When the Bald Tire Blows

Dave Gonigam – June 30, 2012

As the second quarter draws to a close, we’re tempted to paraphrase Winston Churchill: “Never have so many markets rallied so hard on such little news.”

The “news” was another Fix-A-Flat patch on the bald tire known as the eurozone. The patch buys a few more months (or weeks) before the whole thing flies apart… which was enough for 278 Dow points yesterday, and a staggering 9% jump in oil.

We begin this week’s 5 Things You Need to Know anticipating how the inevitable blowout will occur… while seeking moneymaking opportunity amid the shards of rubber scattered along the highway.

   “You’ve got two sets of bankrupt institutions trading debt back and forth between themselves,” says the one and only Doug Casey. Once eurozone banks and eurozone governments can no longer keep up the pretense, he figures it’ll be bad news for the country that’s Europe’s biggest trading partner… and also the commodity-driven economies of Canada and Australia. Doug follows the bread crumbs here.

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   Get set for an early round of what Chris Mayer calls the “fire sale of the century.” In January, Chris anticipated European banks unloading $1.8 trillion in assets over the next 10 years. With eurozone leaders’ approval of the Spanish bank bailout yesterday, the process is now under way. Follow this link to learn why the banks are, as the expression goes, motivated sellers… and how you can pick up these prime assets for a song.

   “A vast percentage of food stamps’ money goes into the pockets of soda companies and snack food companies,” according to a respected nutrition professor. Grocers and banks too. The $78 billion of taxpayer money spent each year on food stamps is big business for a host of zombie companies. You won’t believe how much money certain Wal-Mart locations make off the program.

   An obscure catalyst could propel gold to new heights come Jan. 1. Federal regulators are considering a change that would give banks a powerful incentive to load up on the metal. You can check out the particulars here to learn why one move by the bureaucrats would upend the conventional view of gold as a “risky asset.”

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   The big gains in weight-loss drugs are only getting started. On Wednesday, the FDA approved the first new weight-loss drug in 13 years. Arena Pharmaceuticals won approval for its drug Belviq. The company’s stock is now up 259% from Patrick Cox’s initial recommendation in Breakthrough Technology Alert. Patrick isn’t resting on his laurels, though. He’s already anticipating the next weight-loss breakthrough — which tackles obesity in a whole new way.

Through next Monday at 5:00 p.m., we’re offering reduced-price access to Breakthrough Technology Alert. OK, that’s an understatement. We’re offering access to Patrick’s premium advisory — one of our most expensive — at the lowest rate ever. You’ll never have a better chance to put Patrick’s path-breaking research to work in your portfolio.

Cheers,

Dave Gonigam

P.S. Next week in The 5 Min. Forecast, we’ll take a midyear survey of the issues topmost in the minds of our editors. Without giving too much away… we can say you might expect some fireworks!

rspertzel

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