S.E.C. v. Morton: Delphi Associates Newsletter
S.E.C. v. Morton: Delphi Associates Newsletter
S.E.C. v. Morton: Delphi Associates Newsletter
Sean Mot:ton
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By SEAN-DAVID MORTON about the nuclear planning,” the former warheads for its unstoppable SUNBURN
(This issue is dedicated to the memory of my missiles, given to them by the Ukrainians,
senior intelligence official told me. “And
Step-father, and REAL DAD, Jay Franklin
Pace stood up to them. Then the world which they got from Vladimir Putin
Salaman. He raised me to know what is right and
I would not be the person I am without him.) came back: ‘O.K., the nuclear option is and Russia...ALL BECAUSE of Bush’s
In the previous issue I revealed that politically unacceptable.’” At the time, BELLIGERENCE, and his religious
the US was in the process of planning a a number of retired officers, including belief that by starting Armageddon, that
series of atomic bomb strikes inside Iran. two Army major generals who served in he will some how bring JESUS back.
That the US was at RED ALERT and Iraq, Paul Eaton and Charles Swannack, You will also notice that even AFTER
battle groups were in position for this to Jr., had begun speaking out against the the Joint Chiefs of Staff refused this insane
take place on March 29th. On March 24th Administration’s handling of the Iraq plan back in March, that it was STILL on
a dossier was placed on the president’s war. This period is known to many in the the table and not entirely rejected until
deck explaining the repercussions of Pentagon as “the April Revolution.” late April when Bush realized he was not
this unprovoked pre-emptive actions, getting anywhere with this approach
that it would lead to dire consequences and finally gave up.
for America and the world, to which the Besides, the Israeli’s could do all the
president replied, “Bring It On!” dirty work for him, which had been the
This led to a revolt inside the plan from the beginning when the US
Pentagon and by the Joint Chiefs of gave Israel 300 Excaliber class nuclear
Staff who disobeyed direct orders from bunker bombs to go after Iran. This
the Commander-In-Chief with the was foiled when Ariel Sharon sold the
rationale that they did not have to take missiles to the Red Chinese, completing
orders from someone they considered a much-needed link in their war-
incompetent and quite possibly machine chain. Ariel pocketed most of
clinically insane. Some of this story is the cheddar, along with millions off the
only NOW hitting the world press: top from the Gaza Strip deal where the
Seymour Hersh’s latest article explains US paid Israel $30 billion to pull-out in
some of the details now being revealed the largest behind-the-scenes real estate
“An event like this doesn’t get papered
of how Armegeddon “didn’t go down.” deal in history Mr. Sharon now sits in a
over very quickly,” the former official
Excerpt: coma.
added. “The bad feelings over the nuclear
“ In late April, the military leadership, Now NO ONE at the Pentagon wants
option are still felt. The civilian hierarchy
headed by General Pace, achieved a major to take orders from Bush, stating to me
feels extraordinarily betrayed by the brass,
victory when the White House dropped that: “the CHEESE has totally slipped
and the brass feel they were tricked into
its insistence that the plan for a bombing off the President’s Cracker” and they no
it”--the nuclear planning--”by being asked
campaign include the possible use of a longer feel obligated to take orders from
to provide all options in the planning
nuclear device to destroy Iran’s uranium- a madman they now seriously consider
papers.”.
enrichment plant at Natanz, nearly two “Clinically Insane.” And I DO NOT make
~END STORY~
hundred miles south of Tehran. The huge that statement lightly.
NOT THE WHOLE STORY This is ALL stuff that is not even heard
complex includes large underground This does not tell you the WHOLE
facilities built into seventy-five-foot-deep about inside the Beltway, but that I can
story of what REALLY went on behind ASSURE you is true.
holes in the ground and designed to hold the scenes, because they DO NOT want
as many as fifty thousand centrifuges. Now everything has gone to “PLAN
anyone to know that Iran now has nuke B” as the Israeli’s are doing all the dirty
“Bush and Cheney were dead serious
THE DELPHI ASSOCIATES NEWSLETTER
work for us, and it is only a matter of time US is plotting a major regime change in 1980 with multiple degrees in Political
before the US gets involved on Israel’s side. in Russia, and, there is currently a $100 Science and a Bachelor of Fine Arts
You will notice over the next few weeks as billion fund being set up to democratize (and only one semester shy of degrees in
Israel invades Lebanon and bombs Syria, Cuba and bring it back under the US Organic Chem and Astronomy) gold was
that all of this attention is being focused sphere of influence when Castro dies, $850. per oz.
on an area called THE BEKKA VALLEY. which is expected in the next 18 months. In fact I turned what was left of the
Some of you may remember that three Mr. Putin probably doesn’t sleep well gold into nearly half a million in the
years ago I reported here that I had remote at night at all. stock market, buying such stocks as
viewed four facilities inside Iraq that KINGWORLD ENTERTAINMENT 3
were manufacturing the famed WMDs, months before Wheel of Fortune, Jeopardy
under the supervision of RED and OPRAH went on the
CHINESE scientists. I also told air. I had similar successes
you these were ALL moved into with stocks such as shoe
a series of caves in THE BEKKA company LA GEAR.
