Investment Recommendations – see below January, 2009

“The Rich Ruleth Over The Poor” “And The Borrower Is Servant To

The Lender”Proverbs 22:7

King Solomon, who was, we are told, the wisest

human who ever lived, wrote these words nearly three

thousand years ago. The truth of them is just as apparent

today as it was then. The ancient Roman Empire also

experienced the sharp end of this principle, as it was their

fiscal irresponsibility, moral and political decay that

brought down the longest-standing empire in human

history. So was the case with the decline of the British

Empire; debt was the chief reason for their fall from world

dominating economic power.

I have on previous occasions pointed out the

many parallels that exist between the recent history of the

United States and that of late-stage Rome, particularly

with respect to debt. When debt becomes unmanageable

and unmarketable to others, inevitable consequences

result. Sadly, we seem to be on the precipice of that very

outcome right now.

Some of you may have heard about the campaign

of the former Comptroller General of the United States,

David Walker, to alert the citizenry to the perils of

excessive debt. I recently viewed a movie that documents

his efforts and to say that it is scary would be the grossest

of understatements. As I pointed out in the last two

newsletters, our debt has bulged dramatically, and has in

the last few months, as it will continue to do in coming

months, expanded even more frighteningly. Yet, my

numbers did not include the entire story. I only referred

to the sum of the confessed national debt, and the recently

added liabilities, which totals approximately 18 Trillion

USD. That is a lot of money, but if you include the

unfunded liabilities for Medicare and Social Security, the

numbers become mind-boggling.

The movie I am referring to should be seen by

every person in this country; more information about it

can be found at: www.iousathemovie.com. Although the

movie was produced just before the pledges and spending

that were done recently, it demonstrates that the national

debt, including the aforementioned unfunded liabilities,

totaled some 53 Trillion Dollars! That is around

$175,000 for every man, woman and child in the country.

Again, this figure does not include the recent 8 Trillion or

so of spending and commitments.

Why, you may ask, do I keep harping about debt?

Well, I assure you it is not to aggravate or frighten you;

rather, I discuss this issue presently and frequently

because I intend to demonstrate that the level of

indebtedness we now have, almost guarantees some very

unpleasant outcomes in the investment world in the not-

too-distant future. That is what I am interested in.

History is clear: A nation that defies the laws of

debt accumulation for too long loses its power. For

example, as is mentioned in the previously referenced

movie, the United States was able to exert political

pressure on Great Britain in the Suez Canal crisis of 1956

by using the threat of dumping its substantial holdings of

British sovereign debt and currency. The leverage

worked, and the ultimate consequence was that the U.S.

Dollar emerged as the de facto world currency,

overshadowing the Pound, and has held that status ever

since (although that may soon end, as we will discuss).

Now, as we rely on foreign nations to buy our

ever-increasing debt, we are putting ourselves in a

position of being the servant, or slave, to our creditors.

As the world‟s largest debtor nation, we absolutely are, to

a major extent, answerable in our actions to our creditors.

This includes totalitarian states that certainly do not have

the same world views as our democratic ones. For

example, we owe a combined more than One Trillion

Dollars to China and Japan. This is a result, of course, of

continuing trade deficits and the direct investment by

these countries in our Treasury instruments. Now, so long

as they continue to hold this paper without any substantial

change, it could be argued that this is causing little harm.

But, suppose they decide to start dumping their

investments in our Treasury paper because, for example,

they fear that the fiscal mess we are in will torpedo the

value of the U.S. Dollar? Or, suppose we have a political

disagreement with China, such as has occurred before?

Could they use the leverage of threatening to sell their

holdings to sink the value of the dollar? YES.

Of course, as we go forward in this financial

crisis, not only will we have to continue servicing the

existing debt, including the foreign portion depicted

above, but we will also be adding huge layers to our

national debt in the next few years. The fiscal 2009

deficit is already confirmed as being at least $1 Trillion!

Is the U.S. immune to the laws of debt?

Well, as we warned would be the case over the

last couple of years, the U.S. consumer proved they were

definitely not immune to these principles and the

mortgage debt collapse we predicted has sent the world

into financial chaos. Now, a grossly indebted Federal

Government (not to mention state and local governments

that are teetering on insolvency) intends to borrow and

spend its way out of trouble. Had we not doubled our

national debt in the last eight years, perhaps there would

have been some latitude to provide enough fiscal stimuli,

safely, to arrest the economic decline. However, since we

did add massively to our debt, particularly from 2000 to

2008, we have little chance of not exceeding the debt

threshold in our attempts to revive the economy. Ask

yourself the question: Is it reasonable to think that the

cause of the disease (debt) can also be the cure for the

disease? I don‟t think so.

