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CNBC’s Jim Cramer: “Everybody Wishes Obama Would Just Kind Of Go Away.”

Jim Cramer Video

Obama and Congressional leaders from both parties are in cahoots with environmental extremists.
They’re hatching a diabolical plan. A “Stealth Tax,” you might say.
It won’t raise a single tax rate. But it could yank an average $2,927 out of your pocket every year.
How will you feel $2,927 poorer? Like this:
And it’s not just energy costs.
The cost of everything else you buy goes up too… because it takes energy to make it and transport it.
Add it all up, it could reach as high as $2,927, straight out of your pocket.
Every year.
But that’s just the average. It might be even worse for you.
How bad could it be? I’ll show you.
Look below, where I’ve included a state-by-state chart… so you can find out how hard it could hit where you live.
Now I don’t know well-heeled you are. Or how big a bite that would take out of your lifestyle.
But as far as I’m concerned, any more money that we fork over for Washington, D.C.’s idiocy is outrageous. And I bet you think so too.
So you face a decision: You could fork over as much as $2,927 to Washington, D.C. every year, from now until forever, and just accept it. Or you can take proactive steps that could recover every penny. And then turn it into as much as $63,359.
Just know this: The “Stealth Tax” is nearly a done deal… thanks to years of pushing and prodding by environmental extremists.
Obama’s behind this money grab all the way. “Delay is no longer an option. Denial is no longer an acceptable response,” he said in November.
Congressional leaders are behind this “Stealth Tax,” too.
In fact, Democrats just removed the one committee chairman who would have stood in the way ― and replaced him with an environmental zealot.
Point is, there are just too many powerful forces in play to stop the “Stealth Tax.”
But here’s an even more important point: You can take steps today to protect your hard-earned wealth from what’s coming.
Today you could bullet-proof your balance sheet from what’s on the way… and even turn that $2,927 loss into a $63,359 gain. You could make your money back 21 times over.
But first, you need to know exactly what Washington has in mind. And how it could turn the worst recession of our lifetime into the next depression.
How Politicians Want to Turn This Recession Into the Next Great Depression
Here’s what really chaps me about this “Stealth Tax.”
Here we are in the worst financial crisis since the Depression. And they’re talking about a massive, behind-your-back tax increase. Even worse, this tax increase could…
Kill off 850,000 jobs by 2014… and 1.8 million more jobs by 2020
That’s 1.4% of all American jobs, vaporized
Shrink the U.S. economy $116 billion by 2014… and another $116 billion
by 2020
That’s on top of how much it’s shrinking already
Shrink the output of U.S. industry by 3.7%
American manufacturing hollowed out even more than it is now
Jack up gasoline prices 69%
And as I said earlier, rob the average household of as much as $2,927 every year
In short, what’s already the worst recession in decades would be certain to turn into the next Great Depression.
All of it because of a sneaky tax increase that Congress doesn’t even have the honesty to call by its proper name.
I’m not pulling those numbers out of my rear end, by the way. I have a stack of four studies here on my desk.
Each was done independently, so the numbers vary a bit.
But every one of them reaches the same conclusion: This “Stealth Tax” will absolutely crater what’s left of the U.S. economy.
Factories closed forever.
Millions of people jobless.
Gasoline unaffordable.
And as much as $2,927 of your annual income, sucked out of your pocket every year.
And yet… while fortunes will be lost during this meltdown, even greater fortunes will be made. I’ll show you exactly where they could be made… and where you could grab your share.
Look, there’s no stopping this train. The “Stealth Tax” is coming as sure as the sun will rise tomorrow. Washington will seize a portion of your wealth to make this happen. Perhaps as early as April 2.
And they’ll do it without raising a penny of income tax, Social Security tax, gasoline tax, or any other tax. That’s what’s so devious, so disgusting. That’s what makes it a “Stealth Tax.”
So you need a plan to recover the wealth they’ll steal from you. And then multiply what you’ve recovered. As much as 21 times over.
I’ll show you exactly how you could do this… once I lay out the details of what the politicians have planned. Because only then will you know just how dire this situation is.
How the Environmental Extremists Are About to Get Their Way
Look, I don’t know how you feel about global warming.
I’m not here to preach either side of the argument.
This isn’t about whether the earth is getting warmer. Or whether humans are responsible for it.
This is about a group of EnviroNazis who think they’re the only ones who have a solution.
They’ve had this “Stealth Tax” in the works for over a decade.
Maybe you’ve heard of their scheme by another name. They innocently call it “cap and trade.”
It’s insanely complicated. They deliberately make it that way to silence their opponents.
But the gist of it is this. Washington will dictate to nearly every American business how much carbon dioxide it’s allowed to generate.
Big government will put a “cap” on everyone’s greenhouse gas emissions.

Even if you believe the earth is getting warmer and humans are responsible for it, there’s got to be a better way of fighting it than this.
But this is what the EnviroNazis want. And now, it’s what they’re going to get.
This isn’t something dreamed up by a think tank that hasn’t been put into legislation yet.
This was something that actually reached the floor of the Senate during 2008.
Republican opposition stopped it that time. But now Democrats have bigger majorities in both houses of Congress.
And many Republicans support the “Stealth Tax” too. One of them co-sponsored the bill. And on the campaign trail, John McCain spoke up for it just as much as Barack Obama.
And now, one of the last lines of defense against this bill has just been wiped out.
The Last Line of Defense Against the “Stealth Tax” Just Got Booted Out of Power
For three decades, the top-dog Democrat on the House Energy and Commerce Committee was a Congressman from Detroit, John Dingell. He knew the “Stealth Tax” would kill the auto industry and he fought it big-time.
Guess what just happened?
House Democrats kicked Dingell out and replaced him.
Who’s his replacement?
The king of EnviroNazis himself, California’s Henry Waxman.
The New York Times calls Waxman “the darling of environmentalists and the liberal wing of the party.”
As soon as he won the post, he said. “We have a new opportunity that maybe comes only once in a generation.”
And believe me, he and the rest of the EnviroNazis will make the most of it.
And it’s no better in the Senate. Who’s the chairman of the Senate Energy Committee? Another EnviroNazi from California, Barbara Boxer.
They don’t care that their schemes will send gas prices back into the stratosphere.
They don’t care if your light and heating bills jump by more than a third.
They don’t care if their “Stealth Tax” costs you as much as $2,927 every year ― or more.
All they care about is enacting their extremist taxation schemes.
And here’s the kicker. Some of the biggest businesses in America are lining up behind the “Stealth Tax.” Nike, Starbucks, Levi Strauss, Sun Microsystems. They’ve formed a coalition to lobby for cap-and-trade.
If major U.S. businesses support the “Stealth Tax,” I don’t know who’s going to stop it.
And you have very little time to prepare for as much as a $2,927 annual hit to your income.
In fact, you need to start making plans today. Even if you’re still trying to get your 2008 tax returns in order for the April 15 deadline.
Let me tell you why Congress could act as early as April 2.
Why the “Stealth Tax” Could Be Enacted As Soon As April 2
In the next few days ― probably no later than April 2 ― the Environmental Protection Agency is expected to make a big announcement.
The EPA will likely declare it has the authority to regulate carbon dioxide ― “greenhouse gases” ― the same way it regulates air pollution under the Clean Air Act of 1970.
This would be huge. It would give this one agency sweeping powers over “transportation, manufacturing costs and how utilities generate power,” according to the New York Times.
And more importantly, according to the paper, “it could accelerate the progress of energy and climate change legislation in Congress.”
Legislation including, of course, the “Stealth Tax.”
Why April 2? It’s the second anniversary of a Supreme Court ruling that ordered the EPA to decide whether carbon dioxide is a form of pollution.
And with Obama’s commitment to the “Stealth Tax” already in place… there’s no mystery how the EPA will decide.
It’s this simple. Cap-and-trade is coming. The “Stealth Tax” is coming. You need to prepare yourself.
And here’s how.
How to Protect Your Wealth from the “Stealth Tax” � And Even Turn It to Your Advantage for Triple-Digit Gains
You’ve got to turn the “Stealth Tax” to your advantage.
See, you can actually reverse that flow of money out of your pocket.
You can stick it to the feds. You can reclaim that $2,927 the “Stealth Tax” could take away. And then you can take that $2,927 and multiply it as much as 21 times over.
How, you wonder?
Think about it.
The new president wants to create five million new “green jobs.”
What would those workers do?
They’d install insulation to make homes more energy-efficient.
They’d install wind turbines.
They’d rebuild our crumbling electrical grid.
And the new president is willing to spend your tax money freely to do it. $150 billion by some estimates. Starting with $15 billion already penciled in to the budget blueprint for the coming year.
That means the companies that create all these “green jobs” are in line for a $150 billion payday.
Invest in those companies, and you stand to make government-sponsored gains.
Let me be really clear. It doesn’t matter whether or not you think this is good “policy.” This is where the money is going to flow in the years ahead.
You need to set yourself up so you can collect your fair share. Because if you don’t, you could be out as much as $2,927 every year.
And if you play this just right, you could collect a lot more than $2,927 every year. You could make 21 times that amount. You could make back all your losses from the “Stealth Tax”… and every other tax you pay Uncle Sam.
Wouldn’t that sort of payback be nice?
Sure, you say, but what companies stand to make a killing from all this?
Where’s the best place to put your money to get your “Stealth Tax” rebate?
Yes, there’s solar power. And wind power.
And those will have their place in the years ahead.
But I know about an even better opportunity.
This is your single best shot at reclaiming the money the feds will take out of your pocket with the “Stealth Tax.”
Act before Congress does… again, it could be as early as April 2… and it could mean a payout of $63,359.
Or even more.
Better Than Solar. Better Than Wind. How “Sonoma Steam Power” Will Put the Money in Your Pocket the “Stealth Tax” Took Out
What if I told you there was a renewable energy source that’s both…
More reliable than solar and wind
More pleasing to the EnviroNazis
Yes, believe it or not, some EnviroNazis don’t like solar and wind.
The photovoltaic cells that make solar power use toxic metals like cadmium and selenium. They’re hard to recycle.
And EnviroNazis nearly stopped a project to build solar panels in the California desert. The reason? It would threaten the habitat of the ground squirrel!
Wind power? Chances are you’ve heard how birds fly into the turbines and the blades shred them to death. So EnviroNazis don’t like that either.
Plus the turbines are ugly and noisy. That’s why the Kennedy family tried to kill a wind project off the coast of Cape Cod.
There’s even evidence they can cause migraine headaches.
But there’s one power source even the EnviroNazis can like.
And guess what? It’s even more reliable than solar and wind.
After all, the sun doesn’t shine at night. The wind doesn’t blow all the time.
But this power source is always on. 24/7.
It’s your single best defense against the “Stealth Tax.”
This Discovery from Gold Rush Days Can Deliver Your “Stealth Tax” Rebate
This power source has been around as long as the sun’s been shining and the wind’s been blowing.
But no one caught on to its potential until around the time of the California Gold Rush.
And the man who discovered it was no scientist. He was an adventurer named William Bell Elliott.
One day in 1847 he was out hunting bears in what is now California wine country. He climbed up a step embankment. He rounded the corner of a canyon. And suddenly, he found himself barely clinging to rocks above a 1,500-foot drop.
At the bottom of that drop was… nothing. Nothing he could see except roaring, steaming vapor.
William Bell Elliot was certain he’d glimpsed the gates of hell.
He recovered his footing and lived to tell about it. He called the area “The Geysers.”
Soon a developer built a resort around these massive hot springs. It too was called The Geysers. Among its famous guests were Mark Twain, J.P. Morgan, and Theodore Roosevelt.
In the 1920s, a businessman named John Grant bought the resort and remodeled it. But he had bigger things on his mind.
He figured the hot springs could be harnessed to produce electricity.
His workers drilled a hole into the earth, deep into an area where temperatures reach 400 degrees Fahrenheit.
Then they pumped water into the hole, boiling the water and producing steam. The steam powered a turbine to produce electricity.
America’s first “Sonoma Steam Power” plant was in operation.
Today, the resort is long gone. But the region around The Geysers produces huge amounts of California’s renewable electric power. More than solar and wind combined.
There’s nothing an EnviroNazi can complain about with Sonoma Steam Power. It generates three times less carbon dioxide than our cleanest fossil fuel, natural gas. It’s renewable, because these “hot spots” will always generate heat.
And as I said before, it also makes more economic sense than solar and wind. Sonoma Steam Power is always on.
Here’s the most important thing. The Geysers aren’t the only place where Sonoma Steam Power can make electricity.
In fact, much of the Western United States sits atop “hot spots” that can be tapped for Sonoma Steam Power.
And a handful of hidden penny-stock companies are doing just that. But when Stealth Tax fever hits, everyone will know about them.
So if you put your money in them now ― before Congress moves on the Stealth Tax as early as April 2 ― they could make you $63,359. Act aggressively, and it could mean your take is as high as $253,434.
Take Back Your “Stealth Tax” Losses ― and Make $253,434
How can I say that you’ll grab $253,434 with such confidence?