VALLEY, and that is where the Since July of 2005,
US and Israel will be focusing stocks and metals that
most of their firepower. I have recommended
Syria and Iran have a mutual have seen an increase of
defense treaty, so any attack on a WHOPPING 347%,
Syria will broaden the conflict, leading my personal
but also give the US Carte friend, who was head of
Blanche to bomb pretty much Goldman Sachs and is
anyone all over the Mid-East. NOW Secretary of the
The extra-added advantage Treasury, Henry Paulson,
is Israel will now use this as an Jr. to comment, “I can’t
excuse to take back the Gaza Sean at United Nations Press Conference believe you only charge 65
Strip and keep America’s $30 bucks for that newsletter.”
billion. Uncle Sam gets boned again. Let’s THE WORLD’S GREATEST Goldman Sachs booked a 40% profit
hear it for our greatest Ally in the Middle last year. They made billions and I got
East. BANK ROBBERY
$65. But now that he is Secretary of the
Meanwhile, Russia’s, and Vladimir The ORIGINAL Delphi Associates was Treasury Hank said he would at least buy
Putin’s, involvement in all of this from set up many years ago by Russell Targ, the me lunch this fall.
behind the scenes is the real story. RussiaFather of Remote Viewing, as an investment After being begged by so many friends
is in the middle of a fight that nobody group that was used to put psychics and and family, I finally broke down and
is going to win and everyone is going to Remote Viewing to the test predicting formed THE DELPHI ASSOCIATES
lose again! Putin has been betrayed by the outcome of SILVER FUTURES and INVESTMENT GROUP. We have put
Bush and Blair in all his deals and the prices. In the first year they were 10 for 12 together a quarter million dollar fund to
guys directly under him, want his head in their picks, meeting once a month and trade the Foreign Exchange market, or
on a platter and he is spending all of his making one pick each month. what used to be called Arbitrage.
time, making sure NATO doesn’t get into In subsequent Stanford experiments The reason I wanted to start doing the
Georgia and the Ukraine. using RV on Random Number Generators, FOREIGN EXCHANGE MARKETS
Those paying attention to the news may specifically Roulette Wheels, our group, of is it allows me FREE REIGN to use my
have caught the fireworks going on between which Elizabeth Targ and I were both members, psychic abilities, Remote Viewing skills,
Bush and Putin at the G-8 summit. Bush we were 7 for 10 with one pass (which I felt we and technical expertise´ without having to
referred to Putin’s wife as “Mrs. Puteena”.HIT and should have bet on!) wait for future world events, stocks to go up
Bush said from the podium he had hoped My record in the stock market has been or down, or for entire markets to rise and
that Russia would be more democratic. spectacular, unparalleled and unsurpassed. fall. I wanted to be able to make money
Putin replied that he would prefer the I have called ALL the highs and lows of the RIGHT NOW, as I believe we are simply
democracy they have rather than the type market, giving EXACT DATES for rises running out of time and For-Ex was the
of democracy the US had set up in Iraq. and crashes over the last 14 years. In fact BEST and FASTEST way to do this.
Bush literally yelled from his seat, “Just I PAID for my entire college education Each night I do a trance meditation and
at USC with a GEMCO scholarship work with a number of charts that represent
you wait!”
award and a $5000. investment in GOLD various world currencies, charting out
This was a veiled threat that Putin is
COINS bought in 1974 when gold was the graphs as I see them forming before
going to be replaced very soon, that the
$32. per oz. By the time I graduated USC
Vol. IX, Issue #117, July 20, 2006 (28 BI, Before Immanuella Day of Appearance) Page of 16
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THE DELPHI ASSOCIATES NEWSLETTER
the next days trading. I then send these I mention all this because of events FOREKNOWLEDGE of these numbers,
to my analyst Daryl Weber in Montreal, that transpired the morning of April 12th, and had successfully managed to
and he makes all the trades based on that which are not only a precursor of the manipulate the markets, and the currencies
information the next day. world war we are about to see, but to give of 5 major governments in advance to pull
Daryl and I can make trades on the you a glimpse of what the Wizard of Oz is off what amounted to the biggest bank
account, but only I have the power to doing back there behind the curtain. robbery of ALL TIME…and it happened
actually ACCESS the funds. NO ONE I got a panicked call from Daryl Weber right before our eyes.
ELSE! I am the crazy psychic that is using at 6:15 AM PST, April 12th. It was 9:15 AM Whoever it was successfully managed to
RV and dowsing to predict the trends his time in Montreal, and he asked me steal an estimated STOLE $47 TRILLION!
and lines each night, and Daryl has the to turn on my computer and take a look I reported on it in my newsletter and JUST
technical wizardry to make the trades and at what was going on. The Euro, British TWO WEEKS AGAO it was reported in
turn that into MONEY. Pound Sterling, Canadian and Australian the London Times with investigations by
Trades are done from LATE SUNDAY dollar at exactly 8:30 Am EST all began the NSA/CIA/FBI and SEC. Only the
NIGHT THROUGH THURSDAY. to PLUMMET against the US dollar. But Bush Crime Syndicate and the Israelis
Each Thursday the week’s profits will be
have the PROMIS II software and the
calculated for each member.
“SWORDFISH” back door codes to pull
With everyone’s involvement and the
off that kind of heist. I believe it was a
kind of money we have been making
PAYOFF for NOT bombing IRAN, and to
we are already stressing the limits of the
provide Israel with the capital to wage their
account.
current war against Lebanon and Syria.
