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This presentation was delivered by James Dines at the New York Hard Assets Investment Conference, held 12-13 May 2008 at the New York Marriott Marquis on Times Square. James Dines is an investment advisor and editor of The Dines Letter. |
NEW YORK (Resource Investor Conferences) -- Good afternoon. Well, it's good to be back in New York City. I call it my electric pool. I don't know why they call it 'rush hour' here when nothing moves.
But times have certainly changed. I've been watching business television. I noticed that the interviewer typically greets guests by saying, "Thank you for coming." And the guest would respond, "Thank you for having me." And at the end if the interview, the interviewer used to say, "We appreciate your coming here." But now they use the command forms, saying, "Appreciate it."
And taxi drivers used to say, "I hope you have a nice day." Now, it's in the command form, "Have a nice day." And in a restaurant, they used to say, "I hope you enjoy your food." But now they say, "Enjoy." What if you don't have a nice day, or you don't enjoy the meal? Does it make you feel guilty? And what's next, does the waitress say to you, "Have a prostate exam!"?
Well, it's a new decade and century, and already a very different one. So I'd like to cover three main topics today. First, the stock market, including the outlooks for real estate inflation and precious metals; second, the ending of the era of unlimited abundance, including food and fuel, especially oil and global warming; and third, geopolitics.
How many of you here are current Dines Letter subscribers, 'TDLers'? Please raise your hands. Oh, great. Thank you very much for coming here today. If you have any questions, anybody here, just pass it to my assistants, who will patrol the room, and they'll hand it to me and brought up to the dais. And if you can't recognize my assistants, you're blind.
I've spoken at this podium every May for a number of years. In 1995, I recommended right here that you invest in something brand new called 'the Internet.' I said it was the greatest invention since the Gutenberg printing press from around 1439. And subsequently, many of you made fortunes on Internet stocks in the next 5 years.
But in 2000, I led you out of all high techs and Internets, and into raw materials and energy, where we profited greatly in the last 7 years. For the last 3 years, I've been looking for what I've been calling a company real estate crash. Further, I guessed that it was start specifically in the year 2007. Also that real estate would trigger a general economic recession, and finally affect the banks. That bold call even amazes me, and it will probably come true even though nobody else is calling this a real estate crash yet. And even President Bush said last week that this is, "only an economic slowdown," instead of a recession.
On an even shorter-term basis, despite the horrible economic news so far this year, The Dines Letter flashed interim warning on my signal on January 23 of this year, which was also a daring call, because of the awful economic news a few minutes ago. It was like trying to catch a falling safe.
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A rally began by the Dow Jones Industrial Average, or the Dow, on January 23, a matter of minutes later, after we sent that interim warning bulletin. And that day has been the low for the year so far, despite an onslaught of horrific, terrible news. But you haven't seen that in the newspaper. We've been pointing that out in The Dines Letter repeatedly. So there's an outside chance we got a hole in one on the bottom on that call, perhaps by luck.
In subsequent TDLs, we become increasingly bullish, partially because everybody was finally getting as bearish as we'd been toward real estate the previous years, based on the principles in my pioneering stock-market book called Mass Psychology, which was partially based on my conversations with Humphrey Neill, who is the originator of the theory of contrary opinion, that led to DTOPN, the Dines Theory of Positive Negativism.
And my long-term subscribers know from many years, I've been warning about the coming currency crisis, and a dollar crash, which unfortunately is coming all too true. I'll show you that at the end here. And that's what became the original gold bug, when gold was at $35 an ounce, and also the original sliver bug, when it was 92.5 cents. And I'll cover silver tomorrow at my panel.
But in terms of gold in this year's annual forecast, The Dines Letter on page 16 was looking for a consolidation in gold, starting around May, which is approximately now, and at the subsequent bottom of which should be yet another excellent gold-buying opportunity.
We repeatedly foresaw that the Fed would be trapped between keeping interest rates low enough to rescue the banks from a real estate crash, to needing to raise interest rates high enough to buoy the dollar, and guessed that he would take care of the local problem first, especially in an election year. And interest rates are now down to 2%, but we expect the Fed to raise rates aggressively as soon as the real estate situation calms down and provides us with a great buying opportunity to buy the construction and banking stocks.
The dollar crash is exceptionally serious because our currency is used by many foreign nations as reserves backing their own currencies as a store of value. And the 42% crash in the dollar in the last 7 years has meant a catastrophic loss for governments unwise enough to have kept their money in U.S. dollars.
