of course — this unfolding crisis

Plus an immediate private conference call that shares insights and answers vital questions about the evolving state of this market

Access to more of these live conference calls every single financial quarter, featuring one of the two most experienced and intelligent working economists I've met in the last nearly two decades of market research

Online and personal networking opportunities where you can interact with your fellow society members, both to exchange more market insights and to build the bonds that can be so vital to your financial survival in turbulent times like these

Access to a precious archive of nearly 18 years of research from one of the greatest financial minds of our generation — and worth nearly $6,947 — yours free

Plus, you'll also be entitled, as the newest member of our elite new wealth-protection society, to help nominate recipients of a prestigious new award in economics... as well as a memorial scholarship, dedicated to teaching the next generation to help us steer clear from these kinds of debacles in the future.

Again...

All of this — worth an estimated $9,554 — can be yours free for a full year.

But I need to hear back from you before Tuesday, April 21 at 5 P.M.

Accept by that deadline and all the above can be yours at no cost for a full 12 months. I'll simply waive a year's worth of membership dues and you'll start getting everything I just mentioned.

"On me."

I'll explain it all at the end of this letter.

Now why on earth would I want to do that?

Before you scroll down to find out, just give me a moment and I'll explain. Starting with the story of the great man who inspired this me to write this letter to you today in the first place...

The Smartest Investor You'll Never Meet

He was a friend. He was a legend.

He was also one of the smartest — and richest — investors I've ever met. In fact, he was so successful, I happen to know he twice paid cash for luxury apartments on the French Riviera.

He collected valuable antiques... drove a classic Mercedes well into his 80s... and carried an ornate silver-tipped cane with him everywhere he went. He was a character you don't forget.

When he spoke, everyone listened. He dominated every room he ever entered.

Once, in my office, he borrowed the phone... and in four minutes chattering away in German to his broker... made a trade that, by our best estimate, netted him around $8 million.

How? It was a hedge on a slide in the U.S. dollar.

"That," he said as he hung up the phone, "was for my grandchildren..."

And then we went to lunch, to talk economics over thyme-roasted chicken and bottle of French Bordeaux. Not your average day for most people. But no surprise for this gentleman.

His name was Dr. Kurt Richebächer.

You may already know his story. Or maybe you don't.

A survivor of Nazi Germany... the former chief economist of the Dresdener Bank... and so controversial, former German Chancellor Helmut Schmidt once tried to silence him.

By the time we'd first met, Kurt had already advised billionaires, financial ministers, and market makers. Former Fed Chief Paul Volcker had been a big fan and personal friend. So was the late, great economist Murray Rothbard.

Bill Fleckenstein, a regular columnist for CNBC and MSN Money, regularly recommended Dr. Richebächer's research to other investors. Other gurus lined up to praise him too, including the legendary Richard Russell... plus best-selling authors Doug Casey and William Bonner...

Along with Barron's contributor James Grant... CNBC's David Tice... famous analysts Dr. Martin Weiss, Doug Noland, Dr. Marc Faber, and Michael Belkin... and a host of other market "luminaries."

During his lifetime, some had even compared Dr. Kurt Richebächer to visionary financial geniuses like John Templeton, Stephen Roach, Ben Graham, Charles Dow, Robert Prechter, and Benoit Mandelbrot.

Sadly, We Lost Kurt In 2007

Sadly, we lost Dr. Richebächer at the fiery age of 88.

But not before he managed to publicly and forcefully predict almost every detail of today's mess... before it even began to unfold... and certainly not before he'd already dedicated a lifetime — a full and fascinating 67-year career — to studying markets in a way that no green sub-40-year-old Wall Street lackey could even begin to imagine.

In the 67 years Dr. Richebächer researched and reported on markets, money, and economies, not only had he witnessed the booms of the 1980s and '90s...

But he'd also seen — and survived — the '73-74 market bust... the '87 "Black Monday" collapse... the massive S&L crisis of 1989 and '90... and the infamous junk bond blowout and early '90s recession...

Not to mention, the 1997 Asian and Russian currency collapses... Internet-mania and the Dotcom Bomb... and, of course, 9/11 and the subsequent stock market aftermath.

Kurt had been through it all. He's seen it all. And he's survived it, financially speaking, with huge personal success... even while others saw their accounts flattened.

But of course, in his monumental career, Kurt had ALSO served as analyst and living witness to the "Go-Go" fund jockey wipeout of 1969...

He had even seen and survived the world-flattening recession of 1958... and had lived in the middle of the post-war financial chaos in Europe just after WW II...

He was even around long enough to have living memory of the '29 crash itself, and the near-decade of stagnant years that followed.

I don't know about you, but I can't think of a SINGLE Wall Street analyst or grinning TV commentator that could ever produce anything even close to that kind of pedigree.

Yet there was "Dr. Kurt," as we loved to call him, not just seeing us through it all... but drawing out the details and making forecasts even about this current economic catastrophe...

Right up to when he left us, in August 2007.

A Timely Warning Only a Few Had the Sense to Follow

A few of us were lucky.

We got the chance to hear Kurt's warnings in time. We also had the chance to take steps to protect ourselves. Had you been with us, you would have had that chance too.

See, not long after Dr. Richebächer and I met in Paris that afternoon, I pushed my team to put together and send out a special report. It looked a lot like the one you're reading now. It was early 2006 and, inside that report, Dr. Richebächer repeated for our readers what he'd told me...

"I am dismayed at the low level of U.S. economic thinking. Elementary insights into economic processes that have been accepted by all schools of thought for more than 200 years are unknown, discarded or even put on their head. The facts are that you have serious structural problems that exclude any possibility of a sustained economic recovery... A profits decline, a record savings shortfall, a capital spending collapse, an unprecedented consumer borrowing and spending binge, a massive current account deficit, ravaged balance sheets and record high debt levels."

I'm sure you'll remember, that's when Americans still believed property would always go up. The Dow had just hit 11,000 too. And the Gross National Debt? It was high... but nobody then even dreamed it would rocket nearly $3 trillion higher by today.

For his readers, Kurt went on to warn that the ultimate "credit trap was about to spring shut"... and that the U.S. economy was headed for an imminent and enormous "fundamental breakdown."

Of course, that's exactly what happened.

Said the report...

"The U.S. consumer... the U.S. government... in fact, the entire U.S. economy... is living on borrowed time. The credit trap is about to snap shut. The wall holding back a tidal wave of financial pressure is about to collapse."

Could General Motors go broke, we asked in the 2006 forecast report. Could Fannie Mae and Freddie Mac survive, saddled by $4 trillion in loans to questionable borrowers?

Of course, those events sounded impossible to most people then. But Kurt warned us that it could happen more easily than anybody imagined. And he remains right about that too.

Back then, experts at the Fed talked about "positive inflation" as a tool to fight off an economic collapse. Kurt warned against it. Yet today, the Fed is actively doing it... dumping trillions into a black hole.

Kurt warned too about the insane debt leverage we were handing over to China and other foreign lenders... today, our government has ignored his warnings and we're in deeper than ever before.

Of course, Dr. Richebächer — a rich investor himself — was too much of a gentleman to reveal what he did with his own money. He wasn't just an advisor. Kurt was a serious economist with a "big picture" view no penny-ante Wall Street broker or hot-tip jockey could match. A class act.

His circle of readers and admirers were happy enough just to hear his analysis.

But knowing that he was forecasting a major economic crisis... and that Dr. Richebächer himself wouldn't be with us much longer... I arranged for Eric Fry, one of our best analysts, to travel to the Riviera (a dream assignment) and interview Dr. Richebächer in person.

Days later, Eric came back with Kurt's famous "Last Interview"... and five powerful, simple wealth-fortifying strategies were grounded on what Kurt had revealed...

In one visionary detail after another, Kurt laid out his map of the now infamous credit bust... from the deadly dangers of "zero-money-down" mortgages... and the billions that would disappear from banks and property values... to the rising risk of shameless U.S. debt and evaporating U.S. industry... and how, in Kurt's convictions, the treasured American way of life was surely on the brink of extinction.

Just as importantly, we discovered how to turn that vision into opportunity. As I'll show you, in ways that could have made a few individuals very rich.

For instance, the 46% his readers could have made in just 13 months playing Eurodollar puts... or the 96% in six weeks they could have piled up with puts on the dollar... Plus another money-doubling U.S. dollar spread in just 10 weeks not long thereafter. Then there's another 292% in three months, again with puts on the dollar... and 425% in just eight weeks on brilliant euro calls... the list could go on.

Of course, the window on those opportunities has since closed. However, Dr. Richebächer's stunning "last" forecast continues to unfold, almost to the letter of what he told Eric in that six-hour interview back in 2006.

Perhaps even more amazing, is that what he revealed offers you — even now — another chance to avert or even recover from these later stages of financial catastrophe.

How? Allow me to explain...

A Second Chance to Escape Even Today's Market Collapse

See, I'm so certain now of both the value and timing of the deeper kinds of insights Dr. Richebächer shared with his readers... that I'm writing you today with a very special invitation.

I'd like you to be a part of a brand new "wealth-protection" society we've just formed.

We call it the Richebächer Society, named after man who inspired us.

And as I said, this project is so important to me, I'm willing to waive membership for a full year, for anybody who answers my invitation by the cutoff date — Tuesday, April 21 at 5 P.M.

As a member, you'll get all $9,554 worth of benefits that I mentioned — at no charge for a full year. Like I said, I'll explain it all at the end of this letter. That includes, by the way, the full transcript of Dr. Richebächer's "Last Interview".

And of course, it also includes much more...

The Only Two Market "Bets" You Can Count on This Year

As soon as you accept my invitation, you'll also gain members-only access to the Parachute Portfolio Library I mentioned earlier. Inside, you'll find two "paired" research reports.

In the first report, The Parachute Portoflio, Volume One: Seven Super Hedges Against the Coming Market Catastrophes of 2009-2010... you'll see how even regular market followers can hedge their wealth against each of the "toxic timebomb" events ahead.

In the second report, called The Parachute Portfolio, Volume Two: The Only Five "Long" Market Moves You Need to Make This Year, you'll see how to take the strategy one step further... to where you could actually double or triple your money, even as the crisis unfolds.

This library isn't for sale.

And you'll never find it offered anywhere else.

But it's yours to download directly from the private Richebächer Society website, just as soon as you tell me you're ready to try a full year of FREE membership in the Richebächer Society.

