Experts Warn… Worst is Yet to Come

Most investors don’t take seriously warnings about the future of the economy and the financial marketplace, but those who did avoided the dreaded “Cs” of finance: the Credit Crisis and Crash of ’08. What warnings are we talking about you might ask? Well, it was the headlines of several years ago screaming that a ‘Category 6 Fiscal Storm’, ‘Debt-Driven Meltdown’, ‘Systemic Banking Crisis’, ‘Financial Train Wreck’, ‘Wild Ride’, ‘God-Awful Fiscal Storm’, ‘Major Upheaval’, ‘Rude Awakening’, ‘Great Disruption’, ‘Debt Bombshell’, ‘Major Upheaval’, ‘Unwelcome Economic Spiral’, ‘Perfect Financial Storm’, ‘Serious Collapse’, ‘Drastic Fall’, ‘Financial Disaster’, ‘Major Bear Market’ and/or an ‘Economic Earthquake’ was in store for the U.S. and, indeed, the global economy in the very near future. And the future is now!

Some Predictions do Come True
These warnings and predictions were often derided as just negative nonsense coming from alarmists, ‘party poopers’, ‘Chicken Littles’, ‘perma-bears’, ‘doom and gloomers’ and the like rather than from the insightful economists and financial and market analysts who made them. To their collective credit they were all substantially correct in their prognoses of what we could expect to happen as exemplified by what has occurred (and is still occurring) over the past 6 months. It has cost many investors 50+% of their stock market investments, 20 – 30% of the value of their home or even the loss of their house itself. Perhaps we should have paid more attention to what they said and as I compiled in the 6-part series back in 2006 regarding the “Ominous Warnings and Dire Predictions of World’s Financial Experts” followed up by a 4-part series entitled “Warning! Fiscal Hurricane Approaching! Is Your Portfolio Secure?”  

Once again warnings and predictions are being put forth about the next crisis to befall us and this time round it behooves us to pay more attention and make sure this time that we are better positioned to survive and prosper whatever comes our way. Below are major market forecasts and investment advice based on drastically different analytical styles (demographic, fundamental, technical and ‘socionomic’) from forecasters who have ‘been there, done that’ successfully in the past and are once again forecasting what their research indicates is in store for us over the next decade. It should be ignored at our peril.

Harry S. Dent Jr., the author of ‘The Roaring 2000s’, ‘The Roaring 2000’s Investor’, ‘The Next Great Bubble Boom’ and his latest book entitled ‘The Great Depression Ahead’ states that “The most important cycle change for your wealth, health, life, family, business, and investments is just ahead during the first and last depression you are likely to experience in your lifetime.”

Dent makes it clear that his predictions, while almost always contrary to most economists and expectations, have almost always proved to be correct because his predictions are based on the same sound and quantifiable logic insurance actuaries use with a high degree of accuracy to predict, decades in advance, when people will die. Dent says he applies the same science to predicting what things will happen in between birth and death – such as when people enter the workforce, get married, spend, are most productive, borrow, invest, retire, buy houses and so on. He believes that such a study of demographics and other key cycles allows him to determine the future based on the facts of the present and of demonstrated behavior so he can see the pig, or the pigs, going through the python. With that understanding of the basis for his forecasting he goes on to predict (and I paraphrase) that:

Dow will Rebound to 10,000 – 13,200 within 6 Months
A likely massive stimulus plan will bolster the economy somewhat into 2009 for a likely rebound in the Dow to between 10,000 and 13,200. A projected bullish scenario puts the Dow between 12,000 and 13,200 between April and September 2009 if the Treasury rescue plan takes hold with the markets anticipating a recovery. A projected bearish scenario assumes that if the recovery is at best rocky, or at worst that we were to move more into a depression in 2009 than a serious recession, that the Dow would only get back to 10,000 to 11,000 and not last as long.

Oil will Increase to $180 – $215+ by 2010 and then Decline to $40 – $60 by 2015
Oil prices will likely rise to a commodity bubble peak of between $180 and $215, possibly even more, and if not that high then, at an absolute minimum, retest its 2008 high of $147, between late 2009 and mid-2010 unless the economy implodes earlier in 2009. We should then see a major crash in oil prices, beginning in 2010, back into the $40 – $60 range, and possibly even lower, between 2012 and 2015 which will continue for years.

Commodities will Peak between 2009 and mid-2010
Commodities in general, including gold and other precious metals despite their crisis hedge qualities in the past, will likely peak between mid- to late 2009 and mid-2010. It will probably be 2020 or 2023 before we see the next sustained commodity boom and bubble which should last into 2039 – 2040.

Dow will Fall to 3,800 – 4,500 by 2012
The next accelerated stock crash, led by emerging markets, Asian stocks, financial stocks and tech stocks – and finally by oil and commodity stocks – will likely occur between mid- to late 2009 and late 2010, when most of the damage will occur, and continue off and on into mid- to late 2012. The Dow will fall at least to 4,500 and more likely as low as 3,800 by mid-2012, the 1994 low where the stock market bubble first began.

Nasdaq will Fall Below 1,100, its 2002 low, by late 2010 or mid-2012 at the latest.

Market will Rally from 2012 until 2017
A substantial bear market rally will likely occur between around mid-2012 and early to mid-2017 and then a less severe downturn will occur from around mid-2017 into early 2020 or as late as early 2023.

Economy will be in a Depression by 2011
The worst of this next depression is likely to hit between mid-2010 and mid-2013, especially around early 2011, but if the banking system continues to implode a deep downturn or depression could begin sometime in 2009 instead of 2010.
Editor’s Note: According to a recent research paper on “Stock-Market Crashes and Depressions” by David Barro, a professor of economics at Harvard, there is a 20% probability that a stock-market crash such as what we are currently experiencing will result in a minor depression – where the economic decline is between 10% and 25% – and a 28% possibility if it is associated with a major war of the magnitude of World War 1 and World War ll. Conversely, if a minor depression occurs first we can expect a market crash to follow 69% of the time and 83% of the time if the depression is major i.e. the economic decline is in excess of 25%. As such, should our current recession escalate and culminate in a minor or major depression by 2011 it may well follow that we will indeed experience another major stock market crash in 2012 as Dent forecasts.
 
Unemployment could Increase to 12 – 15% by 2011
Unemployment could reach 12-15%, or possibly higher at the peak of the depression.

