Mike Stathis Q&A Session from EmailsStock-Markets / Financial Markets Oct 18, 2008 - 09:08 AM GMT
I've been getting bombarded with so many emails that I really can't keep up. I appreciate your kind thoughts. Because many of the emails are similar and due to my lack of time, I've decided to periodically address questions from some selected emails here. Hopefully, this will answer some of the questions you might have as well.
Good day Mr. Stathis
My name is Kenneth, I emailed you recently, and you suggested that stock up on cash. Thanks for that advice. Does it make sense for me to buy Yen or Swiss francs to be in position to say purchase Asian, or Latin American equities as the dollar continues it's slide? In addition does your book " America 's Financial Apocalypse", or any other title you have written address a statement you made recently concerning people with families moving to Europe, Asia, or Latin America , due to the difficulty in achieving the American dream? This is something I need to show my wife, she still thinks it's alive and well. but then again she's a big opera fan. Thanks again
Kenneth, I'm happy things worked out for you. It was ultimately you who pulled the trigger so pat yourself on the back! I cannot recall if I mention moving out of America in my books. I probably didn't because I already knew people would think I was a nut for my predictions. We now see who the nuts are and who the real experts are. I can tell you that I will definitely make a point to emphasize this in my next book on this charade.
Going forward, people only have themselves to blame for watching the media. It's unfortunate that Oprah is in such a great position to really help those most in need. Unfortunately, she has not used her clout to benefit people nearly as much as she could in my opinion. She needs to focus more on bringing on people who have real value instead of interviewing the same clowns who make their media rounds, while selling desperate people empty dreams. America is by no means alive and well. Even if you are wealthy, the fact is that you will ultimately pay the price when you are forced to subsidize millions of impoverished Americans as a result of the long trend of wealth distribution. And the society you live in will continue to decline as America makes the brutal transition into a two-class society.
I would NOT get into foreign currencies at this point, as the dollar's recent strength is due to being considered a safe haven during the global meltdown. I would also not get into the dollar because the LT trend is down. Check my previous pieces to see why the fate of the dollar is not good. http://www.marketoracle.co.uk/Article5809.html
Also consider the trillions of dollars pumped into the banking system over the past 13 months will surely take affect at some point. There will always be ST trading opportunities, but the best traders stick with the highest probabilities – in other words, when things appear most evident.
Always remember, opportunities are unlimited and capital is not. Just be patient and wait. Those with cash down the road will be able to pick up the pieces on the cheap. When it looks like all Hell is breaking loose, that is when you buy the market, but for only a ST trade, as I did last Thursday. Still, the best path for many investors is to stay out of the market. You aren't going to hear that from anyone else because they are all in the business of selling you investment products. http://ap.google.com/article/..
I was one of the few people buying when the Dow was getting killed. But you have to take these gains and get out and wait for the next sell off.
I feel the real dollar crisis is ahead. The LT trend remains down. But you should wait for definitive signals before getting back into the Yen and Franc as well as Chinese and Brazilian equities. That could be as early as next year or several years. It's impossible to say. But when you see massive sell offs, you might want to get your feet wet in FXI and EWZ (low 20s and high 20s respectively). Of course this can change but this is what I feel right now.
Note: this should not be taken as specific investment guidance. It only serves as general considerations you might wish to make after considering your individual investment profile.
I would first like to say thank you for the work you have done in bringing awareness to our financial crisis. I've spent the last few months scouring the internet for information and I feel like yours has done nothing but show honesty in the problem.Writing to congress seems to fall on deaf ears, investing in material possessions seems it would only add to the problem if not be pointless. Are we to just sit down, hold on, and go along for the ride? Is there any sense of hope at the end of all this?
Are we heading for a more socialist government? Are we going to have a government that has lost our trust now have their hand in our health care, our banks, etc... It SEEMS Obama might have a slight advantage over McCain in the up coming election, but do either of the candidates even have a chance of adjusting the path we're now on.
It seems the more I discover the more questions and concerns I have.
Thanks again, and here's hoping there is a light at the end of the tunnel.