I EMAIL everyone WEEKLY REPORTS
But there is FAR more to this going on
on what their money did for the week. We
behind the scenes:
do PAYOUTS every fortnight on the full
and new moon. AT ANYTIME members THE CRIME LORD
Rayburn gunfight
after being offered compensation well Targeted As
that DeLay was due to vacate his House By: Sorcha Faal, July 8, 2006
The Rayburn gunfight took place
office on Friday, June 9. (and as reported to her Russian
with the full knowledge of Bush officials
This left a rapidly decreasing window Subscribers)
since formal protests and reports were
of opportunity for those who also knew Russian Intelligence Analysts are
exchanged by the British and French
he had testified before the grand jury at reporting today that a factional split
governments which were provided to the
the end of May and might have evidence has emerged among Americas Military
administration according to high national
regarding the content of that appearance Leaders that has left one of their Top
security sources.
still remaining in his Capitol Hill office. Generals, and Former US Secretary of
Vol. IX, Issue #117, July 20, 2006 (28 BI, Before Immanuella Day of Appearance) Page 8 of 16
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THE DELPHI ASSOCIATES NEWSLETTER
State, Colin Powell, injured and has also throughout the Motherland, and which “We’re saying this is intentional,” said
resulted in the death of the Bush Families is to include a further increase of Special Louis Garcia, the city’s chief fire marshal,
chief fundraiser Kenneth Lay. Department and FSB troops to be deployed adding that the modifications could have
These reports state that a meeting to secure underground bunkers. been made by “anybody who is handy.”
between rival factions of Americas Elite Plastic tubing had been connected
Leaders held this past week in Aspen, ~END STORY~ with a radiator valve to the main gas line
Colorado, and headed by the former US in the basement of the Upper East Side
President Bill Clinton, turned violent building, Garcia said. With the valve left
when Kenneth Lay was murdered after open, gas was able to flow freely into the
his threats to expose the Counter-Coup house for hours before the blast.
plotters unless his conviction for being The explosion on Monday hurled
America’s top corporate embezzler was fireballs high into the sky and left the
overturned. upscale block covered in bricks, broken
Retaliation for this murder was swift, glass and splintered wood. At least 15
however, by the targeting of General people were injured, including five
Colin Powell the following day during a civilians and 10 firefighters.
meeting of the plotters, and that included Authorities have been investigating
President Clinton; and in an ironic ‘twist’ whether Dr. Nicholas Bartha, the lone
to this affair had his life saved by the occupant during the blast, might have
same doctors, and at the same hospital, caused the explosion rather than sell
that had likewise attempted to save the the house as part of a divorce judgment
life of Kenneth Lay. favoring his ex-wife. Bartha, a physician
This latest split between the current who lived and worked in the four-story
warring factions of the United States building, remained in critical condition
Military Leaders appears to be centered Tuesday after being rescued from the
on the ruling order of the North rubble a day earlier.
American Union, and which is the new Detectives “want to talk to him, but
Confederation formed between the haven’t been able to because of the extent
former nations of the United States, of his injuries,” police spokesman Paul
Canada and Mexico. Browne said.
But it does not end THERE! ~END STORY~
Perhaps most interesting about these
Former Secretary of State and former On Saturday night, July 15, Dr. Bartha--
reports are the details on how the elite
Soviet Agent Henry Kissinger, the long who had been in a coma for almost a week-
warring factions of the Americans
time Svengali of the Rockefeller/Bush -passed away at New York-Presbyterian/
communicate with each other through
families in the US, was on his way to the Weill Cornell hospital. He was 66.
news references to the popular American
New York City office of Doctor Nicholas Surprise, surprise. No witnesses left at all.
soft drinks Coca Cola and Pepsi, and which
Bartha, his personal physician, at 34 East Are you seeing the pattern I am seeing,
these reports state that following these
62nd Street for a scheduled appointment and that WAR is at hand amongst those
attacks the news that Pepsi had cooperated
when he was delayed in traffic. in power as they all jockey for a position
with the FBI in thwarting a theft of secrets
That tardiness probably saved Kissinger’s in their New World Order that is so close
from Coca Cola was actually a coded
life, since the house blew up during the at hand. Already dividing the spoils over a
attempt to declare a truce between these
time Kissinger was supposed to be there. victory they see as a foregone conclusion.
factions.
Yet another Bilderburg Sacrifice gone So if the Bush’s and the Bilderbergers
This type of communication between
awry, perhaps? have “Gone to the mattresses” like some
various Western factions is not new, and
was in fact perfected by the German Nazi Mafioso gangland war between the
NEW YORK (July 11) - Investigators Corleone’s and the Soprano’s, one can
regime during last century through their
confirmed Tuesday that a gas line had only hope that they would be better shots.
use of coded adverts in both Germany and
been tampered with before a landmark And what of all of us caught in the
America by Ford Motor Company and the
town house was leveled by an explosion, crossfire? Do we rise from the land and sea
German industrial giant IG Farben.
narrowing their focus on the building’s like malformed angry Titans and storm
Russian Military Analysts are further
owner, who is suspected of setting off the Mt. Olympus to put an end to this tyranny
reporting that President Putin, and in
blast in a botched suicide attempt during once and for all? Or do we sit back, do
response to these latest events in the
a bitter divorce. nothing and just become the slaves of the
United States, has ordered an immediate
Blast Amid a Bitter Divorce Men Who Sold the World?
realignment of Russian Military Forces
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PART ONE:
By Nicholas Winton
Thank you, readers! Amazingly, has now been ONE year
July 19th, 2006.
since Sean invited me and my entire arsenal of trading weapons
Born in Johannesburg, South Africa, Nicholas is a To- from The Hedge Hog Fund to sail on the good ship Delphi! In
ronto-based consultant, investment writer and self-taught stock fact, ever since the appropriately titled “MONEY MATTERS”
researcher. A graduate of The University of Toronto, he’s stud- newsletter in July 2005, where we called for gold and all com-
ied the Ancient World, Semiotics, and Literature, rubbed shoul- modities to rise sharply, we’ve seen gold soar from $420 to a
ders with the real-life Indiana Jones, Dr. Vendyl Jones, and once high of $720 an ounce! Silver, which both Sean and I theorized
toured the hidden underground of Jerusalem’s Old City, joined by was set for even larger gains than gold, zoomed from $7 to $15
a mysterious Rabbi with a Black Belt in Kung Fu. an ounce! And copper, the metal most vital to our infrastructure,
Nicholas believes we can benefit from observing market skyrocketed from $1.60 to $4 per pound! And lastly, oil, that
trends that will shape our investment future and by extension, our slickest of commodities, climbed from $45 to a staggering $78
own world’s future. His strategy uses technical and fundamental per barrel! And while those gains have been immense, we expect
analysis, contrarian-thinking, as well as monitoring insider pur- more gains on all fronts in the months and years to come.
chases and sales of stocks.
