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| Wednesday Aug 30, 2006
A day of challenged assumptionsTaipan Group's Dynamic Market AlertBy J. Christoph Amberger-- A day of challenged assumptions A Personal Message from J. Christoph Amberger: I'm about to ask you to do something crazy. But if you do, I guarantee it'll be one of the most rewarding decisions you'll ever make. In fact, what I'm about to ask of you will actually make you $14,227 richer this year alone! So if you're willing to hear me out, listen to all the facts, and want to grow your wealth faster than you could have ever dreamed, then please read on... -------------------------- A day of challenged assumptions by J. Christoph Amberger The Demise of the Dollar crowd is arguing that China's just itching to let the yuan soar against the dollar. Apparently, they haven't talked to the Chinese.The Chinese government just ordered domestic lenders to increase the amount of foreign currency they hold at the central bank for the first time since 2004. This is a way to limit the overall amount of cash available for investment and especially to ease pressure on the yuan to strengthen against the greenback. As of Sept. 15, Chinese banks now must keep 4% of their non-yuan deposits as reserves, compared with 3% currently. That's not exactly chump change. This new requirement will sharply reduce the supply of dollars in circulation in China, slowing gains in the yuan. Quite clearly, the Chinese are not interested at all to see their competitive advantage erode: An appreciating yuan would make Chinese exports more expensive... and exports are the mainstay of the Chinese economy. Look for a technical increase in the U.S. dollar exchange rate in the next 10 days. -- U.S. wages are up an annual rate of 7.6% in the second quarter, after a hefty 13% surge in the previous three months. Bad news for liberal politicos who are currently painting the state of the U.S. economy in murky colors, delivered to you daily in television campaign ads. (On the other hand, when was the last time a politician ever based a TV spot on facts?) But the news should be good for goldbugs: With enough cash sloshing around in the hands of the American consumer, increased demand for bling-bling may keep gold prices above $600 for the foreseeable future... -- "Petroleum traders, worried that prices are too high to last, are selling their holdings," claims James R. Healey of USA Today. And apparently, they have discarded media-mongered fears that hurricanes won't disrupt oil production in the Gulf. Healey drew the connection between lack of speculative confidence and the fact that yesterday, crude oil ended New York trading at $69.71 a barrel -- the first time it has closed at less than $70 since early May. Scattered analysts also have placed gasoline prices closer to $2 a gallon than to $3, with a 10 cents a gallon drop due to materialize by the end of next week. I don't quite know about that. Yes, hurricane season thus far has been a bit of a dud. But it ain't over yet, and as we saw last Friday, even a lousy tropical depression can double as a speculative catalyst. And then there's the loony fringe in Iran, with its missile batteries pointed at the Strait of Hormuz, through which 80% of Middle Eastern oil exports have to pass. There's still plenty of speculative conflagration points left. On the other hand, gold demand numbers illustrated very nicely that those clamoring most loudly about yet another imminent doubling and tripling of gold prices stopped buying as gold moved past $650 earlier this year... and haven't really gotten back into the game yet. Are the strong hands in the speculative oil game being shaken out as well? Religion is booming by Christian DeHaemer About 15 years ago, while bending my elbow at his favorite Irish bar in Bethesda, my brother looked me square in the eye and said, “Chris, you don’t talk about two things when you are in this bar: politics and religion.” His point always stuck with me, and not just because I frightened his favorite waitress. The same can be said of investing, only with a twist. Whereas all investors have money, and most of it was earned by hard work (rather than inheritance or Hollywood) it stands to reason that most investors are Republicans. And as long as we are quoting DeHaemer family wisdom, my dad always said, “Everyone’s a Democrat until he owns a house.” This was true for me as well as the vast majority of my peers. Given that home ownership is 68% these days, it might also explain the GOP success at the voting booth, despite its obvious failures in policy. But I digress. My point is that the investment media blows long and hard about politics but gives short shift to religion. Despite the fact that after 9/11 and perhaps in part due to the aging of the American population, religion is booming. Think about it. The Chronicles of Narnia, The Passion of the Christ, The Purpose-Driven Life, Chicken Soup for the Christian Soul, 7th Heaven, and Joan of Arcadia. These products have made billions of dollars. Or check out Salem Communications (SALM), a company that owns 92 Christian radio stations across the country. You could have bought them for $7 in 2001 and sold them for $33, a 371% a percent gain, in just over two years. Nearly 230 million Americans consider themselves Christian and buy accordingly. There are advertised Christian plumbers, hairdressers and best-selling novelists. (Taipan publisher Christoph Amberger just told me that the contractor he had spec out an addition to his house offers Friday morning prayer meetings to his clients. He wondered if that was part of the safety package...) But what has been lacking, up until now, (the release date is Wednesday August 29) is a top-notch video game. According to Nielsen Entertainment, nearly half of all U.S. households own one video game console, and 23% own more than three. The video game industry is white hot, currently outgrossing the movie industry by almost $1 billion a year. And now, millions of Christian families across America will soon be presenting you with one of the best investment opportunities seen in this industry in many years. I’ve found a small company that has a “built in” 70-million person following that will be the first to supply this market with a product that Christian gamers want to play and their parents would love them to have… -------------------------- China Telecom Corporation, Greif Inc, JDS Uniphase Corporation, Rex Stores Corporation, SeaChange International Inc, and TiVo Inc are releasing earnings. Sign up here.
Unlock Dates for September 2006 Keep an eye on Tim Hortons Inc. and Himax Technologies for significant sell-offs. You may want to short shares or buy puts on these two positions. Brought to you by Extreme Volatility Speculator
Upgrades and Downgrades -------------------------- Quote of the Day "Envy is the most honest form of admiration." - Wilhelm Busch, German artist (1837-1908)
PS: The equivalent of a 250-year supply of cheap oil has been discovered in the foothills of West Virginia! Now this tiny $5 company has secured an exclusive patent for the technology that will break the U.S. dependence on foreign oil. And they’ve set off a bidding war that could hand investors a 378% gain by this coming October. Your free report containing all the details is available here...
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