Inflation will Increase until mid- 2010 and then turn to Deflation
A rise in inflationary trends from mid-2009 into late 2009 or early mid-2010 will then reverse to an ominous deflationary trend in prices, as the economy slows and all assets deflate, as they have done after every bubble boom in history. It is not that the government will not try to inflate its way out of this next crisis by cutting interest rates and undertaking public works projects, etc. but that the massive write-off of real estate and business loans will outweigh those efforts and contract the money supply.

Interest Rates will Increase
The Federal Reserve will raise interest rates aggressively from mid-2009 forwards due to rising inflationary pressures which will contribute to the on-going crash of the stock market down to the 3,800 to 4,000 level.

U.S. Dollar will Decline
The U.S. dollar, which declined in early 2008 in the face of a strong stock market and which strengthened considerably during the Crash of ’08, is likely to decline again into 2010 – 2012 as the stock market declines considerably further. The dollar will then strengthen again before we see the second milder stage of the depression between mid-2017 and early 2020 or 2023.

Housing will Decline by 40 – 60% from Today’s Levels
A more severe deflation cycle in housing will begin between late 2009 and mid-2010 and will likely last until somewhere between mid-2011 and 2013, and possibly as late as early 2015 in larger homes. During that period the average American house price will fall at least a further 40% and as much as a further 60% from today’s market prices.
Housing has remained essentially flat when adjusted for inflation over the last century except during the extreme bubble after 2000 and the deflation cycle of the early 1900s and 1930s. As such, the current grossly overvalued house prices of today, coupled with expected rising unemployment deflationary trends and the continued real estate slowdown due to the aging of the massive baby-boom generation, will likely make such a decline in house prices a reality.

Greatest Economic and Banking Crisis since the 1930s will Occur Between 2010 and 2012
Dent concludes by saying “If you thought 2008 was scary, 2010 to 2012 will be the greatest economic and banking crisis since the 1930s. You must be prepared in advance to survive this most difficult season. Do not accept the proposition that you cannot, or should not, take steps to guard against losses. As an investor, it is your money, your future, and your responsibility to protect yourself in the best way possible and there will be the greatest reward for those who do prepare during this once-in-a-lifetime ‘great sale’ in financial assets.”

How Best to Invest and Prosper during the Tumultuous Times Ahead (according to Dent)
1. Early to mid 2009:
a) Sell stocks, except commodity and energy sectors.
b) Allocate between commodities and T-bills or money markets and /or safe currencies.
2. Late 2009 to mid-2010:
a) Sell commodities and commodities and energy stocks.
b) Allocate 100% to T-bills or money markets and safe currencies.
3. Mid- to late 2010:
Start to allocate to 30-year Treasury bonds only after their yield begins to spike.
4. Late 2010 to mid- 2011:
a) Allocate to 20-year corporate bonds when yields go to extremes.
b) More conservative investors should focus on AAA corporate, more aggressive investors toward BAA.
c) All investors must recognize, however, that even high-quality bonds will be in question as to their viability, given that the downturn between mid-2009 and 2012 is anticipated to be more extreme than anything we have seen since the early 1930s, mid-1970s, or early 1980s.
5. Mid-2011 to mid-2012:
Allocate to long-term municipal bonds when yields seem to be peaking (high-tax-bracket investors).
6. Mid- to late 2012:
a) Aggressive/growth investors: allocate majority into Asian stocks and lesser into U.S. multinational, technology and health care, with minor allocation in long-term corporate, Treasury, or municipal bonds.
b) Conservative investors: focus largely on 10- to 30-year Treasuries and 20-year corporate AAA bonds, with minor allocations in multinational, health-care, and Japanese stocks.
7. Late 2011 to early 2015:
Look for selected opportunities in real estate (small condos and starter homes early on; vacation and retirement homes later; trade-up homes by 2015).
8. Mid- to late 2014:
Aggressive/growth investors: allocate more to leading stock sectors such as China, India, health care, multinational, technology, and financials on a likely short-term correction between late 2013 and late 2014.
9. Early to mid-2017:
a) Sell stocks in all sectors.
b) Convert largely back into long-term bonds and, to a lesser degree, into T-bills or money markets.

Editor’s note: His book goes on to provide additional advice on which assets to invest in up to 2036 which I have excluded here as our interest and focus is much more short-term given our current economic, fiscal and investment environment.

If you doubt the validity of Dent’s above mentioned predictions and advice consider this: ‘The Great Depression Ahead’ was written in the fall of 2008 yet Dent projected on page 56 that a) many banks would fail – that has already happened; b) or have to merge with others – that has already happened; c) or have to be bailed out by the government – that has already happened; d) the Fed would have to cut short-term interest rates to near zero – that has already happened; e) the federal deficit would soar to in excess of a trillion dollars – that is already a reality and f) the 30-year Treasury bond would eventually fall to something like 2% in yields (3.77% as of March 16th, 2009). Dent has an extremely good track record of telling us what we would rather not hear and acknowledge as most likely the case so it behooves us to make the most of this important information. Dent encourages everyone to apply for his free periodic e-mail updates to his basic forecasts and investment strategies and to check out ‘Free Downloads’ at www.hsdent.com for further and more current information. I encourage those readers who have found the above forecasts and investment advice to be informative to buy his latest book for a greater understanding of the study of demographics and other key cycles that allow him to determine the future so precisely.

Russell Napier is the author of the book “Anatomy of the Bear”, a professor at the Edinburgh Business School and a consultant to CLSA Ltd. which is one of the top research houses in Asia. Napier’s research indicates (and I paraphrase) that:

The S&P 550 will Reach an Interim Bottom by 1Q’09
The S&P 500 now trades at below fair value based on Tobin’s “q” ratio (which compares the market value of companies to the cost of their constituent parts) which has dropped below its long-term average of 0.76 to 0.68 from a peak of 1.9 in 1999, and the cyclically adjusted 10-year price-to-earnings (CAPE) ratio and, as such, should bottom by the end of the 1Q’09.

The S&P 500 will Rally between 2009 and 2010
The S&P 500 will experience a significant rally from the end of the 1Q’09 until mid-2010 to late 2010.

The S&P 500 will Decline to 400 by 2014 (the Dow 30 to 3800)
The S&P 500 will then undergo a major crash that will see U.S. equity prices bottom at almost 50% below current levels (i.e. to 400 or less; the Dow 30 to 3800 or less) sometime around 2014 as Tobin’s “q” drops to 0.3 signaling the end of the bear market, as it has done at the end of the four largest U.S. market declines in 1921, 1932, 1949 and 1982.