These strategies won't take years to pay off. And you won't need to "wait" for the recovery. Just about everything you'll find inside involves a 12 to 16 month move.

Of course, NOT making these moves now could cost you much more... in lost ground and lost opportunity... which is why I urge you to let me hear your answer by the Tuesday, April 21 at 5 P.M. deadline.

And yes, this deadline isn't the only reason you'll want to move quickly.

See, we've been hard at work continuing the good Doctor's research. And what we've discovered, as you're about to hear, is even more troubling than the shocking forecasts Dr. Richebächer himself shared just before this mess first started to unravel.

Let me just show you the first of the three coming "toxic timebombs" we've uncovered and you can judge for yourself...

Toxic Timebomb #1: The "Recession Multiplier" That Could Double the Impact of This Downturn by 2010

Forget, for a moment, about the bankers, bailouts and bureaucrats.

And simply sink into this idea instead...

In the bedrooms and boardrooms across America, we're waking up to a very scary realization. All those big houses we bought... the cars and fancy techno gadgets... the fancy clothes and furniture... the $100 dinners and $5,000 vacations... and suddenly we're looking back and realizing... we've got so little to show for it.

Over the last three decades, we've taken one of the greatest industrial nations in history... and traded it off piece by piece. In it's place, we became the world's #1 shopping nation.

Not makers, but buyers.

Even now, consumer buying is supposed to drive more than 70% of the U.S. economy. What happens when the buyers and their credit cards just stop showing up?

Ask yourself this...

How many people born into a real bust do you know? Not like the '87 crash or even the market collapse in 1973... but on the scale of the 1930s? Over seven decades later, the survivors still rinse off used tinfoil... save string... and keep rusty nails in a jar.

Little busts don't change consumer behavior... but the big busts do.

The lesson Americans learned then, they're learning all over again today: That the law of personal and financial responsibility is as irreversible as the law of gravity. It's the egg that no bureaucrat or multi-billion dollar bailout can unscramble.

Bills piling up on the table. Expensive toys gathering dust. Calculators whirring, as the Americans who felt "rich" just over a year ago... figure out how they'll get by if their incomes disappear.

Luxury and indulgence are out.

And the classic virtues — thrift, value, prudence — are back.

In short, the hearts and minds of the American consumer have been thrown into reverse. And it's this total psychological "snap" that's a much tougher obstacle to a real recovery.

Saving is good. It's essential. But with the death of the American consumer culture, expect a force that multiplies the force of this downturn... and could very well stretch out for many, many years to come.

How so? Just take a look at Japan.

Japan's big market breakdown — and it looked a lot like this one — happened over 17 years ago. To this day, the Japanese consumer culture hasn't recovered.

Already high savings rates soared even higher... car sales plunged by half... cabbage replaced meat on Tokyo dinner tables... middle class Japanese started washing their clothes in used bathwater.

And yes, these are the Japanese with good jobs and incomes.

Working as though they could lose those paychecks again at any time.

What happens if the same level of consumer breakdown grips the U.S.? The news nobody in Washington or on Wall Street wants to own up to... is that it already has.

The Big "Buyer Breakdown" Already Underway

See, a recession where credit is tight is one thing. But a recession where consumers stop buying, that's a much bigger deal. And much harder to turn around.

Yet, that's exactly where we are right now.

Take private consumer debt. Whipping out the credit card was as natural as breathing for a lot of Americans, up until as recently as a year ago. Yet, with houses and stocks down... and that "wealthy" feeling gone... soaring household debt has just hit a concrete ceiling.

Right now, total private consumer debt is nearly $2.5 trillion.

Nobody worried much when they felt rich.

But they're worried now. That's why the U.S. savings rate, once actually negative, has completely turned around. Instead of shopping, Americans are saving. Just in the last year, they socked away $545.5 billion — the biggest level since tracking started in 1959.

Like I said, savings are great in many ways. But when you've got a country that's 70% dependent on people going out to spend, spend, spend... it can spell even greater catastrophe. Just like they've seen for more than 17 years now in Japan.

But a lot closer to home...

On New York's Madison Avenue, shops that used to sell $2,390 bed sheets and $2,400 handbags have packed up and slapped "For Rent" signs in their windows...

Penny-pincher clubs are back. And coupon-clipping sites are getting some of the highest traffic on the Web. Discount sales and all-you-can-eat buffets have lines going out the door

Last holiday season was the slowest in four decades. Meanwhile, luxury products are "out," showing off how budget-wise you are is back "in"

Big "box" stores continue to close at record rates too, while department store sales are down as much as 24%. The Gap? Sales are down 23%. Other clothing chains are down 22%

What's more, U.S. cars sell slower than in 1982. For the first time in history, China sells more cars that we do. Keep in mind, about 20% of all the retail in the U.S. comes from car sales

Planes can't sell seats in business or first class either. Not to mention a 20% drop in airline freight shipping. Meanwhile, train and truck shippers are in absolute freefall

Even FedEx and UPS — slammed by the double-whammy of crashing buyer demand and no-shipment digital book, document, and movie delivery — have seen overnight shipping profits vaporize.

Consider... total U.S. retail sales have rolled back to levels we haven't seen since 2005. Can you imagine if every single retail shop opened in the last three years... going dark?

It's already that bad.

Here's how the consumer-collapse is about to get a lot worse...

From Bad to Worse: Vanishing Jobs and Disappearing Paychecks

Since the start of the downturn in December 27, we're already out 4.4 million jobs.

How much deeper could this go?

Well, today's crash is already bigger dollar-wise than anything that we lost in 1974. And even back then, 1% of U.S. jobs disappeared. Do that today and you're talking about a total 13.2 million Americans out of work.

That's 13 million people not buying cars or new houses... 13 million cutting back on groceries... 13 million not buying flat screen TVs or going to strip malls... in fact, it's the same number of Americans who lost their jobs during the 1930s.

You've seen pictures.

The jobs that disappeared were the "multiplier effect" that turned a stock market bust until a decade-long downturn. Today's record setting job losses could do the same.

With over 650,000 disappearing in each of the first couple months alone... we're on pace to lose a total of 7.8 million jobs just this year.

Boomers cancelling retirement... middle-aged workers swarming college job fairs... at one Ohio high school, over 700 people showed up for a janitorial job... these aren't people set to dive back into impulse shopping anytime soon.

In your members-only Parachute Portfolio Library, I'll show you the two best ways to protect yourself and your money from the complete "consumer collapse" ahead.

But first, let me show you another atomic "multiplier effect" ahead that makes a 2009 or even 2010 recovery unlikely for America's consumer-driven economy...

From Bad to Worse, Part Two: The Second Surprise Mortgage Bust Ahead

When "subprime" blew up in the faces of bankers, brokers, and derivative traders... it lit a powder keg under the whole global financial system... and sparked every bit of the catastrophe you and I have seen so far.

What would happen if a whole new wave of toxic loans were to slam into bank balance sheets? We could see just as many or more billion-dollar writedowns... and more stock market pain ahead.

You can see that subprime "resets" — when some loan payments doubled and defaults soared — have started to wind down. And that's good. But there's a whole new wave of bad loan "resets" just now starting to hit.

These are the so-called "option ARM" or "Alt-A" loans.

These were the fancy mortgages snapped up by middle Americans... to buy homes nobody imagined would be worth a fraction of their selling price, just two years later.

Just like subprime, these loan contracts also carry a "reset" risk in the fine print, when already high monthly mortgage payments could as much as double — right at the height of the second biggest market meltdown since the Great Depression.

Millions more consumers will freeze up as their finances go over the cliff... more bank losses will drag down even more so-called "blue chip" retirement portfolios... and the impact of the consumer bust I've told you about will get "multiplied" yet again.

Millions more Americans could lose everything.

But that doesn't have to happen to you...

The Two Simple Moves That Could Protect You

If there's a silver lining to the next round of meltdowns ahead, it's the strategy you can use not only to protect yourself... but to actually grow your money faster as this unravels.

The first move is a classic hedge play against the next domino to fall. Almost every American stock and sector driven by consumers — from construction to retail — has already taken a fat hit.

But few realize how far this next sector is about to fall. In the Parachute Portfolio Library, you'll see why... but you'll also see how to play it on the downside as a kind of "insurance" against the coming collapse.

You'll also find a second report in the Parachute Portfolio Library that names a "way out" and even a "way up" from all the chaos — in the handful of opportunities bound by demographic destiny to still go up over the years ahead.

I can't go into the full details here. That's reserved for Richebächer Society members only. But accept my special "full-year-free" invitation and you'll find everything you need in your Parachute Portfolio Library reports.

And of course, you'll also get the society's weekly portfolio updates... our monthly members-only briefings... and a lot more... yours free for a full year, provided I hear back from you before Tuesday, April 21 at 5 P.M. Why then? You'll find out in just a moment, along with exactly how to get started.

Personally, I believe this could be the most valuable decision you make this year.

And it couldn't come at a more critical time...

Toxic Timebomb #2: Asian Ghost Towns and the "Chinese Miracle" Meltdown

With American consumers in hiding, can China's economy survive?

Beijing wants you to think so.

So do a lot of our own Wall Street "experts."

It's China, they say, who will lead us out of this mess.

But we're not buying it.

Get ready as the world's next industrial ghost towns — the next Detroit —turn up not in America, but in the Chinese provinces of Shenzhen, Guangzhou, or Dongguan.

Over 15,000 factories in those areas alone have already shut down... with more slated to close. And it's an epidemic that's happening everywhere.

Remember the lead paint scare?

Since then, half of China's toy factories have shut down. In fact, at least 67,000 factories overall closed in the last six months of 2008. With another 60,000 factories in the Wen Zhou Province alone about to shut down.

As many as 27 million Chinese are already out of work — with 20 million of them streaming out of the cities and back to the abandoned farms of the Chinese countryside.

What's going on?

It's simple. China needs exports.

Yet, with the West choking on debt... America bleeding jobs... and the financial markets still in the "third or fourth inning" of history's biggest mortgage meltdown...

The Chinese miracle has all but ground to a halt.

China's Secret "Stealth" Depression

You wouldn't know any of this if you take the "party line" coming out of Beijing. They still claim growth as big as 8% for 2009. But the facts on the ground tell a different story...

