Newshour

Jim welcomes Pamela Popper PhD, N.D. who appeared in the recent film “Forks Over Knives” and is one of the co-authors of the companion book, which reached the New York Times bestseller list. Despite the most advanced medical technology in the world, we are sicker than ever by nearly every measure. Forks Over Knives examines the claim that most, if not all, of the degenerative diseases that afflict us can be controlled, or even reversed, by rejecting animal-based and processed foods. The film looks at groundbreaking studies that conclude that our animal-based diet is primarily responsible for America’s three biggest killers: heart disease, cancer and diabetes. Despite the profound implications of their findings, the work by Dr. Colin Campbell and Dr. Caldwell Esselstyn has remained relatively unknown to the public.

Jim welcomes William Black PhD, Professor of Economics and Law at University of Missouri-Kansas City School of Law. Professor Black sees an increasing trend of crony capitalism in world markets. He sees two primary reasons for the mess; regulatory neglect and competition from overseas exchanges with less stringent regulations. In terms of corruption, Black believes the current credit crisis is 70 times larger than the Savings & Loan Crisis. In the S&L crisis, Black notes that there were 30,000 criminal referrals, and 2,000 white collar criminals went to prison. In the current credit crisis, stemming from 2008, there have been zero criminal referrals and zero prosecutions. He sees the FBI as the only agency with any effectiveness in white collar crime, but they are woefully understaffed. 

Jim welcomes energy expert Bill Powers back to the program. Bill notes that energy stocks are now getting a bid, and he and Jim discuss the significance of Freeport McMoRan getting back into the oil business. They also discuss the risks of extrapolating energy discoveries into the future, as many recent shale oil plays are already peaking. They also look at Daniel Yergin’s “Undulating Plateau” and how it may be taking place now, instead of decades from now.

In this week’s edition, Jim and Cathlyn discuss the important but difficult topic of preparing and protecting a spouse if you were to die first. They discuss the importance of consolidating estate and financial documents, reviewing financial plans, looking at the possibility of using a corporate trustee. They also discuss the emotional aspect that is a critical component of the preparation process. Also on the program, Dr. Judith Fradkin of the National Institute of Health speaks with Jim on Type 2 diabetes. Dr. Fradkin discusses the risk factors, and also prevention measures to help avoid the disease.

Jim welcomes back noted technician Charles Nenner this week. Charles sees a new stock market high into late April or early May. He also sees the economy picking up until the end of the year, but risk is also rising as well. Charles sees late April as a high risk period for the markets in terms of a correction. He is also very bearish on bond funds, and urges investors to get out of them as soon as possible. Charles is also out of gold in the short term, as he sees a rally in the US dollar ahead. Also in this segment, Ryan Puplava wraps up this week in the markets, Erik Townsend covers commodities, and Rob Bernard has the Fixed Income Report.

Jim discusses two more Big Picture topics in this segment. In the first, “The Confidence Game”, Jim looks at the way central banks manage economies and control expectations of inflation. The next topic, “Security Analysis by Benjamin Graham- That was then, this is now”, refers to Benjamin Graham’s famous book “Security Analysis” written in 1934 with David Dodd. Graham talks about building a “margin of safety” when buying stocks. Jim looks at the similarities and differences from the 1930’s to the realities of today, and sees that a big cushion of safety is still very important.

In this week’s first Big Picture topic, Jim discusses the implications from the book “Dying of Money: Lessons of the Great German and American Inflations” by Gens O. Parsson. Jim looks at the lessons from prior inflationary episodes in Germany and America, and sees similarities to today, only now it’s on a global basis. Jim also answers your Q-Calls in this segment.

Jim welcomes back Dr. Patrick Abbott, Professor Emeritus, Department of Geological Sciences at San Diego State University. Dr. Abbott is an expert on earthquakes and is a veteran of many media appearances in California after significant quakes. He talks with Jim about the probability of “The Big One”; how to prepare yourself and know what to do if a major earthquake should strike. California is known for its tremors, but the potential exists for earthquakes in many other states as well. Dr. Abbott also notes that there are many earthquake faults that scientists have only recently discovered, and there are likely many more yet to be discovered.

Jim is pleased to welcome back Dr. Jim Walker, Founder and Managing Director at Asianomics Limited in Hong Kong. He expects slower growth in China this year, likely under 5%. Dr. Jim believes Japan’s new policy of weakening the Yen only benefits the government in inflating away its enormous debt load. He sees many governments adopting the failed policies of the 1970’s and believes there will be failed outcomes this time as well. As to his investment outlook, Dr. Jim believes as long as central banks are printing money with abandon, investors should be in equities.

