Muni bonds are shrinking at a record pace...

Tech stocks have rallied, but you can still make 100%...

Big Cheap Tech stocks like Apple and Intel have soared this year. But the sector is still cheap.

In today's Digest Premium, DailyWealth Trader co-editors Amber Lee Mason and Brian Hunt show why it could still double from here...

To subscribe to Digest Premium and receive a free hardback copy of Jim Rogers' latest book, click here.

Muni bonds are shrinking at a record pace... The top ways to improve your health in 2014... Smuggling gold into India... Jim Rogers on why gold is falling... Silver or gold?... A silver coin that could soar by hundreds of percent...

 The municipal-bond market shrank at a record pace in the third quarter...

State and local governments issue "muni" bonds to pay for anything from streets to sports stadiums. They pay healthy, tax-exempt yields to creditors.

And according to Federal Reserve data released this week, the amount of outstanding municipal debt fell from $3.72 trillion in the second quarter to $3.69 trillion at the end of the third quarter – the lowest since the fourth quarter of 2009. That's the largest single-quarter drop since the Fed started tracking data in 1950.

 Individual investors are the largest owners of muni bonds. Their muni-bond holdings fell to their lowest levels since the fourth quarter of 2006. It was the eighth "outflow" – more money going out than coming in – in the last 10 quarters.

 As you can imagine, it has been a tough year for municipal bonds. A popular muni-bond fund below shows just how tough...

 Detroit went bankrupt and Puerto Rico is on the verge of defaulting on $70 billion of muni bonds. People are fearful of increased defaults... Plus, muni bonds are selling off due to fears of rising interest rates and the Federal Reserve's potential tapering of its monthly bond purchases.

 But our colleague Dr. David "Doc" Eifrig says these fears are overblown. Doc's favorite municipal-bond funds are well-diversified. They'll survive even in the case of a large municipal bankruptcy. Plus, over the past 40 years, investment-grade muni bonds have defaulted just 0.017% of the time, according to Forbes. That's less than two times out of every 10,000.

 Doc says the selloff is temporary... and makes munis even more attractive. Right now, you can lock in tax-equivalent, double-digit yields in select muni-bond funds. And despite market fears, it's still one of the safest corners of the fixed-income market.

That's why hedge funds are starting to load up... They now own billions of dollars of the bonds, up from almost zero five years ago.

 One of the greatest bond investors of our time, Jeffrey Gundlach of Doubleline Capital, agrees with Doc's thesis. Gundlach told Barron's that he likes muni-bond funds today because they're trading for less than the value of their holdings and offering solid yields.

 You can also read Doc's thoughts on the judge's ruling in Detroit's bankruptcy and what it means for munis in the December 6 Digest.

 In the December issue of Retirement Millionaire, Doc told readers exactly where he sees the economy headed... And he also reviewed the entire model portfolio going into 2014. He also dedicated an entire section of the issue to telling readers what to do with their extra cash. We think this bit is especially relevant, given our advice to start raising some cash in your portfolio.

 And last night, the January issue of Retirement Millionaire hit inboxes. As you can see from today's mailbag, it was also loaded with valuable information.

In addition to his financial advice, Doc always shares secrets and health, travel, food, and money-saving tips. And in his brand-new issue, he told readers the top 13 ways to improve their health in 2014.

To sign up for Retirement Millionaire and gain access to Doc's 2014 health tips – which one reader said "was worth the price of the subscription" alone – click here. It's just $39 a year. And we offer a four-month, 100% money-back refund.

 India's demand for gold is voracious... It's one of the largest importers of the precious metal. And it imports nearly all of the gold it consumes.

But the outflow of dollars spent on gold has caused a widening trade gap and current account deficit... which has crushed its currency, the rupee.

To combat an accelerating current account deficit and a falling rupee, the government imposed a 10% tax on gold bullion imports in August, up from 8%. It's the fifth increase since January 2012. And in July, the Reserve Bank of India ruled that 20% of all imports would have to be re-exported.

 But as we know, government restrictions never have their desired effect... Indians are simply smuggling the metal into the country.