If America loses the advantage of having a reserve currency, it'll be forced to balance its budgets to be a sobering experience indeed, with international repercussions. And the real risk is that the dollar will be unacceptable overseas at all. It happened in the 1970s, believe it or not, and the impression of untrustability will make people realize that the American 'peso' is just a piece of paper with an increasingly limited ability to command goods and services.
In fact, the U.S. dollar is only one more drop away from being the peso's bitch. Sometimes the government has deceived us so often that I feel like going to a store, pretending to work there, and if a customer asks me if I work there, tell them, "The televisions are free today." It seems that food riots, the dollar crashing, oil at $125, global warming seem like a huge disjunction, but these disparate news items are actually not disconnected. And the question is, what do they mean to your survival?
Turning my attention to the end of the planet's unlimited resources, our January annual forecast issue - you're welcome to see for yourself for proof. The front page, on January 15 of this year, we unveiled our shocking opinion on a visionary named Thomas Robert Malthus, a 19th-century disgraced scientist, infamous for his frightening prediction that with populations soaring, and food supplies limited, Europe would be gripped by a famine. But he did not foresee the impact on agriculture or fertilizers, pesticides, refrigeration machinery, et cetera, and wound up as a failed profit of doom, his name entering the language as 'Malthusian.'
Now this year, our annual forecast issue warned that he was premature rather than wrong, as the relatively sudden hurling of half of humanity onto the world's resources, in what we call 'Russchindia,' which is Russia, China and India, with Africa's coming age of greatness yet ahead. This is clearly going to be a very different century.
When one hears about oil inflation and food inflation, but they of course have nothing to do with inflation, which is in fact an increase in the money supply and credit. Well, read your dictionary; that's what it says there. When more paper chases the same goods, prices rise in what really is inflation. But in this case, there's a scarcity of food and fuel that is a result of a Malthusian planetary limit, an entirely separate problem.
It's difficult to disentangle these different threads, but predictions - precise predictions depend that we fully understand them to be clear, and very precise. And the hard truth is that our old predictions of the coming end of the petroleum age are coming true right before your very eyes. And actually, it's the end of the age of burning anything for energy. This is a very historic disjunction for humanity because of global warning, which even President Bush finally acknowledges. But oil in particular is finite, and its peak production is behind us.
Matt Simmons, another visionary ignored and scorned, repeatedly warned that Saudi Arabia didn't have all the oil it said it had. And how many of you noticed last month, in the back pages, Vice President Cheney had visited Saudi Arabia? Sewage. And they wonder why we get bottled water.
He went to Saudi Arabia to try to get them to pump more oil to suppress prices. He came back empty handed. It was in the back pages. And they said because the Saudis were unable to increase their production.
About a week later, there was a front-page article in The Wall Street Journal saying that Saudi Arabia is going up a whole new oil field, which should've depressed the price, but significantly the price jumped to an all-time high on that day, to $108 a barrel, mystifying many. But TDLers, however, were well aware of a chart in our annual forecast issue - page 43, if you want to make a note of it - showing that the number of wells drilled by Saudi Arabia have been soaring in recent years, yet the amount of oil they're producing has been flat.
In other words, they're drilling, and drilling, and drilling, and producing the same amount of oil, and this is, I think, a very, very crucial clue. Because those who think that oil production will end in the next century are delusional. Why? Excuse me. Because as soon as governments begin to comprehend that the war for the world's last drop of oil has already begun, they'll seize the remaining supplies for military purposes. Either that, or they'll be putting solar panels on tanks and airplanes.
You see, ladies and gentlemen, the hard truth is that long-term oil production is doomed, and the world needs to start looking past it. The warnings have been there for many years, but our society will not heed warnings for deep mass psychological reasons covered in the last TDL. And that's why humans wiped out the dodo, figuring the supply was inexhaustible until they were all gone.
In my native northern California, they've just completely closed the salmon fishing for the season, bankrupting many fishermen. Yet they've been repeatedly warned that salmon fishing needed to be better controlled and restrained. "Gee, they closed the - what do we do now?" That will happen with oil. Gasoline? Same mistake. The world is in complete denial about the end of the availability of gasoline. And as proof, I present to you that Tata Motors of India is now preparing to sell cars for around $3,000 each; disposables to be sold throughout Russchindia.
Countless millions of more new cars, and not one other person in the world is asking, "Where is the gasoline going to come from?" So determined is the world, unwilling to give up its oil-based lifestyle and go onto nuclear, that they're actually using food for fuel, converting corn into gasoline, which sent the price to a new all-time high of $6.28 a bushel. And so many farmers naturally switched to corn production that the resulting shortages of wheat and soybeans drove their prices over $13 a bushel and over $15 a bushel, respectively.