According to Merrill Lynch, China's economy didn't grow at all in the last quarter of 2008. And it's still contracting fast, ever since the start of this year

Of course, official Chinese growth last year topped 9%. But if you did the math the way we do in the U.S. and they do in Europe, the real growth rate — for the last three months of 2008 — was zero

Keep in mind that China needs at least 9% growth to soak up the 24 million new Chinese workers who come of age each year — something even the Chinese Premier doesn't like to mention.

Even Chinese analysts will tell you their homeland is already deep into recession.

Says expat Prof. Tian Xie of Drexel University, China's elaborate campaign to falsify GDP numbers "is all part of a sophisticated strategy to cheat the world."
But they can't keep up the deception much longer...

In one huge textile factory — as big as 31 football fields and with 4,000 workers — the owner racked up $200 million in debts. Afraid to tell Beijing, he burned his records and fled the country

Officially, nobody's protesting about losing their jobs or going broke. Unofficially, dozens of riots have broken out in front of closed Chinese factories

1,000 schoolteachers clashed with police over wages in early January. Hundreds of workers swarmed a city government building in Foshan, demanding back pay

In Northern China, a TV journalist covered a story about a hostile labor takeover in a textile mill. Local authorities immediately punished him and pulled the story

Creditors showed up to seize equipment from deadbeat borrowers at a factory in southern China. Police broke up a dozen riots in the aftermath, all of which they hid from the newspapers.

Padded revenue reports... fake production numbers... overstated employment... keeping a double set of books in China isn't just common, it's too often considered "good business."

In the days of emperors, Chinese generals lied about battle kills... to keep from losing their own heads. In the days of Mao, farmers lied about crop results... even as 20 million Chinese starve to death.

Today, local bureaucrats fudge the books to get ahead in the Party... and the top dogs in Beijing lie to hang onto foreign investors.

Meanwhile, northeast China — home to 110 million people — looks more like rusted-out Detroit by the day... only it's a bigger rustbelt, by a factor of ten.

You've also got under-regulated Chinese banks hiding as much as $500 billion in bad debts — China's own "subprime" loans to small businesses and Asian property speculators...

Plus, you've got a $40 billion tab left over from the Beijing Olympics... and a $140 billion tab for rebuilding Sichuan after their 2008 earthquake…

How Long Can China Hide the Truth?

Here's the bottom line:

China — with 80 different car makers to bail out... tens of thousands of huge socialist-era factories... and 100s of millions of workers to support — has a big problem.

Much bigger than they're letting on.

And it's not just China about to take an even bigger hit.

Korea, Singapore, Taiwan, Vietnam. Thailand. Malaysia. And Indonesia... just to name a few, all soared thanks to the China boom. Now they're going bust in kind.

Korean production alone is already down 14%. Japan is off 20%. Taiwan's exports have dropped 28.5%. Singapore is already deep into recession. Thailand's decayed into political crisis.

Until U.S. and European consumers come out of their shells, the new Asian meltdown doesn't end any time soon. But that doesn't mean there's nothing you can do. In fact, taking the opposite position could be the quickest way to protect yourself...

How to Turn the New Asian Meltdown Into Triple-Digit Safe Haven Gains Instead

While Shanghai stocks haven't yet collapsed anything close to what we're seeing on this side of the ocean... it won't be long before they catch up.

Before that happens, you could use the move you'll find in one of Parachute Portfolio Library reports to lock in as much as triple-digits gains... that could soar as the dragon-driven markets fall apart.

The move is a downside play on a single stock... that acts as a near-perfect proxy for the entire Chinese manufacturing market. It's down already. But has much more room to fall.

Play it the way you'll discover in your members-only report, and you could see a substantial gain as the Asian markets unwind even further than they already have.

As you'll read in the Parachute Portfolio Library, this is a "set and forget" move... and doesn't take more than five-minutes for you to set up.

At the same time, you'll find a second perfect move in your Parachute Portfolio Library that reveals a surprise currency gain you could make... as panicking Asian governments raise to save sagging exports with a radical new unraveling of their own currencies.

Remember the '97 Asian Currency contagion?

That sell-off sheered 35-40% from Asian indexes, sent oil prices plunging to $8, and forced a $4.6 billion collapse over at Long Term Capital Management.

Most market players took a battering.

Had you been on the right side of that move, you could have made a fortune. And this opportunity you'll find in the Parachute Portfolio Library shows you how to do it this time around.

I'll send you this private library of reports at no charge, included with your full free year of membership in our new elite Richebächer Society.

Again, this full free year of membership I'm offering you includes not just this library of special reports... but a total of at least $9,554 in additional benefits.

And it's yours if I hear back from you by Tuesday, April 21 at 5 P.M.

A Total of $9,554 in Benefits The Moment You Decide to Join

Of course, none of what you're discovering right now would be possible... if Dr. Richebächer himself hadn't spent 67 years studying economics and markets... not to mention, had he not spent the last nearly eighteen years of his life sharing that research with people like me and you.

That's why I sincerely hope you'll accept my invitation.

Who are we exactly?

We're not just a handful of stock market hopefuls and armchair prophets. In the circle of Richebächer fans and followers, you'll find some of the world's richest, most educated and successful members...

Entrepreneurs, best-selling authors, high-ranked advisors, international speakers, working economists and academics... all sharing their insights and their secrets.

As I said, some of the greatest minds in financial history paid close attention to Dr. Richebächer during his lifetime. With the help of his generous family, we've even assembled a complete archive of all 18 years of Dr. Richebächer's research.

And that complete and searchable resource is also yours, as part of Richebächer Society membership. This alone is worth a considerable figure.

And it's yours to tap as often as you like.

Just take a look at some of the uncanny calls Dr. Richebächer made, which you can find captured in this enormous and impressive body of work...

In September 1996, Dr. Richebächer warned that the Asian Tigers "were teetering on the edge of a cliff." And in March 1997, he alerted his readers these countries were about to face "tremendous currency turmoil"

Sure enough, by July 1997 those currencies fell like dominoes... and French national newspaper Le Figaro began calling Dr. Richebächer "the man who predicted the Asian crisis"

In July 1998 Dr. Richebächer saw debt spiraling out of control in Brazil. The country's currency was in serious jeopardy. He warned his readers about the coming market shock

By early 1999, the Brazilian real crashed to the ground. Anyone who heeded the warning had the chance to get out of Brazil's stock market... and escape the catastrophe

In January 2000, Dr. Richebächer warned frenzied investors that the days of dotcom stocks' days were numbered. "Next Christmas," he wrote "very many of them will no longer be around"

Sure enough, the Internet bubble popped in March 2000 and over the months that followed, tech companies declared bankruptcy in droves. By the end of that year, $8 trillion of investors' wealth had already disappeared

In November 2006, while millions of Americans still believed in high property values, Dr. Richebächer wrote, "The housing bubble... has barely started. Wealth effects have disappeared and with falling house prices will soon turn substantially negative." And he went on to warn of the great deleveraging that a bust in huge, hidden derivative markets would bring

I don't have to tell you that he was right again. As the bubble popped and loan-backed derivatives crushed Wall Street and choked off credit, consumer confidence — and spending — slammed into a wall. The downturn he'd called started right on schedule.

As an honored Richebächer Society member, you'll have unlimited access to the entire searchable archive. Included with your full free year of membership.

Not only will you see how Dr. Richebächer helped enlightened the market elite about the increasingly insane cycle of credit-fueled asset bubbles... but also how one could have easily used those same insights to save and even grow countless fortunes.

Including the 46% his readers could have made in just 13 months playing Eurodollar puts... or the 96% in six weeks they could have piled up with puts on the dollar...

Plus another money-doubling move using a U.S. dollar spread over a 10 week span... and 292% in three months, again with dollar puts... along with 425% in just eight weeks on euro calls...

This list could go on.

And so can Dr. Richebächer's legacy.

Which is why I hope you'll accept my invitation today, while there's still time to get a full year of membership — including at least $9,554 in member benefits — absolutely free.

See the end of this letter for full details.

But be sure you do so before time runs out — in more ways than one!

Toxic Timebomb #3: America's "Minsky Moment" And the Coming Dollar Collapse

What's a "Minsky Moment?"

It's what America can't avoid, now that both our own consumer-powered economy and China's fabled growth "miracle" have so clearly hit the skids.

See... when times are good, said great American economist Hyman Minsky, it's easy to take on big risks. That includes big debts. But pretty soon, the risks get bigger than the reward... the bills come due... and you have to start dumping assets just to cover your tail.

That's the big secret behind today's endless cycle of booms and busts.

It's what's already happened to real estate. It's what's happened with the big selloff in stocks. And now it's what will happen to the U.S. dollar... and the idea of America itself.

The Giant Pin About to "Pop" the American Bubble

The U.S. dollar has been the world's "go to" currency for decades, backed by faith in the U.S. economy. But if you get paid in dollars or save in dollars, you have to ask yourself...

How much longer can that last?

With just shy of $11 trillion in debt already piled up... another $8.5 trillion already committed to the bailouts... and $3.6 trillion more in new spending on the table...

Not much longer. Think about it.

How much faith would you put in an I.O.U. from a friend with shrinking job prospects, a sky-high credit card bill, a chronic gambling problem, nervous creditors, and a bad habit of lying about the balance of his bank account?

Even Obama admits this can't go on forever.

He recently told 60 Minutes, "If we don't get a handle on this and also start looking at our long-term deficit projections, at a certain point people will stop buying those Treasury bills."

You'd better believe it.

China alone backs U.S. spending with dollar reserves worth nearly $2 trillion. These are the loans we use to fund our bailouts and more. What happens when those loans no longer look like a good deal?

With China slipping into crisis mode, that day could come a lot sooner than you might think. Already, China's prime minister Wen Jiabao says he's "worried." And both China and Russia have already called for a new world reserve currency.

All it would take is a shift of opinion...

And the dollar could go into freefall overnight!

In fact, no matter what our overseas lenders say in public... privately they've already started slinking toward the exits. Three times in the last four months of 2008, they dumped U.S. long term securities. Not just the Chinese, but Japan, India, the Saudis, and Europe... just to name a few.

When even your dollar savings aren't safe, what should you do?

A Much Better "Exit" Strategy: Dollar Super-Hedges That Go Beyond Gold

Both the reports you'll find inside your members only Parachute Portfolio Library...

Including The Parachute Portoflio, Volume One: Seven Super Hedges Against the Coming Market Catastrophes of 2009-2010...