Just why, you may ask, do I think we have

reached some magical level of debt that is unsustainable?

Well for one thing, we have now eclipsed the highest

Debt/GDP ratios since the Second World War. At that

time, with the U.S. just an emerging industrial power, and

with the massive spending needs related to the war effort,

it was not surprising to see debt as such a large percentage

of output. But now, with the national debt at the end of

2008 totaling over 10 Trillion Dollars, and with GDP

somewhere around 14 Trillion Dollars currently (we know

this will be shrinking over the next number of quarters) it

is easy to see that the Debt/GDP ratio is approximately at

71%! Add to this calculation the expenditures planned

and not included in the reported national debt of 10

Trillion Dollars, and it is quite likely we will soon see a

national debt that significantly exceeds annual GDP.

Is it logical to assume that a country can, for long,

sustain a debt burden such as above? No, I do not believe

so. It would be very much like an individual

accumulating credit card debt in the aggregate that

exceeds their yearly income. Soon, as many have already

experienced, such an individual finds it impossible to

keep making the required payments. Then, bankruptcy

looms. With a nation, there are other measures available.

Magic? No, Open Market

Operations!

As I mentioned, unlike an individual, a sovereign

nation has alternatives when it finds itself spending more

than it takes in. Of course, in the case of the United

States, this has been going on for decades and that is why

we find ourselves with the massive amounts of debt that

we do. Some of you have asked: What exactly does the

Federal Reserve do to create money? The answer is not

quite as difficult to understand as is the question, “How

can you create something from nothing?”

The Federal Reserve, as the Central Bank of the

United States, controls the money supply and sets official

interest rate targets. Without going into too much detail,

which some of you may not wish to bother with (if you

would like more information about the Fed, their website

at www.federalreserve.gov has considerable information

available) I will endeavor to simply explain how the Fed

is able to create money „out of thin air.‟

When the Federal Reserve desires to increase the

money supply in the banking system, the Federal Open

Market Committee conducts what are called open market

operations. The FOMC, intending to inject liquidity into

the system, will purchase securities from banks via the

Federal Reserve Bank of New York. Previously, the Fed

would only purchase Treasury securities but now, with the

financial crisis intensifying, we know that they will

purchase almost anything: student loan portfolios,

mortgage backed securities, commercial paper, and iou‟s

(just joking) to name a few. When the bank receives the

credit for the purchase of the instruments, the intent is that

more money will be available to be loaned. The securities

themselves are now on the Fed‟s balance sheet and so, for

all practical purposes, the money supply has been

increased by the amount of the securities purchased.

Notwithstanding the above, the creation of the

Troubled Assets Relief Program (TARP) operated by the

Treasury Department has not yielded the results hoped

for. This is because banks, unwilling to commit the same

blunders that got them into the trouble they are in, are

reluctant to loan monies as before. Furthermore, those

that are qualified to borrow are leery about doing so

because they wonder about the prudence of borrowing to

expand in a declining economy. This all relates to the

issue of the velocity of money, which we have discussed

in the past. In certain environments, such as the

deflationary vacuum we presently find ourselves in

(precipitated by the credit bubble burst and exacerbated

by the worldwide economic contraction), the amount of

money attempted to be pumped into the system is not

necessarily consistent with the outcome desired. The

emergence of this environment is, I believe, now very

clear.

Source: Federal Reserve Bank of St. Louis

The above depiction of the rate of change of the

Producer Price Index for Finished Goods speaks

volumes to the issue of whether or not we are now in a

very strong deflationary environment. I intend to deal

with this subject much more thoroughly later in this

piece, and specifically how we can profit from it, but for

now, please notice just how quickly prices are declining.

This is due to demand destruction with respect to

producers, as consumer demand for finished products

has deteriorated in the face of recession, and, of course

the natural effect of the contraction caused by the

bursting debt bubble. This is exactly what we have

been expecting, and the clear emergence of this

environment assures us of great opportunities ahead.

Whew, I‟m Feeling Much Older

These Days!