U.S. Treasury Sales Could Collapse Leading to End of U.S. Dollar as Reserve Currency
The crisis of 2008 will force key large global economies such as China, India and Russia to target domestic consumption-driven growth to replace sales to the U.S. and Europe. When China, in particular, succeeds in shifting to a consumer-driven growth model it will clearly provide the key marginal demand for most global consumer goods and this will further reduce the need for the current export-oriented growth countries to manage their currencies relative to the U.S. dollar in pursuit of export growth to the U.S. The fewer countries that pursue such a policy, the less foreign support there will be for the U.S. federal debt market. This could well be the cataclysmic event that forces U.S. equities to the massive under-valuations seen at the previous major bottoms of 1921, 1932, 1949 and 1982 and the end of the U.S. dollar as the de-facto reserve currency.

Deflation Expected until 2015
The yield on treasury inflation-protected securities (TIPS) shows (using the yield differential between Treasuries and TIPS) that deflation is now expected and forecasts that the average prices in the U.S. will decline every year between now and 2015. Such a deflationary economic contraction would be a major shock to the business community and earnings damage associated with such a contraction would probably be larger than normal initiating a significant decline in the U.S. equities markets.

Continued Deflation or Renewed Inflation are Possibilities
The supply of U.S. Federal debt will be soaring just as foreign demand for that debt is waning and this combination will produce an up-shift in the yield curve which, if it were not met by a Federal Reserve reaction, would be highly deflationary for the U.S. On the other hand, if the Fed were to decide to open its balance sheet to buy Treasuries and keep interest rates low, then the consequences would be an inflationary scare that would further exacerbate capital outflow and the collapse of the dollar.

Sell U.S. Treasuries Soon, Buy Equities in 2014
Bond investors are already being presented with a once-in-a-lifetime opportunity to get their money out of U.S. Treasuries. Equities will look truly terrible by 2014 but they will be so cheap they will once again represent excellent long-term value as they did in 1921, 1932, 1949 and 1982. Should the world lose faith in U.S. Treasuries sooner and suddenly then U.S. equities would decline the projected 50% very quickly thereafter.
Foreign central banks’ faith in Treasuries can be monitored by checking the value of marketable securities held in custody for foreign official and international accounts at www.federalreserve.gov/releases/h41/Current/.  Any marked decline would be a warning to investors in U.S. securities that the end game was in progress.

Editor’s note: What is truly remarkable about Messrs. Dent’s and Napier’s predictions is that they approached their economic and financial analyses from totally different perspectives – Dent using demographic trend analyses and Napier using technical and fundamental economic analyses – yet came to the same conclusions by and large. It really makes you want to sit up and take notice as to what they have to say.

Robert R. Prechter Jr. is author of a number of books including “Elliott Wave Principle” (1978) in which he predicted the super bull market of the 1980s; “At the Crest of the Tidal Wave – A Forecast of the Great Bear Market” (1995) in which he predicted a slow motion economic earthquake, brought about by a great asset mania, that would register 11 on the financial Richter scale causing a collapse of historic proportions; and “Conquer the Crash: You can Survive and Prosper in a Deflationary Depression” (2002) in which he described the economic cataclysm that we are just beginning to experience and advised how to position one’s self financially during that period of time. Prechter also publishes two newsletters, the ‘Elliott Wave Theorist’ and the ‘Elliott Wave Financial Forecast’ both of which are paid subscription based. The Elliott Wave Theory takes a ‘socionomic’ approach to forecasting which contends that markets are driven by psychology and, while it is relatively easy to understand in concept, the interpretation and resultant application of the trends are difficult to implement consistently.

The above being said, there are no shortage of senior economists, analysts and financial industry executives who sing the praises of his work. Such words as “ignore Bob’s books at your peril”; “it could help you save your financial future”; “the closest thing to a crystal ball we could look for…it is a road map that no investor should be without”; “ignorance may not be bliss – it may mean bankruptcy. Ignore the message at your risk”; “knowing long term risks and opportunities in financial markets ahead of time is absolutely the key to consistent investment success”;  “if you want to preserve your wealth (or what little is left of it) I urge you to follow Prechter’s advice. You will be grateful that you did”. There are more words of praise to be had but I’m sure you get the idea of what astute professionals think of Prechter’s work.

So what does Prechter have to say about the current situation and how we should deploy our assets? He is not as exact with free advice as Dent and Napier are but, as a result of his analyses, he has the following to say about the economic and financial environment (and I paraphrase):

A Deflationary Crash and Depression is Imminent
Deflation requires a precondition: a major societal buildup in the extension of credit and its flip side, the assumption of debt. Credit expansion continues as long as there are those willing to lend and borrow and there is the general ability of borrowers to pay interest and principal. These components depend upon whether both creditors and debtors think that debtors will be able to pay, and the trend of production, which makes it either easier or harder in actuality for debtors to pay. So long as confidence and productivity increase, the supply of credit tends to expand. The expansion of credit ends when the desire or ability to sustain the trend can no longer be maintained. The supply of credit contracts as confidence and productivity decrease.

The social mood trend changes from optimism to pessimism when creditors, debtors, producers and consumers change their respective primary orientation from expansion to conservation. As creditors become more conservative, they slow their lending. As debtors and potential debtors become more conservative, they borrow less or not at all. As producers become more conservative, they reduce expansion plans. As consumers become more conservative, they save more and spend less. These behaviors reduce the ‘velocity’ of money, i.e. the speed with which it circulates to make purchases, thus putting downside pressure on prices.

At some point, a rising debt level requires so much energy to sustain – in terms of meeting interest payments…. chasing delinquent borrowers and writing off bad loans – that it slows overall economic performance. When this burden becomes too great for the economy to support the trend reverses causing reductions in lending, spending, and production which, in turn, cause debtors to earn less money with which to pay off their debts, so defaults rise.

Default and fear of default exacerbate the new trend in psychology, which in turn causes creditors to reduce lending further. A downward “spiral” begins, feeding on pessimism just as the previous boom fed optimism. The resulting cascade of debt liquidation is a deflationary crash. Debts are retired by paying them off, by “restructuring” or by default. In the first case, no value is lost; in the second, some value; in the third, all value. In desperately trying to raise cash to pay off loans, borrowers sell all kinds of assets to market – including stocks, bonds, commodities and real estate – causing their prices to plummet. (Sound familiar? It should because such behavior is unfolding as you read this very article!) The process ends only after the supply of credit falls to a level at which it is collateralized acceptably to the surviving creditors.