Suddenly there are food riots in the world, and everybody's surprised! Why are there food riots? So people are not paying attention, and there's no net energy gain growing food and then converting it to gasoline, but it helps the farmers in Iowa. And some selfish politicians are more interested in getting re-elected than giving a damn about anybody else, a very disappointment departure from our founding fathers.
The world has taken a very sad road when it would rather starve than change how to fuel cars. They would rather burn coal, the filthiest producer of global warming. They would rather drown in rising oceans than to get serious about energy. Wasting time on plug-in automobiles, without even asking how much coal do you need to burn to maintain the electricity for those plug-ins?
They talk about injecting coal's carbon dioxide into underground storage, a technology that's never been done; appropriately using a needle into the planet, symbolizing the addiction in a jungian fashion, like oblivious spoiled rich brats who'd rather sell the family heirlooms than control their lifestyles.
The era of unlimited abundance is ending, and that applies not only to oil and gold, but also silver, as major new discoveries become increasingly rare. Maybe humanity, like the dodo, will disappear and suffer a comparable low state punishment.
Instead of delusioning on windmills and solar power destined to provide only a few percent of our needs for the next 300 years, the world must go immediately to nuclear energy. Instead of going on and on about Chernobyl and Three Mile Island, the truth is that France has gone nearly 80% nuclear since the 1970s, and it's never had an accident. And the choice is not between nuclear and solar, it's between nuclear and all of us shivering in the dark.
Nuclear at least would give the planet enough energy for everybody for the next few centuries. And by then, we might have practical nuclear fusion that would emulate the power of the sun, and just pray some lunatic at that point doesn't use it to destroy the whole planet.
The Pacific Ocean is like a huge lake with a circular current around it, and around the rim. And it's recently been discovered that there's a huge collection of plastic garbage in its centre, twice the size of the United States; everything from old toothbrushes to nets that trap the remaining fish, so that disgusting farmed fish insult our pallets.
Personally, I'll say good riddance to oil so that the air can be clean again, and I can once again see the beauty of the planet in the distance, instead of hazy smog. Well, thank you. It reminds me of my father. He said to me, he said, "If you abuse yourself, you'll go blind." And I said, "Hey, Dad, I'm over here."
But is there any hope? And the answer is yes! The world must go immediately to nuclear power. And my Secrets of High States book talks about two different types of hope: false and true. And this one is definitely true.
The High States book is required reading for all my Dines Letter subscribers, because it's the other side of the coin from my Mass Psychology book. Mass Psychology is how we react to what impinges on us from the people around us - the pressures, the ones that got us bullish on real estate in 2000 - the ones who are getting us bearish now.
It teaches you how to resist that, whereas my High States book handles our own internal past relationships with money, especially self-destructiveness and the secret desire of all gamblers to lose. You see, survival is a function of careful calculation of future probabilities, frequently updating it even while the children play on the Titanic.
I carefully bided my time, watching the uranium price drop steadily from its high at $43.40 a pound in May 1978 to as low as $7.10. And the moment that downtrend line was penetrated - I'll show it to you in a moment - The Dines Letter jumped in and flashed an interim warning bulletin recommending the purchase of uranium at $8. At the time, investing in uranium stocks, here at this podium, was the single most hated idea on the planet, which of course is mass psychology, is contrarily bullish by DTPON.
My initial target was $50 a pound, which was reached. And as it got up to $138 a pound, exactly 1 year ago - you, where are you going? Do you have permission? At this podium, I said uranium had gotten too popular, so there would be a consolidation, and I foresaw lower uranium prices, hopefully to around $100.
Indeed, the long-term prices levelled off at around $90. But the short-term uranium price is now around $60, but very few transactions take place at that market. It's a very conservative market. Most of the utilities buy the stuff, maybe a few terrorists. And you know, they have to work 5 or 6 or 10 years ahead when they book it. So the short-term market is just - it's not that important to me.
The truth is uranium's metal shortage that we were clear on has indeed continued. However, the consolidation of uranium mining shares went much deeper than anyone expected. Not so much in the higher-priced blue chips, such as AREVA and ERA, Cameco, but in the low-priced sector.
Why did that happen? First of all, we're now at the biggest disjunction I've ever seen in my entire career between commodities and the companies that mine them, and that includes just about all of them, including the base metals, and even the oils.