Well, consider this: MSNBC reports that Sonoma Steam Power production could soon equal that of all 104 nuclear power plants in the U.S.
Decades ago, when nuclear plants were first coming online, energy investors rushed in. And nuclear companies made massive profits for shareholders:
Entergy Corp. of New Orleans ran up 261% between 2000 and 2006
Dominion raced up 110% during the same period
Cameco Corp. (a uranium miner) returned 1,551%
Say you bought just 500 shares of each of these companies when nuclear power was coming into widespread use. You’d make $63,359 in pure profits.
If you’d taken a more substantial stake ― 2,000 shares ― you’d be looking at $253,434.
And that’s the sort of potential that lies in Sonoma Steam Power right now.
I can’t think of a better way to turn the tables on Big Government.
You could take back that estimated $2,927 they’ll steal from you… and make it back 87 times over.
Sonoma Steam Power is your best shot at sticking it back to the government, even as it implements the EnviroNazi agenda.
It’s not the only way. In fact, I’ll tell you about three more once I’m done spelling out the incredible opportunity that lies within Sonoma Steam Power. And I’ve packaged all of these opportunities into a “Stealth Tax” Combat Kit that I’d like to send you absolutely FREE.
But the keystone to the “Stealth Tax” Combat Kit is a FREE special report I want to put in your hands right away ― before Congress and the EPA move on the “Stealth Tax.”
It’s called The Five “Sonoma Steam Power” Companies That Could Make You $253,434.
Inside you’ll get the scoop on five companies leading the way with Sonoma Steam Power.
Every one of them has explosive triple-digit potential. The sort of potential that could be had with nuclear power in days gone by. The sort of potential you can start to unlock even before the feds move to enact the “Stealth Tax” as early as April 2.
Sonoma Steam Power Play #1: Take advantage of this company’s 20-year exclusive deal. This company already produces Sonoma Steam Power at a site in Idaho. One day it could power 110,000 electric customers. The U.S. Department of Energy has awarded this company a $9 million grant to experiment with cutting-edge technology at this site to exploit “Sonoma Steam Power.” And the firm is working to bring a second site online, with what it calls “the potential for prolific production.”
Sonoma Steam Power Play #2: Another 20-year exclusive deal. This firm in Nevada has an exclusive 20-year agreement to power 24,000 homes in Nevada. Its site goes on line by the end of 2009. And the U.S. Department of Energy has awarded this company a $1.25 million grant to begin extracting energy from a second site.
Sonoma Steam Power Play #3: 70,000 acres of “hot spots” waiting to be tapped. This company owns rights to 15 locations in California and Nevada totaling 70,000 acres. Five of its sites are already in development. And now it’s on Wall Street’s radar. Standard and Poor’s just assigned an analyst to follow the company.
Sonoma Steam Power Play #4: Access to 277,000 power customers in Latin America. This tiny dynamo expects just one “hot spot” south of the border to generate enough power for 277,000 people. And like the first two companies I mentioned, it recently signed an exclusive 20-year contract.
Sonoma Steam Power Play #5: The best of the bunch. I’m saving the best for last here. This company is an industry leader, with two major “hot spot” projects in the works. One is about 75 miles north of San Francisco, and it’s the largest active energy-producing field in the world. The other is in British Columbia, and estimates show it could power 80,000 homes in Western Canada.
Now I want to underscore some things here. This isn’t pie-in-the-sky stuff. This isn’t stuff that “might” happen one day.
Better yet, even the most extreme EnviroNazis have no objections to Sonoma Steam Power. You can’t say that about solar or wind.
Every one of these companies is finding “hot spots” to generate Sonoma Steam Power. Every one has signed agreements to sell Sonoma Steam Power.
And forget the credit crunch. Every one has the funding to work their business plans.
And every one of these companies can be yours for under a dollar a share.
You can load up on 1,000 shares of each for just $2,760. A little less than you’ll get nicked for the “Stealth Tax.”
But this opportunity won’t last long. See, you’re reading about this crushing Stealth Tax right now. But when Congress and the EPA act as early as April 2, everyone will know about it.
And within days everyone will know which companies stand to profit the most… generating gains of as much as $253,434.
That’s why I want to get this information in your hands NOW. I want you to see the FREE special report called The Five “Sonoma Steam Power” Companies That Could Make You $253,434.
That way, you can act before the government acts… and before the crowd acts.
This brings up an important point. You can’t think about where to make big profits in energy without thinking about what government does.
And the guy who brought Sonoma Steam Power to my attention thinks more about both of those things than anyone else I know.
Finding Government-Mandated Energy Riches that Pay You Triple-Digit Gains
His name is Byron King.
Maybe you’re already familiar with his contributions to the daily free newsletter Whiskey & Gunpowder.
Or his monthly advisory Outstanding Investments, rated #1 over a five-year period by Hulbert Financial Digest in 2005, 2006, and 2007.
Outstanding Investments has delivered triple-digit gains, time and time again, on the best energy and natural resource top stocks to buy out there…
162% on Intrepid Minerals
151% on Wheaton River Minerals
668% on Metallica Resources
332% on Glamis Gold
263% on Coeur d’Alene Mines
228% on Niko Resources
182% on Talisman Energy
160% on Western Oil Sands
147% on BG Group
177% on Coeur d’Alene Mines (again!)
100% on a gold miner
135% on an oil and gas producer
147% on an oil refiner
237% on a Canadian oil sands firm
291% on a very well-managed gold fund
Byron pours a lot of effort into finding these opportunities. And yet, there are many others just as promising he has to pass up.
See, it’s an ethical issue. The best stocks investment I’m talking about are pretty small ― their entire market cap at $1.5 billion or less. Sometimes a lot less.
Think what would happen if he recommended best stocks to buy like those to his readership of 48,000. They could go ballistic overnight… only to crash back to their previous levels within days.
That’s not good for his readers… or his reputation.
And because these top stocks to buy are so small, they’re a bit more speculative.
They’re long-term plays. The sort of thing you might have to wait two or three years for the triple-digit gains to pan out ― as the true fallout from the Stealth Tax sets in.
But… there’s definitely a class of people for whom these top stocks to buy for 2010 are just perfect. Someone with a little higher risk tolerance, and a little more patience.
Someone daring enough to stare down the Stealth Tax and take back what the government swiped from him… and more!
Someone nimble and sophisticated enough to take advantage of smaller, hidden, novel opportunities in the stock market.
I’m writing you today because I suspect you’re that someone.
And Byron has an elite research service that’s right up your alley.
It’s called Energy & Scarcity Investor.
Its whole purpose is to identify the best micro-cap companies in the energy and natural resource sectors.
The ones that could double, triple, or quadruple your money. The ones smart and quick enough to take advantage of the government’s high-tax idiocy. Like the five Sonoma Steam Power stocks.
Because Byron believes what you believe. Sure, energy prices are down for now. But the world won’t stop growing. Chinese and Indians and Brazilians won’t stop joining the middle class.
That means they’ll be using more of the scarce energy and natural resources that make the modern world go round.
And the opportunities for the biggest gains can come from the smallest players. The kind of players you find in your FREE special report, The Five “Sonoma Steam Power” Companies That Could Make You $253,434.
As I said before, that report is just one gift I’d like to send you as part of Byron’s exclusive “Stealth Tax” Combat Kit.
It’s chock-full of plays that can help you beat the “Stealth Tax” ― and even profit from it.
Let me tell you about another one right now.
This is a company that could actually make solar and wind power profitable.
How a Century-Old Company… Using Century-Old Technology… Will Finally Make Solar and Wind Profitable
I told you earlier about one of the big problems with solar and wind power. The sun doesn’t shine 24/7. The wind doesn’t blow 24/7.
That means you need a way to generate power at night, and when the wind is calm.
Now here’s the thing. Often when the sun shines, solar panels might draw in more power than customers need at the other end of the transmission line.
Same thing with wind. The wind can blow so hard, it generates more power than customers use.
So it’s pretty obvious. There needs to be some sort of way to store that excess power.
So when the sun doesn’t shine and the wind doesn’t blow, there’s still power that people can use.
That’s not just a matter of common sense. It’s also a matter of economics.
Without some way to store that excess power for later use… it might never be cost-effective to generate solar and wind power on a large scale.
What’s the best way to store that power?
It happens to be technology that’s been around for over a century.
It’s good old-fashioned batteries.
I’m talking lead-acid batteries, bigger (much bigger) versions of what’s in your car.
Mega-Batteries: Built for Old-Fashioned Submarines, Ideal for Cutting-Edge Solar and Wind Power
These mega-batteries will be the key to storing up excess solar and wind power, then sending it down the line when people need it most.
And one company will lead the field. It’s been an industry leader in lead-acid batteries for as long as it’s been around.
This company has built batteries for submarines for over 100 years. They’re so reliable, they supply power for every nuclear sub in the U.S. Navy.
And the firm’s scientists are working their tails off to make even better batteries. They’ve already developed a method to ensure no leakage… even if the battery case is punctured. (EnviroNazis ought to like that.) And now they’re also working on methods to make the batteries last longer.
Bottom line: I can’t think of a better route to riches in solar and wind. Without this company’s technology, large-scale wind and solar power just won’t happen.
If big government is going to push power companies into solar and wind, this company can’t help but benefit.
And so can you. In 2007, an index of solar stocks jumped 162%. Once this company makes large-scale solar power economical, gains of 162% in its shares could become a yearly phenomenon. A $5,000 investment becomes $13,100.
This is another great opportunity to turn the tables on Big Government stealing $2,927 of your hard-earned dollars every year… and make them back many times over.
Byron can’t wait to tell you about it in another FREE special report. This one’s called Mega Batteries: The Company That Could Double Your Money By Making Solar and Wind Profitable.
You can get it along with the other FREE report, The Five “Sonoma Steam Power” Companies That Could Make You $253,434.
They’re all part of the “Stealth Tax” Combat Kit I want to send you absolutely FREE, with no obligation.
And I’m not done telling you about ways to take back the money the EnviroNazis plan to steal from you. Check out this method of “green” power generation.
“Pocket Power Plants” ― Clean, Green, and Efficient
Imagine taking a whole electric power plant and shrinking it to the size of a refrigerator.
No, it couldn’t power an entire city. But what if I told you a power plant that size could power 250 homes? Or a big-city hotel?
And what if I told you thousands of power plants just like these are already in use?
This is one of the greatest open secrets in energy these days. I call them Pocket Power Plants.
Usually they rely on clean-burning natural gas. The gas feeds these Pocket Power Plants to generate electricity independent of the grid.
Pocket Power Plants already supply the electricity for the Ronald Reagan Presidential Library in California. That’s a complex so huge, it houses the jet that served as Reagan’s Air Force One.
Pocket Power Plants supply the electricity for the Manhattan Marriott hotel.
What makes them so great?
Well, for one thing, buying natural gas to generate your own electricity can be a lot cheaper than tapping into the grid.
And you don’t have to use natural gas. You can use propane, butane… even the methane gas that builds up beneath a landfill.
So it’s cheap, and it’s clean.
Something else, too. And this is what the EnviroNazis will like. It’s incredibly efficient. Not only do Pocket Power Plants generate electricity, they throw off heat that can then be recycled to run air-conditioning.
That’s right. Pocket Power Plants can turn hot air into cold.
And they can run almost continuously. They need maintenance once, at most twice, a year.
And there’s more.
How Pocket Power Plants Could Cut America’s Dependence on Foreign Oil By One-Third
Pocket Power Plants can even work on trucks and buses. They’re at work right now powering Beijing’s city bus system.
Now maybe you’ve heard about natural-gas powered vehicles lately. That’s the keystone to the big energy plan of the Texas energy tycoon T. Boone Pickens.
He wants to use compressed natural gas to power more vehicles on the road. That would slash American dependence on foreign oil by one-third.
Now, there’s a fair amount of competition to make Pocket Power Plants. So which company is your best bet?
Byron knows of an American firm that has a leg up. It invested years ago in state-of-the-art robotics and software to make its Pocket Power Plants.
And that investment is starting to pay off big. Its order backlog has grown 458% in just a year. That’s right, demand has grown by five and a half times in just a year.

