looks like WSW and Rukeyser have been scrubbed off of the PBS site
pbs.org
PAUL KANGAS: My market monitor guest this week is James Dines, Editor of "The Dines Letter," based in Belvedere, California. Welcome back to NIGHTLY BUSINESS REPORT, Jim.
JAMES DINES, EDITOR, "THE DINES LETTER": Hi, Paul.
KANGAS: During your last visit with us on October 19 of last year, you said we should be expecting the father of all bear markets. Well, the Dow Industrial average then was 9,200 and now it's about 13 percent higher and the Nasdaq Composite is 12 percent higher. Where's the bear?
DINES: We're only three months into the year. We still feel that it's going to come down very hard in the first half of the year. If you remember, the last time I was on your show, everybody was very pessimistic. We were looking for a sharp year end rally. We got that and our forecast issue said we're going to come down hard into April or May. And that still stands. And second of all, 13 percent means nothing to me. I mean I don't want no stinking 13 percent. I'm in this for blood. I want to double or triple my money.
KANGAS: Well, I have to say that the only stocks you liked back then were the golds and they have done exceedingly well. As a matter of fact, the gold group, I believe, is the best performing group since then, is that not true?
DINES: That's the truth. They, Lipper (ph) says that they're the best performing group in January and February so far.
KANGAS: Well, let me recall for our viewers the stocks you recommended, three of them. Franko Nevada Gold at $22. It was taken over by Newmont (NEM) at $30 a share. That's a very good percentage move. Anglogold (AU) was $15. It's now in the mid 20s. That's a move of about 60 percent. And Adkniko Gold (ph) was $9. It's now about $12.50, $13. That's about a 40 percent move. So those were great recommendations and I compliment you.
DINES: Thank you. Thank you.
KANGAS: Is it time to take money off the table in those stocks?
DINES: Oh, no. I'm not in this for 50 -- I don't want no stinking 15, 50 percent. I'm looking for, I'm really looking for doubles and triples on these. I think we're in for a huge bull market in the golds and silvers.
KANGAS: OK.
DINES: And the fact that so few people agree with me confirms it in my mind. They're strong. They are in up trends. And, you know, this reminds me, Paul, of 1995. I was on your show talking about Internet stocks. Most people didn't know what the Internet was and people have written to me after that. They said they had made millions on the Internet stocks in subsequent years. We got out in the year 2000. We shifted from the mother of all bull markets to what I now call the father of all bear markets. But the only advice you'll ever get more specific than buying gold and silver will be a margin call. So make sure you buy them.
KANGAS: All right, now, the thing is this will be just the gold and the silvers and everything else is headed lower?
DINES: I think so. I think we're in a major bear market and I'd be very -- I think a year from now when I come on your annual show, I think you're going to see a lower market and higher gold and silver.
KANGAS: Why? What makes you so bearish?
DINES: We're in an international currency crisis. I've been warning for years about this. And you see it in Venezuela and bolivar, the Argentine peso, the Japanese yen, the South African rand, in Europe. All the currencies are breaking down. You notice in Japan there's a stampede by the citizens there to buy gold coins because they're terrified. This is a bull market driven by mass fear.
KANGAS: OK...
DINES: I talked about this in my book, the mass psychology book. Mass greed is one, is the usual kin of bull market. Golds and silvers are the mass fear driven, and they're much more intense.
KANGAS: All right, give us some ideas as to what you would buy in that, in those groups?
DINES: Above all Newmont. This is the world's largest gold mine, blue chip on the New York Stock Exchange. It should be in every portfolio.
KANGAS: OK.
DINES: Second, Placer Dome Gold, PDG. The only major gold that hasn't moved yet. I'd jump on that one. Third, I'd buy the largest silver mine in the world, Dustele Espanoles, $1.70 a share. If you need buying it, I'll put, have my staff put something on the Web site, Dinesletter.com, and I'll tell you how to buy it.
KANGAS: OK.
DINES: And finally deCODE Genetics (DCGN), DCGM. They have a monopoly on Iceland's population going back to the 10th century.
KANGAS: OK. Jim, all right, four stocks you like. And we have about 10, 15 seconds left. Any final thoughts?
DINES: Yes. You can quote me on this, Paul. Whether you're rich or poor, it's good to have a lot of cash.
KANGAS: OK. All right, so you're prepared, but what percentage of your total assets in gold?
DINES: That varies between individuals depending on their risk proclivities. But I would make it substantial. I think gold -- and silver.
KANGAS: OK. All right, we've got to run. Thanks very much, Jim.
DINES: Always.
KANGAS: James Dines of "The Dines Letter."
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