At Marketocracy.com, his top-quartile ranked Hedgehog Fund More recent market events have also unfolded as Sean and I have
(a virtual mutual fund seeded with a virtual $1 million bankroll) forecast – with a loud, exclamatory THUD!
has nearly tripled over its 3-year existence while conforming to
strict real-life mutual fund restrictions. Marketocracy.com is a In my last column, way-y-y-y-y-y back on March 7th (Delphi
groundbreaking financial experiment, as the site’s top performing #115), I tendered the following caveats:
portfolios trigger actual buys and sells within a real-life mutual
fund called The Masters 100 Fund (Symbol: MOFQX) that has o Since Google, a handy proxy for the health of a specu-
beaten the S&P 500 since its inception in November 2001! lation-happy market, had dropped $100 per share in a short pe-
In turn, Nicholas’ Hedgehog Fund (represented by the riod “the wholesale selling of this stock market sweetie indicates
orange line) has widely outperformed both the Masters 100 Fund the markets are ripe for a correction.”
(the purple line) and the S&P 500 since its inception. Shares of o “[W]e are in the weakest seasonal period … for stocks
both his Hedgehog Fund and Commodo Dragon 600-12 Fund … [and this is] a major strike against the market continuing to
cannot be purchased. But readers will soon be able to access the defy gravity.”
top secret holdings in these funds! o “[The] amount of cash flowing into mutual funds has
now approached record highs, previously seen only in February
(The Hedgehog Fund, courtesy of www.Marketocracy.com) 2000!”
o “[I]f everyone’s fully deployed their investment capital,
then just who will be there to buy stocks during a sudden, unfore-
seen decline? For that answer, you need only ask shell-shocked
investors who bought into the market right before it fell off a cliff
in March of 2000.”
o A close under 1280 on the S&P is “bearish and forms
the right shoulder of a common market decline pattern ‘head and
shoulders.’ ”
o Ditch “any crazy, [or] tech-heavy” mutual funds in hot
sectors! Why? Most mutual fund managers are not allowed to
go to cash and must remain invested even during the worst times.
Yuck! And to boot, they charge a TON to sell them just when you
Vol. IX, Issue #117, July 20, 2006 (28 BI, Before Immanuella Day of Appearance) Page 10 of 16
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THE DELPHI ASSOCIATES NEWSLETTER
need to, to avoid getting killed. That’s why I hate most mutual When the entire market did have its brutal sell-off, the WORST-
funds. FARING index of the big three was the tech-heavy Nasdaq that
o “[M]inimize technology and non-commodity exposure I had urged concern over. The NASDAQ lost nearly 231 points
until we see signs of a bottom.” or 11.6% as it plunged from a high of 2366.56 on May 6th to
o Short the QQQQ’s and the S&P 500. 2091.94 on June 14th! Technology companies like Intel, XM and
o Trim investments to raise cash. “Having cash on hand AAPL dropped 30-50% from their 2006 highs – one reason we’d
never hurts, since you can always use it to buy deeply oversold recommended lowering exposure to the sector that had been un-
stocks … once the market has bottomed.” derperforming in the first 3 ½ months of the year. Anyone short
o “Considering we may soon see a correction in the DOW, the S&P or QQQQ’s as we proposed, was at least able to hedge
S&P, et al, selling could conceivably extend to metal shares.” An some of the effects of the sell-off. Those who were conservative-
understatement, for sure! minded and went to cash as we suggested earlier in the year, can
o “Right now, the market looks tired, overbought, and in start going shopping for bargains (more on that later!).
need of a major breather. Caveat emptor.”
Indeed, being willing to take pre-emptive defensive action is an
In hindsight, this looks like important lesson, since I believe the market, after a wee (or not
pretty decent advice. Even so wee) summer rally, could see
though we’d been warning of another major sell-off before the
a potential market plunge for end of the year. As Sean him-
several months, I wish we had self describes it, this year will
been able to get out one final be a financial roller coaster for
Delphi warning (with a car- the markets. When we start to
toon-sized megaphone!) in May detect warning signs of an im-
before I was out the office and pending market drop, unless you
out of range of the internet for are a nimble trader watching the
an extended period. The reality market on a daily basis, the best
was this: I had a May column thing to do is to reduce positions
already written warning of an or to go completely to cash, and
imminent drop (the central clue wait for the ‘all-clear sign’. At
was in noting how gold shares the next sign of trouble, we’ll
were no longer rising, even again do our best to warn you, so
though physical gold was) but that you can at least put in some
Sean had a very trying month protective stops. And the good
and in addition, the printers (longtime clients of Sean’s) of the news is … I may soon offer my very own bi-weekly newsletter
DAN had some issues, so we couldn’t put the issue out. for those who want a more timely window on the market using
our same powerful forecasting and stock picking techniques (and
One of the realities with following our investment updates pub- a few new wrinkles, to boot!). I’ll have more information in a
lished on a not necessarily predictable monthly or (recently) bi- future issue. But I digress.