Editor’s note: Where are we at this point in time? Let’s take a look again at the various stages of decline to determine where we are:
Stage one
The major banks of the world major are concerned that any credit obligations that they were to enter into with other banks would not be honored because of the unknown extent of toxic assets (such as derivatives and sub-prime Mortgage Backed Securities) on their books – as was/is the case on their own books.
This, in turn, has caused them to go from an expansion mode to a conservation mode resulting in a credit crisis such as we currently are experiencing.
Stage two
The major banks’ refusal to lend money to business has caused, or is causing, business to go from an expansion mode to a conservative mode which has, in turn, adversely affected the trend of production.
This is evidenced by the 6.2% seasonally adjusted annualized decline in GDP during the 4th Qtr. of 2008 which was the worst decline since a 6.4% decrease in the 1st qtr of 1982. To make matters worse, economists don’t expect any relief in the current quarter, which ends March 31st, projecting a further -4.8% annualized rate which would be the first time since 1947 that the GDP has fallen by more than 4% for two quarters in a row.
Stage three
a) The reduction in production by business has, in turn, led to or is leading to, over-capacity which has increased employee layoffs.
Indeed, unemployment soared to 8.1% in February, the highest rate in over 25 years. The consensus of private forecasters is for the unemployment rate to get close to 9% in 2010 with some forecasters suggesting a 10% rate. The Federal Reserve, itself, doesn’t expect the unemployment rate to fall below 7% until 2011.
b) The increase in unemployment has, in turn, reduced the affected consumers’ ability to buy goods and services.
c) The consumers’ inability to buy goods and services has, in turn, reduced company sales and profits.
d) The reduction in company sales and profits has, in turn, caused the price of their stock to decline.
e) The lack of easy credit and/or loss of employment has meant that home “owners” (i.e. mortgagees in some degree of co-ownership with whichever financial institution holds their mortgage) have not been able, in increasing numbers, to re-finance and/or afford to re-finance their mortgages and, as such, have not been able to make their escalating monthly mortgage payments which have, in turn, led to a record high number of mortgage foreclosures.
Indeed, as of the end of 2008 12% of Americans with a mortgage were at least 1 month late or in foreclosure which was up from 8% a year earlier. Even worse, a stunning 48% of home “owners” who have sub-prime, adjustable-rate mortgages are currently behind in their payments or in foreclosure which, in turn, has resulted in ever more distressed house sales by the mortgagors and other neighborhood homeowners with, or without, a mortgage.
Stage four
The dire economic scene (fear of loss of job, loss of money invested in the stock market, reduced resale value of their house, etc.) has seen, in turn,
a) a major increase in savings (the personal savings rate rose by 5.0% in January, the highest rate since 1995)
b) a reduction in spending (it dropped 0.2% in December)
c) a reduction in the sale of goods and services
d) a decline in the price of such goods and services (as evidenced by the U.S. GDP Price Index which declined by 0.1% on a quarter-over-quarter annualized basis in the 4th Qtr of 2008 – the 1st decline since 1954 – and supporting the Fed’s obtuse view that “inflation pressures will remain subdued in coming quarters.” That tells us that deflation is imminent.
Stage five
We are going to see a self-reinforcing escalating vicious cycle of stage two, stage three and stage four over and over again. The downward “spiral’ is in progress.
So there you have it! We are in the early weeks of stage five. As such, it is fully understandable why the governments of the world are throwing money at the credit problem so excessively in an attempt to get the wheels of industry turning to stem the decline before it takes hold. It is an extremely dire situation with no end in sight at the moment.

Gold and Silver Beginning a Decline to Under $680 and $8.39 respectively
Gold and silver will fall into their final dollar price lows at the bottom of the deflation…after which time these metals should soar in price. Given the likely political inflationary forces following the period of deflation the rebound could be much stronger than anticipated so owning precious metals prior to the onset of the post-depression recovery is desirable.
Should you buy gold and silver now? If you are willing to accept the dollar value of the precious metals dropping another 30% ($680 gold represents a 26% decline from the early March 16, 2009 price of approximately $923) or more before they rise substantially….but are willing, nevertheless, to pay such a price for its current availability and for the ‘insurance’ of greater portfolio stability under an unexpected inflation scenario, then the answer is yes.
The above being said, it is probably not as good an idea to invest in gold stocks because in common stock bear markets stocks of gold mining companies usually go down with the overall market trend except in relatively rare 5 to 10- year periods of accelerating inflation. As such, in this early stage of deflation gold mines will enjoy no false advantage over any other companies. Their stocks will probably rally when the overall stock market rallies. Owning gold shares is fine at the top of the Kondratieff economic cycle when inflation is raging and political tensions are their most severe.

DJIA Should Fall Below 777
The Dow Jones Industrial Average will go down to at least 1000, most likely to below 777 which was the starting point of its mania back in August 1982, and quite likely drop below 400 at one or more times during the bear market.

Editor’s note: To Prechter’s credit he acknowledges that these aforementioned forecasts are considered to be impossible by virtually everyone. He is of the opinion that the price swings will be dramatic over the course of the decline – as evidenced by recent swings in the Dow 30 from 11,723 on Jan.14th, 2000 to 7286 on Oct.9th, 2002 (-37.8%); to 14,165 on Oct.9th, 2007 (+94.4%); to 6594 as of March 5th, 2009 (-53.4%) – providing phenomenal investment returns to the successful long term in-and-out investor. Even short term in-and-out investors can profit considerably from the current market volatility as the market swings up and down (October ’08 low of 7774 to a November ’08 high of 9654 (+24.2%), to a late November ‘08 low of 7449 (-22.8%), to a January ’09 high of 9088 (+22.0%): to an early March ’09 low of 6594 (-27.4%). Is another 20% to 25% increase about to occur in the very near future (i.e. to approx. 8250) followed by an even lower low of 25% to 30% (i.e. to 6000 or so)? Only time will tell but Prechter sees money to be made during such times for those astute and fortunate investors who choose not to park their money in some form of cash or just ‘buy and hold’ as so many financial/investment advisors are so prone to recommend.

U.S. Dollar Index to Continue to Rise
It is important to make a distinction between the dollar’s domestic and international values. In a deflation, the value of any currency – the U.S. dollar, in this case – rises domestically while the USD’s international value, as represented by the U.S. Dollar Index, can rise or fall relative to other currencies in a deflation. In a time of financial crisis, however, the U.S. dollar is considered to be a safe-haven currency. This time is no exception, particularly given that the Euro, a major component of the USD Index, is going through extremely trying times itself. As the deflationary depression proceeds over the next few years demand for U.S. dollars should increase even further. In such a deflationary environment, where a strong dollar still persists, you want to be in safe cash equivalents such as U.S. T-bills.

