Bonds

The two portfolio Pro Picks bonds should have been bought on the secondary market. Twelve to 16 month maturities yield would be higher than 12 to 16 month T-notes. The potential risk would essentially be the same since both are backed by the faith of the U.S. government. If you bought long-term maturities, hold them until the Fed raises its Fed Funds Rate to 1.25 percent. Then, sell and buy the same bonds on the secondary market for about a one year maturity. The gain from owning the long-term bond for approximately one year should more than make up for the cost of commission.

Gold and Silver

I expect precious metals (including silver) will benefit from fear and a global breakdown in currencies. Later, deficit spending, taken to stabilize these currencies, will lead to inflation. The first phase, fear and anxiety, will be discounted by gold, some silver and/or a gold backed currency Swiss annuity investment (min. $20,000). The second phase, the final phase, will increase deficit spending to keep the dollar from falling into currency implosion. The solution: buy gold and a gold backed currency Swiss annuity investment (min. $20,000). For more information on a Swiss annuity, e-mail Kenneth Coleman at net2host2@roadrunner.com.

Global Economy

Germany: Market sentiment falls to a 26-year low (the world was recovering from an inflationary recession in late 1982).

China: The Chinese economy should drop to about 5.5 percent GDP. That is about a 50 percent plunge from past highs, which translates to at least a couple hundred million unemployed Chinese workers. Chinese workers have not yet realized this, but soon will. Riots will unfold as hungry workers look for government relief. The slowdown in Chinese production will spread to other Asian nations that support and depend on the Chinese economy. Eventually, these nations will be forced to seek relief from China. The other option is violent riots with murderous repercussions.

G-20: G-20 industrial nations meet April 2. We hope their leaders intend to find a realistic solution to the current crisis.

Sincerely,
Kenneth Coleman