And The Parachute Portfolio, Volume Two: The Only Five "Long" Market Moves You Need to Make This Year...

Will show you not just how to escape the dollar collapse with savings intact, but also how to turn the situation around to actually make gains. Even as the Fed liquidates the wealth of anybody holding greenbacks outright.

As a new member of the Richebächer Society, you'll also get a free copy of my own 218-page book, The Demise of the Dollar and Why It's Great for Your Investments.

Inside you'll read more about the actions that have made this dollar unraveling so inevitable. You'll also read some very real and forward looking solutions.

Naturally, one of the options you'll read more about is gold.

Consider that right now, just 1.1% of China's "other" foreign currency reserves are in gold... compared to nearly 80% gold in our foreign currency reserves here in the U.S.

China would need to seize three-quarters of the world's total gold production for an entire year, just to match our same GDP-to-Gold ratio. Impossible?

They're talking about it. Hou Huimin, vice chair of the China Gold Association says, "China should have at least several thousand tons of gold in its reserves, five to six times the officially announced 600 tons."

Even if China switched over to 3% gold reserves, that would send the bullion price through the skylights. But just holding physical gold isn't your only option.

In your copy of the full Parachute Portfolio Library — including my published 218-page book, The Demise of the Dollar and Why It's Great for Your Investments — you'll find at least seven more protective and wealth growing moves you can make.

I just hope I can hear back from you soon.

The Only Financial "Playbook" Worth Following During 2009-2010

Look, here's the bottom line.

I know you can easily find "experts" out there with two-bit explanations of what's going on. I know you're already swarmed by headlines and financial shows, newsletters, magazines and more.

Every one of them with something to say. With some who are right on the money and others who haven't a clue. But the brand new Richebächer Society isn't any of that.

The idea behind our alliance is much more simple...

See, we don't plan to wait for someone else to "fix" this mess. We don't plan to sit by and watch it ravage our wealth, either. We're not "hot stock" day traders. We're not looking for tin-pan insights or cheap thrills.

Instead I've organized what could be the best team of analysts in the business — lead by a real economist with 26 years of top analysis experience — to take a whole new kind of look at what's really going on.

This is not insight for timid men.

It's full and it's direct. It's advanced. And it's serious.

Most of all, what you'll have exclusive access to as a member of the new Richebächer Society is what could be the only thinking out there clear enough to help you both sidestep the damage and turn even the worst of these events into real and sustainable opportunity.

Look, Dr. Richebächer wasn't just someone I published for years. He was also a close personal friend. He met my wife. He met my children. We even spent time working together, side by side, on the book he was writing just before he passed away.

So launching this society isn't just another "project" for me.

It's a personal mission. One I take very seriously.

I've written two New York Times #1 bestsellers... I've made an award-winning theatre release documentary... I've even interviewed Warren Buffett, Paul Volcker, Alan Greenspan and Steve Forbes in person and one-on-one... yet I still consider this invitation I'm offering you today one of the most important moves of my entire 16 year career in financial research.

I hope you'll take it just as seriously.

In fact, I'm already confident you do.

Which is why I hope to hear back from you about this special inaugural invitation as soon as possible, preferably before the Tuesday, April 21 at 5 P.M. deadline. Again, if I hear from you by that crucial date... all of this can be yours free for a full year.

Here's how this works...

Join the Ranks of the World's Elite by Tuesday, April 21 at 5 P.M.... and I'll Waive All Your Dues for an Entire Year

On Tuesday, April 21 at 5 P.M., we're going to broadcast a very special interview with Dr. Richebächer's natural successor and the editor of our new Richebächer Society, economist Robert Parenteau.

Rob was the chief U.S. economist and investment strategist for RCM, one of the investment management firms of Allianz Global Investors. And has over 20 years experience guiding global asset allocation, sector research, and equity selection for that same firm's top portfolio managers.

Rob has also founded and runs his own market analysis firm, rooted deeply in the same kind of disciplined macroeconomics Dr. Richebächer subscribed to in his lifetime.

In his members-only April 21 interview, he's going to tell you exactly how to read these three "toxic timebomb" events we talked about. He'll also walk you through the entire strategy you'll find in the Parachute Portfolio Library I'll send.

In fact, I've arranged for you to receive the full library on the same date of the interview, so Rob can explain it all with the full grounding of his considerable expertise.

If I hear from you before the date of this members-only broadcast, you'll receive a full year of membership in our brand new Richebächer Society, absolutely free.

As publisher and founder, I'll simply waive your dues for one year.

Is there a "catch?" Of course, but it's one I don't think you'll mind much at all.

Because, you see, there's much more to your membership in the Richebächer Society than just the library of reports, the 218-page book we talked about, and Rob's special interview...

Let's Run Through Everything You'll Receive One More Time

Once you accept my "full year free" special invitation, here's what you'll get...

1) First, You'll Immediately Receive the Complete "Parachute Portfolio Library"...

The most urgent thing I can do for you, the moment you tell me you're ready to join, is to rush you the complete Parachute Portfolio Library we talked about.

This is the set of two straight-talking special research reports that reveal exactly how to hedge yourself against the remainder of this crisis... and how to find the handful of recommendations you actually can still count on, even during the rest of the turbulence ahead.

Here's what you'll find inside the Parachute Portfolio Library...

The Parachute Portoflio, Volume One: Seven Super Hedges Against the Coming Market Catastrophes of 2009-2010 — This is your definitive guide to the seven most toxic economic trends of 2009-2010 and how to hedge yourself and your wealth against them.

The Parachute Portfolio, Volume Two: The Only Five "Long" Market Moves You Need to Make This Year — In a time of almost evaporated opportunity, these five market plays could be the only five safe enough for you to make over the next 12 to 24 months ahead.

The moment you join us, I'll even send you a private password and a web link where you can download these reports.

Your two-volume Parachute Portfolio Library is conservatively worth $98. But both reports in the library are yours free, just as soon as you accept my invitation to join.

And of course, there's more...

2) Next You'll Get a FREE 218-page Copy of My Popular and Newly Updated Book, "The Demise of the Dollar and Why It's Great For Your Investments"

With a wall of bailout reserves backing up in the vaults of stingy banks... and U.S. consumers too terrified right now to spend... we're watching prices fall in most big assets, not take off.

Yet gold is creeping upward. Why? And what's the truth about gold and the role it could play in protecting your wealth from the rest of this crisis? Many experts are getting it wrong.

This book not only sets the record straight, it also outlines a total of seven ways to protect and grow your wealth — not just in spite of a coming U.S. currency collapse, but as a direct result.

This book debuted on Amazon.com at $20.

But I've made a special arrangement to get you a complimentary copy, as one of the gifts you're entitled to as a charter Richebächer Society subscriber.

3) You'll Immediately Start Getting Weekly Portfolio Updates:

Rob Parenteau has agreed to email you targeted updates every week on everything vital that's happening with the "parachute plays" outlined in your member library... with the economy... or with the other opportunities you'll discover as a Richebächer Society subscriber.

Given that Rob is not just an economist with 24 years of experience as a global investment manager... but also the senior proprietor and sole founder of a macro-strategy investment firm... that's an enormous "members-only" advantage right there.

And worth a fortune, all by itself.

Easily, a research service like that is worth at least $549 per year. However, you'll get Rob's weekly briefings free for a full year, along with everything else, when you accept my special Richebächer Society invitation.

4) You'll Also Start Getting Our Elite Monthly Bulletins:

For nearly two decades, the Richebächer Letter has been a trusted "insider's" resource to some of the world's most intelligent and advanced investors and market commentators in the world.

With Dr. Richebächer gone, we had to withhold the letter until we could find someone as skilled at stripping away the mainstream fluff... and as brilliant at unearthing and revealing the kinds of powerful, one-of-a-kind insights the good doctor himself used to produce.

But with economist Robert Parenteau guiding the Richebächer Society, we finally have someone who help the great tradition of the Richebächer Letter continue, bringing fresh new and in-depth analysis to our small circle of elite readership, every month without fail.

I know of no resource like it.

When Dr. Richebächer was at the helm, the letter itself cost members $497 per year. But it's yours right now, as the cornerstone of my invitation, free for an entire year... the moment you accept membership in the newly formed Richebächer Society. I'll explain how in a moment.

But first, there's still more...

5) You'll Also Have Unlimited Access to The Society's New "Blog & Daily Dialogue" Forum:

Dr. Richebächer pounded out his first issues and analysis on a typewriter. Today, we have access to technology the good Doctor never imagined.

Who could guess, for instance, what he would say as we launch our entirely new members-only "Blog & Daily Dialogue" forum.

This is your online space where Richebächer Society members can read new market insights and launch into exchanges with other Society members.

Frankly, this is too new for me to know how to value it. But it's clearly worth at least $49. However, it's yours as a member. Use it as often as you like, whenever you like.

Free for an entire year, as long as I hear back from you by the Tuesday, April 21 at 5 P.M. deadline.

What's more...

6) Every Quarter, You're Invited to the Private Society Conference Call

Each financial quarter, we'll gather on a member's only conference call.

You can participate from anywhere. And you can listen live as Rob and other financial experts dissect what's happening now — and next — across the markets and the world economy.

If the timing isn't convenient, you'll have the option of listening online or downloading an audio recording. You'll also get the chance to download and print out the full transcript.

A ticket for this kind of session with a top financial analyst and seasoned economist — live — would be worth at least $249 for even just a single call. As a member, you'll get four of these members-only conference calls per year, for a total value of $996.

And it's also included with your Richebächer Society membership.

Just in case you're keeping tabs, that's already $2,109 in value. However, you can have all this free for a full year just by accepting my invitation by Tuesday, April 21 at 5 P.M.

And there's still more...

7) You'll Also Get Dr. Richebächer's Famous "Last Interview"

Every member will immediately receive a full transcript of Dr. Richebächer's now-famous "Last Interview" with investing expert Eric Fry, recorded live at Kurt's home on the French Riviera.

You'll read as Kurt exposes one prescient forecast after another about the financial crises... which at the time, had yet to unravel. From his call about the peak in real estate... to the impending implosion of credit markets and the Wall Street catastrophe... and quite a bit more.

What's especially shocking, though, is how much more we're in for if Kurt's already stunning forecasts continue to prove true. You'll see what I mean when you read the full interview.

This full, uncensored transcript is easily worth $149.