So everyone from oil drillers to owners of big buildings like hospitals and office towers are beating down the doors of this company to get its products. And with its high-tech production line, it has the means to meet that demand.
Now I can’t guarantee that 458% growth in orders will translate to 458% gains if you hold the shares for a year. But even if the gains were a quarter of that figure, you’d still more than double your money. A $5,000 investment becomes $10,725.
Byron can’t wait to tell you about this company in another special report he’s prepared as part of your FREE “Stealth Tax Combat Kit.” This one’s called Outsize Profits From Pocket Power Plants. This too is yours FREE with a membership in Energy and Scarcity Investor.
But there’s one more FREE report we’d like to send your way.
This one’s about the most traditional and dirty of fuels ― oil.
But what this company does to produce oil is something even the most hardened EnviroNazi can love.
Pick up shares today, and it could be worth 261% gains to you soon. And 465% gains later.
And incredibly, it uses the same technology you use to heat up a frozen dinner.
How the Microwave Oven (and a Tire Fire) Led to One of the Biggest Energy Breakthroughs in Decades
You know how a microwave oven heats up a quick meal.
But did you know that microwaves can also transform old tires into liquid fuel?
That’s what dawned on a scientist in New Jersey one day as he turned on the local news. He saw a giant tire fire at an illegal dump. It belched acrid smoke for miles around.
What if, he wondered, you could blast a tire with just the right microwave frequency to break it down into the stuff it’s made of ― including oil? Heck of a lot better than loading up landfills with tires. So he set to work. He experimented with different frequencies and watched what happened. Soon, he perfected a machine about the size of a phone booth. In minutes, it can transform a 14-inch tire into…
1.2 gallons of diesel fuel
50 cubic feet of combustible gas
7.5 pounds of carbon black (useful for making everything from ink to athletic gear)
2 pounds of high-strength steel.
Cost effective? You bet. This machine uses 50 cents of electricity to produce $5 worth of fuel and other products.
This Microwave Miracle Just Started Producing Oil. . . With 261% Profit Potential
This machine isn’t some vague concept that’s still years away. Testing of a prototype has just been completed. And it’s a total success. Its manufacturer is ready to take orders.
So what kind of profit potential are we looking at?
Every year in this country, we throw away 290 million tires. With 1.2 gallons of oil inside each tire, and 42 gallons in a barrel of oil, that’s 8.29 million barrels of oil.
With oil priced at $45 per barrel, that’s $373 million worth of oil getting thrown away this year.
The company’s current net worth is $77.5 million. (I told you it was a tiny company.)
If it could book the oil profits from just one half of the tires that get thrown away each year… it would be set to return you 261%.
Triple your money while reducing landfill waste? Not a bad deal, I think.
To say nothing of how the “Stealth Taxing” EnviroNazis will love it.
You can learn all about it in another special report from Byron. This one’s called The Under $2 Stock Set to Make You 261% as It Turns Old Tires Back Into Oil.
But you know what? That’s not the biggest profit potential with this microwave machine. There’s something else I’m about to show you that could be even more lucrative.
How This One Machine Could Make the World’s Dirtiest Oil Clean and Green… and Deliver You 465% Gains
Chances are you’ve heard of oil shale.
It’s a kind of rock that contains tiny deposits of a chemical compound called kerogen. When the rock is heated up, the kerogen releases petroleum-like liquids.
There’s enough shale in the Western U.S. to equal three Saudi Arabias.
But producing oil from shale is a logistical nightmare. That’s why you haven’t heard about it coming to market.
And it’s an even worse environmental nightmare. Really, it’s the world’s dirtiest oil. You have to basically strip-mine the shale. It wrecks the landscape and dumps tons of nasty chemicals like arsenic and selenium into the Colorado River.
But the same machine I just told you about could solve both problems.
Stick a drill equipped with the machine into the surface, and the microwaves heat up the kerogen.
Then it’s easy to suck up to the surface in just a couple of months. That beats the three years that current technology needs.
Even better, this microwave miracle actually transforms the kerogen into useful fuel at the same time. It’s like on-the-spot refining.
Here’s exactly what you get once the machine does its thing with shale:
26% gasoline
30% diesel and kerosene
44% lube and fuel oil
Now… let’s run the numbers on the profit potential. We’ll do it the same way we did with the recycled tires.
There’s an estimated 800 million barrels of oil trapped within western shale. Figure this machine is a bust and it’s good to recover only one out of every 100,000 barrels.
But that tiny fraction would still be phenomenal. If this company booked profits from just 8 million barrels, that would translate to profits of 465%.
Byron reveals the name and ticker symbol of this company in another FREE report. This one’s called, The Under $2 Stock Set to Make You 261% as It Turns Old Tires Back Into Oil.
It too is part of your FREE “Stealth Tax” Combat Kit. It’s yet another super opportunity to take the rotten hand the EnviroNazis will deal you, and turn it into big money.
I think you get the idea now.
You need to take action to protect your wealth from the “Stealth Tax.”
I’ve just presented an action plan. Eight top stocks to buy that stand to benefit directly from the EnviroNazi agenda.
What’s the overall profit potential? Well, I want to calculate this very conservatively. Let’s just say you put the potential cost of the Stealth Tax ― $2,927 ― into each of these opportunities.
Based on the numbers I laid out for you earlier, you’re looking at $37,411 in pure gains.
Again, that’s a very conservative estimate. I showed you how the Sonoma Steam Power companies alone could generate up to $253,434. The upside potential is simply immense.
And you can learn how to take advantage of all of these opportunities FREE, with no obligation… all in the “Stealth Tax Combat Kit”. It lays out all the details. Names of the best stocks investment for 2010, ticker symbols, buy-up-to prices, everything.
Take Your Wealth Back and Turn $2,927 into $37,411 ― Become an Energy and Scarcity Investor
You can become a member of Energy and Scarcity Investor today and start taking back your wealth… even before the EnviroNazis seize it.
Here’s what you get with your membership.The “Stealth Tax” Combat Kit: Four reports, packed with eight recommendations to help you recoup your losses from the Stealth Tax… and then multiply them many times over.
The Five “Sonoma Steam Power” Companies That Could Make You $253,434. The information in FREE special report could be worth up to 87 times the $2,927 that Big Government will take from you with the “Stealth Tax.”
Mega Batteries: The Company That Could Double Your Money By Making Solar and Wind Profitable. This FREE special report reveals the one company that can make solar and wind power cost-effective.
Outsize Profits From Pocket Power Plants. This FREE special report tells you all about the key to cheap and efficient power generation for buildings… and even fuel for trucks and buses.
The Under $2 Stock Set to Make You 261% as It Turns Old Tires Back Into Oil. This FREE special report reveals the company using microwaves to turn old tires into diesel fuel.
Monthly issues of Energy & Scarcity Investor. Every month, Byron identifies yet another company set to transform scarce natural resources into triple-digit gains.
Weekly Energy & Scarcity Investor email updates. Every Friday afternoon, Byron updates the state of your recommended positions, along with any news that affects the outlook for natural resource top stocks investment in 2010.
Flash Buy Alerts via email. From time to time, a buying opportunity will emerge that can’t wait for the monthly issue. So Byron will issue a Flash Buy Alert while the opportunity is hottest.
Members-only access to the Energy & Scarcity Investor website. Here you can review archived issues and email updates using a password you’ll get as soon as you receive access to your FREE special reports.
Plus you get a free subscription, if you don’t already have one, to Whiskey & Gunpowder ― the daily e-letter for resource profit hunters and freedom lovers like you.
And you get the Agora Financial Executive Series. The morning Rude Awakening and the afternoon 5 Min. Forecast give you access to the entire universe of Agora Financial’s research.
Now… How much do you think this sort of research is worth?
Let me tell you, it doesn’t come cheap.
After all, the companies we’re talking about here are tiny. So most of them don’t get analyst coverage on Wall Street.
Look at it this way. The “Stealth Tax” could yank as much as $2,927 out of your pocket every year. Over five years, that’s $14,635. Vaporized from your personal balance sheet.
But look at the chart above. Take the positions Byron lays out for you in the “Stealth Tax” Combat Kit, and you could make ― conservatively estimated ― $34,411.
Now how much would that guidance be worth to you?
Before you answer that, let me ask you this: What if you could try this service FREE, with absolutely no obligation, for the next two months?
Try Energy & Scarcity Investor ― Yours FREE for Two Months
That’s right. With the April 2 Stealth Tax Deadline announcement breathing down your neck ― maybe just days from now ― I’m offering you the chance to try Energy & Scarcity Investor FREE for two months.
The annual membership fee is just $1,495.
Price SLASHED until April 2 potential “Stealth Tax” announcement. Click button below to see your final discounted membership fee.
For a conservatively-estimated profit potential of $34,411, I think that’s a pretty fair deal.
Considering how an aggressive position in the Sonoma Steam Power companies alone could net a gain of $253,434, I think that’s an outstanding deal. Especially since Byron logged 36,000 miles of travel to identify just those five companies.
Now… about those FREE reports. I said there’s absolutely no obligation.
Those aren’t just words. Here’s my guarantee to you: Give Energy & Scarcity Investor a try. If after 60 days you decide it’s not for you, I’ll cheerfully refund every penny you paid for it.
It’s that simple.
Take 60 days to study the FREE special reports, the monthly issues, the weekly e-mail updates, the members-only Web site. Follow along with Byron’s recommendations.
If at the end of those 60 days, you’re not absolutely convinced of the profit potential that comes with a membership in Energy & Scarcity Investor, all you have to do is pick up the phone and ask for your money back. Every penny.
You’ll get the toll-free number to call at the same time you get your FREE special reports. You can keep those special reports and all your issues, with our compliments. There’s nothing to lose.
I wouldn’t be making an offer like this if I weren’t sure you’ll be pleased with the profitable analysis you can get only from Byron and Energy & Scarcity Investor.
But don’t waste time acting on this. The EnviroNazis won’t wait long on their plans. It could be as early as April 2. So you shouldn’t wait long to prepare your defense. And I’ll say it one more time. This is the best way I know how.

