Easter Weekend - All Blue

Traditionally, just prior to Easter, the markets will exaggerate existing trends – not so this year.

For months, investors have been stalked, mauled and drooled over by a bear market that has mangled many a portfolio. But this year, despite poor economic news and continuing earnings warnings, the pre-Easter trend was reversed. The Dow clambered up 113 to 10,126 on Thursday, giving the “blue chip” index a gain of 335 points for the week – up 3 1/2 percent – and a return to 10k plus.

The S&P 500 added 55 to its tally – up nearly 5% for the week. The Naz was up 62 on Thursday, too… adding nicely to the whopping 241 gain the index posted this week. The Nasdaq’a 1,961 close was 14% higher than last Friday’s close – helping the big tech close out its best week in over 10 months.

Still the economy sputters… The nation’s biggest retailers reported weak results for March due to “unusually cold weather and the slumping economy” (AP). The Commerce Dept. also issued weaker than expected retail numbers for March.

The Labor Dept. reported its highest level of unemployment in five years…and declining wholesale numbers. We suspect a deflationary bust in the works…as we noted this week, the money supply is already expanding at double-digit rates…

So what’s going on with the markets? Maybe investors are reading the Daily Reckoning and taking our advice wholesale… sell the rallies. Sell.

The Russell 2000, the bad boy of smaller company indexes hopped up 5 to 455 on Thursday. For the week the Russell rose 20 – nearly 5%.

ADD’L PRICES FOR THE WEEK: all but nowhere, this week

Gold: $260

Crude Oil: $28.26

Natural Gas: $5.38

CRB Index: 214

Dollar Index: 115

The Sad, Sad Euro: $.89

British Pound: $1.43

Japanese Yen: $.81

FLOTSAM AND JETSAM: The Daily Reckoning Gets A Serious
Case Of The Blues!

Dear Daily Reckoning reader,

The DR has come down with a serious case of the BLUES…

…the “Blue Service”, that is. I’m pleased to report, on this fine Saturday, the successful launch of the Daily Reckoning Investment Advisory… or as we like to call it the Blue Service (after the color of the website).

In response to many reader requests, we’ve developed a “rubber-meets-the-road” investment advisory to help you follow-through on the ideas and insights you read every day in the Daily Reckoning free service.

In fact, drawing on over 20 years of friends, associates and contacts Bill has developed through his work in the investment industry, we’ve built what we hope will prove to be THE FINEST contrarian investment team – ever assembled!

Readers of the DR Blue Service will be privy to the unique – and profitable – advice of the all-star Blue Team: David Tice, of The Prudent Bear; Dr. Marc Faber, the Gloom, Boom and Doom Report; Lord William Rees-Mogg of Strategic Investment; Michael Belkin of Belkin & Associates… and others, brought to you under the astute guidance of editorial director Daniel Denning.

To help you kick things off, the Blue Team has assembled a list of 3 KEY STRATEGIES you’ll need in the coming months to avoid getting creamed by the economic slowdown… and even make money from bonds, “cash-rich” survivors, and a speculative “options” play with downside targets for the Dow and S&P 500.

But that’s just the beginning. With your subscription to the DR “Blue Service”, should you choose to enroll, you’ll also find little-known resource companies, overlooked cash- rich companies, “Old Economy” gems with high returns, high- yielding funds, currency plays and index investments that we’re expecting will bring home two, three and fourfold returns.

Also in response to reader requests…you’ll be getting specific recommendations on what positions to buy and sell. We expect this will prove to be the perfect (and profitable) companion service to the Daily Reckoning e- mails you’ve come to enjoy.

Plus, we’re going to take even greater advantage of e-mail and the Internet to deliver the advice to readers in a timely, actionable manner – so you can keep out of harms way… or make money quickly from fast moves in the markets. As I said, in our view it’s a big event. I sincerely hope you’ll join in the fun…

If you’d like more information on the Blue Service…or if you haven’t enrolled already and you’d like to, click here:

Go blue… and enjoy all your weekends,

Addison Wiggin,
Paris, France
April 14-15, 2001