There's at least some justification for that, because The Dines Letter has been predicting a recession in China since the 24 June 2005 letter, and we know that the Chinese market has dropped 44% since October '07. It's even true in energy, despite sky-high prices for oil and solar panels and coal. The stocks are also down with uranium.
Why is that? We were very clear on the coming crash of real estate, but we were not concerned that it would affect uranium because that metal would be in deep shortage for a number of years ahead, depending on how many plants get built. And we saw no connection whatsoever between real estate and the nuclear power for utilities worldwide.
In fact, there is no connection. There is a connection, however, by hedge funds, who have secretly loaded up on real estate and construction; and when those stocks crashed, desperate hedge funds sold everything else to meet margin costs. And the bad economic news scared the daylights out of investors, so there was a huge rush to quality out of all speculatives, no matter what the fundamentals were, into bonds, and not even corporate bonds at that, but government bonds.
And right now, anything regarding the speculative is in the doghouse, which is the normal for volatile times. But low-priced stocks are where the big money is, and that's why Pine Trees chart - I'll show you that in a moment - for example, on the way up, racked up a gain of over 25,000%, which is a lot better than CDs. But they have venture holdings one-third in uranium, one-third in gold and silver and one-third in gas. There is nothing wrong with companies mining precious metals and uranium, so we've decided to ride out this hedge fund-triggered selling wave because we don't know where it'll end. Uranium and precious metals will rise again because the causations are unchanged.
I'm going to show you a long-term chart of platinum in a moment. Please - I am going to show you a 68% decline from 1980 to '85, and yet platinum's bull market was nowhere near over. And we made every effort to keep our loyal long-term TDLers in platinum, riding it out for the big payoff when it soared $2,251 an ounce 2 months ago. I'm playing for the big - I'm swinging for the long ball, I'm swinging for the fences. I've found that you don't make money just jumping on a point here and there because you have one big loss that wipes it all out. So to me, the big money is where the big money is. It's still very early in what I've been calling the coming uranium boom for the last 7 years. Even as China is locking up iron ore reserves, I predict that we will eventually understand the need to do the same for uranium, especially by buying our uranium mining companies at much higher prices just for their reserves.
The idea that nations will begin to tax exports, or even stop them entirely, is a complete reversal from the last century, when every nation wanted to export as much as possible. Some nations are now limiting rice exports to keep the food for their own citizens in what I call economic chauvinism. It will happen to oil and also other commodities, so I predict a breakdown of the capitalist system of free trade into a battle for survival. The coming uranium boom is now where oil was around 1900, before the great oil boom of the 20th century. The fact that the uranium price is sky high proves the shortage is beyond dispute, that many more nuclear plants will be built, thousands more. Uranium companies have uranium in the ground which must come up to be sold despite any current political handicaps. India, for example, is already running low on uranium but is too proud to import the metal, so some power companies need to shut down several hours a day - incompatible with its future growth. There are possible sudden interruptions of uranium supply, such as last year's flooded mines in Canada and Australia. And I predict that Japan will come on stream as a big buyer of uranium.
Oil companies will need to confront their doom, as just this month even the Rockefeller family itself harangued Exxon's executives to get into what they call renewables - although it's not clear that they understood that uranium is the ultimate renewable. Russia has declared its intention to double its nuclear power from 16% to 30% by 2030, but how much of it will be supplied by its own uranium is unclear, especially when they decide to raise their nuclear power to 60% or even 90% which, I predict, will happen. We are very bullish on France's nuclear industry, way ahead of the rest of the world, so a few shares of blue chip AREVA, I'll show you that in a minute, in your portfolio for the long term is an excellent idea, in my opinion. France's deep roots in Africa will likewise stand that nation in great stead.
I also expect value investors to take a hard look at uranium once they get past their current mass fear. Pine Tree is selling for a cap of $300 million, which is peanuts because some of these issues are selling for the same price as when uranium was far, far lower than this. In the meantime, the companies have cashed out and gotten a lot stronger. We therefore expect uranium stock bottom formation to be a V-shaped or a violent upward rise, trapping the shorts, which will add fuel to the fire. And you, there is no fuel like an old fuel. I thought that was funny.
Anyway, uranium stocks look ridiculously underpriced to me. Whether it's $50 a pound or higher doesn't matter. Miners could make serious money at those levels. If the uranium price goes lower than that, even if it crashes, what that would mean is the uranium mines would start closing down as they did in '90s, and we would eventually see uranium over $200 a pound or $500 a pound. It would be priceless.