Government Craves Power Over the Investment Banking-Finance Industry:

The government has recently forced banks to provide loans to individuals who could not afford to pay their mortgages at sub-prime rates, thus reward poor fiscal responsibility. In fact, people with no income and no job at all were able to get loans. Investment banks, in the name of business, packaged up bad assets and sold them to investors at a large profit. Of course, loans soon defaulted causing a cascade of financial instability throughout the world. Financial institutions (Investment Banks) were particularly as they took most of the loss. As they began to fail one by one, the government chose to save them via the tarp money funded purely on taxpayer dollars. To justify their spending, they blame the failed economy on free market greed.

If the government can convince the American people that the recession was a result of greed, then they might have a chance of pushing through further beurocratic sanctions on our financial industry. Every excuse will be made in the upcoming months to pass legislation consolidating institutions such as the Securities Exchange Commission, FDIC, and the Federal Reserve. They claim that if a commission is formed to oversee these government programs, that the overall system will become more efficient. In essence, we will be implementing more government to control the government we already have. Why can we not just become more proficient with the system we already have?

No big surprise, the Obama Administration is after more power and more government control. Obama’s appointee, Tim Geitner, states “with new laws in place government will be able to take control of troubled institutions before it’s too late.” What’s frightening about the proposed laws is they allow Obama to take over companies without any approval from congress. Traditional checks and balances are tossed aside. Any troubled company that is deemed too large to fail could be a potential government takeover and the spending of more taxpayer dollars. Some individuals also believe that the new laws will be detrimental to free market competition. If the government is literally printing money to allocate to a specific company, then how can another company financially compete? The legislation completely undermines the “American way” of doing things; individuals start small, take risk, and inevitably succeed or fail based upon their own hard work.

Currently, our liberal government, with the help of the Obama Administration dictates who businesses can hire, how much employees can be paid, and what specific aspects of business contracts can be maintained. The Constitution provides no agency the authorization to disregard basic rights; moreover, it is expressly designed to prevent this from happening. New government Czars are set up to deal with the automobile industry, financial banking industry, and soon to be, the healthcare reform. Any more power dealt to the federal government will only increase the rate at which the United States converges with socialism.

Article: Government Craves Power Over the Investment Banking-Finance Industry, By: stock-broker-security.com

Trading activity from 1/22/09 to 3/26/09

Week One:

The market is on a sharp downtrend at this point, but it seems to be having a short bullish rally do to the change in presidency and promises of large bailouts. Due to market uncertainty and low overall consumer confidence, I decided to diversify my portfolio. I picked OSTE and AGN because they are pharmaceuticals resistant to a bearish economy. Since the U.S. is relying on China for much of their steel production I chose to buy a Chinese steel stock, CPSL. Apple was bought because it had a bullish triangle chart pattern, high volume on the downtrend, and an appealing valuation. FXEN was my last pick because it was an oil company coasting along a base with a good P/E ratio and positive earnings.

Week Two:

The market is continuing its short uptrend as I predicted. FXEN was sold because oil prices began to fall, thus hurting oil stocks. AAPL was sold because it had reached a peak on high volume. I bought another pharmaceutical, NABI, because it should be resistant to a failing economy. NGS, a natural gas stock was purchased because it was extremely oversold according to the CCI and the price oscillator technical indicators. Obama was also preaching for natural gas production at this time. LMT was purchased because it was a safe and solid defense stock to hold in an uptrend.

Week Three:

I sold OSTE this week because it was showing high volume and “overbought” signals. I made a large profit on this stock. I bought BWA and TWI this week because auto parts companies were showing higher earnings due to the tendency for people to fix cars rather than buy new ones in a depressed economy. I also bought the stock, RIO, because it was showing increased revenue and earnings. The P/B ratio also indicated that it might slightly be undervalued compared with to earnings. Mineral companies were on a rush this week because Americans sought refuge in gold. Gold has tangibility and value when the dollar falls.