Between April and September, customs officials seized 15.2 billion rupees (or $2.5 billion) of gold coming through ports and airports, according to an official from India's Directorate of Revenue Intelligence. That's up from 2.8 billion rupees in the same period last year.

 Still, the restrictions are causing India's official gold imports to fall off a cliff...

In August, India's gold imports fell to $650 million, less than one-tenth of what it bought a year earlier (and down from $2.2 billion in July).

India imported 859.7 tons of gold in 2012. But that number will likely be lower this year.

 "The fact that India, which has been the largest buyer, has reduced its buying a lot is one of the main factors that's causing gold prices to go down," investment legend Jim Rogers told Internet-based precious-metals exchange BullionVault last night.

 But Rogers doesn't see the precious metal staying down for long...

 Rogers isn't buying gold or silver today. But between the two metals, he says he'd buy silver "because it certainly has gone down more than gold." And if the metals continue to fall, he says, "I hope I'm smart enough to buy more."

 In today's DailyWealth, Steve Sjuggerud discussed a certain type of silver one of the foremost coin experts in the world – Van Simmons, of David Hall Rare Coins – is buying today.

Between 1976 and 1980, this coin soared 990%. The value of silver dollars corrected from 1980 to 1982... Then these coins soared 188.6% between 1982 and 1985. As Steve writes...

 We highly recommend working with Van. We get nothing for recommending his services... But we know he takes good care of our readers. You can reach Van at 800-759-7575 or info@davidhall.com.

 New 52-week highs (as of 12/11/13): CVS Caremark (CVS) and Dolby Laboratories (DLB).

 Great feedback about Doc's latest issue of Retirement Millionaire, which hit inboxes last night. What publications of ours have you read and enjoyed lately? Let us know at feedback@stansberryresearch.com.

 "I have no sympathy for the plight of government union pensioners. They extracted their obscene benefits by extortion. They left transit passengers walking. They let the trash pile up on street corners. They moved to inflict as much pain as possible on the public in their quest for more and bigger benefits. Forced to knuckle under to union demands, the weak willed politicians gave the unions what they wanted – but didn't bother to fund them since that might cost them at the polls. It is poetic justice that their ill-gotten gains are now in jeopardy. Truly, the chickens have come home to roost." – Paid-up subscriber Wayne Flaherty

 "Just read Dr. David Eifrig's 'Top ways to improve your health in 2014' and it is worth the price of the subscription to Retirement Millionaire. I'm a health nut and his list is great. I'm aware of and follow most of his suggestions. But to have them all on one concise list is something worth reminding yourself often. This is my first year of this subscription and I will keep continuing it. If you don't have good health all the money in the world won't do you any good." – Paid-up subscriber David Cress

Regards,

Sean Goldsmith
Miami Beach, Florida
December 12, 2013

Tech stocks have rallied, but you can still make 100%...

Big Cheap Tech stocks like Apple and Intel have soared this year. But the sector is still cheap.

In today's Digest Premium, DailyWealth Trader co-editors Amber Lee Mason and Brian Hunt show why it could still double from here...

To continue reading, scroll down or click here.

Stansberry & Associates Top 10 Open Recommendations

(Top 10 highest-returning open positions across all S&A portfolios)

As of 12/11/2013

Please note: Securities appearing in the Top 10 are not necessarily recommended buys at current prices. The list reflects the best-performing positions currently in the model portfolio of any S&A publication. The buy date reflects when the editor recommended the investment in the listed publication, and the return shows its performance since that date. To learn if a security is still a recommended buy today, you must be a subscriber to that publication and refer to the most recent portfolio.

Stansberry & Associates Hall of Fame

(Top 10 all-time, highest-returning closed positions across all S&A portfolios) 

Tech stocks have rallied, but you can still make 100%...

 The municipal-bond market shrank at a record pace in the third quarter...

State and local governments issue "muni" bonds to pay for anything from streets to sports stadiums. They pay healthy, tax-exempt yields to creditors.