But you can download your copy immediately, free with the rest of your Richebächer Society materials, just as soon as you agree to sign on.

Plus...

8) You'll Get the "First Interview" With Economist Rob Parenteau

When we lost Dr. Richebächer at age 88, we knew immediately that we couldn't rush the search for a spiritual torch-bearer and natural successor to his legacy.

Economist Robert Parenteau more than fills those shoes.

You'll see why when you dig into the printed and audio "first interview" with Rob that's also included once you sign on to try the Richebächer Society.

Even now, Rob sees even greater debt-driven dangers lurking on our horizon. The good news is that, he also has a very simple strategy that he can share with you, including things you can do now — immediately — to prepare.

Few are willing or able to share these details. But Rob will reveal all.

We're making this broadcast available on Tuesday, April 21 at 5 P.M. — worth at least $149 — available free to Richebächer Society members only. You'll want to make sure I hear from you by that deadline.

9) You'll Also Receive a "Virtual Key" to $6,947 Worth of Richebächer Research

Your membership also includes a "virtual key" to the final seventeen and a half years of Dr. Richebächer's personal market research and analysis. It's all there, available in a fully searchable online archive.

This is like having your own veritable Encyclopedia of Modern Markets and Economics.

In my opinion, this is a priceless resource.

But if I had to put a monetary value on it, the most natural thing to figure out what others would have paid to gain access to Dr. Richebächer's brilliant research over that same period — a total of $6,947.50, at standard subscription rates.

You'll pay nothing of the sort. The entire seventeen-and-a-half year archive is yours to use as often as you like — including free access for a full year — as long as I hear back from you about your Richebächer Society invitation by Tuesday, April 21 at 5 P.M.

There's still more...

10) You're Immediately Invited to All Private Richebächer Society Gatherings

Every year, we host one of the largest and best-known financial conferences, the Agora Financial Investment Symposium in Vancouver. For the first time this year, we'll be hosting a special private event at the same conference, exclusively for Richebächer Society members.

We'll sip fine wines, mingle, and then listen to a private briefing from an invited guest speaker. As a member of the Society, you're automatically invited to this private event. And if you can't get to Vancouver this year, you can watch the speaker's presentation on the private Richebächer Society website.

This private event could easily be a $100 per person. However, as a member, you and a friend are both automatically entitled to attend these side events at no additional charge.

11) You'll Play an Official Role in Awarding the Annual Richebächer Scholarship Prize

One of the greatest missions of Dr. Richebächer's 42-year career — and one of his great concerns in life — was that the study of macroeconomics was all but dead in today's colleges and universities.

That's why I'm proud to announce that the official Richebächer Economics Scholarship, to be awarded to a student with excellence or promise in the study of macroeconomics.

This crisis, these half-baked bailouts, they largely result from a widespread lack of understanding of basic economics. You'll have your chance, as a Society subscriber, to vote on candidates learning how to change that by the pursuit of excellence in economics studies.

12) You'll Help Nominate the Next Recipient of the Prestigious Richebächer Award

In the past, I've sat for long one-on-one interviews with two former Federal Reserve chairman... two former White House Treasury Secretaries... the world's richest investors... and more.

I've also appeared on CNBC, MSNBC, Fox, and more, to talk about some of the very same issues you and I discussed here today. That kind of exposure gives me access to some of the top minds in markets and economics today.

It's also going to give us, as members of the Richebächer Society, a special opportunity to reward those who continue the work Kurt Richebächer dedicated himself to during his lifetime.

And as a member, you'll have a chance to be part of that.

Each year, we'll select a recipient for the honorary Richebächer Memorial Award for Excellence. Anybody distinguished in the fields of economics or financial research could be a candidate. And when the time comes, you'll have a spot on the member "board" that helps us make our decision.

That's $9,554 in Member Benefits...Yours FREE for an Entire Year

Naturally, the Richebächer Society is for elite members... individuals who are ready and able to grasp advanced insights and who understand the value of "Big Picture" thinking.

Which is precisely why I've chosen to write to you today.

It's also why my team has so carefully put together this package of new member benefits — worth at least $9,554 total — to help assist and inform you immediately, should you decide to join.

And as I've said, you can have all $9,554 of these benefits free for a full year... as long as I hear from you by our reservation deadline on Tuesday, April 21 at 5 P.M.

What I'm offering you couldn't be clearer.

Except to say this...

Please be sure you understand, this is for men and women who can appreciate the higher quality of service and analysis the Richebächer Society intends to offer. Like Dr. Richebächer, our chief analyst Robert Parenteau is a published and working economist.

Not only has Rob been a chartered financial analyst for nearly 19 years... he's also a macroeconomics Research Associate and lecturer at the prestigious Levy Economics Institute of Bard College... and a scholar in the works of economist Hyman P. Minsky.

So if you're looking for day trades or watered-down, feel-good market research... the society's inner circle might not be for you. On the other hand, the members I do hope to attract are the kind that mirror the individuals Kurt himself worked with during his lifetime...

Billionaire investors stock market dignitaries. Best-selling financial authors. International journalists. Ivy League academics. Successful businessmen.

And you, if you'll have us.

Of course, creating an elite circle of like-minded thinkers like this has challenges.

And costs.

From hiring Robert and his team to hosting the archives... sending out the monthly briefings and weekly alerts... creating the conference calls and the transcripts... arranging society functions... it all adds up.

So here's what we're going to do...

I'll stand by my promise to offer you Richebächer Society charter membership, free for an entire year... if you agree to cover the dues for a second year. It's that simple.

In other words, sign up for one year of membership in the Richebächer Society — including nearly $10,000 of member benefits, for the low cost of $497 per year — and you'll get an entire second year of membership absolutely free.

You'll get double the membership at half the cost.

That works out to just $4.78 per week — less than you'd shell out for a single financial magazine or a handful of leading business newspapers.

That's truly an impressive deal.

And if even that isn't enough, here's one more thing...

Your 60-Day 100% Satisfaction Guarantee

Simply fill out the charter membership invitation that follows this letter.

Your Richebächer Society benefits will start arriving immediately. Look over our research. Start using the insights to safeguard your wealth. Review Rob's recommendations for how to multiply gains, even over the duration of this world-shaking financial crisis.

You've got a full two months — 60 days — to decide for yourself if everything I've said about the new Richebächer Society lives up to the deal. If I'm wrong or if it just turns out — for any reason — this isn't your cup of tea, shoot me an email or call the member's hotline. I'll send you a full refund, even if it's the last day of your trial period.

Of course, you'll still get to keep the free Parachute Portfolio Library, your copy of the interview transcripts with Dr. Richebächer and Rob Parenteau, the 218-page copy of The Demise of the Dollar and Why It's Great For Your Investments, and all the issues and briefings you've already received.

No questions asked.

No Matter What, You'll Have Nothing to Lose

You risk nothing.

For an experience inside of a community unlike any other.

Still trying to decide?

If you're the kind of person who worries about bond investments... if you have substantial wealth that's impacted by inflation or currency swings... or if you own real estate, either private or commercial, worth quite a bit of money... then you're the kind of world-class individual who belongs inside this inner circle.

If you're heading up your own growing business empire... if you're the kind of person who understands the worth of offshore bank accounts... overseas investments... or the simple unvarnished truth about markets, wealth and the economy... then this is for you.

Even if you're simply as morally offended as I am by the tsunami of debt and reckless spending that's taken hold with American consumers... and worse, our own government... and the shameful multi-billion dollar handouts they've doled out almost unrestricted to the banks and financiers...

I assure you, this special invitation is for you.

2009-04-05

Top Stocks For 2010, Best Stock Investment, Hot Stocks Market

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Hot Stocks 2009 No.1 Atlas Pipeline Partners
by Addison Wiggin

I've been involved in investing and financial markets for the past 15 years. In that time, I've met every kind of investor... and heard about every kind of investing strategy and stock opportunity you can imagine. Here at Agora Financial, we scour the globe looking for hidden investment opportunities often over looked by Wall Street. Capital &Crisis editor Chris Mayer uncovers these opportunities and delivers them to you. Chris is called by some "the best financial journalist you've never heard of ..."

And on behalf of Chris Mayer... I'll gladly put every minute of my hard work and reputation building on theline. His Capital & Crisis subscribers have benefited greatly from his unique recommendations. His globetrotting letter knows no bounds and goes wherever profits can be found. Over to Chris… Finding the Great Investments He's BeenSearching for His Whole Career I'm going to show you how you can start collecting a 20%-plus yield -- on one overlooked energy stock --right away. Besides these plumpdividends, you'll get a good shot at tripling your money. And there's good reason to believe you could make nine times your money -- if Wall Street wakes up and smells hard assets, and pays exactly what they're worth.

The market isn't rewarding Exxon, Chevron or even Gazprom. And now is not the time to start taking risks on wildcat energy explorers. Right now, I'm looking at a stock that's trading under $6. And today, it's showing signs of a climb -- so I wouldn't wait on this opportunity. Just let me give you the bare bones of its business and a nod from a very smart billionaire investor who knows tough markets.

The company's secret is that it doesn't drill for a drop of oil and it doesn't frack a single foot of shale gas. What it does is keep companies who do at its mercy.
Atlas Pipeline Partners (APL:nyse) owns 1,600 miles of pipeline connected to nearly 6,000 wells and is adding over 800 new wells per year in Appalachia. It also operates a growing interstate pipeline system in the Fayetteville Shale. Plus, it has a great deal with one of the most active drillers in America: Atlas Energy. Every well that Atlas Energy drills has to be connected to Atlas Pipeline's system. These are low-risk assets. Now let's talk dividend. Since 2000, APL's average dividend increase clocked in at 7 cents a year. A plump year offered a 107% increase. While it's true that 2008 was a tough year for natural gas, NGLs (APL's primary product) are up 50% from their December lows. Aside from price recovery, there's another catalyst for dividend growth. Given the prime location of its pipelines in Appalachia, you have every reason to expect an increased dividend payout down the road.

War horse Leon Cooperman, shares my interest in APL. He is one of the great living investors. At a recent Manhattan value investors' conference, Cooperman confessed, "This is the most difficult environment I've lived through. And I've been doing this for 41 years." But when he got to talking about getting 20%-plus on your money with APL, he had this to say: "At my age, it's better than sex, but that's just me."