Week Four:

This week I chose to sell CPSL because Obama started talking about raising tariffs on imported steel. This caused an unexpected drop in price. I also sold BWA and TWI because they simply were not doing what I thought they would and I was hoping to cut losses. I also sold NGS because it finished its typical choppy trading pattern for the week. The economy was extremely bad this week and I was content with relatively no positions in my portfolio.

Week Five:

I bought stock in PLA, or Playboy, because it was undervalued and is still a very prominent brand-name. I bought FXEN because it had a good profit margin, oil prices are lower, and it had a good chart pattern. I bought PDLI because it was a profitable pharmaceutical company that seemed to have hit a bottom. I sold AGN because its latest rally failed to break the two hundred day moving average. It also failed to rise higher than its previous peak, a bearish signal. I bought VCI this week because it was undervalued and had positive EPS. It also showed strong insider buys and got a B ranking from Market Edge, Jaywalk, and Merrill Lynch. Sadly, I had to sell virtually all these stocks in the same week because the market was so bad that nothing could possibly rise.

Week Six:

I bought BHP this week due to a recommendation from Jim Cramer on the Mad Money TV show. He said this would be a safe company in the recession because it is based in Australia and is not subject to Obama’s energy agenda. He was wrong in the short-term and I sold a few days later. I also bought and sold DEPO, a medical company, in the same week. It had great earnings and an innovative product. It also had a good chart, good volume, and a high valuation. Obama killed this stock by threatening to nationalize healthcare. I sold my shares right away.

Week Seven:

I got tired of trying to find bullish stocks in a bear market, so I decided to short everything this week. I bought all the Proshares Ultra-Short stocks I could find including SIJ, SSG, REW, MZZ, SKF, and TLL. I had the same reason for buying each one of these positions; the market is crashing. I took large profits from all of these positions and sold the same week. Next, I bought back VCI and then purchased WMT. Both of these companies are stable and profitable in a recession. VCI is a media company and was also less affected by the recession in general compared to other stocks. WMT or Wal-Mart will be amongst the first stocks to benefit from any upturn in the economy because Wal-Mart specializes in affordable merchandise.

Summary of Trades Table:

Date Trade Type Symbol Quantity Target Price Price Commission Total Cash Value Account Value
3/6/2009 9:57 AM Stock: Buy at Market Open WMT
421 n/a $50.15 $29.99 $21,143.14 $105,592.12
3/5/2009 9:57 AM Stock: Sell at Market Open SSG
115 n/a $79.71 $29.99 $9,136.66 $105,494.34
3/4/2009 1:59 PM Stock: Sell at Market CPLA
245 n/a $50.44 $29.99 $12,327.81 $104,970.98
3/4/2009 10:28 AM Stock: Sell at Market TLL
250 n/a $60.06 $29.99 $14,985.01 $106,456.40
3/4/2009 9:59 AM Stock: Sell at Market SKF
80 n/a $197.78 $29.99 $15,792.41 $105,635.66
3/4/2009 9:59 AM Stock: Sell at Market MZZ
170 n/a $82.45 $29.99 $13,986.68 $105,665.65
3/4/2009 9:57 AM Stock: Buy at Stop VCI
11200 $1.31 $1.36 $29.99 $15,261.99 $106,525.27
3/4/2009 9:55 AM Stock: Sell at Market REW
170 n/a $84.59 $29.99 $14,350.31 $108,365.86
3/4/2009 9:55 AM Stock: Sell at Market SIJ
100 n/a $102.99 $29.99 $10,269.01 $108,395.85
3/3/2009 9:57 AM Stock: Sell at Market Open BHP
400 n/a $34.84 $29.99 $13,906.01 $106,378.45
3/3/2009 9:57 AM Stock: Buy at Market Open SSG
115 n/a $81.21 $29.99 $9,369.14 $106,212.94
3/3/2009 9:57 AM Stock: Buy at Market Open SIJ
100 n/a $100.62 $29.99 $10,091.99 $106,463.92
3/2/2009 10:38 AM Stock: Sell at Market PDLI
3400 n/a $5.96 $29.99 $20,234.01 $105,251.86
3/2/2009 10:28 AM Stock: Buy at Limit BHP
400 $35.01 $35.01 $29.99 $14,033.99 $105,006.35
3/2/2009 8:59 AM Stock: Buy at Market Open CPLA
245 n/a $54.75 $29.99 $13,443.74 $102,283.98
3/2/2009 8:59 AM Stock: Buy at Market Open MZZ
170 n/a $77.45 $29.99 $13,196.49 $102,652.27
3/2/2009 8:59 AM Stock: Buy at Market Open TLL
250 n/a $58.97 $29.99 $14,772.49 $103,684.76
3/2/2009 8:59 AM Stock: Buy at Market Open SKF
80 n/a $179.46 $29.99 $14,386.79 $103,843.55
3/2/2009 8:59 AM Stock: Buy at Market Open REW
170 n/a $83.75 $29.99 $14,267.49 $104,135.35
2/27/2009 9:57 AM Stock: Sell at Market Open DEPO
9880 n/a $1.99 $29.99 $19,631.21 $103,399.61
2/26/2009 9:57 AM Stock: Sell at Market Open PFE
10 n/a $13.21 $29.99 $102.11 $106,282.31
2/26/2009 9:57 AM Stock: Sell at Market Open VCI
14935 n/a $1.42 $29.99 $21,177.71 $107,357.75
2/26/2009 9:57 AM Stock: Buy at Limit DEPO
9880 $2.16 $2.16 $29.99 $21,370.79 $108,482.43
2/24/2009 9:58 AM Stock: Sell at Market Open FXEN
6000 n/a $2.89 $29.99 $17,310.01 $108,341.27
2/24/2009 9:58 AM Stock: Sell at Market Open PLA
13700 n/a $1.63 $29.99 $22,301.01 $108,782.26

Date Trade Type Symbol Quantity Target Price Price Commission Total Cash Value Account Value
2/23/2009 9:57 AM Stock: Sell at Market Open AGN
500 n/a $40.48 $29.99 $20,210.01 $107,521.50
2/18/2009 9:57 AM Stock: Buy at Market Open PDLI
3400 n/a $6.20 $29.99 $21,109.99 $108,430.48
2/17/2009 11:52 AM Stock: Sell at Market ETQ
6055 n/a $3.82 $29.99 $23,100.11 $108,960.13
2/17/2009 9:58 AM Stock: Buy at Market Open FXEN
6000 n/a $3.49 $29.99 $20,969.99 $112,401.47
2/17/2009 9:57 AM Stock: Buy at Limit PLA
13700 $1.65 $1.65 $29.99 $22,634.99 $113,496.26
2/13/2009 9:56 AM Stock: Sell at Market Open TWI
2200 n/a $7.77 $29.99 $17,064.01 $112,201.50
2/13/2009 9:56 AM Stock: Sell at Market Open NGS
2466 n/a $9.42 $29.99 $23,199.73 $112,083.53
2/12/2009 11:41 AM Stock: Buy at Market ETQ
6055 n/a $3.59 $29.99 $21,767.44 $108,861.28
2/12/2009 9:57 AM Stock: Buy at Market Open NGS
2466 n/a $8.58 $29.99 $21,188.27 $109,042.43
2/12/2009 9:57 AM Stock: Buy at Market Open VCI
14935 n/a $1.45 $29.99 $21,685.74 $109,072.42
2/10/2009 2:19 PM Stock: Sell at Market BWA
1000 n/a $19.96 $29.99 $19,930.01 $110,176.61
2/10/2009 9:56 AM Stock: Sell at Market Open NGS
2300 n/a $9.29 $29.99 $21,337.01 $111,713.50
2/10/2009 9:56 AM Stock: Sell at Market Open CPSL
14300 n/a $1.20 $29.99 $17,130.01 $111,886.49
2/9/2009 9:58 AM Stock: Sell at Market Open RIO
600 n/a $17.63 $29.99 $10,548.01 $111,466.18
1/29/2009 11:15 AM Stock: Buy at Market Open RIO
600 n/a $14.58 $29.99 $8,777.99 $109,118.56
1/29/2009 11:15 AM Stock: Buy at Market Open BWA
1000 n/a $18.54 $29.99 $18,569.99 $109,408.55
1/29/2009 11:14 AM Stock: Buy at Market Open TWI
2200 n/a $8.76 $29.99 $19,301.99 $110,428.54
1/27/2009 12:13 PM Stock: Sell at Limit OSTE
9400 $2.50 $2.50 $29.99 $23,470.01 $108,339.53
1/27/2009 10:40 AM Stock: Sell at Market Open LMT
50 n/a $83.12 $29.99 $4,126.01 $107,478.42
1/27/2009 10:40 AM Stock: Buy at Market Open NGS
2300 n/a $8.56 $29.99 $19,717.99 $106,749.41
1/26/2009 9:58 AM Stock: Buy at Market Open PFE
10 n/a $16.76 $29.99 $197.59 $102,596.20
1/26/2009 9:57 AM Stock: Buy at Limit LMT
50 $81.25 $81.25 $29.99 $4,092.49 $102,639.69
1/26/2009 9:57 AM Stock: Sell at Limit FXEN
3600 $2.77 $2.77 $29.99 $9,942.01 $102,705.68
1/26/2009 9:55 AM Stock: Sell at Market Open NABI
5200 n/a $3.33 $29.99 $17,286.01 $103,619.67
1/26/2009 9:55 AM Stock: Sell at Market Open AAPL
120 n/a $86.82 $29.99 $10,388.41 $103,834.46

Date Trade Type Symbol Quantity Target Price Price Commission Total Cash Value Account Value
1/22/2009 1:15 AM Stock: Buy at Market Open AAPL
120 n/a $79.39 $29.99 $9,556.79 $105,674.05
1/22/2009 1:12 AM Stock: Buy at Market Open FXEN
3600 n/a $2.50 $29.99 $9,029.99 $104,948.04
1/22/2009 1:10 AM Stock: Buy at Market Open CPSL
14300 n/a $1.29 $29.99 $18,476.99 $103,548.03
1/22/2009 1:03 AM Stock: Buy at Market Open OSTE
9400 n/a $1.91 $29.99 $17,983.99 $101,604.02
1/22/2009 1:01 AM Stock: Buy at Market Open NABI
5200 n/a $3.51 $29.99 $18,281.99 $99,970.01
1/22/2009 12:57 AM Stock: Buy at Limit AGN
500 $38.76 $38.76 $29.99 $19,409.99 $100,000.00

Summary:

How I made my stock decisions:

The first things I look at when I pick a stock are the leading U.S. economic indicators. I use these along with T-bond prices and the strength of the dollar to make a prediction on market direction. I also tend to look at what is happening in Asian markets. This information helps me decide whether to go long or short. The second step in picking stocks is based off of seasonality’s and politics. In this step I decide which market sector will provide the most lucrative opportunity. Finally I screen for stocks with a P/E ratio between five and ten that have positive earnings and a price less than five dollars. I narrow these results down further by completing a technical analysis using charts and often I also look at income statements. I narrow down my choices one last time by taking into account upcoming announcements and insider trading activity on specific stocks.

