1. JANUARY MARKETS
2. UP STARS/DOWN STARS
3. GOLDEN OPPORTUNITIES
4. QUOTES
5. ON THE WEB
6. LETTERS 

1 OUR 2008 MANTRA: BE PATIENT AND ACCUMULATE ON WEAKNESS.
 

Given our happy Astrologers Fund Forecast Record, we decided to give a New Years present for new and renewing WSNW subscribers as follows: 

Silver Subscribers:                  S2 Pay for 2 years ($555) and receive one additional year free.
Gold Subscribers:                    G1 Pay for 1 year and receive a baker’s dozen or 13 months.
Platinum Subscribers:             P1 Receive one additional portfolio review or a 3 month gold gift subscription.
Diamond Subscribers:             D1 A six month gold gift subscription. 

Please note the above offers expire January 8 at 6:37 am. ET.
 

ASTRODATES

1/8 New Moon 6:37 am ET
1/20 Sun enters Aquarius
1/22 Full Moon 8:35 am ET
1/28 Mercury SR 

 
KEY DATES:     January 2, 8
DJIA:                13400 PIVOT 13100 SUPPORT
SPX:                 1480 PIVOT 1495 RESISTANCE
NASDAQ:         2625 SUPPORT? 2700 PIVOT 2725 RESISTANCE
XAU:                 170 PIVOT R1 175 R2 180 R3 188
FEB GOLD:       ---> 880
 

Market Marker Sentiment is:  TOO MUCH COMPLACENCY STILL-ONLY SANE RESPONSE IS TO OWN GOLD
DON’T BUY AND HOLD: BE LIQUID WITH A BALANCED AND DIVERSIFIED PORTFOLIO!
2006 CLOSE:           DJIA 12463, SPX 1418 & NASDAQ 2415
2005 CLOSE:           DJIA 10717, SPX 1248 & NASDAQ 2205
DIJA:                      1 ~ FV 0 UV; 3 offer 4%+ Dividends 2 offer 5%+ Dividends.
Looking ahead, my question is whether 2008 will show less than 2% growth or be a classical recession?  
THINK SWISS AND PRESERVE CAPITAL: FOCUS ON PROTECTING AGAINST DOWNSIDE RISK. 

2. The following is an excerpt from our S: 2008 Income Premium post: 

"Dividend stocks for low excitement, high returns

Most of our Income 12 stocks are Risk Adverse companies that pay high dividends. Last Century, all that investors had to do was to look for reliable and increasing dividend providers given the Baby Boomer's coming retirement.  There was the old 5% rule: buy income offering 5% or better, classically from utilities and REITS and later from Canadian Trusts. Former picks such as DVY's three year total return exceeded 50% with relatively low risk.  As we are currently bearish on many commodities (intermediate term not long term). I believe these should be bought short term more as portfolio hedges than for total return.  

Those in the commodity sector such as oil, gas and timber act as hedges.  However, stocks like Rayonier (RYN) and Plum Timber (PCL) may act less like a hedge as we see timber falling due to an upcoming housing slowdown and a probable future with more concrete homes.  The US housing slowdown will continue to be a problem for many REITs, with some exceptions like LXP, which we recommended in December 2007. 

Unlike Foreign stocks, I would be wary of US instruments offering more than 7% yield as the principle and/or Dividend may not be secure! We have, for example, Citibank, which SHOULD lower its dividend payout 1/3 to 1/2.  However, this will be considered positive, and later in Q2 2008 it will be a top performing stock once again.  Take a look at what happened when ATT (T) went through a similiar crisis for what to expect. As for the other high paying DOW stock, Pfeizer (PFE), we think the same: that eventually it will be worth buying. However, I am not in any rush before a Dow 12700, 12400 or 12,000 test in H1 2008.

Unfortunately, few of the stocks on our list are bargains. There is no rush to buy any of these stocks until their stock prices are closer to, or drop below our given value pricing. However, if you are a bull or believe Dow 13000 is the H1 2008 floor, you can begin to accumulate intermediate term whenever you feel the overwhelming desire to buy.…"
WNSW SUBSCRIBERS can find our 12 2008 selections plus read our entire premium post at S:2008 INCOME.

For WSNW bears, here are some possible short possibilities to consider: Stocks Which Could Drop 50% In 2008.

3. Gold to Pass Record in 2008 on Inflation, Survey Says

I am first waiting to see the precision (not the accuracy) of our long term forecast for gold to test its all time high aka $850 circa January 2, 2008.
We continue to recommend reviewing the companies that will be presenting at our January 31, February Triple Gold Conference at the Princeton Club.
 

4. “We're approaching coin-toss status on whether we go into a recession or not. We have some reservations about the strength of the market.''

Michael Mullaney, Vice President, Fiduciary Trust

HW:  Seems to me it’s a “Heads I win, Tails you lose.” coin toss.

“Fundamentally, it's expensive. A lot of investors are eager to get into energy, and it's pushed the values to unattractive levels."

Jack Ablin, chief investment officer, Harris Private Bank

HW:  We are currently planning to reshort circa $101.

“Global uncertainty and unrest are usually good for Treasuries.”

Jay Mueller, manager, Wells Fargo Capital Management

HW: Except when the problem is the US government itself.

5. His Own Man

Of Santa rallies, January indicators and election cycles 

How Does One Invest for Inflation and Deflation?

6. READER: READER: I was wondering if you will be making 2008 forecasts.
HW:  We will begin to give some out on Fox news this coming week.  I am more focused on the long term (2010) than I am the intermediate term (2008).  The following three tidbits we believe will be money makers:

• US Markets dominated in H1 2008 by Continuing US Housing Decline and in   H2 2008 by US Presidential Elections.
• Hong Kong out performs H1 2008 and under performs H2 2008:  Reasons include: US dollar peg can ONLY break to the upside,  Chinese money inflows  and astro.
• Citibank a top Q2 2008 play (Ideally 20-25OB first) .

READER: Re: Lexington Reality just distributed its $2.20 dividend A Buy under $15. What is the ticker?
HW: LXP.

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