Treasury Bonds are in a Bear Market
The 10-year Treasury note yield has been in a sharp decline since the early ‘80s when it reached 15.84% at the height of inflation and is at a deflationary level of 2.89% as of March 13, 2009. The gargantuan government bond issuance to fund the U.S. debt bubble, however, may push yields, which move inversely to prices, steeply higher in the years ahead.

Prechter has been quoted as saying “The reason that I remain willing to express my unconventional view is that I believe that my ideas of finance and macroeconomics are correct and the conventional ones are wrong. True, wave analysts make mistakes, but they also make stunningly accurate long-term forecasts.”  Updates to Prechter’s insights and predictions on all asset classes can be found at www.elliottwave.com. I encourage those readers who have found his above forecasts and investment advice to be informative to buy Prechter’s books for a more in-depth read and understanding of the basis for his making such projections of future events with such confidence.

What is so intriguing here is that Messrs. Dent and Napier, using totally different analytical approaches, have come to much the same conclusions as Prechter. Again, when analysts with different approaches to a situation agree, more or less, with the outcome it is something to take very seriously indeed. And such is the case here!

If you still need to be convinced that extremely difficult times are ahead and that action must be taken please refer to www.kiplinger.com/features/archives/2008/12/they_were_right_08.html for an article entitled “They Called it Right (Plus Predictions for 2009)”. This article reviews the correct predictions of 8 noted investors, analysts and academics for the year 2008 and their outlook for 2009. The individuals are: Nouriel Roubini, Peter Schiff, Meredith Whitney, David Tice, Jeremy Grantham, Robert Shiller, Bob Rodriguez/Tom Atteberry and Mark Kiesel. Their forecasts are much more general than those of Dent, Napier and Prechter but clearly indicate what is in store for us in 2009 and beyond.

In summary, we are being forewarned yet again about yet another economic and financial crisis coming down the pike. This time don’t get burned as you most likely did during the Credit Crisis and Crash of ’08. Instead, position what is left of your portfolio such that you will actually prosper during this ongoing financial hurricane. Now that you know what is about to happen, take action, now! To just hope that everything will turn out okay would be downright foolish.

 

Lorimer Wilson is an economic/financial analyst and commentator and Contributing Editor to www.preciousmetalswarrants.com  who has written numerous articles on the major economic and financial crises (past, present and impending) of our times plus articles on precious and rare earth metals, investing in times of crisis, analyses of gold mining indices and gold:gold mining index ratios and market timing indicators. He can be contacted at lorimer[dot]wilson[at]live[dot]com.

Roach has Abandoned ‘Economic Armageddon’ Scenario

Is what we are experiencing with the economy these days the beginning of the ‘Economic Armageddon’ that Stephen Roach forecast for the U.S. in November 2004 when he said: “America’s record trade deficit means the dollar will keep falling, interest rates will rise further and U.S. consumers, in debt up to their eyeballs, will get pounded with no better than a 10% chance of avoiding economic Armageddon.”

A lot has happened since then. The U.S. Dollar index did keep falling but then rose considerably in 2008 with the financial crisis; interest rates did rise further before dropping precipitously in 2008; but, thankfully, we appear to have avoided economic Armageddon thanks to aggressive moves by the Fed back in September/October 2008. That was 2004 and this is 2009. Back then Mr. Roach was Managing Director, Chief Economist, and Director of Global Economic Analysis of Morgan Stanley; today he is Chairman of Hong Kong-based Morgan Stanley Asia.

So what is Roach saying these days? In an early February ’09 article for the New York Times he forecast that: “Unemployment will rise to near 10% over the next year and a half and this recession won’t end until late 2010 or early 2011.”

These comments were hardly earth-shattering as negative as they may have been. There was not even a hint of major economic distress. Roach warmed up, however, in an article he wrote in late February, 2009 entitled “After the Era of Excess” in which he said (and I paraphrase on occasion):

Humpty Dumpty has had a Great Fall
“The world stopped in 2008 – and it was a full stop for the era of excess. Belatedly, the authorities have been extraordinarily aggressive in coming to the rescue of a system in crisis. But as in the case of Humpty Dumpty, they will not be able to put all the pieces back together again. The next era will be very different from the one we have just left behind.

The Game is Over
Up until recently there had been a symbiotic relationship between China (the saver and producer) and America (the borrower and consumer) with a belief that these disparities could be finessed indefinitely, as could record debt burdens and currency misalignments. Some day, went the argument, the world would have to face up to its imbalances, but the day of reckoning was always assumed to be some far-off, distant future. That was the fatal mistake made by the world in denial. But that game is now over. Our unbalanced world is now in the midst of a painful but necessary rebalancing what with the U.S. consumer most likely in the early stages of a multi-year contraction and the fact that there is no other consumer group to fill the void. As such, a post crisis global economy is likely to struggle for years to come.

The Quick Fix
Unfortunately, however, the policy response to the crisis has been disturbing in that the near-term tactics have been all about containing the crisis, with little appreciation of the strategic implications of these actions. In the U.S., for example, there is growing support for mortgage foreclosure relief – in effect perpetuating uneconomic levels of home “ownership” by many people who simply can not afford their still overvalued dwellings. In China, on the other hand, policy priorities remained focused on providing support for investment through a massive $585 billion infrastructure program, and on exports, rather than on doing anything to stimulate the Chinese economy. Such actions suggest that the world has learned little from its recent experience. Sadly, such reactive approach reflects a global politic that always seems to be focused on the quick fix.

We Need a Strategy
Tactics of crisis containment cannot be the sole focus of the policy response to this wrenching global economic recession. The world needs a strategy.  What we need is leadership that has the courage to look beyond the valley.”

In early March, 2009, in an article entitled “Grow Now, Ask Questions Later Formula will End in Tears,” Roach carried on the above theme stating in much more foreboding words that (and I paraphrase on occasion):

A Recipe for Disaster
“A crisis-torn world is in no mood for the heavy lifting of global rebalancing. Policies are being framed with an aim towards re-creating the boom. Washington wants to get credit flowing again to indebted US consumers and exporters – especially in Asia – would like nothing better than a renewal of demand led by the world’s biggest consumer. Unbalanced Asian economies are desperate for unbalanced US consumers to start spending again and spark another post-crisis recovery. Grow now, ask questions later. That has again become the mantra for an unbalanced world in crisis and, regretfully, it is a recipe for disaster. What a reckless way to run the world!