Why does he think Atlas is on sale? Thank collapsing hedge funds the most. These guys have been forced to sell even their best positions to cover losses in other areas. Cooperman thinks this stock is worth $46 easily. My original estimate was $48. That's nine times what it trades at today. So why not consider a stock trading at so steep a discount to book?

Don't forget the great yield -- that's poised to increase. Even if that dividend stays right where it was last quarter, you could still make back today's investment in under four years -- just through the dividend alone.
Recommendation: Buy Atlas Pipeline Partners (APL: NYSE).

Hot Stocks 2009 No.2 U.S. Cellular 8.75% Senior Notes due 11/1/2032 (NYSE: UZG, $20.25)
by Nilus Mattive

Famed investor Warren Buffett made a telling remark on the kind of returns he hopes to achieve in today's tough markets: "We would be very happy if we earned +10%, pre-tax," he told shareholders at Berkshire Hathaway's (NYSE: BRK-B) annual meeting last May. Co-Chairman Charlie Munger quickly concurred, "You can take what Warren said to the bank... and I suggest you adopt the same attitude."

Well, my recommended security for this market bests Warren Buffett's benchmark. It offers secure yields of better than 16%. And we do mean secure -- as in legal obligation.Although this security trades like a stock every day on the New York Stock Exchange, it's actually a bond, not a stock. That means your quarterly interest payments have top claim on the company's assets, ahead of any common or preferred share dividends if the company runs into trouble. That kind of security is comforting in today's turbulent times, but it's hardly necessary for America's sixth biggest wireless firm. In fact, credit rating agency Standard & Poor's is so confident in this firm's financial position, it just upgraded the company's credit quality to investment grade "with positive out look," meaning the rating could be raised in one to three years.

The upgrade and positive outlook mean that any such bonds the company may issue in the future will most likely offer a lower interest rate than this high-yielding security. That's because today's featured security was issued in 2002, when the company was considered higher risk and needed to offer a higher rate in return.
Consider, too, that this security is now trading at around a -19% discount from its $25 par value. It matures in 24 years and can be called at any time. Either way, sooner or later you will be getting back $25 per share plus any unpaid interest. Meanwhile, you'll be paid amply to wait. If this all sounds too good to be true, read on and decide for yourself...

Snapshot: These exchange-traded notes were issued in 2002 by regional wireless operator U.S. Cellular (NYSE: USM). The company is the sixth-largest wireless carrier in the country by number of customers. Its wireless networks serve 6.2 million customers, for an estimated 3% share of the U.S. wireless market. Headquartered in Chicago, the telecom carrier focuses on smaller regional markets mainly in the Midwest, including Illinois, Indiana, Iowa, and Wisconsin.

Key Statistics:
Security Type: Exchange-Traded Debt
Annual Dividend: $2.1875
Dividend Yield: 10.8%
Frequency: Quarterly
Credit Rating: Baa3/BBB

Wireless services account for about 93% of revenues, while equipment sales contribute the balance. Roaming revenues from other wireless carriers using USM's networks provide a 7% chunk of the company's wireless service revenue. U.S. Cellular is a subsidiary of rural fixed-line phone operator Telephone & Data Systems (NYSE: TDS), which owns 80.8% of the company.

Performance: U.S. Cellular has seen earnings grow an average of +50.2% a year over the past three years through December 31, 2007. U.S. Cellular has a strong balance sheet, which is supported by funding from parent company TDS. Its debt-to-EBITDA (earnings before interest, taxes, depreciation, and amortization) ratio, a measure of leverage, is less than 1.0. Meanwhile, debt is only around 20% of total capitalization. Both those measures are well below its regional wireless peers. Rival Leap Wireless (Nasdaq: LEAP), for example, carries a debt-to-EBITDA ratio of 6.4 times, and debt is 60% of total capitalization.

Hot Stocks 2009 No.3 Strike Gold with SPDR Gold Shares (GLD)
by Ian Wyatt

If the gains gold has made are any indicator of profits to come, I think SPDR Gold Shares (NYSE:GLD) is the golden ticket investors need to expose their portfolio to the safety and profits of the precious yellow metal.

Gold has been one of the best performing investments in a down market, and was one of the only investments to post gains in 2008, proving to be an excellent safe haven. Like U.S. Treasuries, the price of gold has rallied as investors fled equities and bonds, and sought safe investments. SPDR Gold Shares is an ETF that trades at one-tenth the price of an ounce of gold, and tracks the price movement of the commodity. The metal has most notably been on the rise, jumping 31% to $923 an ounce from the recent Nov. 13 low of $700 an ounce. As I mentioned in my weekly letter on Monday, I had been considering buying the Market Vectors Gold Miners Index (NYSE:GDX). However, this higher-risk, higher-reward investment has soared an astounding 74% from a recent Oct. 27 low, making it much riskier than GLD.

Through SPDR Gold Shares, I intend to take a cautious approach to gaining exposure to gold, given the big gains that the ETF has already experienced in the last few months. I plan to start with a small position of $2,000, and may add to the position in the future. I don't intend to have more than 5% of my portfolio invested in this position at any time.

For any Goldfingers out there, investing in SPDR Gold Shares is much like buying gold bars or coins, minus the headache of having to hold them in a safe or hide them under your bed. Using the fund, you have the added flexibility of being able to buy or sell at any time. The fund is backed by physical gold reserves, giving investors the security of buying the real commodity.

Many commodity prices dropped in 2008, including gold, which fell briefly in October and November of 2008. Don't let this brief decline fool you though - this is a long-term bull market for commodities, and gold will continue to perform well. As investors ditch low-yield U.S. Treasuries and seek other inflation-protected investments that can provide safety, gold appears to be the perfect investment.

The reckless monetary policy of the U.S. Federal Reserve will have its day of reckoning in the future, and investors who are long-gold and have investments that aren't tied to the greenback will be smiling in the years to come.

Let's face it: once the economy picks up, deflation will change into inflation. And hyper-inflation isn't far off, as a result of a U.S. government that continues to spend aggressively and issue more curren cy in a thus far failed attempt to jumpstart the U.S. economy. This anti-inflation investment allows investors in the United States to diversify out of the dollar and own an asset backed by a physical commodity that is likely to see greater demand with limited additional supply coming on line in the coming years.I plan to begin with a small position, which I may add to if I see a breakout in the price of gold. I'll also look to add to my position if prices consolidate, which I think is quite possible given the recent jump in price.

Hot Stocks 2009 No.4 How One Tiny Drug Developer Could Take Down The Industry Leaders
by Greg Guenthner

Grab Your Share of a $31 Billion Market In 2007, the global pharmaceutical pain relief market was worth approximately $31 billion. In the U.S., two-thirds of the dollar volume of the prescription pain medication market is for drugs used to treat chronic pain, with the remainder going toward drugs used for acute pain.
Javelin Pharmaceuticals Inc. (JAV: AMEX) designs products to fulfill unmet and underserved medical needs in the pain-management niche. The company is particularly focused on breakthrough cancer, post-operative, back, orthopedic injury and burn pains. Despite the advances in medicine, the company insists treatments for these types of pain continue to be an underserved medical need. That's where Javelin's lucrative new contract comes into play…

The company penned an agreement in January worth up to $71 million that includes double-digit royalties on future sales of its new pain drug, Dyloject. Javelin will receive roughly $12 million in upfront cash payments from European pharmaceutical developer Therabel for the commercialization rights for Dyloject, the flagship product in Javelin's current pipeline. Dyloject is an injectable form of diclofenac, which is a prescription anti-inflammatory drug often prescribed to treat postoperative pain.

Dyloject is undergoing Phase 3 clinical development in the United States - the drug is already available in the United Kingdom. During its pivotal U.K. registration trial, Dyloject's efficacy and safety were shown to be significantly superior to standard intravenous treatments currently marketed in the U.K.

A Faster, Better Treatment
The competition for Dyloject requires dilution and slow infusion into the patient. But Dyloject comes ready to use for immediate IV administration. Anti-inflammatory drugs such as Dyloject, along with opioids like morphine, are often used post-operatively. They help reduce opioid doses by as much as 50%, thereby decreasing morphine-related side effects on the patient.

Dyloject's most significant U.S. competitor in the injectable antiinflammatory category is ketorolac tromethamine. In January 2006, Javelin announced the results of a Phase 2b U.S. study in which Dyloject showed superior onset of action compared with ketorolac five minutes after intravenous injection.

Bottom line: This drug does what it is supposed to do. And it does it better than all of the leading competitors. That's the ringing endorseent for Dyloject…especially since it's awaiting approval in the U.S. U.K. Sales and European Agreement Are Signs of Things to Come Dyloject is already on the market in the United Kingdom, and sales have been growing at an impressive pace. The drug is now on the formularies of 73 hospitals in the U.K., 58 of which were considered gold accounts and 15 silver accounts. In the first nine months of its availability, Dyloject was accepted at 40% of their targeted accounts. The drug has been accepted at 95% of the institutions to which it's been presented. This, Driscoll believes, shows that Dyloject has value to clinicians. It will prove valuable to shareholders, too…

Since Dyloject was introduced to the market, sales of the drug have doubled each quarter. Although that may be a small sample size, it shows the growth potential of the product once it is introduced into a wider market.Javelin is on schedule to complete its studies on Dyloject and submit applications in late 2009 for approval in the U.S. and European markets. The partnership with Therabel helps Javelin accelerate this process.Javelin's a Bargain at Current Prices Javelin has put itself in a fantastic position to succeed. The company currently has $34.6 million in cash and equivalents and no long-term debt whatsoever. Its burn rate during the first three quarters of 2008 was $8.6 million. With $12 million in upfront cash from Therabel, the company is well positioned to wait out approval in the U.S. Javelin feels that the self-medication segment is an area of possible growth. It generally takes 15-20 minutes and sometimes as long as 40 minutes for commercially available oral pain medications to provide any meaningful relief. Javelin says that all three of its product candidates appear to work faster than the oral formulations of currently available prescription pain products. Dyloject has shown to relieve pain in as little as five minutes, a mark that has not been achieved by current injectable anti-inflammatory drugs.

Recommendation: Buy Javelin Pharmaceuticals Inc. (JAV: AMEX).

