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	95 Percent Is Pretty Good
	From Worst to First… Picking Tomorrow’s Top Sectors

	MaryEllen Tribby Publisher
	Jedd Canty Business Director
	Nicole Reynolds Marketing
	Jon Herring Editor

	Charles Delvalle
	Andrew M. Gordon
	Dr. Russell McDougal D.D.S.
	Rick Pendergraft
	Lynn Carpenter
	Andy Carpenter
	Christian Hill

Tuesday, June 3, 2008

95 Percent Is Pretty Good


	Rick Pendergraft

I received a huge number of emails last week regarding my Memorial Day/ Birthday article. First, to all of you that sent birthday wishes I thank you.

Secondly, I could not believe the number of positive responses. I received 88 emails in all and 84 were positive and in agreement with my take. This suggest to me that people in this country, and the world for that matter, are tired of the mud slinging and name calling. It is time to grow up and move on.

There were a couple of emails in particular that I want to address. Here is the first one:

From the time you get up in the morning till the time you go back to bed...you are being regulated. That is not "free(dom)".

We have "Nanny" laws, the unconstitutional Homeland Security agency, a pile of other unauthorized agencies, a Constitution that is perhaps 100% violated. Even Bush is known to have scorned it. Our children are dying in undeclared wars for profit by the powers that be that give orders to our Congress and President that have seemingly sold their souls to the Devil. The same powers that shipped our economy overseas with "free trade" laws. (That's a good one). The unauthorized use of Social Security (SS is also unconstitutional) numbers as a National ID. Mine states on the back of it that it is "Not to be used for identification". What does yours say? The Supreme Court decisions that suddenly become the law of the land when their decisions are only for the case at hand.

The U.S. government has been delegated no more than eighteen assigned tasks, which you can find at Article I, Section 9 of the U.S. Constitution.

You are not free.

Richard T.

Well Richard, I will agree with you to a degree. The Federal government has managed to restrict us as best they can, but we are still free to choose whether or not we obey their laws. We are completely free in our choices. The government says we have to wear our seatbelts. But we don’t have to. You can choose not to wear your seatbelt, but if you are caught you have to pay the consequences. I wear my seatbelt because I value life, not because the government says I have to. The same goes for all laws in this country. You do not have to obey them. You do have to face the consequences if you don’t however.

And in this country we are at least free to listen to whatever radio station we want, watch whatever television show we want, and eat whatever we want. We can choose to drink alcohol, as opposed to the Middle East where it is forbidden.

You are right that we are not totally free, but we still have many freedoms that are not available to the rest of the world. However, things will continue to get worse unless we let the politicians know that we are tired of our freedoms being taken from us.

The second email that I wanted to address is from Jack W.

Rick,

Why are you being so selfish and insular?

God bless America... and to hell with the rest of the world. Why are you being so narrow-minded?

Why can't we say, "God bless this Earth and all its inhabitants."

Only when we start looking at the "other" 5.7 billion souls on this planet with loving kindness and compassion, will needless strife end on our planet.

Think about it...

I totally agree with you Jack. I chose to write about this country because it happened to be an American holiday. I want all of Earth’s inhabitants to be blessed by whatever God they believe in. And that is one of the most beautiful things about this country. We are free to choose our own religion or to choose not to believe in any religion.

I want to share a dream of mine with Jack, Richard, and you. One day I want to start my own non-profit organization. I already have the name for the organization. I want to call it the MOTH foundation. The MOTH stands for My Own Two Hands, which is from a song by Ben Harper and Jack Johnson. The lyrics are posted below:

I can change the world
With my own two hands
Make a better place
With my own two hands
Make a kinder place
With my own two hands
With my own
With my own two hands

I can make peace on earth
With my own two hands
I can clean up the earth
With my own two hands
I can reach out to you
With my own two hands
With my own
With my own two hands

Im gonna make it a brighter place
Im gonna make it a safer place
Im gonna help the human race
With my own
With my own two hands

I can hold you
With my own two hands
I can comfort you
With my own two hands
But you got to use
Use your own two hands
Use your own
Use your own two hands

With our own
With our own two hands
With my own
With my own two hands

We all have the ability to change the world, it might be one person at a time that changes, but eventually the world would change. The idea behind the MOTH Foundation would be to teach our children to think and do for themselves. All change starts with one person and grows from there. If we start with the children, maybe we can shape them to think and do for themselves before the rest of the world teaches them otherwise. If we teach our children that change is possible, they will teach and show others that it is possible. There won’t be any borders for the MOTH Foundation and it will teach the children to respect all other living beings.

