Horrific, Dismal Bear Fatigued

The Daily Reckoning

Weekend Edition

March 24-25, 2001

Paris, France

By Addison Wiggin

MARKET REVIEW: Horrific, Dismal Bear Fatigued: All Markets Up On Friday

Mr. Bear rested after a “horrific” two-week stint Friday allowing a 115-point gain on the Dow… and a close at 9504. In two weeks of crushing losses the Dow had shed 1255 points by the time markets closed Thursday. Year to date, the Dow is off nearly 12% – and ‘officially’ entered bear territory this week with a close 20% below it’s January 2000 peak.

Also on Friday, the Nasdaq shimmied up 30 to 1928, a 38- point gain for the week. The S&P 500 added 22 to end the week at 1139, down 11 from last Monday’s opening.

The Nasdaq and Nasdaq 100 are off 21.9% and 27.2%, respectively during trading in 2001. The S&P 500 is down 13.7% for the year.

“The average stock fund continued its ‘dismal’ year, losing 4.7%,” according to Lipper, the fund trackers, and AP, the fund tracker reporters. The average fund is down nearly 16% in 2001. According to ABC News, $4 trillion has been erased from the stock market in just the past year. Four trillion dollars is roughly the combined GDP of Germany, Britain and Canada.

“But all is not woe,” says John Myers of Outstanding Investments. “Over the past year the Toronto Stock Exchange’s Oil & Gas Index has risen 42%. With tech stocks performing so dismally there remains plenty of opportunities to buy into this market after the bear has run its course.” Outstanding Investments

Markets Around The World: The Nikkei rallied slightly closing up 2.8% on Friday. The European markets all closed higher, too… Germany’s DAX index gained 2.9%, Britain’s FTSE 100 rose 1.6%, and France’s CAC-40 ended the day +2.6%.

Russell 2000 rose 10 to close at 443… 2 points higher than last week.

ADD’L PRICES FOR THE WEEK: Gold Up A Little… Dollar Up A Lot

Gold: $261

Crude Oil: $27.30

Natural Gas: $5.27

CRB Index: 214

Dollar Index: 116

The Sad, Sad Euro: $.88

British Pound: $1.42

Japanese Yen: $.82

FLOTSAM & JETSAM: The International Harry Schultz

– From an introduction to Harry Schultz early this week…

“I’m writing you today to introduce you to an extraordinary friend and colleague. And to offer you an opportunity to safeguard your money in ways you might not expect…even make some money from a unique global investing program. If you’ve been reading the Daily Reckoning, it is quite clear to you that we’ve entered, if not treacherous, certainly uncharted territory in the financial markets… in the world economy.

Trouble is, if you follow the advice you’re getting from any number of popular sources… the Wall Street Journal, Investor’s Business Daily, Forbes, CNBC or even popular books… you are often taking advice from young professionals who have never seen an economic slowdown, let alone what may be the most significant – and brutal – stretch of time in economic history.

These “experts” are simply too inexperienced to know what’s coming next. And they’re subject to “group-think” mentality – just like everyone else.

Of course, you’ve heard us say in The Daily Reckoning time and again that nobody can predict the future… it’s an insight based on the belief that ‘experience’ is far more valuable than ‘theory’. And that’s exactly why I want to introduce you to Harry Schultz. Apart from being our friend, Harry Schultz has 37 years of experience in the markets, and a very unique frame of mind. In fact, he’s quite an…how should I phrase this… an “original.”

Let me give you a few examples… Harry has invented a form of his own language, with the intention of making every sentence he writes as densely rich with ideas as possible… he’s been listed in the Guinness Book of Records as the world’s highest paid investment advisor – for the last 21 years… and for a time he had a passion for collecting knighthood charities… he now has 5 knighthoods, including Knight of Malta, Chevalier of Saint Agata.

Those are just a few of the items that make “Uncle Harry” an interesting character… and virtually immune to the “group think/group feel” that pervades today’s mass media.