No, I am not talking about physical effects of

the market on my individual health. I am very familiar

with hectic markets and dramatic changes. What does

make me feel quite a bit older is that, according to the

computer models developed by Goldman Sachs, the

credit crisis we are living through is only supposed to

occur every 100,000 years! Now, I do have a lot of

historical data in my records, but it doesn‟t go quite that

far back! Amazing, isn‟t it, that a company such as

Goldman could make such an inaccurate and frankly

laughable (and arrogant) forecast? Yet, again, there are

always ulterior motives at work in the investment world.

The reality is the banking, investment banking

and mortgage community had to make the likelihood of

disaster with respect to the nonsensical lending

instruments seem so infinitesimal that rating agencies

would affirm and then investors would snap up their

Structured Investment Vehicles (SIV‟s). They claimed

that with the risk of these mortgages and other paper

spread to investors around the world, there should never

be a significant problem. However, they made one

crucial mistake. The pyramid they built was upside

down, with the entire weight resting on the very shaky

and weak foundation of those with a demonstrated

inability/lack of reliability to pay back what they

borrowed. So now the financial community is suffering

and will be heavily regulated by those who have no

business being in business (some of these Congressional

leaders encouraged this borrowing to give the „right‟ of

home ownership to everyone---it should never be a right

but rather an opportunity that people can work towards

realistically), and we, the taxpayers, will be left holding

the bill.

Now, the very same financial geniuses that are

responsible for this catastrophe are claiming to have the

answers for what lies ahead. Can you trust their

forecasts? Well, when you consider their inevitable

conflicts it seems unlikely. They (the majority of

financial advisors, brokers and analysts) are all tied to

the same fundamental approach: you should be

primarily invested in stocks at all times. This way,

whether the market goes up or down, they make money.

For their investors, however, it is another story entirely.

So, to remind you of what I said would be the

outcome, I am including here a couple of direct excerpts

from the January 2007 and 2008 newsletters. Again,

anyone willing to look objectively at the facts at the

time should have been able to come to the same

conclusions; yet, as I said, very few did because they

mostly had ulterior motives to drive their outlooks. I do

not, and so I can freely say whatever I believe will be

the case.

January 2007

So, to sum up, unlike other expansions that

were long-lasting and sustainable for valid economic

reasons, this so-called expansion was merely a

borrowing binge based on valuations that were driven

up by artificial means. Since the economy depends

upon consumer spending for fully three-quarters of its

activity, it is not difficult to see that when the consumer

slows their spending---not because they want to but

because they will have to---economic activity will grind

to a halt. This is precisely what causes recessions in the

modern economic environment and with the level of

debt in place, and the shock an economic downturn will

deliver to the consumer, it is not unrealistic to expect a

deflationary depression to emerge.

January 2008

So, to sum up this section, I wanted to try to point out,

not just by referring to my model’s readings, just how

dangerous the stock market really is right now. It is

telling us, technically, that it is on the verge of collapse

and certainly the underlying economic fundamentals

are saying exactly the same thing. This is what I have

been pointing out for considerable time. Yet, as is often

the case, the inevitable outcome has been delayed by

some unprecedented and rather desperate measures by

the Fed and others. Certainly, the blatant attempts by

many financial firms to delay reporting the severity of

the impact of their holdings in the toxic mortgage area

will be scrutinized more and more as their financial

health continues to deteriorate. So too will the fallout

be great when the rating agencies, quick to grant AAA

investment grade status to a basket of junk because of

the fees they earned, are forced to significantly

downgrade not only the holdings of many of these

financial institutions but, even more ominously, the

major insurers of a lot of Bonds and other investment

vehicles.

End of Excerpt Inclusions

What Lies Ahead?

Early last year, I noted that I expected four great

themes to emerge: collapsing stocks, tumbling

commodities (especially oil), surging Treasury Bond

Prices, and a rising U.S. Dollar. Obviously, all of these

came to pass, but the Dollar did not perform quite as

well as expected so far. This, I believe, will soon

change. Please observe the following chart of the U.S.

Dollar Index, which represents its value versus a basket

of world currencies.