If the policies currently being put into place end up perpetuating the imbalances that got the global economy into this mess – and that appears to be the case – the next crisis will be worse than this one. Indeed, until an unbalanced world faces up to its chronic imbalances, successive crises are likely to be increasingly destabilizing. While it is hard to believe that anything could be worse that what is happening today, I can assure you that it could get worse – much worse.”

In a mid-March ’09 interview with the Xinhau News Agency Roach continued by saying that (and I paraphrase):

Deflation – Inflation
“The major risks challenging the world economy are that all the aggressive stimulus measures that have been put in place by central banks and fiscal authorities around the world are not enough or sufficient to stop the downturn of the global economy and, therefore, we need to continue to be cautious on the economic climate for some time to come. While one of the consequences of lowering interest rates is high inflation my utmost concern is what the exit strategy will be for this aggressive easing and how you wind down without tipping into deflation.”

Gold: the Ideal Safety Asset
Roach’s comments beg the question as to where one should invest in such troubling times. In a July 7th, 2003 article in Forbes, entitled “That Sinking Feeling,” by Michael Freedman, he was attributed as saying that he would think seriously about putting a “nontrivial portion” of his portfolio into precious metals like gold because it was “a safety asset”  that will attract investors during any time of economic extremes – either inflation or deflation.

There you have it. Not very encouraging insights, all in all, but at least Roach has abandoned the “economic Armageddon” scenario he once predicted for America and embraced the concept of having some gold in one’s portfolio.

To learn what other prominent economists, financial analysts, economic research firms and well-informed financial commentators have had to say about what has happened over the past year check out the 6-part series of articles I wrote back in 2006 entitled “Ominous Warnings and Dire Predictions of World’s Financial Experts.” You’ll be surprised how accurate they were, albeit somewhat sensational in language on occasion, as to what they expected to unfold in the years to come. And in most instances those ‘years to come’ have turned out to be 2008, 2009, 2010(?) and perhaps beyond.

Lorimer Wilson is an economic/market analyst and commentator who has written numerous articles on the major economic and financial crises (past, present and impending) of our times, investing in times of crisis, commodities, market timing and other investment philosophies. He is a Contributing Editor to www.preciousmetalswarrants.com and can be contacted at lorimer [dot] wilson [at] live [dot] com.

Obama, Lithium, Uranium and Rodinia

Obama’s Clean Energy Agenda

President Obama has made global warming one of the key issues of his administration and it’s an extremely ambitious agenda he’s bringing to the table. Included in his agenda is a pledge to eliminate oil imports from the Middle East and Venezuela within a decade and to slash his country’s carbon dioxide emissions by more than 30 per cent by the year 2020.

If President Obama is to successfully implement his energy doctrine his administration has to do two things:

1.Wean America off using fossil fuels (coal, oil and natural gas) to produce energy.

2.Develop alternative clean energy sources within the US to avoid energy imports.

This Clean Energy Agenda will be spearheaded by White House Chief of Staff Rahm Emanue and complemented by hard line green leadership in both the House and Senate. This new committee has stated it will be acting quickly and decisively to reduce global warming and ending US dependence on foreign oil.

Lithium

The following quote makes it very clear two of the clean energy solutions being promoted by this administration are electricity and batteries.

“Today, we have the chance to achieve a real breakthrough: the plug-in hybrid…Hybrid engines save gasoline by switching back and forth from battery to gasoline power……With a plug-in hybrid, commuters can drive back and forth to work, recharge their cars overnight, and go a month or more without a trip to the gas station.” White House Chief of Staff Rahm Emanuel.

To achieve this breakthrough the US is going to need batteries that are cheaper, more durable and more powerful then the current nickel-metal-hydride (NiMh) batteries. Because of groundbreaking research there’s already an answer being voiced, lithium-ion. With double the “energy density” of today’s standard NiMh batteries lithium-ion cells have emerged as the leading battery technology to power hybrid vehicles.

- Lithium-Ion battery packs are GM’s solution for the Volt hybrid

- Lithium-Ion battery packs can be manufactured to any shape or size, thereby making them easy to fit into any car design

- No memory effect, therefore easier for drivers to charge and maintain

- High energy-to-weight ratio, helping increase efficiency and environmental friendliness

- Most new hybrids and hybrid concepts being introduced rely on Lithium-Ion battery technology

This battery is absolutely critical to President Obama’s energy plan, he’ll need such a battery for energy storage if he’s going to replace much of the nation’s oil imports with US nuclear, solar, wind and geothermal eco-friendly generated electricity. The demand for lithium will rise many times over present day production with the coming runaway demand for eco-vehicles.

Where will the lithium come from?

As electricity starts to replace gasoline in America the country could very well be running the risk of replacing it’s dependence on foreign oil for a dependence on foreign lithium or foreign produced lithium cells.

“We cannot allow ourselves to become dependent on foreign sources of lithium-ion battery cells (or lithium itself) as we have become dependent on petroleum from the Middle East,” National Alliance for Advanced Transportation Battery Cell Manufacture’s Attorney James Greenberger.

- According to the USGS, overall demand for lithium is growing at a rate of 4-5% per year

- Demand for lithium destined for battery usage is predicted to grow by 20% per year

- Over 60% of mobile phones and 90% of laptop computers feature Lithium Ion batteries

- The worldwide market for rechargeable lithium batteries is estimated to be worth over $4 billion/year

- The automotive market alone is projected to reach $337 million in 2012, and $1.6 billion in 2015

The U.S. contains approximately three percent of the world’s Lithium reserves. Presently Chile provides 61 percent of lithium exports to the U.S. and Argentina is the source of 36 percent. Bolivia, at an estimated fifty percent of world supply, has by far, the largest lithium deposits of any country.

President Evo Morales has already nationalized the oil and natural gas industries and now a growing nationalist movement could prompt the head of state to do the same with the lithium fields. “The previous imperialist model of exploitation of our natural resources will never be repeated in Bolivia. Maybe there could be the possibility of foreigners accepted as minority partners, or better yet, as our clients, ” head of lithium extraction Saul Villegas

 

http://www.aheadoftheherd.com/Newsle…try%20Risk.htm

Lithium is not traded publicly, instead it’s sold directly to end users for a negotiated price per ton or pound of Lithium carbonate (Li2CO3). High demand and low supply has recently caused reported paid end user prices to reach US $6,600.00 ton.

