Marvin R. wrote: Assuming future inflation in the U.S. economy, what are your long term views on i) foreign oil producers and ii)foreign and domestic electric utilities? Are these good inflation hedges?
Oil producers are a good inflation play, whether they are foreign or domestic. I prefer domestic, because I don’t want to be victimized by government intervention. It seems to me that oil will be an increasingly valuable commodity. I can even imagine that exports could be curtailed at some point to meet a country’s own demand. That’s one reason I like the Bakken producers so much.
Utilities, on the other hand, are not good inflation hedges. They are capital intensive and must borrow frequently. Higher interest rates as a result of inflation do not help them.
Tom M. wrote: I’ve been a subscriber to various [other newsletter publisher] products for over a year. He has so many newsletters and individuals writing with differing opinions, that it’s always possible for him to quote whoever correctly called a given stock move stating this his service was 100% right. The problem rest with those of us who might have followed the other individual that did exactly the opposite and lost. All of [his] emails, commentaries, videos, etc are almost to the point of being silly and ignored although I keep listening hoping to learn something about how to shelter what savings I have from the crash I see coming.
I listened to your video and have studied your writings. What I don’t understand is how you say this is not a buy and hold market. That profits should be quickly taken in a matter of days then at the same time say that you only offer one purchase offer a month. I can’t resolve how both of these statements can be true at the same time.
While I’m interested in finding one individual who is successful and I can trust, I along with scores of others, are sick to death of being inundated with offer and offer to purchase this service, then later told to get the really good advice, we have to purchase yet another service from the same provider; and then learning that the very best advice comes from yet another service we need to purchase. It really is frustrating so I hope you can understand my reluctance to get involved in anything else. I’m not trying to be a smart ass. I really would like to know why I should concentrate on your service rather than someone else’s.
Thanks for the note, Tom. I can understand your frustration. And I’ll try and help. Like most companies, Wyatt Investment Research offers different products, because investors have different needs. Nike (NYSE:NKE) makes running shoes and basketball shoes. I offer a dividend advisory service and a trading service.
What’s more, I have different analysts who contribute, and their perspectives sometimes differ. Frankly, I think a healthy debate about what’s going in the economy and stock market is a good thing. After all, there’s more than one way to skin a cat…
Also, my company advertises each product based on its merits. No one will be 100% right all the time.
I realize this does put the onus on the subscriber to find the service that fits his/her needs. Every service I offer I have has a full money-back guarantee policy. This is specifically designed so you can "test drive" a service and see if it’s right for you.
Barry S. wrote: I can’t believe you said Greece’s only option is austerity. Austerity in Greece will lead to default ultimately. Just too much debt to ever repay. Not the technical default of spreading out payments for decades being agreed to by European banks right now. But real cancellation of large amounts of debt. Greece would be better off if they did it a year ago (see Iceland). Now it is getting pushed off into the future again. By the way, Greece has defaulted many times in the past.
The US will face the same issues. Our debt is bigger (as a percent of GDP when you include Social Security and Medicare calculated like the Fed requires companies to account for debts) than Greece’s. Bernanke’s printing press has staved off the inevitable for now. Our socialist spenders (Congress) have doomed us.
Iceland certainly serves as an example of what happens when a country takes its medicine. In Greece’s case, default would have already happened if it were not an EU member. (And it wouldn’t have become an EU member if Goldman Sachs (NYSE:GS) hadn’t helped it cook its books.) But since Germany and France are already its biggest creditors, they are helping force the bailout/austerity.
But default is part of the Greek bailout plan. Of course, they are calling it debt restructuring. It still means creditors will not get all their money back. Fitch ratings agency has even adopted the term "disorderly default" to clarify the situation.
And yes, the U.S. does face seemingly insurmountable debt issues, when you take future social security and Medicare obligations into account. Part of me would like to see the U.S. default just as a little payback to the Chinese, but I know it won’t happen…
As always, feel free to write me anytime at [email protected].