US Dollar Index Daily thru 1/12/2009

I realize some of you may be wondering why I am

forecasting a rise, at least for a while, in the value of the

U.S. Dollar, particularly considering the gloomy debt

picture I painted earlier. It is a fair question and I am sure

that ultimately the outcome for the Dollar will be exactly

as the debt argument would dictate---much lower. Yet,

we must operate in real time and for now, the Dollar is

regaining upside momentum because, as the rest of the

world sinks quickly into recession, it is still considered the

world‟s reserve currency. In fact, many of our trading

partners who rely on their exports to the U.S. are suffering

even more than we are in the U.S. So, for now, I believe

money will continue to flow into U.S. Dollars, especially

since we have identified the clear emergence of

deflationary forces. In a deflationary environment, since

most prices are falling, the relative value of the world

reserve currency rises. So long as the U.S. Dollar remains

the de facto world currency, we should see it rise as the

deflationary forces strengthen worldwide. However, as I

have said, we must remain aware that once the inflation

emerges that will undoubtedly develop due to the massive

spending plans in the works, the Dollar will collapse and

will likely lose its status as the world reserve currency.

As to which currency will take over that status, I cannot as

yet say. But, it would not surprise me to see the Yen

emerge in that role as the Japanese economy is very

similar to that of the United States when the Dollar

became the world reserve currency. Japan, as the U.S.

used to be, is the world‟s largest creditor nation; they

eschew debt as individuals (as Americans once did), and

they have large personal savings (so did Americans in the

not-too-distant past). Furthermore, the same relationship

exists between the U.S. and Japan now as did in the past

between Great Britain and the U.S. when the British

Pound was about to decline from world dominance: The

Japanese have massive holdings of U.S. assets, and they

have no debt. They export huge amounts of goods

worldwide (as did the U.S. at the peak of its

manufacturing dominance) and have huge reserves. They

are, as the title of this piece said, the lender to the world in

many ways.

So, to sum up this section about the Dollar, here

is my straightforward forecast: The U.S. Dollar will

strengthen significantly as deflationary forces

intensify. Then, at some point in the future (once the

model identifies the real beginnings of a spending

induced inflationary cycle) it will sharply decline and

eventually be replaced by some other currency as the

de facto world currency.

U.S. Dollar begins to rally strongly as the

financial crisis intensifies, leading to a flight-

to-quality mentality.

Dollar begins to decline as massive spending

promises erode credibility in its long-term

value.

Dollar stabilizes as other world

economies decline sharply,

diminishing interest in their

currencies, and deflationary

forces build.

Gold

Gold Daily thru 1/12/2009

Obviously, the price of gold is greatly influenced

by the value of the U.S. Dollar, since like many

commodities, gold is mainly denominated in USD. If the

Dollar strengthens substantially, generally speaking, gold

will decline. Similarly, when the Dollar weakens, gold

benefits. As we look out into the future, it is very

important to understand the implications for gold, and our

approach to it as both an insurance policy and as an

investment.

As you may know, I have recently given my tacit

approval to the accumulation of physical gold utilizing 5

to 10% of your portfolio. I made it clear that I could not

make an all out recommendation to view gold as a pure

investment just yet---not until we get an inflation reading

in the model sometime in the future---and that over the

short term gold could decline. We know that the long run

prospects for gold are excellent, however, as it seems

inevitable that the spending binge to bail out the U.S.

economy will ultimately translate into strong inflation.

Yet, we must look at the overall picture very

carefully. While it is true that the U.S. is spending to

stimulate, so are many other countries in the world. The

Euro zone is spending just as aggressively as we are and

interest rates there have been reduced dramatically. The

same thing applies to many other areas of the world. So,

if our spending is simply relative to others, we may not

see a reaction for some time. I know many have said,

“Why wait to buy gold if you think it is going higher in

the future?” My answer is that I have noticed a distinct

lack of long-term perception amongst investors whose

portfolios are in a nasty short term negative position! I

believe we should wait until we get further clarification in

the model to begin to aggressively accumulate gold as an

actual investment theme.

If you observe the above chart of gold, you can

see that I have drawn in a couple of parallel lines. These

lines define a fairly clear downtrend channel which has

been in existence since the summer when many

commodities began to peak, including and especially oil.

As you can see, there have been a couple of occasions

where gold has moved up to the upper trend line and was

repulsed. This also happened recently and it looks very

much like gold will move now toward the bottom of the

downtrend channel. If that is the case, we could see gold

quite a bit lower over the next few months, as the

deflationary forces mount, and so I do not think it

behooves us to get too aggressive in accumulating gold

just yet. We are already, if I am correct, preserving our

purchasing power by virtue of our holdings in U.S.

Dollars for the time being and when things change, we

will have already shifted our stance.

Therefore, here is my second forecast, for at least

part of this year: Gold will not shoot higher as one

would expect in a spending environment because the

deflationary forces that have been unleashed will, at

least temporarily, overpower the stimulative forces

that are being brought to bear. Later on, gold will

advance mightily but only after we receive an inflation

signal in the model.