My Best Buys:

My best buy was a medical/pharmaceutical company called Osteotech. They are in the pharmaceutical business which is somewhat recession resistant. Since they also deal with stem cells in a portion of their research, I believe they benefited from a democratic president who eased the laws regarding stem cell research. The market was also in a short rally after a huge selloff when I purchased this stock. My second best pick was when I shorted the financial sector with SKF. It was clear that all financials were in turmoil and this was an easy pick. As Citibank and AIG crashed the whole industry suffered.

My Two Worst Buys:

My worst buy was certainly Depomed, a medical equipment manufacturing company. The day after I bought DEPO, Obama made a speech to nationalize healthcare. This would severely hurt the profits of any healthcare company and a selloff soon occurred. This was a horrible buy, yet I had no idea Obama was scheduled to make this speech. My second worst buy was CPSL, or China Pacific Steel. The United States recently had a policy of shipping much of its steel from overseas. A few days after I purchased CPSL, Obama announced his agenda to increase tariffs on steel imports to raise money for his bailout plans. This policy would severely hurt the profits of CPSL and the stock price coincidentally fell. Both of my two worst buys were based off of good information about markets; however, Obama did not want me to make any money during this time period.

Goldman Sachs Always on Top: Goldman seems to be the leader of financials in U.S., but is this because of government aid. Currently, the corporation has two executives with ties to the Obama administration and also a board member on the TARP monitoring committee. Goldman also spent more than any other bank on lobbying and was the first to be allowed to pay back the tarp funds. They were the first bank to participate in the March rally and the first bank to experience a pullback. Goldman is a good example of a company that could be run by insiders, although it is not nessesarily a bad investment with its outstanding earnings.

Schwab Review

6.) Charles Schwab

Tools: B

The tools offered by Charles Schwab are ok, but they are nothing to get excited about. Specifically, their charting software is where they go wrong. The charts have poor graphics and resolution, making them hard to read and understand. It is very difficult to recognize a trend on a Schwab chart. The charts still cover the standards such as volume bars, moving averages, and other indicators.

The stock screener presented on the Charles Schwab platform is best amongst its peers. It is easy to use, effective, and informative. You can screen based on a wide variety of fundamental and technical indicators with this tool. What makes the Charles Schwab screener unique is its ability to screen specifically for foreign stocks with the exclusion of domestic rivals. This is useful when attempting to research emerging markets.
Charles Schwab has standard level two within their platform; however, they don’t offer any other special features. Schwab was the first online discount broker in the industry and has maintained its simple platform with simple tools for the novice trader.

Commissions: D

Commissions for this discount brokerage are definitely above average. For an individual who doesn’t make more than 120 trades per year, Schwab charges $12.95 per stock trade. If you are the type of investor who trades frequently enough to meet the 120 requirement, then you only pay $8.95. Options trades are $8.95 plus $0.75 per contract. This online broker is specifically known for its superior broker assisted trades; however I have never used the service. A broker assisted trade will set you back $25.
There are no idle account fees with Schwab which is a plus; however, there is a $50 dollar fee for a full transfer to another broker. A partial transfer costs $25.

Customer Service: D

Schwab is probably the most popular online broker for stock trading, but its customer service is horrendous. When I tried to merge my two separate accounts with them they really screwed things up. In fact, they accidentally mislabeled one of them as belonging to my sister, who also trades with Schwab. When they realized the error, they froze the account entirely and would not allow me to sell my recently acquired position. The stock fell fast and I lost thousands. Finally, they tried to console me with 5 free trades at $12.25 value per trade.

Trade speed and reliability: A

Trade speed and execution is excellent with this discount brokerage. I have never had a problem with or a delay on any of my stock and options orders. The website has been consistantly fast and reliable ever since I opened my account 6 years ago.

Registration: B

Opening a brokerage account online takes about 15 minutes. You must provide your contact information, select the account features you want, and decide how you’ll fund your new account. Finally Schwab will ask you to verify the information and create a login name/password if you’re a new client. Funding your account electronically is suggested with Schwab, since their customer service is poor. When I first funded my account via check, the money didn’t appear in my account for 10 days. Fortunately, this discount broker is not opposed to an instantaneous wire transfer.

1.) TD Ameritrade Review

Tools: A

Ameritrade offers some of the best tools of any discount stock broker. Most notably, their charts provide great detail. They can be tailored to fit many forms including candlestick pattern. Valuable indicators such as Bollinger bands and moving averages can easily be drawn on the charts. For the technical trader, this is a must. Ameritrade Apex clients also receive level two quote-scope which is a program that allows the trader to see all orders placed in real time. To qualify for Apex service you must make either 100 trades per month or have an overall account balance of 100,000 dollars or more.
The stock screener within the TD Ameritrade platform is also very useful. It goes into more detail than many of the competing broker’s screeners do with regards to its screening categories. A quality stock screener helps to alert you to the latest stock trading opportunities.
Ameritrade’s market coverage section of their website is excellent compared to other brokers, and it can certainly help you decide what criteria to screen for. By analyzing each market sector individually and then providing options for a personalized comparative analysis, Ameritrade’s sector analysis tool makes it easy to decide what the next hot sector will be. The next step is to do a stock screen, technical and fundamental analysis, and you are ready to trade.

Commissions: C

After reviewing many discount stock brokers I have determined that Ameritrade is moderately priced. They charge a flat 9.99 dollars per trade and 75cent/option contract. They have a 1.25% margin interest rate and do not charge idle account fees. They also do not charge account transfer fees which can be extremely annoying.

Customer Service: A

The customer service side of Ameritrade is high-quality and I have never had any problems. They are available 24 hours a day by phone for troubleshooting. Customer service representatives are ready to answer any questions, but you can also research a topic on your own. They have a detailed help section that explains how to use their software and trading platform. Funding an account is also easy. With my individual account I funded by check and it only took two days before the money was ready to trade. Electronic funding is also available. Electronic funding enables you to electronically deposit cash into your TD AMERITRADE account directly from your checking or savings account via an Automated Clearing House transaction. This feature is useful for individuals trying to make a time sensitive trade.

Trade speed and reliability: A

Trade speed is one of the most important aspects to keep in mind when choosing a broker. A broker that cannot execute a trade on time will inevitably cost you dollars. Ameritrade has consistently had good trade speed and execution during the eight years I have had an account with them. In addition, they sometimes are able to get me a better-than-expected price on my stocks sales. This is always appreciated.

Registration: A

There happens to be a minimum amount of 2000 dollars necessary to open an account with TD Ameritrade. Once you establish that you have the required funds, you will need to make decisions such as whether or not to use margin. You also need to specify your desired options level clearance if you wish to trade options at all. Ameritrade will approve or disapprove your margin and options requests based on your income and net worth. Once you fill out all the standard registration information on the website you will receive a welcome e-mail. After you confirm your registration, you will be sent three forms to fill out and return to Ameritrade. You are now ready to fund the account.

Special Features:

***The New Ameritrade Pattern Matcher: A tool designed to scan the market looking for well-known chart patterns such as the head and shoulders, cup and handle, and the double bottom.

E*Trade Review

7.) E-Trade

Tools: A

E*Trade gives you a lot of control over your home interface with customizable options such as market watch, watchlists, and news. Like most online brokers nowadays, they offer hidden stops, bracketed trades, and trailing stops.

In particular, E*Trade provides a fair amount of investment articles designed to help you learn more about the markets. They also put an emphasis on their retirement planning and tax center.
Recently they added a Blackberry Application that allows the user to view real-times quotes and trade via mobile phone. The new technology is called Mobile Pro.

As far as charts go, E*Trade is one of the best. Their charts are clear and come in many sizes. You even have the capability of saving your chart settings to be implemented on a later date, a feature that proves to be a major time saver in the long run. Of course, charts come in varying time ranges and can also display indicators such as a volume bar.

E*Trade also implements a quality stock screener into their platform. You instantly sort through thousands of stocks, mutual funds, and ETFs according to criteria on their database. They have custom screens, and pre-set screens depending on what you are looking for.

Commissions: F

If you make more than 1500 trades/quarter you pay just $6.99 per trade. If you only make between 150 and 1499 trades/quarter your cost is $7.99 per trade. If your account balance is over $50,000 or you make 30–149 trades/quarter, you pay $9.99 per trade. All accounts with less than $50,000 and if you make 0–29 trades/quarter, you’ll have to pay $12.99 per trade.

