Jane Mayer/Investigative Journalist

The Secret Sharer

Editorial by Yankee Bob

In a SciFi novel you may run into a Facist Police State . In this Police state for the sake of Homeland Security, some people,citizens or outsiders may be branded as dangerous or even threats to the Security of the State and therefore, Enemies of the State. That threat that could brand citizens as enemies of the state will be decided not in a court of law with all the tenents of due process that the citizens are costitutionally entitled to.

Nope. Faceless bureacrats,agents of the government or corporate hires acting on behest of a private contractor , will make that judgement call. That call that can brand a citizen as an enemy of the state and no longer deserving of or given their rights to due process.

Now ,what kind of threats can land a citizen in such a pickle? Well,it could be some corporate hire merely finding something that they deem as ” SUSPICIOUS.” Remember,a private contractor can’t say to it’s Boss, We haven’t found anything. They have to come up with stuff no matter how shaky it may be because they have to prove that they are worth the expense. They need to justify their existence or their contract dries up. They will use powerful computers,in private ,that have the ability to monitor all communications,foreign and domestic, and cell phones,faxes, and email.

Merely going on line to certain sites could be enough to cast suspicion on you. Bank records,credit activity,taxes,birth records,travel,spending,…everything can be tracked and recorded without a warrant or court order. This can only happen in a police state you say. We have Constitutional safeguards you say. YOU ARE WRONG. THESE PROGRAMS ARE ALREADY IN PLACE AND FUNCTIONING IN THE UNITED STATES! You are being trcked and recorded!


We have been warned. We were warned in bits and pieces over the years but the big picture is in place. The telecom carriers have cooperated in the program and sought and were given immunity from prosecution for breaching the rights of Americans. All communication goes thru this program. It records and archives it all ,leaving the door open for future investigation. All on the quiet and all in secret. Whether you trust Obama with this power is irrelevent. Maybe he gets replaced by a Rick Santorum or Michele Bachman type.  Maybe Dick Cheny or his daughter Liz.

How can you be free if every move and every communication is being recorded and can be used against you. You are subject to investigation merely on whim and suspiccion ,without due process. You can lose all of your rights ,at the whim of a corporation or a politician and none of it follows due process. Your rights,your freedoms sre yours but only at the perogative of unseen hands and forces. It is a brave new world! It’s a good thing none of our politicians or corporations would ever abuse this power.

Oh ,Please!! Please , Read the link!


to New Yorker Piece by Jane Mayer


KISS & Stocks

(Keep It Simple Stupid)

If you don’t understand a term look in up at Investopedia.com dictionary




Index Percentage Volume
Dow +0.36% Down
NASDQ +0.30% Down
S&P 500 +022% Down
Russell 2000 +0.21% -



Technicals, Fundamentals & Analysis

Investors411 record - 6 years of beating benchmark S&P 500

  • Stocks had another ultra low volume rally that has become typical of the Fed manipulated/managed, liquidity driven market. – Mantra for 6+ months has been – there’s more Fed money, zero % interest rates and extremely low bond rates. This forces money ( with an occasional wink and nod) into the path of least resistance stocks.
  • Horrible economic news yesterday and stocks rallied.
  • Linkedin IPO rocketed and now the stock has one of the highest PE’s (price to earnings ratio) in the USA.  This and the rally in defensive names is still telling investors DON’T WORRY THE FED HAS YOUR BACK.




After over 8 month of almost always CAUTIOUSLY BULLISH,

Investors411 is downgrading the long term outlook to NEUTRAL.

This is largely because of the uncertainty created by the Fed’s ending of QE2 (quantitative easing) on June 30th.

Stock market investors and professionals hate uncertainty. That’s what we will have after June 30th. Last year between the end of QE #1 in March and QE #2 our benchmark S&P fell (scroll down to weekly chart) at its worse @-17%. (1220 to 1011 – see chart) Every pro and serious trader is aware of this fact and may be front run the end of QE #2.

The Fed still has YOUR (stock Investors) back with low interest rates, but the lack of additional capital injections after June 30th changes the equation.  At some point down the road if the economy/stocks toasts the Fed will be forced into some form of adding liquidity. But that’s down the road.

The economic outlook worldwide is grim. Europe’s debt crisis,US debt crisis, Japan’s GDP fall/crisis, China’s corruption/inflation The bright sport remains emerging markets. When you add the democracy revolutions in the Arab world (obviously a move in the the right direction) that uncertainty grows. The economic situation NOW has more uncertainty than last year.

Technically, the traditional growth areas tech and small cap stocks are under performing.  Investors are moving into safer stocks. Dividend stocks are one of those areas.

Bottom Line -I think there is a better than 60% chance we’ll see a summer meltdown like last year. The training wheels are coming off the bike and I don’t think our economy or the world’s economy is ready to ride yet.  I hope I’m wrong.

The Fed will probably ride to the rescue with more liquidity if things go bad, but we are now entering THE UNCERTAINTY PERIOD.

Remember stocks did rise for a short period directly after QE1 ended. So this change is NOT a panic move, but a longer term move to NEUTRAL  based on uncertainty.

Holding non defensive stocks, especially high beta stocks may be a problem.

YSL #4 will under perform – sell into rallies

Investors411 may use ETF’s that short the market


Shorter Term Forecasting Indexes

There are hundreds of forecasting tools, – These two tools have worked

When they stop working Investors411 will use other Indexes

  • The Dollar (USD) [Any daily price move over +/- 0.50 is significant. Dollar usually moves inversely to stocks] Dollar fell  -0.44% yesterday. Stocks rallied as the dollar fell and rose when the dollar stopped falling yesterday.  For stocks shorter term trend = Bearish/Neutral
  • McClellan Index - (MO) [The very rough guideline is over +60 = overbought market = sell positions or short stocks, & -60 = oversold market = buy stocks .] MO rose to -1.79. Squarely in the middle of = Neutral


A List of high dividend Utility Stocks

Caution - Neither Paul or I have had a chance to go over the price charts yet.

Criteria – The three year dividend growth rate is greater than zero. Latest dividend after ticker symbol.

  • EXC – 5.03 %
  • ETR – 4.80%
  • DPL – 4.41
  • AVA – 4.36%
  • DTE – 4.53%
  • AGL – 4.41%
  • CMS – 4.13
  • D – 4.09


Check out the advice, recommendations, analysis by bloggers on stocks,politics and trends in the comments section of the blog  Many of the best concepts regarding YOUR Financial Future are discussed their. Watch for Paul’s Corner every Tuesday and Thursday


Longer Term Outlook



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