monthly basis, is that investors alone must decide to buy and sell
when the market rises or sells-off – or even, to do nothing at all. Now, in addition to the thrashing of tech stocks, the sharp decline
I do wish to reiterate that one week after Delphi #115 on March also hit our favourite energy and metals stocks. The reason we
17th, Sean sent out a subscriber email alert with some of my cau- never recommended selling all of our metal and energy positions
tions, stating “If the S&P hits 1310 and holds, that WOULD sig- is that we saw these sectors ultimately rebounding. The bigger
nal a break above resistance and likely one last major spike up of these have already begun to recover! The smaller metal and
to fool everyone.” And jeepers, did it ever! The market then energy shares have been overlooked by gun-shy investors and
moved sideways for 6 more weeks, lulling people into a state should now be scooped up now as bargains. In fact, with Copper
of complacency as it temporarily defied that ominous statistic again mere PENNIES from its staggering $4.00/lb May peak, we
we cited about mutual fund managers having already invested will be discussing (in part two of this issue) a couple of dynamite
every red cent of their clients (leaving no money to prop up a new copper/gold stocks, Augusta Resource Corp (ARS.Vor AR-
falling market!). The market eventually tested 1310 and spurted CFF.PK), and Copper Fox Metals (CUU.V and CPFXF.PK) that
upwards, hitting multi-year highs at 1327. Then, at precisely at have completely bottomed and are now clear bargains that should
the wrong moment, Market Bears covered their shorts and Mar- move big-time in a matter of months!
ket Bulls bought stock with both fists, as both sides anticipated
a powerful new surge was imminent! Both were wrong, and the In the metal and energy sectors, this was a LARGE, but routine
rest was history. correction that is every bit a part of a rising bull market in com-
modities. When sectors move up too quickly, hot money chases
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them, and then they correct deeply when demand wavers – and 20%, and the big one in May, 23%. Since August 2005, the HUI
this occurs even in bull markets. If you are a trader, you can or gold index which tracks a broad range of metal stocks shot
take advantage of this by buying the bottoms and selling the tops. from 150 to a high of 400. If you had sold and given up on gold
If you are an investor, simply ensure that your investments are after any of those painful corrections, you’d have missed out the
moving up in price, and cut those that don’t have a recent trend major gains that were still to come.
of moving from the bottom-left of the chart moving to the upper-
right! Only when that trend breaks should you be forced to make Not surprisingly, any newcomers to shares of gold and silver
a decision on whether to sell or not. companies during the last few months who’ve not lived through
corrections and periods of sideways consolidation, are doubtless
For investors, suffering in the midst of this stock market pullback licking their wounds and wondering if this is THE DREADED
ranks up there with taking an involuntary mudbath in your finest END for gold and silver. Frankly, I can’t see how that’s possible
Italian silk suit. However, such declines are common and neces- with the economy and dollar’s fundamentals weakening daily! In
sary in a commodities bull market; and this drop is no a reason fact, the government’s net worth which in effect backs the dollar
for concern so long as your investment horizon is longer than a is somewhere near a nauseating, NEGATIVE $35 trillion. That
Boy Band’s shelf life. Our portfolio of metal picks illustrates this alone is catalyst enough for dollar holders to swap into gold!
point very clearly. At one point in early May, my Delphi metals Would you climb up a rotting ladder? Me neither! Truly, a gold
portfolio actually registered a staggering 100% average gain and coin is a gold coin and will always have inherent value – though
a total gain of 1000%! Thus, being flat since March, my carefully this value will fluctuate. On the other hand, all paper currencies
selected metal portfolio remains IN THE POSITIVE to the tune eventually fail and fall to zero because the temptation for govern-
of 66% since its inception in July, 2005. If you bought gold even ments to print too much of it is just too tempting. These facts are
at the time of our last market update, you’re still up nicely and indisputable.
were up nearly $200/oz at its high. Just prior to the SLV exchange
traded fund debuted, I said silver was due for a super spike and Nothing has fundamentally WORSENED on the metals or energy
if you bought then, you were rewarded with a 50% spike to $15 fronts, since both the gold and oil charts are as healthy as ever and
before silver pulled back to its current $11.40 price. By contrast, remain ABOVE their 200-day moving averages (the truest sign of
we didn’t call the DOW, S&P and Nasdaq the “Three Stooges” health for a stock). Commodities plays should therefore provide
for nothing in DAN #115. After the most recent market mauling, investors with further huge gains as we look into the future. And
year to date the DOW is now up a sizzling 1.63%. The S&P is we anticipate our gold and silver portfolio will soon revisit its
now up a jaw-dropping 0.32%. And the Nasdaq is turning heads, 100% gain plateau!
racking up a blistering -3% on the year. So, while our metals
portfolio is down over 34% from its May highs of 100% (though In any event, if you raised some cash as we previously recom-
down only 13% since March), it’s still beaten ALL THREE mar- mended, then you are in a position to pick up some great bargains
ket indices combined by well over 50% this year! at current prices. If not, don’t panic, just hold on tight, gold, silver
and our metal shares are going higher … MUCH HIGHER!
These performance figures, along with the fact that the DOW and
S&P appear to face serious upside resistance is the reason we After such a serious ass-whooping, it will likely take time for the
continue to favour metal and energy stocks over all other stocks. legions of new investors who piled into metal shares to dip their
I can’t disagree with the portfolio allocation Sean recommended toes back into the silvery-gold tinged waters. Only those who
in DAN #115, of: 50% oil /energy, 30% silver, 20% gold; I like purchased shares on or before January are probably still looking
metal shares more than energy, but truly, it’s completely up to in- at a profit on all of their metal (and energy) positions. However,
dividual investors on how to distribute their holdings. We simply we think metal investors should look to buy shares of top energy
bring you our best ideas and analysis, and you can choose to act and metal mining companies NOW, as they offer fantastic value
on them (or not). while gold remains close to $600 and oil is above $70 per barrel.
