Goldsmith comment: Ferris is busy working on his latest issue of Extreme Value, due out tomorrow after market close. Today's Digest will be brief.
The U.S. government produced the largest monthly deficit in history last month at $220.9 billion. That's 14% higher than the previous record set in February 2009. And the deficit through the first five months of this budget year totals $651.6 billion, 10.5% higher than a year ago. OBAMA! projects the 2010 deficit will hit an all-time high of $1.56 trillion, besting last year's $1.4 trillion. So we've had no major bailouts this year, but the Fed is still spending increasing amounts of money it doesn't have. Time to start thinking about inflation...
More updates from the Cambridge Energy Research Associates conference, taking place in Houston... And more talk about natural gas. Tom Walters, a top executive at ExxonMobil, explained his company's bullish views on gas (courtesy of Rig Zone):
Walters joined a group of industry leaders to address a global gas plenary on "The Role of Natural Gas in the Future Energy Mix." He noted that despite the effects of the recent economic downturn, the long-term outlook for natural gas is positive. "We expect global energy demand to increase nearly 30 percent in the next 20 years. By 2030, global gas demand will be around 140 billion cubic feet per day higher than 2009," he said.
The major driver of this demand is power generation, which will account for more than half of the gas demand growth, Walters said. He also emphasized the environmental benefits of natural gas as a source of power generation. "Natural gas is a cleaner-burning source of fuel and power generation that over the next 20 years will continue to form an increasingly important role in the global energy mix. This can be attributed to its advantages of lower carbon emissions and greater flexibility into power generation."
When the world's largest energy companies say natural gas is the world's future energy source, it's best to listen. These companies are the market. Plus, the world needs a cheap energy source cleaner than coal – especially in China. While gas is up from its 2009 lows, it's still trading at one of its cheapest points in over five years.
If you haven't already read Porter's issue explaining his bullish thesis on natural gas, do yourself a favor and click here. His recommendation is an unlevered, pure-play on gas. It's a super-safe way to profit from the rally, plus it yields nearly 8%. Also, in the latest issue of his Investment Advisory, Porter tells you the best way to protect yourself from the runaway inflation we mentioned above.
New highs: Fairholme Fund (FAIRX), Washington REIT (WRE), PowerShares Dynamic Biotech Fund (PBE), Visa (V), Kinder Morgan Energy Partners (KMP), Enterprise Partners (EPD), Altria (MO), Longleaf Partners (LLPFX), TimberWest Forest Corp (TWF-UN.TO), Automatic Data Processing (ADP), Portfolio Recovery Associates (PRAA), Altius Minerals (ALS.TO), Sprott Resources (SCP.TO), Akamai (AKAM), Steak 'n Shake (SNS), A. Schulman (SHLM), DirecTV (DTV), MAG Silver (MVG), Jinshan (JIN.TO), Rowan Drilling (RDC), Westmoreland Coal (WLB).
More letters of support for Porter's battle with the SEC and a great analogy for why America's falling apart. Send us your thoughts here... feedback@stansberryresearch.com.
"Add my name to the list of supporters of Stansberry Research. I began my association with your publications with a subscription to the Oil & Gas report in 2007, now the Resource Report. I have been investing in equities since 1992, but had no experience or idea of how to value oil, mining, or royalty companies. The archives, special reports, and e-mail updates have been a tremendous resource in helping me become familiar with this sector. What I didn't expect was the tremendous education from the free reports that came along with it, the DailyWealth, Growth Stock Wire, Daily Crux updates, and the S&A Digest.
"The updates from the Stansberry analysts, like Mr. Clark & Mr. Huang about market opportunities or risks have lead me to appreciate technical analysis and have a deeper understanding or risk/reward. Quite frankly, the education from your staff about trailing stops, position sizing, and managing risk helped me realize that some of the trades I DIDN'T make were as important to my financial well being as the ones I did make. Most of all, learning to sell options helped me achieve the best results of my investing career in 2009. My taxable account was up 122% mostly due to selling puts, while my Roth Ira enjoyed 48% from selling calls on Mr. Badiali's recommendations from the Resource Report.
"I can't say strongly enough how much I enjoy the transparency of your organization as well as the knowledge that your policies on prohibiting analyst owning recommendations eliminate any potential conflicts of interest. Please continue to persevere in your dealings with the SEC. You've earned the support of our family." – Paid-up subscriber Anthony Jovanovich
"I am an ordinary 'Joe Nobody' without any Harvard Education... Just High School. But I managed to have a successful 40-year career as a Land Surveyor in a rural upstate county, bought a modest home, married, had a family, and 'retired' on Social Security income. (sure). My retirement includes having worked part time for the past 22 years as a tax preparer, school bus driver, wheel chair van driver, and house inspector for a Town assessor. Compared to your other readers, I am probably in the 'Joe Schmoe' category... and that's ok.
"BUT, in spite of having a tiny, tiny stock portfolio... there are some things of great value I see... One is the wisdom to subscribe to your service, and another (now that I am old) is to note TRENDS worth considering. Looks like two speeding trains, one racing down the track loaded with incomprehensible deficit spending, and rail cars full of lunatic programs such as 'cap & trade,' 'climate change solutions = $,' 'bailouts,' 'un-stoppable inflation,' 'senatorial buyouts,' 'union deals,' and finally DEAF EARS to citizen sentiment.
"The train on the other end of the tracks should be noted as ominous to those riding the first train. The waiting train is loaded with some of the following trends: Increased gun production by companies that produce hand guns, woeful lack of all kinds of ammunition for all kinds of guns, sharp increase in the sales of gold and silver (coins and bullion), a boom in the sales of military surplus survival supplies, and even the advent and sales of 'heirloom garden seeds' (they can last up to 20 years and still grow vegetables). There will be an inevitable collision of trains if the speeding one does not slow down, how obvious is that!
"Like many of my fellow Americans, I do not want to 'flee my country,' or move my wealth out (that's a scream), I just want my individual Liberty. Porter, your publication is a winning one for investors as well as one that easily perceives the obvious trends all around us. Keep up the good work. I'm 76, still working, and on the train that's waiting." – Paid-up subscriber Buddy B
Regards,
Sean Goldsmith
Baltimore, Maryland
March 11, 2010