Geopolitics is another issue I cover in The Dines Letter, and I can't cover it in too much detail in this short time. I want to get to the charts. Those of you who have been reading this for the last three decades know that I believe civilization and prosperity travel westward across the planet beginning in Africa, Egypt, Mesopotamia, Greece, Rome, Europe, America - We were clear that it would eventually reach Japan, China, India and then Africa. The implosion of communism when we opened up Siberia in Eastern Europe also.
Just as America replaced England's power in the 20th century, power is now moving toward China. When I went there in 1979, I returned with a prediction, again at this podium, that China would dominate the 21st century, after which one-third of my subscribers refused to renew because the predictions seemed so outlandish. And even now, not everybody agrees. But I cannot allow agreement to interfere with the visions I share with those who follow my work. Why? Because it's very lonely at the top. Especially when there is no one on the bottom.
Also, in my Mass Psychology book, I share how I make my political predictions. TDL's political gamut, or TPG, says the world is moving toward the government being more important then the individual. Right after 9/11, TDL wrote that the trend toward the individual had reached full flowering on the Internet; untaxed, totally free, but that the world would next move back down toward station 10 on TPG. Those who have read my Mass Psychology book - indeed, the so-called Patriot Act, the loss of privacy, the intrusion of the state in to our lives - is only just the beginning. And I will be glad when I am gone not to see where it ends because I feel like I am sleeping in a nightmarish Greek tragedy, unable to do anything to reverse it. And my curse is that I see but cannot be seen.
The government has a so-called war on drugs, which must fail because whenever it is successful, the price of scarcer drugs goes up and makes it more worthwhile for new criminals to enter. America learned nothing from prohibition and forgot everything, but it is a wonderful excuse to pass new laws. Take, for example, the border with Mexico. As the government tries to build ever-stronger barriers - some say it is because of terrorists' infiltration, illegal immigration, drug smuggling, all presumably to keep things out of America. Lies! It could also be looked at as walls to keep America in. Some say it is some kind of a conspiracy. I'm not smart enough to know that. But true or not, the effect is the same. The gates are closing, echoing the 'concanonations' of the Roman Empire as its own empire was ending. It's time to buy some gold and silver coins. But never leave them in your home. In fact, never leave valuables in your home. Leave them in a bank safety deposit box. Could the government seize them as Roosevelt did in the 1930s? Of course. But it's worth at least trying and doing it in more than one country.
I wasn't alive in 1929, but everything I studied about made me feel like we were going through it again, perhaps to be followed by the deflationary 1930s and another war. The odds are high that that conflict will be over some raw materials, especially oil. Every nation wants nuclear weapons. Children cheerfully playing with loaded guns. China understands the coming energy crisis, so it's cozying up to the Mideast energy producers and power is shifting. For example, Iran is building a gas pipeline to India. Uneasy must lie the crown on King (inaudible), menaced by envious neighbouring rising superpowers such as Russia, China, India and even Iran. The gates are closing, and I predict a new phase called 'exchange controls' will be heard in this land.
Try to get enough money out of whichever country you're in, so that if you had to leave everything behind you then you would at least have enough to start again elsewhere. Get some double eagles (inaudible) it's a beautiful coin, from any reputable coin dealer. Stack's here in the city here sells coins, David Hall operates on the west coast. I make no guarantees, so please do your due diligence, but if you'd like to discuss it further you can ask for their phone numbers at my booth, and I'll try to be helpful. But this has to be your decision. I have no financial relationship with either of them.
Do I have any time to show them charts? Do you want more charts? Okay.
This is the Dines Greed-Fear Oscillator Index (DIGFOI) it flashed the buy signal on January 23. This is the long-term chart in our annual forecast issue and the important thing is that on 23 January, it hit this low and since then it's been moving up to challenge the all-time highs. Opinions are like noses, everybody's got one. But I listen to the stock market, and what this is telling me is that things aren't quite as bad as they look. Here's NASDAQ, and those of you who are professionals in the audience might notice the left shoulder here, and the possible head and a possible right shoulder in formation. An upside breakout here would leave the head-and-shoulder bottom formation. Here is the US dollar, and they're all talking on television now about how the dollar has been rising. They have the point of view, the perspective of an ant. This is not a rise. This is the US dollar, again in a downtrend and the other currencies moving up against it. It's a tragedy what they have done to my currency.
This is the Dines gold stock average back to 1999, and here I said that someday this would be looked at as one of the cheapest times to buy gold that's ever existed on this podium. It went down a little lower after that, and I think this is where we are with uranium right now. This is a beautiful, flawless series of lockstep moves in the precious metals.