Jim is pleased to welcome noted geologist Keith Barron PhD, Director, Founder and Exploration Geologist at U308 Corp. Keith and Jim discuss the recently completed PDAC Convention from Toronto, the world's premier event for the mineral industry. Keith notes that the junior miners have been killed and offer opportunities at rock bottom prices. He notes that the majors have also disappointed, and have too often diluted their shareholders. Keith sees an emphasis going forward on economic projects that make sense, rather than large deposits that have a lesser ore grade. Keith also looked at the issue of “peak gold” and how it is now much more difficult to find large gold deposits anywhere on the globe.

Jim welcomes back David Morgan of The Morgan Report. David believes the fundamentals are still strong for the precious metals markets, but investor sentiment is at or near rock bottom. He also sees the metals markets as the most manipulated of all markets. From his long experience, David knows that picking a bottom in the metals markets is extremely difficult. Accordingly, his advice in taking a position in either stocks or physical metal is to build your position gradually, and never buy all at once. 

In this week’s edition of The Lifetime Income Series, Jim and Cathlyn look at the “4% Rule” for retirement withdrawals. They discuss what it is, why it isn’t working, and what you should do instead. Jim also gives a case study on corporate trustees. Jim’s guest this week is David Sayen, Regional Administrator at the Centers for Medicare & Medicaid Services San Francisco office. David discusses examples of Medicare fraud and how those on Medicare can protect themselves and their information.

Margin debt was recently reported at the third highest in history. This is overwhelmingly the big story for me. The Fed is accomplishing its mission of creating wealth by building yet another bubble ...

Jim welcomes back technician Alan Newman, editor of Stock Market Crosscurrents. Alan notes that margin debt is at the third highest level in history and QE is the only thing holding markets together. He also believes that Quantitative Easing (money printing by the Fed) makes capital allocation more difficult. Alan sees the Fed foolishly building yet another bubble that can only end in tears. Also in this segment, Ryan Puplava wraps up this week in the markets, Erik Townsend discusses commodities, and Rob Bernard has the Fixed Income Report.

In the first Big Picture topic this week, Jim looks at those “Left Behind” in cash since the credit crisis of 2008. Jim notes that those who have remained in cash since 2008 have lost 25% of their purchasing power. In the second topic, “Lessons From the Master” Jim goes over the key points of Warren Buffett’s annual letter to shareholders, and notes that all investors would benefit from reading it.

In this segment, Jim’s first topic is “Are we in a Recession?” Jim discusses a recent ECRI report that says yes, but Jim and The PFS Group say no, at least not yet. Jim notes that 60% of the leading economic indicators are still positive. Jim’s next topic is “What if they held a Bull Market and nobody came?” Jim notes that this past week set a record for the lowest participation rate from individual investors. Jim looks at valuations and notes that the P/E ratios on stocks have come down substantially since 2000, although many blue chip stocks have not moved substantially in price. Jim also answers your Q-Calls in this segment.

Jim welcomes Scott Rickards, founder and CEO of Waterfund LLC. Waterfund is pioneering a pricing benchmark for fresh water for actuarial purposes. The index will reflect the actual cost of producing and delivering water. The index will also allow for a hedge against the cost of water. Scott believes the index will unlock private capital to invest in water scarcity. Scott sees the users of the index as institutional investors, water retailers (such as water companies, miners and beverage firms) and governments and municipalities.

Jim is pleased to welcome James Koutoulas of Typhon Capital Management. James has been a leading advocate in fighting to recover $1 billion for customers from the MF Global bankruptcy. James tells Jim that the bankruptcy system is broken, and the regulators are outmanned, out-lobbied and afraid of large financial entities. Furthermore, the media is woefully ignorant on financial matters and lacks true investigative journalists. James notes that by its lack of action, the government has stated, loud and clear, that it will not prosecute “well-connected” criminals.

Jim welcomes back Bud Conrad, Chief Economist at Casey Research. Bud lays out his case that federal government policies have distorted the economy, impoverished the middle class and greatly expanded the size of the federal bureaucracy. Bud also discusses how much longer the government can continue these policies, and what is the most likely endgame for a country with way too much debt.

Jim welcomes back Brian Pretti CFA, Managing Editor at ContraryInvestor.com. Brian and Jim discuss the Fed’s current policy of pumping trillions of dollars into the markets. There are legitimate reasons to be pessimistic, but Brian believes you can’t sit on the sidelines when the Fed is aggressively printing money. He sees stocks as not cheap, but not expensive either. They also discuss the Sequester “crisis” which is seen as a phony and manufactured political exercise.