In conclusion, the average long term investor will be hit hard by E*Trades commissions. Of all the discount brokers I have reviewed, none charge more for a stock trade than E*Trade.
Some don’t find out until it is to late, but a quarterly $40 maintenance fee is charged on all accounts with less than $10,000. Below is a summary of stock and options fees.

Stock Commissions

Qualifications Cost per trade
Less than $50,000 in assets and 0-29 trades/quarter $12.99
$50,000+ in assets or 30-149 trades/quarter $9.99
150-1499 trades/quarter $7.99
1500+ trades/quarter $6.99

Options Commissions

Qualifications Cost per Trade plus cost per contract
Less than $50,000 in assets and 0-29 trades/quarter $12.99 plus $0.75
$50,000+ in assets or 30-149 trades/quarter $9.99 plus $0.75
150-1499 trades/quarter $7.99 plus $0.75
1500+ trades/quarter $6.99 plus $0.75

Customer Service: B

E*Trade is open for questions by telephone 24 hours a day and can also be contacted by phone or email. If you need to contact them in person, 20 offices around the nation are available for consultation.
Unfortunately, E*Trade has received many customer complaints about service all over the web.

I have compiled a list of the most frequent complaints they receive.

-locked accounts
-wire transfer difficulties
-confusion regarding their joint account programs

***Many many individuals with inactive accounts have reported that E*Trade will sell their stock without notifying them in order to pay the $40 maintenance fee.

Trade speed and reliability: A

It is reported that buying and selling on E*Trade is a breeze. Their platform is effective at trade executions and timing is reported down to the second. The trade-ticket offered by E*Trade for submitted an order is auto-populated for convenience. Most importantly, E*Trade is known for executing trades promptly and at the best price possible. Few customers talk about E*Trade in a negative fashion in this manner. The speed of the website is also good.

Registration: A

It is very easy to register with E-trade and they have a reliable platform. Once an account is opened and money is transferred either electronically or by checking account, the investor is able to log in and navigate the site. The initial deposit required for this online discount broker is $1000. You must specify your investment objectives, account options, and file proper documentation in order to start your account. All the statements and confirmations are done electronically with this brokerage.

Scottrade Review

Tools: B+

Scottrade offers three separate trading platforms for their clients including, Scottrade, Scottrader, and Scottrade Elite. Scottrade Elite is the most extensive platform designed for the most sophisticated trader. It includes news columns from both Comtex and Dow Jones, advanced charts, level two quotes, and stock screeners. Scottrader is lacking level-two software, but it does come complete with the same streaming stock quotes and news provided on Elite. For the most basic trader, Scottrade Standard will provide basic quotes and research tools.

This online brokerage also displays a multitude of investment calculators on their site and holds online trading seminars for their clients. These educational experiences are free to Scottrade customers and can be a great help on understanding complex markets.

Scottrade makes available impressive charts to its clients. They are nearly as good as some of the more expensive brokers such as E*Trade and TD Ameritrade. Like E*Trade and TD Ameritrade, Scottrade allows the trader to save chart settings, and they offer fundamental and technical indicators to be incorporated within charts. However, Scottrade does not supply the PE history indicator within their charts.

This online brokerage also provides standard research tools, but they are not extraordinary. Their stock screener online allows for the screening of thirty-two different categories. For example, it will not allow you to screen for a specific market cap. Scottrade reviews the market on their stock market update page thoroughly, and it updates it as news rolls in throughout the day. They have links to Reuter, MarketEdge, and Standards & Poor’s available to clients.

Commissions: A

The commissions schedule presented by this discount broker is all about discounts. They charge only $7 for an online trade over $1. Scottrade also tends to be very straightforward with their fees without resorting to hidden charges. At a straightforward price of only $7, day traders can save a lot of money in with this brokerage in the long run. Finally, it only takes $500 to open an online account, an offer appealing to many inexperienced traders. Scottrade’s margin rate is 0.25 if your balance is below ten-thousand dollars.

Below is a detailed commissions schedule for this online discount broker:

Stock Commissions

Order Method Cost per Trade
Internet $7.00
Touchtone (IVR) Phone System $17.00
Broker Assisted $27.00

Options Commissions

Order Method Cost per Trade plus cost per contract
Internet $7.00 plus $1.25 / contract
Touchtone (IVR) Phone System $17.00 plus $1.25 / contract
Broker Assisted $27.00 plus $1.25 / contract
Option Exercises and Assignments $17.00

Customer Service: A

You can contact Scottrade by telephone or email. They also have over 400 branch offices throughout the United States open for consultation and assistance. Unfortunately, Scottrade is one of the few large discount brokerages that do not offer 24-hour customer service. They also prefer to talk on the telephone when there is a problem rather than by email, a quality in our opinion. This stock brokerage is dedicated to providing customers with outstanding service, both from its many branch offices and its headquarters in St. Louis. Scottrade claims to diligently train its customer service representatives on all levels of the business.

Trade speed and reliability: A

If you are looking to make standard stock and options trades, then Scottrade has excellent execution. They tend to get the best price possible and they don’t waste time. Their site is typically quick and reliable. We have not had any negative experiences or failed trade executions with this discount broker during our eight years of business with them.

Registration: A

There was a time in which Scottrade did not accept electronic funding or wire transfers, but recently they have updated their system. It is no longer difficult to fund an account with this online brokerage.
In general this discount broker has an easy to follow registration procedure. Scottrade reviews you account information filled out online and sends you an account opening email. Their new electronic funding capability, called Money Direct, will allow your account to be instantly funded the moment you finish reading your email.

Scottrade Brokerage Special Features:

***Scottrade has recently updated their platform to include a tool called Smart Text. Smart Text will accompany a chart such as this chart of GOOG and it will explain briefly what that chart means to investors. It provides insight useful in trading decisions.

“Buy American. I am.” To quote Warren Buffett’s opinion piece published recently in the New York Times.

Warren Buffett appears to be quite a decent man and, perhaps, his most admirable quality demonstrated in recent years is his personal charity underscored by a deep sense of humility. He certainly doesn’t live the lifestyle of most multi-millionaires and billionaire investors that tend to be far more flamboyant, if not entirely pretentious by recklessly self-indulgent, decadent behavior.

Warren Buffett is quite the savvy investor, not because of his personal considerations, but due to his shrewdness and business acumen. It would be more proper to characterize Warren Buffett as an opportunist which is a kinder, gentler way of describing a predator who stalks its prey and waits patiently for the moment to capitalize on other people’s distress.

It’s difficult to think of Warren Buffett in these terms because he is an affable and charming person but, in truth, he is no different than the archetypal Hollywood character of Mr. Potter in “It’s a Wonderful Life.” After all, what was Mr. Potter symbolic of if not the Wall Street titans of the world that, literally, followed the wisdom of Nathan Rothschild who was famously quoted: “buy when the blood is running in the streets.”

If you break down the terms of his recent buys such as Goldman Sachs (GS) and General Electric (GE), you understand that Buffett’s money costs more to borrow than a local bookie charging the going loan shark rate or ‘the vig” for betting on ponies. To call his terms with GS and GE a “friendly negotiation” is another euphemism for asking someone’s permission to borrow keys to the car while holding a gun to their head.

Buffett crafted quite the favorable contract terms by taking preferred shares in combination with warrants and a 10% dividend yield. Perhaps, his endorsement alone was worth more in public sentiment than seeking alternative financing through frozen commercial paper and credit markets. If the issues plaguing solvent companies was a crisis of confidence, who could be a better marketing tool to inspire trust than one of the most revered investors in the history of capital markets?

The irony throughout these notable cash injections is that he was wrong in his timing, not even the venerable voice of Berkshire Hathaway (BRK.A) can call the exact bottom. Those that wanted to follow him into the deep end of the pool have had ample opportunities to buy the same stocks at cheaper valuations due to extreme volatile aberrations of the market.

And certainly, as has been reported, Warren Buffett lost approximately 9.6 billion dollars in equity value due to decreases in company market capitalization and share prices. Of course, unlike the recent forced liquidation against CEO Aubrey McClendon of Chesapeake Energy (CHK), who involuntarily sold over 30 million shares due to excessive margin calls, Buffett’s holdings remain paper losses.

If the wealthiest individuals lost 90% of their wealth, they would still remain multi-millionaires and, more importantly, accessible to cash to take advantage of buying at fire sale prices. If you or I lost 90% of our income or wealth, we would be in the soup kitchen lines. So, there’s no comparison and very little reason to feel sorry for those that will navigate this crisis from the luxury of skyboxes and protected enclaves.

However, to be fair, a bottom isn’t necessarily a pivot point as much as it is a natural formation and process once the panic selling and forced liquidations hit their crescendo before tapering down to normalizing levels. Markets become exhausted because such volatility is unsustainable as weak hands are flushed from the system and earnings multiples collapse under their own weight.

If you’ve read my previous article on “How To Catch A Falling Dollar,” you can see that I was quite bullish despite the panic that ensued both before and during the week of option expiration. But I disagree with those that insist that we need to reach this technical bottom of absolute capitulation–whatever that term is supposed to mean. As if you need to see Wall Street brokers coming out of the trenches with their hands in the air to surrender before the all clear sign is put out to buy stocks.

If this massive sell off that has been orchestrated over the past year since the Dow was above 14,000, now hitting the inverted peak of disparity during the last month, then what would constitute a true sign of capitulation? Zero? One thing that has been proven throughout this calamity is that fundamentals, charts and rationale thoughts or behavior simply are out the window once panic ensues.

But I’m not Warren Buffett and, like most of you out there, I face similar daily stresses and concerns of being capable of paying bills and expenses. I have never seen markets behave like this and even professionals that have been involved for decades will admit this is unprecedented action where conventional rule books don’t apply anymore.

