LOMBARDI Crisis Alert February 2013

[mamboni]

I heard the ad for this crisis alert on Limbaugh's radio show. Here's the link and a very brief synopsis. The mood is very dire. The author intro claims to have been first and most accurate in predicting the last five previous events. I'll take his word on it for now:

www.criticalwarningtoday.com

Synopsis:

1. United States is technically bankrupt.
2. National debt will exceed 150% of GDP by 2020.
3. US dollar devaluation will soon begin to accelerate
4. The stock market is imminently entering a severe bear market to last 7 years and retest the 2009 lows (-52% from here). He recommends an inverse DOW index fund (short stocks).
5. Gold will continue to rise to at least $3000 over the next 5 years.
6. Now is the time to buy the gold mining stocks using an index fund that weights the majord and the minors.
7. The EURO is a dead currency walking. Short the EURO now.
8. We are heading to hyperinflation and rising interest rates within the next few years.

He's selling a newsletter and including five special reports for a discounted price of $195. I ordered it. At thast price it is a no brainer, at least for me. He names the specific securities to buy to take advantage of the events outline above. I need that info.

I don't think anyone here will be surprised by any of these predictions if he's been paying attention to the stuff being posted here at GSUS. But specific tools and recommendations on how to profit from this knowledge are very valuable and often hard to find.

Good luck to all!

[ShortJohnSilver]

Don't the gold mining stocks have poor returns , historically? I do not know, but am asking.

[mamboni]

Don't the gold mining stocks have poor returns , historically? I do not know, but am asking.

Well, they have been a horrible investment over the last few years. They are presently dirt cheap versus gld. Is this the bottom?

During the great depression, the gold mining stocks were far and away the best investment on planet earth. Of course, we were on a gold standard then.

[Sparky]

We are in the downleg of the fifth gold/mining cycle since this bull market began in 2000. These are chart of the HUI mining index. They're about a month old, but you get the idea. 2013 Copyright (C) Sparky.

Attachment 4470

[mamboni]

We are in the downleg of the fifth gold/mining cycle since this bull market began in 2000. These are chart of the HUI mining index. They're about a month old, but you get the idea. 2013 Copyright (C) Sparky.

Attachment 4470

Fantastic charts Sparky - thank you.

So, do you think an up leg is imminent? I'm about 15% of my portfolio in the miners and I've been hammered. But I'm staying put for the duration come hell or high water.

[Sparky]

Fantastic charts Sparky - thank you.

So, do you think an up leg is imminent? I'm about 15% of my portfolio in the miners and I've been hammered. But I'm staying put for the duration come hell or high water.

I'd say it's even money whether the next long-duration upleg is about to begin, or whether we'll have to wait until the seasonally preferred early-summer time frame. As with last December, there was a lot of volume again down in this $1520-$1565 range, so a future re-test within the next several months is a reasonable scenario before the next launch.

Also still on the table is the "hell" scenario to which you alluded, which would be a harrowing plunge well below $1500. I don't think this will happen, but it never ceases to amaze me how this metals market can dash the most confident bull against the rocks. I never would have guessed that $20+ silver in 2008 could possibly return to the single digits, and yet it did. But I think the fundamentals are so strong that this gold bull could survive such a beating and still fulfill the $2400-$3200 range.

As for the mining stocks, yes it's been a challenge and I feel your pain. But I increased my position again yesterday. My best guess is at least a general doubling of share prices from these depressed levels to the top of the next up leg which will probably occur some time between April 2014 and April 2015. The best individual juniors will probably increase by many multiples, but I don't pretend to know which ones they are. I'm mostly in funds holding the major producers, though I do hold one individual junior as my lottery ticket, which as you can imagine has suffered greatly this past year.

[Sparky]

Adam Hamilton (my favorite economics essayist) thinks this week's plunge was the capitulation, but he will not be deterred if there is further downside. The fundamentals are just too strong.

http://www.zealllc.com/2013/goldcap.htm

BTW, if you are looking for a subscription newsletter with a heavy focus on precious metals and commodities, his is very good.

[joboo]

For the low price of $195, We'lll sell you all the doom you need, please call the number, and have your credit card ready...use code name "limbaugh"

[mamboni]

For the low price of $195, We'lll sell you all the doom you need, please call the number, and have your credit card ready...use code name "limbaugh"

Another uninformed idiotic post from our resident clown.

[old steel]

Interesting post i ran across early this AM which dovetails with this thread.

"From a professional's perspective: 1-2% single-day declines are not terribly uncommon, they occur a handful of times each year in both bull and bear markets. However! There are a few other critical concerns that are being seen:

1) The most recent market bottom was on March 6, 2009 at 6443. By definition, the market has been in a bull rally then for nearly 4 years and has moved over 117%. The typical bull rally from market bottom to market peak is only 2 1/2 years and returns over 200%. This means that this "rally" is exceptionally long and shallow. It also means that it is due to turn bear even under the best of circumstances. Clearly we are not in the best of circumstances.

2) The paper price and physical price of commodities has diverged significantly in recent weeks, as seen in Gold, Silver and Oil (Gasoline at pump up while oil is down). This generally signals a significant sale of contracts that outpaces the market demand of the contracts. This can mean several things, but this time I suspect it means that there aren't enough buyers of paper contracts to justify prices and that people are now holding (storing/hoarding/consuming) physical commodities directly rather than going through the paper markets. This can be a harbinger of great concern, but is at the very least a warning that confidence in markets has waned.

3) Hedging remarks from every major financial markets' determinating body have increased. Every nation is stating, in effect, that they may or may not do something about current financial movements. In these statements, they not only hedge their plans to act, but they also obfuscate the real status of their respective national financial situation. While these things happen all the time, the fact that it is happening out in the light of day without any meaningful questioning is very disturbing.

There are many other, more technical signs that have been passed over the past 18 months that point to serious downturns, including massaged employment, housing, inflation and GDP data. Any of these items taken alone would be cause for concern, but not potentially problematic. The confluence of them all is highly disturbing.

Hang on tight folks. The bear is at the door, and he is MAD AS HELL!"