And now … back to the carnage. Even my best performing vir- In my opinion, gold has bounced off its bottom and if you’re look-
tual funds, top heavy in metals and energy, were down big in ing at buying physical gold or silver and have a long term holding
May-June. But they’re bouncing back fast and I’m not panicking. strategy, NOW is a good time to accumulate (though, especially
These same stocks have excellent fundamentals (thanks to gold, so, if we get a pullback in the next month or so). Ditto for metal
silver and copper prices that have moved smartly higher over and energy stocks. The market is all about fear and greed. We’ve
each of the last 4 years!) and will continue their march to new just seen FEAR.
highs, before correcting again – as the cycle continues. Keeping
in mind that our metal stocks are up 66% on average since July Indeed, what happens when China dumps a boatload of green-
2005 (were down to as low as 53% in June), it’s worth looking at backs and buys a warehouse of gold? Gold will start to rise and
the sizes of some of the declines we’ve ‘suffered’ in metal stocks all those who sold will buy back, much higher, sending recent
just this year: August 10%, September 15%, February to March sellers into a state of self-medication. For what it’s worth, I think
Vol. IX, Issue #117, July 20, 2006 (28 BI, Before Immanuella Day of Appearance) Page 12 of 16
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THE DELPHI ASSOCIATES NEWSLETTER
gold will outpace silver in the near-term (as silver is ‘seen’ as
Mad Money:
more speculative by many investors) and then silver will outper-
form gold as occurred for most of this year. And here you have a
rare opportunity to buy both metal and energy shares during a pe-
Still Barking At
riod as attractive as July 2005 when we made the first of our gold
and silver stock selections. And back then, no one (but us) rang
The Moon!
If the S&P can hold and base above 1220,
we’ll likely have seen the end of this par- Okay, Jim Cramer has been an insider on
ticular correction. If the S&P falls below Wall Street. He even worked at Gold-
this level, then metal and other shares man Sachs. Why, oh, why must he be-
could test their lows again before starting have so incomprehensibly? Right at the
their climb back up. bottom of this latest gold drop (when my
Hedgehog and Commodo Dragon Funds
were scooping up DIRT CHEAP metal
Volatility Returns … shares!), Cramer was telling his minions
that gold was not a safe place to be. In
Can We Bear It? his next breath, however, he irresponsi-
bly recommended a heavily-overpriced
One thing that has concerned me in the gold stock, located in politically risky
seasonally slow months ahead is the re- Venezuela (Crystallex, symbol: KRY),
cent return of volatility. As I mentioned in where nationalization and your stock go-
December’s DAN, large one-day moves ing from $4 to zero overnight is a real
in the market were uncommon over the threat thanks to dictator Hugo Chavez!
preceding 24 months. In fact, you could What’s more Crystallex THEN took a
likely count them on one hand. But since gut-churning 50% tumble (it’s 3rd or 4th
January, there have now been numerous in a year) on just such concerns! In any
days when the DOW has risen or fallen 100 points or more. A event, I can’t think of a better gold buy signal, than Cramer’s cau-
few weeks ago, the Dow was down 180 points in one day! The tion to wait for gold to fall.
Nasdaq is down 10% over the last month. The Dow has lost
about 1000 points since its high. After experiencing two years of This is a quirky fellow who, two years ago was laughing at gold
investor complacency (measured by the Volatility Index or VIX), bugs and telling his viewers gold would go down because of ris-
investors are again seeing fear and market volatility returning to ing interest rates! Then when he finally got around to telling his
the market. We have no confirmation yet, but a change in vola- viewers to buy gold THIS YEAR, the metal was right at an in-
tility from low to high as we see now, can signal the return of a terim top and gold proceeded to fall $50/oz right after his call!
BEAR MARKET. As a result, we may have to be more selective Terrific. And when Cramer finally belly-flopped onto the silver
about when we enter and exit the market; and in future trades, we bandwagon, he picked Pan American Silver, one of our original
may have to be more vigilant in cutting market losses early. Keep July 2005 Delphi metal picks. Incredibly, his recommendation
this in mind. If we do get a rally and the S&P can’t break 1300 of PAAS soon had the effect of a 10% correction in its shares.
(and ultimately, 1327) then that suggests weakness, so you might And now, bearing a hallmark of the infamous Cramer curse, Pan
consider taking profits or going to cash. American is now the worst performing silver stock in our port-
That’s why I’m operating as though this next up move folio. Yuck! In summation, Cramer’s advice is valuable. The
(over the next 4-6 weeks) is strictly a trading rally where the S&P twist here is that listening to him and then doing the opposite is
rises and hits resistance around 1290-1300 and gold hits perhaps often far more lucrative! As you can see, he is getting sneaky
$700 and turns down while the sleepy summer doldrums kick now, sounding bearish on gold while recommending gold stocks
in; that is, unless the Middle East continues to flare up. Keep in (huh???). I guess if the man takes both sides of a bet, he can’t
mind, before this market makes its next serious move higher, it lose. From a contrarian perspective, what’s even more bullish
may well be bent on wringing every bull out of it, through: a) a for gold than ‘the Inverse Cramer Indicator’ (The I-C-I or ICKY
long period of consolidation and grinding sideways, though it is INDICATOR!) is that a few longtime commodity market bulls,
more likely through both b) fresh declines from late July/August such as Paul Van Eeden are beginning to question whether the
into the Fall and c) up-chucking volatility that leaves everyone commodities bull is over. This concern is addressed and dispelled
reaching for the Gravol. In the meantime, continue to maintain later in my column by a fairly astute fellow by the name of Jim
your core positions in metal and energy. Rogers, who has made a FORTUNE in commodities trading.