But right now price isn’t the issue, rather the issue is one of supply. Demand for lithium is increasing and Mitsubishi Motors Corp. anticipates that demand will increase fivefold to meet the needs of electric vehicles. At present, demand in North America is about 100,000 tonnes of lithium carbonate equivalent.

There’s one unit of lithium in a cell phone battery, 3,000 units in a hybrid car and 7,000 units in an electric car; the numbers work out to 9 to 30 kilograms of lithium oxide per car battery. One of President Obama’s goals is 1,000,000 built in America hybrid cars on American roads by 2015. The automotive industry needs a secure uninterrupted supply of lithium to ramp up its production of the next generation of hybrid electric vehicles using lithium-ion batteries.

Lithium Mining

The traditional hard-rock mining of pegmatites containing the lithium bearing silicate spudomene is time, energy and cost intensive. Lithium is the thirty-third most frequently occurring mineral so it’s not exactly scarce, but concentrations are generally too low, and extraction too difficult and costly to be viable. The major trend in the lithium industry has been a transition from hard rock mining-based sources of lithium to brine-based ones. The cost-effectiveness of brine operations forced even large producers in China and Russia to develop their own brine sources or buy raw materials from brine producers.

The economics of obtaining lithium carbonate from brine are so favorable that most hard rock production has been priced out of the market. Lithium brines are currently the only lithium source that can support mining without significant other credits from tantalum, niobium, tin etc., (low manganese content within Nevada’s Clayton Valley brines significantly reduces recovery costs, unlike Chile’s high manganese content brine deposits). Lithium brine resources are now the preferred method of lithium recovery.

The only lithium producing plant in North America is located in Clayton Valley, Nevada, USA. The facility was opened in 1967 and has been producing lithium carbonate from brines ever since.

Recovering lithium from brines is not considered hard rock mining, its classified the same as placer and permitting is much easier and quicker.

Lithium recovery from brines could lead to a huge carbon footprint reduction because of a nearly zero-waste mining method. Once the lithium is recovered the chemicals used can be recycled, also the by-products include saleable compounds such as potash and/or boron.

The Uranium Solution

To meet President Obama’s stated goals of energy independence and a huge reduction in its carbon emissions, the US transportation system has to be electrified. Electricity is an energy source that needs to be produced and stored. The electricity needed for Obama to succeed in replacing fossil fuels, both for transportation and everyday use, will have to come from nuclear generation. There is simply no other logical alternative.

– Coal and natural gas plants emit carbon dioxide emissions.

- Extensive use of hydrogen is not practical due to its volatile nature and lack of infrastructure.

- Solar, wind and geothermal are all niche suppliers and are untried on a large scale. Solar and wind have extremely large footprints and geothermal seems to be limited to a few parts of the country. All three of these technologies are extremely important and each will successfully contribute, in a small way, to America’s energy independence.

- High emissions, a negative energy return and severe environmental costs are associated with ethanol and make its use impractical.

- Hydro supplies approximately 10% of US power but going to clean eco-friendly energy isn’t accomplished by damming what free-flowing rivers are left.

 The US currently uses roughly fifty-five million pounds of uranium a year. The country produces roughly four million. The Russians with their Megatons to Megawatts Program supply half the shortfall but that program ends in 2013.

America produces less then ten percent of its uranium needs and relies on imports and the Russians for the rest of their Uranium. If America never builds another nuclear plant the existing demand is not going to go away or even lessen.

“In all, over 100 power reactors with a total net capacity of almost 120,000 MWe are planned and over 250 more are proposed.”

http://www.world-nuclear.org/info/inf17.html

To meet Obama’s goal of energy independence the US will have to build many more reactors and presently there’s proposals for over twenty new plants. To supply these new and existing plants uranium deposits in the US need to be developed.

For investors

The United States is not even close to being self sufficient in Lithium or Uranium. If America is to end its dependence on foreign energy and vastly reduce its carbon footprint it will have to develop its own internal resources of these critical minerals.

Developing countries such as China and India, with 2.3 billion people between them, will, even while going mostly nuclear, drastically increase their consumption of fossil fuels. Oil, natural gas and coal are all going much higher in price. Soon it is going to be imperative that the present US administration is seen to be doing something, as promised, about high energy prices, foreign energy dependence and the US’s extremely large carbon footprint.

The Alternative Energy Revolution with its “Yes we will!” slogan has been presented as a major plank in Obama’s election platform and there’s no question he will follow through. He has to, the coming high price of energy derived from non-friendly foreign fossil fuel suppliers combined with ever increasing competition for limited resources will make it happen.

Lithium and Uranium are two of the best ways to play President Obama’s energy agenda. The power of the Office of the President of the United States will be backing the Eco-Energy Revolution and billions of dollars will be given out to develop the technology behind the lithium-ion battery. This energy revolution is a serious investable long-term trend and we, as investors, have to take advantage of the opportunities being presented. We’d be smart to get in early, ahead of the herd, to take advantage of the coming global rush to electricity – generated by nuclear power and stored in lithium-ion batteries.

Rodinia Minerals RM.tsx-v

The increasing demand will be very good for lithium miners and battery makers bottom lines but it may be especially lucrative to the junior exploration and development companies who have had the foresight to lock up large lithium brine deposits IN THE UNITED STATES and actually own the much needed and increasingly valuable lithium.

Uranium is also going to be a much sought after commodity and companies with 43-101 ISR compatible deposits owning permitted uranium mill sites with associated water in the US are going to become very popular with investors and very likely become takeover targets.

I’ve found a company with both lithium and uranium and a host of other positive attributes:

- 100% interest in 50,000 acres in Clayton Valley, surrounding the only US operating lithium producer

- Clayton Valley lithium bines have been producing lithium carbonate since 1967

- In 1975, I.A. Kunasz of the American Institute of Mining, estimated the mineral endowment of Clayton Valley to be 750 million kg of lithium

- Uranium deposits, with 43-101 compliant resources and huge exploration/discovery potential, in a favorable to mining area of the US

- Good management

- Tight share structure

- Cash in the treasury

- Two permitted US uranium mill sites with the right to purchase associated water permits.

Share Structure

C$ 0.15  closing price March                  UPDATE

52-wk High 0.420

52-wk Low 0.035

Current issued and outstanding shares 23,492,217

Warrants outstanding

1M @ $0.32 – Expire June 2010

1.455 @ $0.74 Expire July 2011

Stock Options outstanding 2,200,000

Fully diluted share capital 28,147,217

Cash approximately $2,000,000

Projects

Clayton Valley Lithium Project

Clayton Valley – the Saudi Arabia of Lithium?