People continue to refer to the ’87 market crash as the signature comparable and yet, nothing compares to the volatility we’ve seen which has been the equivalent of more Black Monday’s than I can count. I fear no differently than most of you out there and remain very concerned for not just the stock markets, but the underlying economy that seems convincingly problematic for our generation going forward.

REAL ESTATE IS THE UNDERLYING CRISIS OF CONFIDENCE

Asset devaluation is a systemic risk in the global economy. Many people that you would consider rich not that long ago, were considered as such based on their equity holdings and combined leveraged assets. In effect, they were “paper valuations” waiting to become whacked with a sledgehammer like a pinata.

The real estate bubble has created vast illusions of equity and fictitious degrees of separation from achieving true wealth and prosperity. Those that would like to believe housing is beginning to bottom seems disproportionately premature, disconnected from the reality of vacancies and the incomplete construction projects that were unable to retain financing to finish the job.

Most people don’t own stocks directly and the home has been the largest source of wealth and prosperity for the average American household. This story is broken for at least a generation. And by generation, I really mean an entirely new wave of buyers that are willing to bid on the market which can only come from sustained job growth and the willingness for lenders to pump money into circulation to qualified borrowers.

How many people own multiple homes and property, each leveraged on top of the other asset like a house of cards? How many people bought that expensive car through tapping the equity in their home? How many people’s credit cards and HELOC’s were based on perceptions of net equity in a property that has evaporated into this vortex of wealth destruction?

We forget that for the majority of people real estate is a leveraged asset, more than the normal 2:1 ratio on a margin account, or even 4:1 for those day traders out there. And no different than a house call on a brokerage account, once market value drops in real estate you have a systemic deleveraging process of a rising debt to equity ratio.

For the past decade, no one assumed the fatal flaw in their metrics was based on the rising value of home prices and not the possibility of a depreciating asset. The reason why a car is considered a depreciating asset and not an investment, is because the underlying value deteriorates at an accelerated rate of decline. If there is no underlying price stability in our housing markets, then every dollar spent for renovation, maintenance, property taxes and insurance erode net equity. When an asset costs more to keep than the value you could receive, it no longer is a good investment, even if you have to live in it.

Where are all those con artists that prostituted their “get rich quick schemes” on no money down seminars in real estate? Or those Tony Robbins style paid speakers that tell you that not being rich is based on your negative attitude of not being positive enough? Do we really need Suze Orman wannabes to tell us what we can or cannot afford? Are all these seemingly helpful news specials that have sound bytes on how to manage this unfolding crisis really conducive to prosperity, or are they fueling the fire?

Because, folks, it’s not your lack of positive attitude that prevents people from paying bills as much as it is the reality of the situation changing all around us. A positive attitude won’t determine whether or not a bank lends money, nor will a higher FICO score when the presumption is that asset valuation continues to fall much further amid a rampant global recession.

What makes it worse is that we all have this fixed price in our heads of what a property is worth based on the last appraisal when the markets were peaking. It is psychologically disturbing to even admit to ourselves what the markets are telling us.

The same may be true with how we perceive stock prices. There is absolutely no question that stocks look cheap on a relative historical basis. But you must wonder if stocks look cheap only because we still have those fixed prices in our head when the market was up.

The multiples are extremely low but that is only predicated on continued net earnings growth. If the earnings continue to slide, then multiples are not low enough to be considered a bottom. Cheap? Yes, but not necessarily an absolute bottom.

Because you have to ask yourself why aren’t more companies buying back their stock at these low levels? If you are looking for a signal of a true bottom it would probably occur when companies start to acquire others, but this can only happen when the financing is available in vast, ample quantity.

The reason I am bullish on the stock market is less to do with the underlying struggles of our economy because I recognize that, unlike the stalled real estate market, the equity market is the last and only viable asset class that remains liquid and, for the most part, transparent.

Money has to be put to work in one asset class over another and fund managers or private equity cannot remain hidden in their respective foxholes indefinitely. Money has no value if it ceases to flow in one direction or another, and this is why the stock markets will always run ahead of the curve in anticipation of what is to come…

But, what if I am wrong?

In a sense, the economy would only have to mimic the 70’s and early 80’s to feel like the Great Depression, because our generation has been so spoiled by material wealth and excesses that any draw down on consumer purchasing power will drastically alter our perception of what it means to be rich and poor.

THE TOOTH FAIRY EFFECT

I ask myself this daily, wondering if the market truly is oversold? Yes, in technical terms based on how fast and how far the markets dropped we were due to bounce. But was I bullish because I was tempted to fade the market, or was I bullish based on a hopeful and blind assumption in regard to history? These are the internal dialogues that I struggle with, but I am quite sure they reflect some of the sentiments others feel.

As I’ve stated previously, I am a huge proponent of Fed Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson. What they are doing is absolutely necessary to restore the trust and solvency of the financial markets. However, just because I want to believe it will work does not mean that it will work. And although I hope these liquidity injections will take effect as intended, I realize that in the back of my mind it is more due to the fact that I’m trying to convince myself it will work.

The nagging issue is not so much about the individual companies we choose to invest in as much as it is the overall feeling that the “Emperor has no clothes.” This entire deleveraging process has uncloaked the naked truth about wealth creation over the last several decades.

To describe this ordeal as a crisis of confidence is an understatement. The real problem is that once people no longer believe in mythical fairies and dragons, it’s hard to get people to sleep at night with the same ol’ bedtime story.

In terms of the credit markets, it will be extremely difficult to get banks to lend money based on projected asset valuations or simulated mark-to-model metrics. The system works well when people believe it, but when people lose their belief criteria hope cedes to despair.

Think of yesteryear when you believed in the Tooth Fairy. This was one of the very first introductions to basic economics. Each dollar placed under your pillow at night was exchanged for the asset valuation or current market value of each tooth. Or at least that’s how it seemed, but the real system of exchange depended exclusively on your belief in the Tooth Fairy and the guarantee of your parents to back stop the fabrication. Hence, if you no longer believe in the myth of our financial system or the obscure ability for Uncle Ben and Big Daddy Hank to reinflate us out of this crisis, there is no buyer for assets even if you were willing to sell all your teeth and wear dentures.

The craziest thing about all this volatility and market panic is that it has become more evident than ever that asset value was predicated on perception and not intrinsic value. The exaggeration of wealth was created through leverage tied like a noose around our necks, waiting for the day people hang themselves out to dry.

The earnings multiples across the board have come down to very, very attractive levels. Yet, this oversold theory only holds true if we are facing a liquidity crisis based on deleveraging and not a fundamental breakdown of the drivers in the global economy.

A short-term recession is priced into the markets. But a sustained chasm and black hole is not factored into the markets and, thereby, would mean that stock prices would be far from reaching a bottom. Again, this is only if all the liquidity being pumped into the system fails to deliver proper resuscitation to jump start the economy.

And this draws me to the inevitable conclusion that if Warren Buffett were truly wrong and the economy reached a real depression, all bets are off the table and the consequences of such an economic demise would mean that no municipal bonds, Treasuries or cash holdings would protect you. In other words, the actions by the Treasury and Federal Reserve better work otherwise it will look like a George Romero horror movie with zombies running in the streets looting for survival.

This is unthinkable in reality but remains the very fear that draws near. But if you play your most wild fears out in your mind, you may find a calming sense of peace in your existence by the knowledge that things cannot possibly be allowed to get that bad, can they? Because if they did, money would cease to have value and the last thing anyone would be thinking about would be bills, mortgages and frozen credit markets.

THE BUFFETT CLARION CALL TO ARMS

Warren Buffett is, undoubtedly, an American success story and many would welcome a mere slice of his performance as they try to mimic his portfolio but fail to achieve equal measure.

The difference for the average investor is that while it’s common for legendary traders of Wall Street to mock how the sheep get sheared by buying at the top and selling at the bottom, they neglect to remember that most people sell not because they want to, but because they have to make bill payments and pay for basic necessities such as food and shelter. Sound advice by professional money managers falls on deaf ears when the margin of error means being able to feed your family or not.

Warren Buffett can buy with impunity, unlike the rest of us with limited resources. Because he is rich enough that whatever decision is made to invest, he can, literally, afford to be wrong until the markets turn around and agree with him at some point or another.

This is not a criticism of the man or the individual, rather, this is more about a growing disparity between those with money and those without. The advantage is that the money he puts to work doesn’t need to be pulled out or withdrawn to feed a family, pay a utility bill, or keep the mortgage going for one more month.

It’s arrogant to presume that the sage’s wisdom applies to the average American investor that isn’t necessarily looking to get rich, but simply hoping for a nest egg to supplement a retirement income.

Warren Buffett is right to buy stocks and equities after the markets have been utterly obliterated. But he is wrong to assume that everyone else can enjoy the same luxury of spending free cash flow on anything beyond basic necessities, let alone investing in the market once their 401k’s and retirement funds have been cut in half or more.

But, in truth, Buffett’s op-ed piece was not intended for the majority of average American investors. Instead, it was the clarion call meant to trumpet a message for the professional money managers that ran to the sidelines in cash during this massive deleveraging and liquidation cycle.

A call to arms so that a support level or underlying buy exists in the markets that can help stabilize price volatility to inspire confidence in a broken system. While many professional money managers are seeking cash reserves to cover a potential rising redemption period, without their underlying bid in the market there continues to be a systemic free fall of stocks.

I’m very appreciative that Warren Buffett did make public statements during this crisis because his words do carry weight. And since the dislocation between fundamentals and perception has been largely exaggerated during this volatility, it is prudent for the sages of Wall Street to commit both words of wisdom backed by real capital into the equity markets.

While we all like to believe we can be whatever we want or do whatever we desire, the truth is that the American dream is an illusion for many, smashed and broken on the backs of taxpayers that will always get less than what they paid or bargained.