Vol.IX,Issue #117 July 20, 2006 AD (28 BI, Before Immanuella Day of Appearance) - Page 13 of 16
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The Larger Picture:
Ethanol – Before any other media source jumped on the band-
wagon, The Delphi Newsletter was FIRST to recommend ethanol
Where Oil Predicts Gold is Heading!
companies in this powerful growth sector. Our ethanol mentions
have all rocketed as much as: 40% (ADM), 300% (PEIX), and
(MUST READ!)
200% (NSOL.OB)! Ethanol itself climbed from $1.40/gallon to
You might want to note that oil and gold have moved in unison for a high of $3.00 per gallon for a +100% gain!
large portions of the last few years – so if one moves higher, odds THOSE ‘CRAZY’ COMMODITIES! A “MET-
are the other will do likewise. The big exception has been during AL” HEALTH CHECK-UP
gold’s drop from $720 to $550 A quiet riot has indeed erupt-
while oil has remained fairly sta- ed amidst the base metals
ble. But this recent dislocation camp. While gold and silver
is likely due to gold’s parabolic have gotten all the glory in
run-up which pretty much could the press, metals such as zinc,
only be resolved by a drop down copper, aluminum, lead and
(nothing goes straight up with- nickel have charged ahead.
out a pullback or pause). It’s
also my opinion that gold will Commodity Price Changes
outperform oil in the next 12- just since July, 2005 when we
18 months, and both will return forecast gold and other com-
to trade at their historical ratio modities would rise!
of 15 to 1 (from 1946-2000).
If gold returns to its 15:1 ratio Here’s what happened (just
and oil stays flat at $70, we’re prior to the correction) …
looking at $1050/oz gold mini- COPPER. From $1.60 to
mum. If oil moved to $100 per $3.86! … 141.5% GAIN!
barrel, gold could double and hit ZINC. From $0.50 to 1.64!
$1500/oz simply based on their … 228% GAIN!
historical relationship. For oil ALUMINUM. From $0.80 to $1.36! … 70% GAIN!
to hit $100/barrel, a lot of mucky STUFF would have had to hit NICKEL. From $6.50/lb to $9.50! … 46% GAIN!
the fan, and $1500 gold might actually look cheap. It’s also worth LEAD. From $0.40 to $0.52! …30% GAIN!
noting that oil traded at 16.86 times the price of gold from 1972 And Uranium. From $29.50 to $42.75! … 45% GAIN!
to 2000 and 17.65 from 1980 to 2000. At current oil prices, the
oil:gold ratio of 17.65 would place gold at $1235 / oz. So, we are
still quite early in the gold game! What’s even more interesting,
is that I think oft-forgotten silver could even outperform a strong
gold price over the next 12-36 months!
Vol. IX, Issue #117, July 20, 2006 (28 BI, Before Immanuella Day of Appearance) Page 1 of 16
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THE DELPHI ASSOCIATES NEWSLETTER
THE LEGAL “BURNING” OF THE DOLLAR happen is unclear, but the weak dollar chart implies those days are
Quick! Someone call in the currency coroner! That’s right -- the
numbered! What we do know is that the Fed is fiddling with in-
American greenback is in worse shape than your Aunt Minny’s
terest rates, not to stop gold’s rise/the dollar’s demise but to make
blueberry-anchovy muffins. Others would say the US dollar index gold and the dollar’s established trends play out in a slower, less
has taken up a new sport. It’s called … cliff-diving! And heck, dramatic and more orderly manner. Who knows, perhaps they’re
if you bought into Canadian dollars or Canadian stocks when we just hoping no one will notice! I say old chap, there’s nothing
first suggested, good for you! You’ve had the opportunity to bank quite as inoffensive as a nice, orderly dollar crash …
as much as 10% just on currency alone.
Mr. Rogers Roars: “TAKE THE BULL BY THE
The US Dollar is certainly is a horrible chart to look at and it HORNS!”
should make everyone quea-
sy. Only five years ago, it (A MUST-READ!)
took $1.60 Canadian to buy
one US dollar. At one point Commodities guru Jim Rog-
last month, it a mere buck ers recently shared some
and 8 cents. Such is the si- of his expert analysis on a
lent destruction of wealth. number of topics, including
Worse yet, we can’t even the dollar and commodi-
track how crazy the Fed is ties/stocks. Here are some
going at the printing press highlights:
because they are no longer
required to report the num- • Commodities are no
bers! (The dark overlords different from other mar-
in charge claimed it was too kets, in that they are bound
expensive to compile the to have big corrections from
figures and then put them time to time
into little paper notebooks. • He said he would not
Hahahahaha! That’s pretty sell commodities even if
hilarious. What would hap- they correct 30-40% be-
pen if you told your boss straight-faced that it’s just too costly cause they WILL go back up.
for you to provide details of your expense account? He would • Copper and zinc were due for a correction. “But one
kick you in the butt with his expensive Versace golf shoes, that’s has to know that nobody has opened any mines in years and all
what!). the existing mines are depleted.”
• China is the only emerging market he’s invested in.
Fact: At its recent low, the US dollar dropped 7% just since last • “Although copper is touching new highs, it is still far
July. That’s 7% of YOUR net worth snatched by a thief in the below its all time high adjusted for inflation and so is zinc, lead
night and a total of 14% you don’t have because your investments and others.”
weren’t denominated in Canadian dollars. Oddly, the green- • He is BEARISH on the dollar, and he would SELL
back’s death-wobble doesn’t seem to concern the media enough dollars.
to warrant any sense of urgent coverage. You’d think a situation • He humbly claims he doesn’t “have a clue” of where
this dire might would be addressed on that widely watched, but commodities are heading next month or in three months, but Rog-
largely irrelevant TV station that perpetually flashes the words ers knows they’ll keep “heading higher” this decade.”