I agree Todd. It is very demoralizing. Washington won't listen to us because they are in the same position as these CEOs – they don't have to listen to us because there is NO ACCOUNTABILITY nor are there any real penalties for failure, neglect and fraud. The media doesn't report these things so most people don't realize how bad things are and who is to blame. That is why Washington won't listen. Their partner is the media.
Are we headed for a more socialist government? Well, for certain industries – those controlled via oligopoly, industry coersion, etc., a socialist structure would actually be better – namely healthcare and energy – as long as we are talking about socialism for everyone, not just the companies. People are getting screwed in these industries because they maintain complete control and raise prices as they wish with no regulation. Yu aren't going to ever hear this view for many reasons:
most people are extremists because they have been brainwashed to accept EVERYTHING advocated by their political party
most people lack sufficient expertise in healthcare and energy to understand what is going on and how to solve the problems.
Should the banking system be socialized? Well, I view that industry as the anti-christ. We already saw what happened when you let industries do as they please. The solution isn't socialization or nationalization, be REAL regulation and REAL accountability, both which are highly unlike. Only the myth of real regulation and accountability will surface and other charade will occur down the road. Assuming this to be true, if I had to pick between leaving the banks alone and letting them do as they have done in the past versus nationalization I would have to pick the later. I plan to release myself from banks altogether and just pay cash for everything. And I recommend that for everyone as well. If you aren't able to do it, work on it. It might be as difficult as losing weight, but you CAN do it. And once you've released yourself from the bonds of these crooked banks, you will feel like a free person. When you have debt, you are never truly free.
There will be light at the end of the tunnel at some point. I would not expect to see much light for many years though and only if Washington decides to make the right changes. I have little doubt that Washington will pump billions for entrepreneurial ventures. They will most likely be the key to pulling America out of this mess.
Please include my email on your media appearance list.
As I am attempting to invest for my family through my own due diligence I thank you for telling the truth and finding ways to get it out to individuals like myself.
Also, please keep my email for any newsletters you may consider doing in the
future. I'll be buying your book next.
Your passion for what you do is most effective and appreciated.
Thanks for your praise Lena . Be VERY careful as there will be no good investment choices for many years. The best opportunities will be for great traders and market timers. This market will be a struggle for the best of traders for a long time. Also be VERY careful who you listen to and read. Almost everyone has an agenda.
I want to thank everyone for the kind responses and the requests for media appearances. Most of media appearances are on short notice. So until I start doing more regular appearances, the best way to hear me is to contact your local station and have them contact me. You can forget about contacting the big TV and radio programs. They have their own agendas. I will be posting the names of the shows, producers, networks, emails and phone numbers in the future and you can contact them and ask them why they refused to let me warn you about this mess. You might be surprised when you see this list.
By the way, I have now decided to start a website dedicated to the economy, capital markets, etc. If there is anyone out there who is or knows a GREAT web designer and I mean GREAT, let me know if they want to be part of this project. Many of the most popular sites out there have ties to CNBC and other shill networks. So they really cannot be trusted.
By Mike Stathis
Copyright © 2008. All Rights Reserved. Mike Stathis.
Mike Stathis is the Managing Principal of Apex Venture Advisors , a business and investment intelligence firm serving the needs of venture firms, corporations and hedge funds on a variety of projects. Mike's work in the private markets includes valuation analysis, deal structuring, and business strategy. In the public markets he has assisted hedge funds with investment strategy, valuation analysis, market forecasting, risk management, and distressed securities analysis. Prior to Apex Advisors, Mike worked at UBS and Bear Stearns, focusing on asset management and merchant banking.
The accuracy of his predictions and insights detailed in the 2006 release of America's Financial Apocalypse and Cashing in on the Real Estate Bubble have positioned him as one of America's most insightful and creative financial minds. These books serve as proof that he remains well ahead of the curve, as he continues to position his clients with a unique competitive advantage. His first book, The Startup Company Bible for Entrepreneurs has become required reading for high-tech entrepreneurs, and is used in several business schools as a required text for completion of the MBA program.
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