China Worried
Research for Online Investors

by John Dalt

3/13/09

The tide on interest rates may be coming in.  Chinese Premier Wen Jiabao expressed concern about the safety of U.S. securities after China’s Legislative session closed.  Wen said, “We have made huge loans to the United States.  Of course, we are concerned about the safety of our assets.  To be honest, I’m a little bit worried.”  This prompted White House spokesman, Robert Gibbs to respond, “There is no safer investment than in the United States.” Analysts estimate one-half of China’s two trillion in currency reserves are in U.S. Treasuries and debt obligations, making them the largest holders of U.S. securities.  Imagine the withdrawal symptoms if they pull back!  TLT is an attractive short, or you can buy TBT.

You may have seen in the news this week that Yucca Mountain, in Nevada, would not be used to store nuclear waste.  The Presidents new Secretary of Energy announced that the proposed storage facility was “no longer an option.”  This is a huge payoff to Harry Reid (D) senator from Nevada.  There was a great article in the Wall Street Journal about re-processing much of this waste so it does not have to be stored anywhere.  Gerald Ford suspended reprocessing nuclear waste in 1976  This is something I did not remember.  I talked to an old friend that worked at Los Alamos about this.  He told me re-processing was easily done, but that the industry has been decimated by a loss of expertise. The nuclear physicists are retiring, or have moved on to other jobs. The backlash against nuclear after Three-mile Island destroyed the industry.

I wrote about companies re-writing stock options for employees because their stock prices had declined.  This is lining their pockets at the expense of shareholders; heads I win, tails you lose.  News today that Google is playing this game, to the tune of $400,000,000!  Read all about it.

Remember this if you are considering Google for investing, the management does not have your interest front and center, they are too busy lining their pockets.

One of our companies in the Galt Long-Term Portfolio lost its AAA rating today, but still held above our buy point.  If you would like to join, read more about our service here.   You will get a new recommendation every two weeks.  We have a new recommendation coming out Monday; you will not want to miss it.  Four of our six positions are above water now.  It is only $99 a year, less than two bucks a week to get a solid help working your way through this tough market.  Read More Here.

The market closed today in positive territory; this is great news because we have now strung together four days in a row.  We are pushing against resistance on the SP500 at 750, and I believe we are going to 820, but it is not going to be easy, or a straight line.  Financials took a breather, and they are still the main driver, but the XLF is up 30% in the previous three days!  It is natural to take a breather when climbing a mountain.  Take your breather this weekend, the market will be there Monday morning and we will be ready!

Two high Flyers in the markets are Sturm Rugur (RGR) and Smith & Wesson (SWHC). 

Gun and Ammo sales are exploding, before the democrats try to ban them, or legislate onerous restrictions.

The information presented in this newsletter is based on generally available news releases, corporate filings, current events, interviews and the editor’s opinions. It may contain errors and you should not make investment decisions based solely on what you believe you have read here. Do your own research, it is your money. If you lose it, it is your responsibility, not ours or your grandmothers! The editor may or may not have a position in any securities discussed. The editor may have held a position in a security earlier, or in the future.

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