“Situation Room” or “Breaking News” across the bottom of the • In the 1970s, gold rose 600% and then went through
screen. Alas, if you were a foreigner watching CNN for the first a two year decline of 50%, only to turn around and rise another
time, you’d think America’s economic picture was just peachy- 800%! This just shows you gold can correct BIG-TIME in a
keen! There’s scarcely any mention, let alone discussion of it. BULL MARKET and come back to life even stronger. That’s
American News is all over those hard issues, you know … flag precisely why gold and silver investors should have a time hori-
burning and American Idol. zon beyond 6-8 months. Suffice it to say, over the short-term, any
investment can drop.
Anyway, once the dollar has finished its temporary bounce on
this last drop by gold, the dollar has much further to fall. If the If nothing else, the calm, reasoned and steady approach of the two
dollar is denied near the 90 resistance level again and drops down greatest investors in the world Jim Rogers and Warren Buffett,
through the 80 mark, that’s when gold would go berserk to the grants us permission to relax and take a longer view during these
upside, banging the final gong for everyone to seek shelter from turbulent times.
the final stage of a currency collapse! Exactly when that might TO BE CONTINUED!!!!
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THE DELPHI ASSOCIATES NEWSLETTER
to compel her to leave property to her. What your name, we can provide for a very simple
A trust should be if she remarries? What if she loses touch with probate by providing that the trustees of the
the primary component your children? These aren’t pleasant topics, but trust will be your sole heirs. This type of will
of your estate plan for many people they are real possibilities. is called a “pourover will” and if you have to
because: _ Although a living trust normally doesn’t
have probate, this is the simplest probate pos
sible. Probate is necessary because, when you
_A will is essentially you giving instruc provide any lifetime asset protection, we can
certify the trust as a Delaware limited liability
have title to property, only you can do anything
with it, whether that action be selling it, mort
tions to the probate court on how you want
your estate distributed, but with a trust, you trust (LLT). This both provided a layer of asset gaging it, leasing it, etc. But if you pass away,
can completely avoid probate. Probate is not protection, even while you’re alive and a ben then you obviously can’t act. Hence your heirs
only expensive and time- eficiary of the trust estate, and can draw litiga have to probate your estate. On the other hand,
consuming, but it’s also one if property is held in trust, then
last chance for your credi the trust estate remains the
tors to reach your assets. The owner despite the passing of a
way probate works is first the trustee or beneficiary. Instead,
court pays off creditors of the you can name a successor
decedent, then it pays credi trustee to take over for you, as
tors of the heirs, and then the well as naming your final ben
heirs get any remaining bal eficiaries.
ance outright. Durable powers
_ With a trust, there is no of attorney are the
probate, so there’s no forum next element:
for your creditors to assert
their claims.
_ A durable power of
attorney permits you to name
_ With a will, you can
someone, or a series of people,
who can make healthcare and
protect the trust assets from financial decisions for you in
claims of your beneficiaries’ the event you become legally
creditors. You can also pre- incapacitated, but without
vent outright distributions your family having to initiate a
to beneficiaries whom you court-administered conserva
feel may not be competent to torship. A conservatorship re
handle the money or proper tion into Delaware. Delaware is the only state ally isn’t a good thing because
ty. Instead, it can be managed for them by the that has a specialized chancery court which it’s expensive, it’s time-consuming, it comes at a
trustees, and the trustee can be someone whom only hears disputes regarding Delaware trusts terrible time (is there ever a good time to go to
you designate now. and entities. Over half of all publicly-traded court?), and the conservator has to periodically
_ A credit shelter trust can be included in
corporations, including 58% of the Fortune
500, are incorporated in Delaware because
report back to the court, which of course costs
even more money.
your trust so as to combine your personal es they know this court will protect them. With
tate tax exemption with that of your spouse, al
lowing you to double the value of property you
today’s out-of-control judiciary, it’s only the _ Although it’s not a pleasant topic, in the
power of competition that protects the little durable power you can make provisions for fu
can legally leave to your beneficiaries entirely guy. If the Delaware Chancery Court steps out neral, burial, or other memorials and disposi
free of tax. of line, then people will stop filing in Delaware. tions of your remains. It’s very hard for most
_ With a living trust, your beneficiaries don’t
With other courts, you have little recourse. So
the bottom line is that, if you have to litigate,
of us to talk to our family about this, but with
the durable power of attorney, you can make
have to lose the stepped-up basis, which allows your best chance for a fair resolution with a your wishes known in writing and the topic
their basis to be the fair market value (FMV) judge who will take your trust seriously is in won’t have to be addressed again until the time
of the bequeathed property at the time of your comes.
passing. Delaware.
The final component of the estate plan is a
_In the event you’re in a second marriage, The next component conservatorship document. This is important
to have because, in the event your family does
or you and your spouse otherwise have differ of the estate plan should be have to go to court, you will at least have made
ent heirs, you can provide that the surviving
spouse will have a life estate in the trust estates,
a will because: your wishes known to them.
For those who want a higher level of asset
but also name final beneficiaries now. This is
called a QTIP trust, or qualified terminable
_ The will is the only instrument that allows protection, it’s possible to set up entities such
you to name a guardian for your minor chil as limited liability companies (LLCs), limited
property trust. In contradistinction to this, if partnerships (LPs), and even limited liability
dren, and...
you use a will and name your spouse as your limited partnerships (LLLPs). Your shares in
heir, she will be the sole owner of the prop
erty and your children will have no recourse
_In the event any property remains titled in these entities can in turn be held in the trust.
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