What do you think? Is this a viable project? I hope so, because it is only a matter of time before I start it.

Good Luck and Good Trading,

Rick

P.S. To let me know what you thought of today's article, send an e-mail to: feedback@investorsdailyedge.com.

INTERNAL ENDORSEMENT

ENOUGH IS ENOUGH!

That’s what a growing number of investors have declared.

They’ve let one veteran analyst lead them to freedom – to do it themselves – to make informed financial decisions with their own sharp minds… not someone else’s best guess.

These are people who were already great at a career and needed just a bit of training to be just as good at investing.

Since mid February, taking control has led them to 13 gains that ranged from 52.5% to 173.06%.

If you’re the kind of person who likes to be in control you need to find out more right here.

From Worst to First… Picking Tomorrow’s Top Sectors


Jon Herring

Investors who chase last year’s performance usually end up getting burned.

It is a well known phenomenon in the mutual fund industry, for example. Investors look at a previous year or two of performance, see big gains, and then pour their money into that fund. Then what do you know, the next few years that fund is down in the dumps.

What is usually the case is that that fund is invested in a particular sector, economy or investing style that is in favor. But what was in favor last year and the year before is not likely to remain in favor in the year ahead.

Markets change and sectors of the market are constantly rotating from weak to strong. So, if you want to look backwards to determine what to own in the future, don’t look at the sectors that were strong. Look at those that were weak.

By the year 2000, most investors wouldn’t even think of investing in coal or steel or other basic materials. Everybody wanted technology. But technology had been hot for years… too hot. Sure enough, that which had been cold became hot… and that which was hot fell off a cliff.

Over the next several years, basic materials and commodities companies doubled, tripled and quadrupled in value, while technology stocks couldn’t catch a bid.

Every year, Investor’s Daily Edge contributor, Lynn Carpenter puts together a report on the major market sectors, their valuations compared to historical averages and their performance relative to one another. It is an invaluable piece of work. In her 2008 edition, she writes:

“The hottest sectors will tend to rule for no more than 18 months to two years before sliding downward. Sometimes the peak player will only get six months at the top, but two years is the max. That’s it. Don’t expect three-and four-year runs.”

So, what does this have to do with you making money in the months and years to come? I bring this up to draw your attention to a sector that has been sucking wind for about a year. This sector might not turn around in the next three months… but turn around it will. And when it does, the returns could be astronomical.

I’m talking about the junior resource exploration sector. These are the small companies run by highly skilled geologists and resource experts that develop and discover the precious metals and raw materials the world is demanding so voraciously.

Considering that we are about seven years into the commodities bull market, with many natural resources trading near all-time highs, you would think these companies would be flying high. But they’re not.

In fact, the Toronto Venture Exchange (the best general measure of the junior resource sector) is just now recovering from the most deeply oversold condition since the end of 2002. Investor sentiment in this sector has hit an all-time low. Check out the chart below, which plots the TSX against the price of gold.

If you had purchased a basket of high quality junior exploration shares in 2002/2003 you would have gained a couple hundred percent in the two to three years after.

IDE contributor Dr. Rusty McDougal was buying then. One of those stocks he sold for a 9,323% return (no, that’s not a typo). Others he closed out for 3,851%... 3,031%... 2,912%... 2,445%. Not to mention dozens of triple digit gains.

And considering that the “mania phase” of the commodities and precious metals bull market is still ahead, I feel that gains like this are still ahead for investors who take a position today.

Commodities prices remain as strong as ever, which means the companies that produce these commodities are flush with cash. What are they going to do with that cash? They are going to go out and try to replace their reserves.

And since most of the top geologists work for the juniors (75% of all discoveries are made by junior resource companies) the majors will add ounces and tons, not by finding them, but by buying out the juniors that have proven discoveries. As these takeovers are announced in the months and years ahead, it will spark a bull run in the juniors like we haven’t seen in some time. Take your position now for life-changing profits.

Good Trading,

Jon Herring

P.S. To let me know what you thought of today's article, send an e-mail to: feedback@investorsdailyedge.com.

INTERNAL ENDORSEMENT

Just this Once

BELIEVE THE HYPE!

It was the email that shocked the investment world.

One noted investment authority told his readers to take seven huge stock market gains on one day… SEVEN HUGE WINNERS on one day that ranged from 526% to 102%... seven, and on stocks… not options.

But that was just the beginning! It now looks to be setting up to happen again this year, too.

That’s why you must check out the whole story right here.

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