Over 37 years ago, Harry took it upon himself to revive the tradition of American pamphleteers dating all the way back to Thomas Paine, and the defenders of colonial liberty vs. the English crown. Today, the International Harry Schultz Letter is one of the 3 oldest advisory letters in the world. Since the letter’s inception, Harry has personally chronicled all the major economic/financial events in recent history. Do you remember?

* The “nifty fifty” and the “garbage market” of the 60’s…

* The ‘oil crisis’… and the Big Bear Market of 72-75…

* “Stagflation” (a word he claims to have coined)… and gold at $850 an oz…

* Volcker driving treasury rates to 18%…

* The bull market of ’82 – and the crash of ’87…

* The Gulf War and the recession of ’92…

* The liquidity crisis in ’97 and the bailout of LCTM…

Through it all, Harry Schultz has been at the helm of one of the most successful investment-advisory newsletters ever to be published. Plus, he’s written 22 books – on topics covering a wide range of fields from reducing the size of nations… to Swiss banking strategies… to gold… money havens and market crashes. Three of those books were detailed analyses of bear markets, which makes his message particularly timely for you today.

The International Harry Schultz Letter was the only newsletter to call the recent top in the US dollar – to the week. He was also first and alone in predicting the oil price rise early last year. And he called the top in the Nasdaq to the week in March of last year. So what’s next? Harry believes:

– The US dollar is in for a multi-year downtrend. Conversely, gold is in for a multi-year up-trend. Both will be highly erratic, with short- term reversals…

– Inflation will rise… and it will be revealed that inflation numbers have been inaccurately reported for years

– due to non-reflective government indexes, contrived to avoid having to raise Social Security pensions…

– The Nasdaq has another 1000 points to fall…

– The euro and the British pound will benefit from the decline of the US dollar….

So what do you do with these forecasts? Well, that’s why I’m introducing you to the man today. Harry’s experience with the “what to do” during turbulent markets is unparalleled. And his forecasts – uncanny. Right now, I’m giving you an opportunity to put Harry’s knowledge to work for your portfolio.

Here’s one very important way. Harry is based in Switzerland, so he is able to draw on unique global insight to dispense practical, actionable investment advice. Unlike so many other letters available in the United States, Harry’s missives give you the unique perspective of one of the few truly international investment newsletters.

Indeed, the advantage of employing this perspective to your portfolio as the current bear market ravages its way through Wall Street could be priceless.

I’m not alone in my respect for Harry Schultz. Some rather influential men agree…

“I wouldn’t want to do without HSL. It’s a must for global outlook and investing.”

– Ron Paul U.S. Congressman

“There are a very few ‘great’ newsletters. In the global investment area, there is only one contender — HSL! A true global Thinker.”

– John Percival, Currency Bulletin, London

“HSL may be the best, most comprehensive financial, investment, geopolitical newsletter in the world. Harry’s newsletter covers the water front of international financial and political developments, and is loaded with wise insights, excellent investment advice, and very timely suggestions on how to ‘get out of harm’s way,’ and protect your family and yourself from attacks on your finances and freedom.”

– Don McAlvany, The McAlvany Intelligence Advisor

The benefits you’ll gain from reading Harry Schultz are many – and last a lifetime. In fact, the International Harry Schultz Letter has more “lifetime” subscribers – at $2,400 a pop – than any other newsletter, which should tell you something about the quality of its content… and the loyalty of its readers.

The International Harry Schultz Letter has no parallel competition – for no one does what Harry does – and has done. It is “the world’s premier international investment, financial, economic, geopolitical, privacy, sociological and philosophical newsletter.”

In addition to decades of money-making investment advice in all major world stock, bond, commodities, and currencies markets, you’ll also be privy to one of the most unique voices on the international scene.

And see for yourself if the Harry’s unique global investment perspective and unparalleled market experience are right for you and your money.”

Enjoy your weekend,

Addison Wiggin,

The Daily Reckoning

P.S. With the current bear market ravaging its way through most average investors’ portfolios, I can think of no better time to employ the wisdom that comes with 37 years of market experience – and the vision of a truly global thinker.

International Harry Schultz Letter

Harry tells me that as a Daily Reckoning reader himself, he’s proud to offer you a discount.