This is the precious metals. Here is our sell signal in '96. We had another buy here, didn't do that well. We had another buy here, and that's done very well. There's the ratio of gold to the Dow Jones Industrial, we show you this chart every year. I am looking for some more lateral motion here toward the uptrend line.
This is the S&P silver, the 500 silver ratio and you can see that silver has been outperforming the silver since we flashed the buy signal on it in 2000.
The gold stock average again - this is choppier, but basically the same up-channel.
This is the Dines silver stock average - beautiful. This is our buy signal, 25 September '01. Up 1,360%. Beautiful.
This is the Dines gold and silver junior stock average. Even with the declines of this market, we're still well within the up-channel of UC. And this is our buy signal. Really luck guess, you have to admit.
Platinum: This is the decline I was talking about. This was a huge decline: 49%, 26%, 36%. Every year that I showed this chart to you here, in the 1980s and '90s, I said that this is a huge base formation. And sure enough, it's what I call an 'upwedge formation,' those of you who follow my work. And we had the upside breakout, and now we're flying. I would sell half of it up here. I think it's a pretty good gain, and you don't want to get greedy.
Palladium bullion: This was early, we bought at 131.50, we got out when it got over 1,000. We had a buy here, we were wrong, we got in early, and then we got in again here. And this looks beautiful. Again we have an upwedge formation.
This is silver bullion, I'll show you this chart again tomorrow. Again you have the upwedge formation, and I think it's going to go way up. Over $100 an ounce.
London gold, again you have the same kind of upwedge formation. And again, its new all-time high. We're getting a normal pullback, we're going to get some additional work toward line P, but again, I'm not concerned about it.
ASA, one of my old favourites. We originally bought this stock at a dollar, and it went up to $82.50. That's not bad. Here, just on this move alone, it's up 559%.
Barrick Gold, just had a pullback here toward the uptrend line, it's a good time to buy it.
Impala Platinum: we're getting a little congestion, we might even break this line, but I'm looking for higher prices.
These are short-term gold stock signals. I'm looking for a little bit of a sell here. We flashed this in The Letter. I think it'll come back down toward this uptrend line.
Norilsk Nickel, one of our great winners, we bought it at $8, and then it got up to $30, that's not bad.
Here are some base metals, some of them are beginning to top out. I think that's a signal that China's going to get into a little bit of trouble here.
The Dines energy stock average shows you that we got in early on the energy stocks, we had to sit for 2 years waiting for them to bottom out and take off again. But they have. And it might happen with uranium. Keep an iron hand on the tiller. We're going nuclear whether they know it or not.
This is the uranium metal, this is the previous high. I was watching this downtrend line year after year after year. Here I said buy, and now we're getting a technical correction back toward line P - and I think it's going to go much higher again.
Here's AREVA, I mentioned, it's up 670%. This is my top uranium blue chip. It's high-priced stuff, but buy a few shares of it but don't split.
There's Pine Tree. It is back there where it was when uranium was on the ground. I think that that's overdone by a lot. Paladin Energy is also down, the blue chips are even down. They are all down. Before that, Mega was up over 5,000%, and now it's back down to where it was nearly when we bought it. So, this thing is way out of line price-wise.
Laramide, same story, it was up 16,000%. Some of you - I told to sell small percentages on the way up. If you did, you have the money now to buy them back. As soon as this downtrend line is penetrated, boy, I would back up the truck.
Here's DIGFOI again, and that's back where I started.
My final comments are these: Don't over obsess over children. They will not carry around photographs of you. You don't have children; they have you. People seldom live up to their baby pictures. I think God made babies so cute so we don't eat them. Studies still show that rectal thermometers are still the best way to take a baby's temperature, and besides - it shows them who's boss. And you spend a fortune to send them to college, a fountain of knowledge where they all go to drink.
So always fly first class because if you don't, your children will. May you live every day of your life. Thank you, and I will meet you at my booth. And I certainly wish you the very best.
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James Dines is an investment advisor and editor of The Dines Letter, an investment website.
He is a frequent speaker at universities and meetings of professional investment associations and has appeared on 60 Minutes and The MacNeil-Lehrer Report.
In addition, he has been featured in The Wall Street Journal, Fortune, Forbes, and The Washington Post.
We regret that the PowerPoint slides that accompanied Mr. Dines' presentation are not available. E-mail any inquiries to production@dinesletter.com.
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