2015 Stansberry Conference Series – Day 1 HighlightsOctober 13, 2015
Steve Sjuggerud, editor, True Wealth
* I hired Porter in 1996... He was one of the smartest guys I knew growing up and one of my surfing buddies. His starting pay was $7.50 an hour. But you know Porter – always the shrewd negotiator – was able to up it to $16,000 a year.
We started out living together in an efficiency apartment, no bigger than this stage. We had the idea that we could do this (financial research) better than what was out there. So it's really awesome to be here today. I would tell you we dreamed up Stansberry Research on our kitchen table. But we didn't have a table.
* We're hearing a lot of bearish, negative commentary – a lot of people wondering what will happen when the Fed raises rates. But the last time the Fed raised rates, stocks started going up dramatically. Every single time in the last 25 years the Fed raised rates, stocks went up. I don't think you need to fear the Fed this time.
* Investors became scared during the August correction to a degree only seen four times since Black Monday 1987. I was shocked to see the fear was that extreme because the fall was only 12%.
But each of the four times sentiment hit this negative extreme – the markets surged much higher.
Black Monday was followed by a 40% gain within two years.
A better parallel is 1998... The extreme fear caused by the Asian Financial crisis was followed by a 200% gain in 18 months.
*Throw a dart at a list of asset classes and buy whatever it lands on – but use a stop loss.
You can significantly reduce your risk if you set a stop loss at the recent market low – and give yourself unlimited upside.
Dr. Ron Paul, former Congressman
*Land (as an investment) is reasonable in my thinking. But it's no longer privately owned, and that is a problem. But if you have some cash, it looks to me like buying a rent house would be better than buying a CD.
*I see the whole structure as a house built on sand… There's no foundation – it's all based on trust. The dollar doesn't deserve the confidence it has.
People talk about supply and demand for oil. But no one ever talks about supply and demand for the dollar…
Someone I admire for his brilliance is Jim Grant. He was asked, when is this crisis going to come? And he said 1978. So there is a lot of anticipation, but there are limits. We're seeing the Fergusons and Detroits and the amount of debt for the pension funds – it's so, so dangerous, and there's going to be a rejection. If the dollar goes down, they'll never keep up with the declining purchasing power of the dollar.
Dr. Paul: The Federal Reserve is not only wrong in their philosophy – they are very callous, too. I've brought it to the attention of two Fed Chairmen. I've asked them, "Aren't you cheating the people who are looking to take care of themselves – wanting to take care of their own retirement?" And both admitted – yes, they're cheating the people because they need to take care of the "big picture."
PJ O'Rourke: This is not a practical issue, it's a moral issue. Zero interest rates and inflation are two things that punish the good. They are evil per se. They punish the cautious – they punish the savers, the old, people on fixed incomes – who have been doing the right thing… tucking away $10, $15 $20 dollars a week all their life, trying to make sure they won't be a burden on their children. Once we get the public to understand how morally vile these policies are – not just foolish stupid, but WRONG – that's going to be a huge step in the right direction.
Penn Jillette, magician, comedian, author
I believe Hillary Clinton is much smarter than me. But I also believe she would use force in a way she honestly thought was best and with fairly good motives in her heart. But I don't think she knows what's best for other people simply because I don't believe anyone knows what's best for other people. I don't even know what's best for me.
I have a daughter and son. And I think I love them more than Hillary loves the American people. I think all the time how to make their lives better, and I just hit walls all the time… I just don't know. So any time sometime tells me they think they know what's best for 400 million people I think they're crazy.
Frank Trotter, Chairman of EverBank Global Markets
Treasury yields tell a story. The 10 year T-note is at a 60-year-low in rates. Over the past year, there has been a volatile range of yields. What that tells us is no one has a real viewpoint on where things are going. When you have this much volatility in the 10-year note, whoever woke up that morning with a new viewpoint drove the market.
Tom Dyson, publisher, Palm Beach Research Group
The most powerful force in the financial markets has just changed directions, and the ramifications will be huge for everyone in this room…
In 20 years' time, economists and historians will look back on today and say THIS was the moment when everything changed…
Many people have tried to predict catastrophic change in America for years, but they've been wrong. Their ideas have been right – but their timing was wrong. Looking at GDP growth, national debt, inflation rates. These are all important indicators, but they're not the mechanism that drives everything – that is, the currency market.
The currency market is the single most important market of all. Every single transaction, every second in the day involves a currency…
There's a crash happening in the currency market. I don't think too many people are aware of this. The Brazilian is real down 56%, the Russian ruble is down 54%, the South African rand is down 20%... the Colombian peso 50%, Chilean peso 45%, Indian rupee 45%...
There is going to be a new trend, a new fashion – a new propensity for saving and away from debt and investment…
Dollar strength a trend that will continue for 10 years.
PJ O'Rourke, best-selling author
If any of the candidates who are most likely to get elected, get elected... you're screwed.
Who are these wirepullers, swellheads and animated spittoons offering themselves as worthy of America's highest office? Do they take us voters for fools? Are they deluded – are they also insane?
I support Trump because of something HL Mencken said: Democracy is the theory that the people know what they want, and deserve to get it good and hard.
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