Hot Stocks 2009 No.5 Abercrombie & Fitch
by Bernie Schaeffer

At Schaeffer's Investment Research, we employ a 3-tiered analysis approach known as Expectational Analysis® (EA) that was created more than 2 decades ago. EA utilizes traditional methods of fundamental and technical analysis and combines these with a third, crucial look at investor sentiment. It is this third layer of analysis that provides a critical edge in selecting stock and option plays. Both anecdotal and quantifiable measures of investor sentiment provide a window into how the investing crowd perceives reality. These perceptions serve as powerful contrarian indicators, as the crowd tends to move as a herd and is, to paraphrase the venerable contrarian Humphrey Neill, "right during the trend but wrong at both ends." A look into the psyche of the collective investing masses, while also taking into account important technical and fundamental variables, can offer a reliable recipe for trading success.

The latest opportunity found by the EA methodology is Abercrombie & Fitch (ANF). According to Hoover's, Abercrombie & Fitch (A&F) sells upscale men's, women's, and kids' casual clothes and accessories. The firm has 1,000-plus stores in North America (mostly in malls) and also sells via its catalog and online. It targets college students, and has come under fire for some of its ad campaigns, as well as for some of its short-run products. The company also runs a fast-growing chain of some 450 teen stores called Hollister Co., and a chain targeted at boys and girls ages 7 to 14 called abercrombie. RUEHL, a Greenwich Village-inspired concept for the post-college set, debuted in 2004.

In early February, earnings rolled in from the trendy retailer, surpassing the consensus estimate. For the fourth quarter, the company posted a profit of $68.4 million, or 78 cents per share, compared to its year-ago profit of $216.8 million, or $2.40 per share. Excluding impairment charges and costs tied to a new employment agreement with its CEO, the retailer boasted a profit of $1.10 per share, beating the Street estimate for a profit of $1.01. Sales fell 19% to $998 million, said the company. ANF stated that it would not issue an earnings forecast for fiscal 2009, citing a tough year ahead. The company said it expects a difficult selling environment to continue.

Abercrombie forecasts capital expenditures of $165 million to $175 million in fiscal 2009, a major portion of which is tied to new stores and remodeling.
Technically speaking, the security gapped sharply higher on the earnings report, gaining more than 10% amid broad market weakness.What's more, this significant bullish gap has placed the equity above resistance at its 80-day moving average. This short-term trendline had capped the shares' recent rally attempts.

As followers of the EA method, we ideally like to see solid price action persist against a backdrop of skepticism, as this implies that there could be additional money waiting on the sidelines that hasn't yet been committed to the bullish cause. It seems as though there is plenty of room on the bullish ANF bandwagon. Options players have leveled some heavy bearish bets against the stock in an attempt to call a top to its uptrend. The Schaeffer's put/call open interest ratio for ANF stands at 1.28, as put open interest outweighs call open interest among near-term options. This reading is also higher than two-thirds of those taken during the past year, indicating extreme skepticism among short-term options speculators.Meanwhile, Wall Street has yet to fully jump on this outperforming security. According to the latest data from Zacks, 14 of the 19 analysts following ANF rate it a "hold" or worse. Any upgrades from these remaining holdouts could help to propel the shares higher during the long term.

Overall, this combination of pessimistic sentiment against the stock's backdrop of improving earnings and strong technicals has bullish implications from a contrarian perspective. As investors unwind their bearish bets and jump on the stock's bandwagon, they will help to push the security even higher.

Hot Stocks 2009 No.6 Redefining Pharmacy Benefit Managment
by Ian Wyatt

The way I see it, even through current market malaise, SXC Health Solutions (Nasdaq:SXCI) is standing firm with its two corporate feet firmly planted in two complementary arenas: it's providing pharmacy benefits management services and developing the technology engine needed to keep costs under control.
Bringing down health-care costs remains a hot-button issue, as the baby boomers reach retirement age, Medicaid and Medicare grow, and drug costs continue to rise.

SXC Health, formerly known as Systems Xcellence, is a niche player in the benefits marketplace. Headquartered outside Chicago, SXC Health is a provider of health-care information technology solutions and services to providers, payers and other participants in the pharmaceutical supply chain in North America.

SXC Health is redefining pharmacy benefit management (PBM) by providing a broad range of pharmacy spend management solutions and information technology capabilities. The company is a leader in delivering an innovative mix of market expertise, information technology, clinical capability, scale of operations, mail order and specialty pharmacy offerings to a wide variety of healthcare payor organizations including health plans, Medicare, managed and fee-for-service state Medicaid plans, long-term care facilities, unions, third-party administrators and self-insured employers. In essence, the company's services allow customers to make good decisions and save money.

SXC Health's informedRx business sells management services mostly to government and universities, while its Healthcare IT Group develops the technology behind the services and provides a revenue stream via software licensing.

SXC's recent acquisition of National Medical Health Card Systems expanded its informedRx services, which is a broad, flexible suite of à la carte PBM services, which provide flexible and cost-effective alternative to traditional PBM offerings. The acquisition is an essential step in SXC Health's strategic evolution toward being a leader in pharmacy spend management, and gives the company's customers the chance to pick and choose what services are right for them. SXC Health is the only company in the PBM space to offer its clients such a broad portfolio of solutions SXC Health's technology touches close to 1 in every 4 of the estimated 3.5 billion prescriptions written in the United States annually - a plus considering that the health-care sector and health-care IT industry will outperform the market for the next few years.

The company also stands to benefit from demographic and political trends, in that the population is aging and pharmaceutical companies will need SXC's products and services. Also, the new administration has vowed to digitize the health-care system. Both of these trends will positively influence SXC Health's earnings.
In the quarter ended Sept. 30, 2008 earnings were $3.5 million, or $0.15 per share, up from $2.7 million, or $0.12 a year ago. Revenue increased to $318.1 million from $22.2 million. SXC increased full-year EPS guidance to $0.54 to $0.58 a share, from its previous estimate of $0.41 to $0.50. Additionally the company narrowed revenue estimates to $840 to $855 million, from $825 million to $875 million. We forecast the company will earn $0.59 EPS in 2008 and grow EPS 50% in 2009 to $0.88. We expect revenues will be $854 million this year and increase 52% to $1.3 billion next year. The company has made brilliant acquisitions in recent years, which have made it one of the primary players in pharmacy spend management services and information technology solutions.

The company was recently trading at 32 times current year EPS and 22 times forward EPS. These are high multiples in the current environment, but SXCI shares are worth every penny. In fact, shares are worth more. We estimate fair value to be $28 based on EPS and revenue growth projections.

Hot Stocks 2009 No.7 Power Lines and Trees: A Dynamic Duo for Income And Growth
By Justice Litle

They may not be sexy, but it's hard to go wrong with trees and power lines. In fact, we'll be using that unlikely duo to execute this "perfect inflation hedge."
Brookfield Infrastructure Partners (BIP:NYSE). BIP is a limited partnership (though its cash flows are not subject to the same tax treatment as MLPs, or Master Limited Partnerships).

Brookfield Infrastructure Partners (BIP) is a spin-off from a much larger mother ship, Brookfield Asset Management (BAM:NYSE).While little BIP is small and scrappy at $316 million, mother BAM boasts a far larger market cap of $9.5 billion.As a publicly traded partnership, 50% of BIP is owned by investors like you and me. Forty percent is owned by BAM, the parent, and the last 10% is owned by Brookfield directors and management.

BIP was spun off from the BAM mother ship with the intent of being a "pure infrastructure play." The far larger BAM has all sorts of assets on its balance sheet; through the creation of a stand-alone entity, BIP offers a way to pick up direct infrastructure exposure.BIP's primary assets are electricity transmission lines and timber, and they are distributed across North and South America. On the electricity side, BIP owns roughly 5,500 miles worth of transmission lines (power lines) in Chile and Canada (Northern Ontario). Additional power lines in Brazil were sold at a considerable profit in the third quarter of 2008.

BIP's transmission lines are part of a regulated monopoly, which means no competitor can muscle in. As of March 2008, these assets had a recorded book value of $330 million -- more than the value of BIP's current market cap. Using the Brazilian asset sale as a benchmark -- in which BIP fetched a 40% gain over book price -- its likely current holdings have a far, far higher value than the old numbers reflect.

A Toll Road for Electrons
Power lines are a great business. Just as you have to drive to work each day (unless you're retired or work from home), the electricity has to move from the power plant to your house (or the office building, the factory and so on).

Here's why you want to own power lines:
They require very little maintenance and upkeep, so most of the cash flow goes right into the owner's pocket.
Because people and businesses are steady in their use of electricity, those cash flows are very stable.
As inflation rises, steady price increases can be pushed through as part of the contract.

Additionally, BIP will have the chance to build out its electricity transmission networks at attractive rates of return over time. The only thing better than a strong, stable, cash-flow-producing business is a business that can expand on the same great terms. As emerging markets resume their upward trends, electricity use will go up too... and this can only be good news for BIP.

An Infinite Resource
The other thing BIP owns is timber -- more than 1.2 million acres in Oregon,Washington state, and coastal British Columbia. The nice thing about timberland is that, when managed properly, it's an infinite resource. Unlike metals or fossil fuels -- which eventually run out and leave a site in decline -- trees can grow back.
As with electricity, BIP's parent company (and 40% owner) offers four decades of experience owning and operating timberlands. This gives BIP an edge in key areas like harvest planning and managing the product mix.

BIP's acreage is concentrated in premium timbers like Douglas fir and hemlock. In addition, the close proximity to the coast gives BIP an edge on the export side of the business.

Timberland tends to rise in value over time because, unlike the currency spit out of a printing press, they just aren't making any more of it. Timber's uses are many and varied for the global economy, and, like power lines, timber has the advantage of being a high-margin, low-upkeep business.

When prices are high, BIP can cut more timber. When prices are low, they can cut less (saving costs) and let the acreage value appreciate. The timber itself is a renewable resource, and BIP has the ability to book capital gains through the occasional sale of choice parcels for land redevelopment.

An Exceptional Value
Investors are coming back to their senses, snapping up assets that got insanely cheap. BIP's parent could well be buying back shares too, figuring it's crazy to leave them out on the market at such a tempting price. Back in March of 2008, management gave an estimate of BIP's book value (the value of the underlying transmission and timber assets) at $24 per share. I think that is not only a reasonable estimate; it is more than likely a conservative estimate. BIP could easily be worth $25 to $30 per share.

As we prepare for a central-bank-induced inflation deluge, stable, cashflow producing infrastructure assets will only increase in value. Power lines and trees will never go out of style... and the stream of income collected from those assets will only keep ticking up year after year. Buy Brookfield Infrastructure Partners (BIP:NYSE) at $18 per share or better.