Stocks and Deflation

DJIA Weekly --- Late 1929 – 1932

As I have pointed out on numerous occasions, a

deflationary environment is not very friendly to many

investment classes. This is true as well for stocks. In a

strong deflationary situation, which would be defined as a

deflationary spiral and which would result in such a

reading in my model, stocks generally collapse. This was

certainly true during the very deflationary environment

which followed the initial crash of stocks in 1929 and to

which we refer as The Great Depression.

As you can see in the above chart of that era, I

have notated the chart with some important points. First

of all, you can see that after the crash of 1929 the DJIA

was able to rebound from its initial lows in October 1929

by a factor of about 50% of the decline. It reached its

rebound peak in early 1930 and if you review the history

of that period, you will find there was a lot of optimism

that the worst was over and that stocks were headed

solidly higher for the foreseeable future. That certainly

was not the case.

As is apparent, after the DJIA had its 50%

retracement rally it began an almost straight down

collapse, eventually taking it from the rebound level of

nearly 300 to its ultimate low of 40! This represents an

additional decline of more than 86% of the value of the

DJIA. Furthermore, it brought the cumulative decline of

the DJIA from its peak in September 1929 to its low in

July 1932 to a stunning almost 90%. That is the power of

a deflationary spiral, which began in early 1930 as

indicated by my model (in historical fashion).

Now, I have been carefully monitoring the

situation with respect to deflation and my model over the

past few months. As I have been expecting, and as we

have previously discussed, deflation is taking hold in a

very ferocious manner. Since Producer Prices are a

component in my model, it is entirely possible that we

could see the confluence of a deflationary spiral reading

with a critical mass reading. This would insure the most

dramatic of declines, I am certain. Unlike past times

when news circulated slowly and investors had limited

ability to move in and out of investments quickly, we now

have lightening fast trading and news dissemination. This

could mean a drop in stocks, (if these readings emerge as

they very likely will) such as has never been seen before.

Investors around the world, in a very compressed

timeframe, could sink stocks worldwide in abject panic.

We will have to monitor the situation very carefully, as

such an environment would be devastating to most

investments and fabulously profitable for those of us

properly positioned.

Do not think that such a scenario could not unfold

and that it would be impossible. I am sure you would

agree that a lot of what we have seen this year would have

been deemed impossible as well, just a few short months

before.

DJIA peaks

September

1929 @386

Crash of

1929 takes

DJIA to

195 by

November

50% retracement

takes DJIA back to

297 as of April 1930

Deflationary spiral signal emerges in model

DJIA finally

bottoms July

1932 @ 40!

Deflation!

Producer Price Index (Finished Goods) Monthly Year/Year Change

As I was expecting, we have, as of the December

PPI data released yesterday, seen the first emergence of

actual falling prices in this data for a long time. This

means that the likelihood of spiraling deflation is much

higher, particularly since energy is such an important

component of this data series and the direction for energy

prices is probably much lower. So, what does all this

mean to us?

I have explained in the past that I use the PPI

Index for Finished Goods as a measure of wholesale

inflation, based on the monthly change from the previous

year‟s level. This way, there can be very little

manipulation in the data and I can be confident that the

readings are accurate. If you notice the very last bar in the

chart, representing December 2008, you can see that it has

moved to a negative on a year-over-year basis. Since

prices, as is evident in the chart, were climbing at a rate of

10% year-over-year just a few months ago, chiefly

because of the influence of oil, this negative reading

represents a very dramatic change in trend. This is why it

is so important.

Now I must hasten to say that we have not yet

seen the outbreak of a deflationary spiral which would be

recognized by the model. Yet, I would not be surprised to

see this develop soon. So, we can safely say that this is a

very dangerous environment for stocks and for most asset

classes. Although the Government and the Fed are

frantically attempting to re-inflate to stop this progression,

so far their efforts have been ineffectual. I do not believe

they will be able to halt this progression before we see a

deflationary spiral emerge, because the pressures

generated by the bursting of the worldwide debt bubble

are simply too enormous to overcome immediately.

Therefore, we will be evaluating the proper

deployment of our capital based on the environment at

hand, not on what will emerge sometime in the future.