Rodinia recently announced that it and its Wyoming subsidiary, Donnybrook Platinum Resources, Inc. had entered into a letter agreement (the “Agreement”) with GeoXplor Corp. (“GeoXplor”) in respect of 250 unpatented mining claims located in the Clayton Valley, Esmeralda County, Nevada (the “Property”).

Clayton Valley is home to the only lithium producer in the United States. This plant extracts lithium from brines pumped from aquifiers below the valley and has been in production since 1967. The plant is designed to produce 1.2 million kg of lithium per year and to date has produced an estimated 50 million kg of lithium. Rodinia’s property is adjacent to this production facility.

In 1975, I.A. Kunasz of the American Institute of Mining, estimated the mineral endowment of Clayton Valley to be 750 million kg of lithium. A more recent study by Price, Lechler, Lear and Giles in 2000, suggests that significantly more lithium was released into the Clayton Valley catchment by the weathering of high lithium bearing rocks. They suggest that as groundwater enters the basin, it appears to be dissolving lithium minerals accumulated in valley sediment and is partially recharging the lithium content of the brine, while mining operations have been ongoing. “Replenishment of brines comes from surrounding Rhyolite, which are the most lithium rich in the world. Brines in the area have concentrations as high as 1000 ppm Concentrations as low as 166 ppm have been used in lithium brine pool extraction methods.” – Author

In addition to the claims covered under the Option, Rodinia through its U.S. subsidiary has staked an additional 284 claims (45,440 acres) in Clayton Valley. These mining claims will form part of the Property under an area of mutual interest clause in the Agreement. When combined with the claims under option, Rodinia now has a total of 50,440 acres under its control, accounting for approximately 90% of the valley. Rodinia has planned an aggressive exploration program to target additional layers of lithium bearing brines which may exist throughout the property.

”Recovery of Lithium From Saline Brines Using Solar Evaporation”

Wayne T Barrett & Bernard J O’Neill Jr.

Foote Mineral Company

http://www.saltinstitute.org/content/download/1089/6304

Workman Creek

Location: Gila County, Arizona

Resources: 5,542,000 lbs U3O8 (NI 43-101 compliant)

Ownership: Option to acquire 100%

Database from US$10 Million in Exploration

Workman Creek, first explored by the mineral exploration arm of Westinghouse, is an advanced uranium project with an established inferred resource. Rodinia inherited an extensive database at Workman Creek compiled from over US$10 million in exploration and development. Since acquiring its option, Rodinia has upgraded the resource to NI 43-101 standards, staked additional claims, conducted extensive soil sampling, completed MMI pits and scintillometer surveys and completed environmental permitting for further exploration.

“Early indications are that the Workman Creek deposit will be amenable to in-situ recovery (ISR). In the United States, you either add CO2 or sodium bicarbonate plus an oxidant, such as oxygen, to the groundwater. Then you re-inject the solution into the sandstone host formation to dissolve the uranium off the sandstone. Recovery wells suck up the injectant and you leach off the uranium.” Author

Many Targets Left to Explore

Most of the work conducted by Westinghouse was concentrated on or around the Workman Creek deposit. By the time they abandoned the property in 1981, very little work had been performed on other targets—in particular, on the eight other significant radiometric anomalies that were identified. All of these anomalies are within a ten-mile radius of the Workman Creek deposit and have recently been staked by Rodinia. Rodinia has also staked the most significant of the 46 known deposits discovered during the 1950’s staking rush.

Red Bluff Mine

Location: Gila County Arizona

Resources: Historic resource (not NI 43-101 compliant)

Ownership: 100% with 3% yellowcake royalty

A Strategic Acquisition

The Red Bluff Mine is located only nine miles south of Rodinia’s Workman Creek project in the Dripping Springs Quartzite uranium bearing unit. The project includes two permitted mill sites, an extensive database compiled by Westinghouse and a historic uranium resource. The acquisition agreement also includes the option to purchase, at commercially prevailing rates, water associated with rights owned by the Red Bluff Mine. Considering the shortage of water in the region and the scarcity of uranium mills in North America, the Red Bluff acquisition represents a strategic milestone for Rodinia.

Other Properties

 

Space constraints prohibit listing Rodinia’s other uranium properties, White Canyon, Mormon Lake and Lucky Boy. Please refer to Rodinia’s website.

Conclusion

The rechargeable power needs of our modern society has made lithium a serious player in the commodity markets and something for investors to seriously think about getting involved with. Each and every laptop, PDA, cell phone, and iPod sold makes lithium that much more valuable and interesting.

But with President Obama’s agenda to end the Unites States dependence on fossil fuels and reduce his countries carbon footprint soon the main market for lithium won’t just be cellphones, iPods and laptops but the next generation hybrid or totally electric vehicle batteries. 

Rodinia’s uranium and lithium could very well be an unbeatable combination to have in one company and in your portfolio, either one or both have the potential to be the next break-out investment.

Rodinia’s lithium claims are in the Clayton Valley surrounding North America’s only producing lithium plant and Rodinia has two permitted uranium mill sites with the right to buy the associated water close to millions of pounds of their own 43-101 compliant uranium resources.

And lets not forget that there are few permitted uranium mills in the United States and during the past twenty years the mill permitting process time has gone from an average of three years to fifteen.

Lithium and uranium might just become the commodity of choice for investors.

Are uranium and lithium the next big thing? If so, then Rodinia shareholders could do very well being as exposed as they are to President Obama’s Energy Revolution.

Contact

Rodinia Minerals Inc.

www.rodiniaminerals.com

Don Mosher

Phone: 604 685-6465

Fax: 604 662 3904

Email: info@rodiniaminerals.com

Head Office

600 – 595 Howe St.

Vancouver, B.C.

V6C 2T5

 

“As a general rule, the most successful man in life is the man who has the best information.”

If you’re interested in the junior resource market and would like to learn more please come and visit us at http://www.aheadoftheherd.com/

Richard (Rick) Mills

http://www.aheadoftheherd.com/

rick@aheadoftheherd.com

Richard Mills archives

Legal Notice / Disclaimer

This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Richard Mills has based this document on information obtained from sources he believes to be reliable but which has not been independently verified; Richard Mills makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Richard Mills only and are subject to change without notice. Richard Mills assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, I, Richard Mills, assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this Report.

Richard Mills may from time to time, have long or short positions in, and buy and sell the securities or derivatives (including options) of companies mentioned in this article.

Rodinia Minerals is an advertiser on www.aheadoftheherd.com

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