Hot Stocks 2009 No.8 Big Profits from Downsizing
by Stephen Rawls

All Americans are changing their spending habits as the economic recession hits home. We're adjusting to the idea of driving the car an extra year or more, to buying clothes at Sears instead of Joseph A Banks, that sort of thing. And while our change in spending habits hurts some, it helps others. As investors, we need to focus on those companies well positioned to profit from these changes. Those companies well positioned to profit from the fundamental changes in the American lifestyle.
One of the major changes that we're seeing now is a turn by the American consumer to private label brand foods to feed their family. As a result, one of the big beneficiaries of this move is American Italian Pasta Company (AIPC), the nation's largest manufacturer of dry pasta. Sales are booming. And so is the stock.

What makes American Italian Pasts so interesting is that it's booming because of several trends. The first is the aforementioned transition to private label foods. A second favorable trend is that consumers are moving away from a meat and potatoes diet to something less expensive, like pasta. And, finally, the low-carb "Atkins diet" fad is now history. Even more amazing in the recession of 2009, American Italian Pasta has actually been able to raise their prices while sales increased! Sales of pasta products in the United States rose 5% last year to $6.4 billion. During that time, American Italian was able to raise prices faster than their costs increased.
For the first quarter 2009, American Italian Pasta earned a whopping $1.23 EPS, up from 2008's first quarter EPS of 43 cents. Retail revenue for the quarter rose 56% to $136.1 million, while cost of goods sold rose only 40%. Overall volume for the company was up some 13%.

From a technical standpoint, American Italian Pasta seems to defy the overall market, making new highs as recently as February 25th. The company is a newly listed issue on the NASDAQ, beginning trading there on November 14, 2008. The company is trading above its 50-day moving average and gapped higher on February 12th after releasing its first-quarter earnings. Since then, the stock hasn't looked back.

With no upside resistance to speak of, the critical technical support level comes in the gap between $27.00 and $29.19. Given the strong earnings report on February 11th, I wouldn't expect the stock to violate this gap. Prospects for the company seem very strong and the company appears able to deliver on those prospects.

Pricing power is something almost unheard of in the economic climate of 2009. And that's one of the things that impresses me the most about American Italian Pasta - it has the ability to increase sales, while raising prices.

One other factor that hasn't yet been considered by most analysts, I believe, is that the cost of raw ingredients, which had been going up for most of 2008, are now in retreat.With higher prices already in effect, any fall in cost of goods sold will reflect directly in higher profitability for the company.

In summary, with American Italian Pasta, you have a company that's benefiting from multiple trends working in its favor. Fundamentally, the ability to raise prices and not affect sales is amazing. With more Americans "trading down" their eating habits, this trend to higher sales shows every indication of continuing. And with their raw ingredient prices now falling, the company will not have to raise prices in the near future to stimulate growth. Rather, the profits for the second quarter of 2009 will come from higher prices already in place, accompanied by falling ingredient prices.From where I sit, American Italian Pasta Company looks like a rare winner in 2009.

Hot Stocks 2009 No.9 Looking for Safe Stocks? Try Channeling Ben Graham
by John Reese

When I began conducting extensive research into the strategies used by some of history's greatest investors some 12 years ago, one thing quickly became apparent: Many of these Wall Street stars, including Peter Lynch, Warren Buffett, and Benjamin Graham, built their fortunes and reputations not by relying on some sort of investing "sixth sense", but instead by using approaches that were mostly or completely quantitative. They stuck to the numbers, never letting emotion influence their decisions.

That was great news to me. Because of my background in computer science and artificial intelligence, I was able to develop sophisticated but easy-to-use models based on these gurus' quantitative approaches.

Today, these models power the research and analysis on my web site, Validea.com, allowing everyday investors to take advantage of the strategies that some of history's most successful stock-pickers used. Since I started tracking them nearly six years ago, portfolios built using each of my eight original "Guru Strategies" have all significantly outperformed the market.

For some top picks in today's market, let's turn to my top-performing strategy -- one that, interestingly, is inspired by what is far and away the oldest of these methodologies, the approach of the late, great Benjamin Graham. Known as the "Father of Value Investing" -- and the mentor of Warren Buffett -- Graham detailed his strategy in his 1949 classic The Intelligent Investor. Six decades later, my conservative Graham-based model is up almost 70 percent since its July 2003 inception, while the S&P 500 has fallen more than 22 percent. Last year, while the market tumbled close to 40 percent, my Graham-based model sustained well less than half of that decline.

One stock my Graham model is particularly high on right now:
Ameron International Corporation (AMN), a California-based firm that makes water transmission lines, fiberglass-composite pipe for transporting oil, and infrastructure-related products like ready-mix concrete and lighting poles -- just the kind of company that could benefit from the federal stimulus package's infrastructure funding.

Having lived through both his own family's fall from financial grace (following his father's death when Benjamin was a young man), and, later, through the Great Depression, it's no surprise that Graham focused as much on preserving capital and limiting losses as he did on producing big gains. He liked stable, conservatively financed companies, not speculative gambles, and Ameron fits the bill. One example of why: its strong current ratio of 2.87. Graham used the current ratio (current assets/current liabilities) to get an idea of a company's liquidity (and the credit crisis has shown us all how important liquidity is).

Companies with current ratios of at least 2.0 were the type of financially secure, defensive, low-risk plays he liked, and Ameron makes the grade.Another way Graham targeted conservative firms was by making sure long-term debt was no greater than net current assets. Ameron has just $36 million in long-term debt and almost $300 million in net current assets, a great sign.

The other main part of Graham's approach was making sure a stock had what he termed a "margin of safety" -- that is, its price was low compared to his assessment of the intrinsic value of its underlying business. Stocks with high margins of safety have downside protection -- they're already selling at a discount compared to their real value, so even if problems occur and earning power declines a bit, the stock still might gain ground because it's so undervalued to begin with.
To find undervalued stocks, Graham looked at both the price/earnings ratio (the model I base on his approach requires the greater of the stock's current P/E or its three-year average P/E to be no greater than 15) and the price/book ratio (which, when multiplied by the P/E, should be no greater than 22). Ameron's P/E (using the higher three-year figure) is just 8.2, and its P/B is just 0.99, indicating that the stock is a great value.

In addition to Ameron, here are a couple more of myGraham model's current favorites:
Schnitzer Steel Industries (SCHN): Hammered when commodity prices began to tumble last summer, this Oregon-based firm has made a big rebound since late November, and my Graham model thinks it has a lot more room to grow. It has a current ratio of 3.2, just $106.1 million in long-term debt vs. $338.5 million in net current assets, and bargain-level P/E and P/B ratios of 5.8 and 1.01, respectively.

National Presto Industries (NPK): Talk about an eclectic group of business segments. This Wisconsin-based firm's housewares division makes small appliances and pressure cookers; its defense segment makes ammunition, fuses, and cartridge cases; and its absorbent products division makes adult incontinence products and baby diapers. Its fundamentals are exceptional -- current ratio of 5.23, P/E ratio of 14.5, P/B ratio of 1.49 -- and, the firm has no long-term debt.

Hot Stocks 2009 No.10 Hedged Investing with Hussman Strategic Growth
by Ian Wyatt

When I recently discovered the Hussman Strategic Growth fund, it was love at first sight. Hussman acts like a hedge fund, providing the fund managers much flexibility in the investment instruments and strategies utilized to capitalize on rapidly changing markets like those we are currently experiencing. Manager John Hussman's disciplined strategy has navigated the mutual fund toward calmer waters amid choppy market conditions, a testament to the fund's ability to achieve remarkable performance in down markets.

Although Hussman receives the advice of key personnel on the fund's board of trustees and at Hussman Econometrics, this mutual fund depends heavily on Hussman himself. He also invests all of his personal liquid assets (outside of cash and money market accounts) in his two funds, clearly aligning his personal interests with those of fund shareholders. Hussman Strategic Growth invests primarily in U.S. stocks with the objective of longterm capital appreciation. It currently has 116 long holdings that include the likes of Johnson & Johnson (NYSE:JNJ), Nike, Inc. (NYSE:NKE ), Amazon.com, Inc. (Nasdaq:AMZN), Coca-Cola (NYSE:KO) and Best Buy Co. (NYSE:BBY). Hussman goes long on individual positions, and can leverage using equity call options. Ninety percent of the fund's net assets are tied up in stocks while the remaining 10% is sitting in cash.

Hussman was down only 9% in 2008, a performance that was the envy of most fund managers, especially in light of the 37% drop in the S&P 500. In the previous bear markets of 2001 and 2002, the fund was up a whopping 14% in each of those years. Because the fund is so risk-averse, its short-term track record may limp in bullish environments, but its long term performance is where investors begin to see solid profits. Given the current state of the market, and the fact that my outlook calls for a range bound and volatile stock market in 2009, Hussman Strategic Growth fund is a solid place to have capital invested.

John Hussman develops a risk versus reward profile for the current market climate, identifying economic trends and valuing individual stocks based on their expected streams of cash flow. For much of the past decade, Hussman has considered most stocks overvalued and did not think they were providing enough reward given their high level of risk.To preserve capital, he hedged the portfolio against market risk by shorting indexes such as the S&P 100. As a result, the fund has been fairly uncorrelated to the whims of the market and has been shielded from the heavy losses many funds have faced.

Since its July 2000 inception, the fund's 8.9% annualized return has outpaced the S&P 500, which lost 4.4% annually over the same period.Performance in 2009 appears to be holding up, with year-to-date returns of 0.25% versus a loss of 8% for the S&P 500 index. Morningstar calls Hussman "one of the steadiest and cheapest options in the fledgling long-short category," and gives the fund a 3-star rating.

Hussman's claimed approach of "investing for long-term returns while managing risk" is in perfect alignment with my aggressiveapproach to conservative investing. I, too, aim to find opportunities for long-term capital appreciation, while limiting downside risk through portfolio diversification and aggressive risk management. The fund is currently taking a very conservative approach to equities, which makes sense given the performance last year. With the bleak prospects for global growth in 2009, this fund should perform well in horizontal or down markets, making it a nice fit within the equity portion of my Recovery Portfolio. Additionally, the fund's flexibility should allow it to perform nicely once stocks begin their recovery.