And according to Federal Reserve data released this week, the amount of outstanding municipal debt fell from $3.72 trillion in the second quarter to $3.69 trillion at the end of the third quarter – the lowest since the fourth quarter of 2009. That's the largest single-quarter drop since the Fed started tracking data in 1950.

 Individual investors are the largest owners of muni bonds. Their muni-bond holdings fell to their lowest levels since the fourth quarter of 2006. It was the eighth "outflow" – more money going out than coming in – in the last 10 quarters.

 As you can imagine, it has been a tough year for municipal bonds. A popular muni-bond fund below shows just how tough...

 Detroit went bankrupt and Puerto Rico is on the verge of defaulting on $70 billion of muni bonds. People are fearful of increased defaults... Plus, muni bonds are selling off due to fears of rising interest rates and the Federal Reserve's potential tapering of its monthly bond purchases.

 But our colleague Dr. David "Doc" Eifrig says these fears are overblown. Doc's favorite municipal-bond funds are well-diversified. They'll survive even in the case of a large municipal bankruptcy. Plus, over the past 40 years, investment-grade muni bonds have defaulted just 0.017% of the time, according to Forbes. That's less than two times out of every 10,000.

 Doc says the selloff is temporary... and makes munis even more attractive. Right now, you can lock in tax-equivalent, double-digit yields in select muni-bond funds. And despite market fears, it's still one of the safest corners of the fixed-income market.

That's why hedge funds are starting to load up... They now own billions of dollars of the bonds, up from almost zero five years ago.

 One of the greatest bond investors of our time, Jeffrey Gundlach of Doubleline Capital, agrees with Doc's thesis. Gundlach told Barron's that he likes muni-bond funds today because they're trading for less than the value of their holdings and offering solid yields.

 You can also read Doc's thoughts on the judge's ruling in Detroit's bankruptcy and what it means for munis in the December 6 Digest.

 In the December issue of Retirement Millionaire, Doc told readers exactly where he sees the economy headed... And he also reviewed the entire model portfolio going into 2014. He also dedicated an entire section of the issue to telling readers what to do with their extra cash. We think this bit is especially relevant, given our advice to start raising some cash in your portfolio.

 And last night, the January issue of Retirement Millionaire hit inboxes. As you can see from today's mailbag, it was also loaded with valuable information.

In addition to his financial advice, Doc always shares secrets and health, travel, food, and money-saving tips. And in his brand-new issue, he told readers the top 13 ways to improve their health in 2014.

To sign up for Retirement Millionaire and gain access to Doc's 2014 health tips – which one reader said "was worth the price of the subscription" alone – click here. It's just $39 a year. And we offer a four-month, 100% money-back refund.

 India's demand for gold is voracious... It's one of the largest importers of the precious metal. And it imports nearly all of the gold it consumes.

But the outflow of dollars spent on gold has caused a widening trade gap and current account deficit... which has crushed its currency, the rupee.

To combat an accelerating current account deficit and a falling rupee, the government imposed a 10% tax on gold bullion imports in August, up from 8%. It's the fifth increase since January 2012. And in July, the Reserve Bank of India ruled that 20% of all imports would have to be re-exported.

 But as we know, government restrictions never have their desired effect... Indians are simply smuggling the metal into the country.

Between April and September, customs officials seized 15.2 billion rupees (or $2.5 billion) of gold coming through ports and airports, according to an official from India's Directorate of Revenue Intelligence. That's up from 2.8 billion rupees in the same period last year.

 Still, the restrictions are causing India's official gold imports to fall off a cliff...

In August, India's gold imports fell to $650 million, less than one-tenth of what it bought a year earlier (and down from $2.2 billion in July).

India imported 859.7 tons of gold in 2012. But that number will likely be lower this year.

 "The fact that India, which has been the largest buyer, has reduced its buying a lot is one of the main factors that's causing gold prices to go down," investment legend Jim Rogers told Internet-based precious-metals exchange BullionVault last night.

 But Rogers doesn't see the precious metal staying down for long...

 Rogers isn't buying gold or silver today. But between the two metals, he says he'd buy silver "because it certainly has gone down more than gold." And if the metals continue to fall, he says, "I hope I'm smart enough to buy more."

