1855 Trawood Ste 204 ● El Paso, Texas 79935

915-595-2751 mbj@whc.net

Newsletter May 2015

In Touch Financial
William Lenderman, III -Financial Mentor
Email:WL3@whc.net /Website: keepingintouchfinancial.net
Blog: keepingintouchfinancial.com

“Experiencing Success One Good Idea at a Time”

(Hot Tips)

You remember that the primary definition of a gamble is when you put your money down, and you have no control over what happens next.

That applies, not only to the roulette table in Las Vegas but also to the gambling casino on Wall Street.

Lately, some clients have asked me what I think about the recommendations of popular research services which encourage putting money into stocks of companies they believe will do well in the future. Often the stories are highly compelling. I pay good money for a number of those services. I am sure these companies mean well. Occasionally they are even correct. I do not use them as a resource to find hot tips to make big money. Instead, I use them for understanding advances in technology, trends in the economy and other things that could be important to my understanding and for the education of my clients. Hot tips of this kind carry significant risk.

There are other risks. Some broker-dealers are violators of client trust. Often, they tout the purchase of stocks to small investors when their big clients wish to unload those same stocks.

The following were recommendations in the past which quickly flopped. Brokers actively touted these stocks to small investors and privately related to one another that the stocks were c–p. Rating agencies gave these companies high ratings and counseled investors either to buy or hold. In many cases, they continued to show high ratings even after the companies lost most of their value, or even after they went bankrupt and their stocks fell to zero.

Some of these stocks have since recovered but imagine the devastating losses experienced by gamblers at the time these losses occurred.

Priceline-lost 98%

Yahoo-down 97%

Drugstore-down 99%

Homestore-down 95.5%

Winstar- disappeared

Amazon-down from $400.00 to $11.00 per share

Quokka Sports- $1250.00 per share to bankrupt

Pets- bankrupt

etoys- lost 95%

Infospace- down 92%

Barnes and Noble- down 84%

These were recommendations from any number of highly regarded brokerage outfits, advisory services, and rating companies. In virtually every case, these organizations made a great deal of money by betting that these stocks would collapse, while actively recommending them to small clients. In some cases, the investment firms themselves were the owners of worthless stock, which they unloaded on the public before the stocks collapsed.

My point is simple. Taking hot tips from any organization, even though the story might be quite compelling, is a dangerous business. That’s one reason why it is properly called gambling.

I do want to give proper acknowledgment to Money and Markets, which is a rating service owned by Martin D. Weiss –PHD. He runs an honest operation. His service predicted most of those business failures in advance. This is not a recommendation that you use his services in order to buy stocks. I personally expect that within the next few years, we will have another crash that will make the crashes of the past look like a “cakewalk”.
Trying to make easy money is a fool’s game.

We can help to virtually eliminate the gambling aspect of your attempts to grow your wealth and even guide you into low-risk strategies that are likely to give you surprising results.

Call us. We may be able to help.

If you, or anyone you know, has a savings account, a checking account, a CD, or a safe deposit box, be aware that there are laws requiring banks to confiscate money left in an account when there is no activity for a specified amount of time. Every state has such a law. California has just reduced the time period required to seize “dormant accounts” from fifteen years to only three. At present, the state which will confiscate your money the quickest is Georgia. Georgia will confiscate your account if there is no activity for a single year. You can no longer safely leave money in a bank for a long time and just let it grow at interest in order to provide for your future.

Be aware that this kind of confiscation is occurring all over the world as virtually every government in the world is in financial trouble and is looking for ways to rob citizens in order to keep their schemes going.

I am already receiving information concerning Americans who have been robbed in this manner. One lady who had a safe deposit box at the Noe Valley Bank of America in California had an active checking account with her bank, which was only six blocks away from her home. Her inactive safe-deposit box was drilled open and the contents sold. The box contained vital papers she needed to access after her husband’s death. When she went to her safe deposit box, she discovered the papers had been destroyed. In addition, her great grandmother’s pearls, which were also stored in the safe deposit box, were sold at auction for $1, 800.00. The report I read indicates they were rare natural pearls appraised at $82,500.00.

Keeping significant amounts of money in the bank or safe deposit box is becoming increasingly dangerous. You will want to determine how best to protect your money and valuables.

If you don’t already have a safe place to store your money where you enjoy a respectable return and unquestioned access to the money, it is possible we can help. We encourage you to contact us to see if we can help.

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