This means that we will soon be re-entering the short side

of the stock market, expecting to see prices decline

consistently as the deflationary forces strengthen. As you

can see in the above chart, when Producer Prices were

negative in a good part of the 2001 – 2002 period, it

corresponded to sharply falling stock prices. Remember,

however, there never was a deflationary spiral signal at

that time and yet stocks still fell sharply. I am sure you

can imagine the pressures on stock prices if (which I

expect) a true deflationary spiral does develop. If this

occurs shortly after, or concurrent with, a critical mass

reading in the model, we could see prices fall in very

similar fashion to what happened in the early 1930‟s as

previously depicted herein. So, we must be realistic

enough to realize that sometimes all the King‟s horses and

all the King‟s men simply cannot put a broken system

back together again, at least not very quickly.

I alluded to the fact that oil, a chief component of

the PPI series above, was likely to continue to fall and add

pressure to price declines. I believe it is entirely possible

to see oil fall all the way back down to its pre-credit

bubble level. This would be back to the price levels of

late 2001 at least. As you can see in the following chart,

that would be quite dramatic.

Light Sweet Crude Weekly

Rarely have we seen such a dramatic collapse in

the price of anything as is depicted in the above chart of

crude oil. From the summer, as you can see, it has moved

virtually straight down, losing some 75% of its value from

its high! This is a clear indication of powerful demand

destruction brought on by the recession in the United

States, and then having spread throughout the world. This

is exactly what we were expecting, but the rate at which

this decline has occurred has even surprised me. It

means, I believe, that the aforementioned deflationary

forces are more powerful than any we have ever seen,

possibly even including the Great Depression era. This is

very ominous indeed.

Bonds

Although we made a great deal of money in U.S.

Treasury Bonds, beginning all the way back to late 1999, I

know some of you have wondered why we are currently

not in Bonds. As you know, Bonds have spiked higher in

price recently, as the flight to safety mentality has gotten

intense. Yet, we still have to weigh risk and reward in our

investment stance. Although Bonds rallied strongly in the

latter part of 2008, I was concerned that the massive

spending plans by the U.S. might influence investors

around the world to dump their Dollar-denominated

holdings as a reaction to the potential for emerging

inflation. I feared there could be a bloodbath in Bonds if

this developed. So, we chose to focus on shorting the

stock market and then in preservation of capital by being

invested in Treasury Bills, while we await our next

campaign into stocks and other areas.

That said, I believe Bonds will still be a very

profitable investment in the near future, once the

deflationary forces really take hold. I would not be the

least surprised to see Long Term Bond yields fall to the 1-

2% level as this all plays out. With strategic investments

in Bonds, perhaps at slightly lower prices than they are

currently, this would translate into fantastic profits. So, I

assure you, Bonds are still going to be one of our favorite

strategies as the events we are expecting play out.

There are a lot of things happening at breakneck

speed. Yet, with the assistance of the model, which has

accurately forecast most of what has transpired, I am

confident we will be able to navigate these currents

effectively and profitably. As we go forward into the

New Year, let me say how much we appreciate all of you,

and that I am dedicated to protecting and growing your

capital as we go forward.

I will keep you posted. Take care.

EDITOR'S NOTE: Current investment recommendations are always deleted from complimentary newsletters.

To subscribe at greatly reduced rates with SAVINGS of up to $300.00 and to take the next step in your preparation for the next TRADING OPPORTUNITY CLICK HERE

If you have a friend, co-worker or family member who you feel could benefit from The Shepherd Investment Strategist , please forward this issue to them CLICK HERE

COPYRIGHT, 2009, THE SHEPHERD INVESTMENT STRATEGIST, A SERVICE OF JASMTS,

INC. ALL RIGHTS RESERVED. SHORT EXCERPTS, WHICH DO NOT EXPOSE OUR

PRESENT POSITION, MAY BE USED WITH FULL CREDIT GIVEN. ANY USE OTHER THAN

AS INTENDED, OR INDICATED HEREIN, IS STRICTLY PROHIBITED.

RECOMMENDATIONS AND ADVICE GIVEN HEREIN ARE MADE WITH THE EXPRESS

UNDERSTANDING THAT SUBSCRIBER ASSUMES ALL RISK OF LOSS. THE COMPANY OR ITS

AGENTS GIVES NO GUARANTEE, EXPRESS OR IMPLIED. PAST PERFORMANCE DOES NOT

GUARANTEE FUTURE RESULTS. ALL INVESTMENTS CARRY RISK.

DOES NOT GUARANTEE FUTURE RESULTS. ALL INVESTMENTS CARRY RISK.