 In today's DailyWealth, Steve Sjuggerud discussed a certain type of silver one of the foremost coin experts in the world – Van Simmons, of David Hall Rare Coins – is buying today.

Between 1976 and 1980, this coin soared 990%. The value of silver dollars corrected from 1980 to 1982... Then these coins soared 188.6% between 1982 and 1985. As Steve writes...

 We highly recommend working with Van. We get nothing for recommending his services... But we know he takes good care of our readers. You can reach Van at 800-759-7575 or info@davidhall.com.

 New 52-week highs (as of 12/11/13): CVS Caremark (CVS) and Dolby Laboratories (DLB).

 Great feedback about Doc's latest issue of Retirement Millionaire, which hit inboxes last night. What publications of ours have you read and enjoyed lately? Let us know at feedback@stansberryresearch.com.

 "I have no sympathy for the plight of government union pensioners. They extracted their obscene benefits by extortion. They left transit passengers walking. They let the trash pile up on street corners. They moved to inflict as much pain as possible on the public in their quest for more and bigger benefits. Forced to knuckle under to union demands, the weak willed politicians gave the unions what they wanted – but didn't bother to fund them since that might cost them at the polls. It is poetic justice that their ill-gotten gains are now in jeopardy. Truly, the chickens have come home to roost." – Paid-up subscriber Wayne Flaherty

 "Just read Dr. David Eifrig's 'Top ways to improve your health in 2014' and it is worth the price of the subscription to Retirement Millionaire. I'm a health nut and his list is great. I'm aware of and follow most of his suggestions. But to have them all on one concise list is something worth reminding yourself often. This is my first year of this subscription and I will keep continuing it. If you don't have good health all the money in the world won't do you any good." – Paid-up subscriber David Cress

Regards,

Sean Goldsmith
Miami Beach, Florida
December 12, 2013

Editor's note: Today's Digest Premium features an idea that DailyWealth Trader co-editors Amber Lee Mason and Brian Hunt say "could make readers uncomfortable." But it could also double your money over the next 12-24 months.

In the December 11 edition of DailyWealth Trader, Amber and Brian showed readers an unusual – and more profitable – way to profit off "Big Cheap Tech" companies like Microsoft, Cisco, and Intel...

 The ProShares Ultra Technology Fund (ROM) is an exchange-traded fund designed to return double the performance of the Dow Jones U.S. Tech Index (also called a "double long" fund). It holds stakes in more than 150 companies, from Allscripts to Xerox. But about 65% of its weighting is in just 10 stocks... And they're the "dominators." Nearly one-fifth of the fund is in Apple, about 10% is in Google, and good chunks are in IBM, Microsoft, Intel, Oracle, Qualcomm, and Cisco.

As you can see in the chart below, ROM has soared over the last 12 months. Big moves in several key tech stocks (like Apple and Google) have helped propel shares 50% higher this year. It just broke out to an all-time high.

 We know the thought of buying a sector that has enjoyed a substantial rally makes some folks feel uncomfortable. They see a previous run and think they've "missed the boat." It can be a hard trade to make.

In some cases, this feeling is useful. You don't want to participate in a "buying panic" – when folks see their neighbors making "easy money" and pay any price to get in on the action.

But we don't think that's the case right now with large-cap tech stocks...

 Yes, the sector has enjoyed a good rally. But these are high-quality businesses that are still paying dividends, cranking out cash, and trading at low valuations. After factoring in their large cash positions, the top eight holdings in ROM are trading at just 10 times forward earnings.

Now, the market is recognizing this idea... Money is flowing into it. Given the valuations, this is one trend you can buy right now and expect excellent returns...

To "catch up" to the rest of the market, these stocks would need to get 50% more expensive. Since ROM is a double-long fund, that would be a 100% gain.

 If you already have a position in "Big Cheap Tech," hold on for more gains with a 15% stop. If you haven't taken a position, make sure you do it soon. We've got a cheap sector trending higher... which is a great recipe for gains.

It might be a "hard trade" to make, but it's the right trade to make.

– Amber Lee Mason and Brian Hunt