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Market Monitor Jim Dines
PAUL KANGAS: My guest market monitor this week is James
Dines, editor and publisher of the widely followed "Dines
Letter," based in Belvedere, California. He comes to us tonight
from San Francisco. Welcome back, Jim.
JAMES DINES, EDITOR, THE DINES LETTER: Hey, good to
be here again Paul.
KANGAS: Right at the outset, let me say my hat is off to you for
predicting over a year ago, including during your last two visits
with us that there would be a global currency crisis with its
origins based in the far east. Excellent call.
DINES: Thank you. You deserve credit for having it on your show
and showing your audience that.
KANGAS: Now if you were clever enough to see that problem
coming, perhaps you can tell us now how the Asian turmoil will
play out including a time framework.
DINES: Sure. In my second book, "The Invisible Crash," I made
five predictions. One of them, the first one was the coming
currency crisis that we're getting. Number two, I said the coming
competing currency devaluations that's just getting underway.
Number three, I said the coming collapses in real estate and in
banks, that's already happening in Asia. The fourth, I said the
coming trade wars that's yet ahead of us. And five, it would
climax in a major gold crisis, the coming gold crisis.
KANGAS: All right. Well it was a great call indeed, but can the
U.S. market be coupled from the Asian markets anytime soon?
DINES: See I really don't think so. Asia's really important.
They're going through 1929. It's a calamity out there. And, and I
don't think it's really sunk in yet. You'll notice the market stopped
going up. I've been calling this the mother of all bull markets on
your show the last three years. We flashed a sell signal last
October and that's because I'm very concerned about Asia. I think
this is a really good time to get some money off the table and keep
some buying power and to have some gold stocks.
KANGAS: So it's going to be a while before this thing straightens
itself out?
DINES: Yes, the only thing that would change my mind would be
a new upside, a new upside break out, a new all time high by the
Dow, and that would really impress me.
KANGAS: Well we'd, we'd have to get back to 8,259.
DINES: Yes.
KANGAS: And I must say that when you were last with us on
April 4th, the Dow was at 6,526. It was down 214 points that
week. You said don't worry, we're going to have an explosive
rally. By August 6th, we were at the all time high. So that was a
good call.
DINES: Yes, but I missed it by two days though.
KANGAS: Yes, right.
DINES: I missed the bottom by two days.
KANGAS: Yes, you poor guy. All right. You gave us a couple of
good stocks, Sunbeam (NYSE:SOC) at low 30's, it's now 40. And
you gave us Pre-Paid Legal (AMEX:PPD) on the American. It
was 15, now it's 33 1/2. Excellent calls indeed. What do you think
of the market here? Apparently not too positive at all?
DINES: No, I've, I've led my subscribers out of the market here.
We have some stocks in because I'm not really sure how our
leaders are going to handle the Asian crisis. You know they're
printing 20 percent more money each year and there's no way you
can get currency stability. So all this money they're throwing, the
IMF is throwing at Asia is all wasted, and nothing is going to
work until they get clear. They've gotta link currencies to gold. It's
a position nobody agrees with, but that's where it is.
KANGAS: Well the, actually, Jim, the only blemish on your
record in recent visits is your persistently positive stance toward
gold. You gave us stocks that are down 30, 40, 50 percent.
Franko-Nevada (FN.TO), International Pursuit (IPJ.TO), TNK
Resources (TNKRF). The three that you gave us back in April,
they're all down. Isn't it time to just throw in the towel?
DINES: Absolutely not. You don't cancel fire insurance just
because you haven't had a fire.
KANGAS: Okay.
DINES: Now remember, Dines' number 7, the Dines rule of gold
countertrends says gold goes opposite the market. Now gold went
down in the last two years because the market went up. Look at
Asia. They're markets are crashing and their gold prices are going
up. You know when the Thai currency drops by half, their gold
price doubles.
KANGAS: But countries are selling their reserves of gold and it
seems like the new investment ...
DINES: Oh are they going to regret it.
KANGAS: ... the new investment standard, it's high quality bonds
and maybe stable currencies.
DINES: Oh are they going to regret it. Look at the Canadian, the
quacks running the Canadian currency. They sold all their gold
and then suddenly the Canadian dollar makes a downside break
out to new low. Can't figure out why.
KANGAS: Sounds like the only recommendations on the buy side
are gold stocks, we have 40 seconds.
DINES: No, I like, there are a couple of things if you want to buy
here. And I'd like to have some stocks. One is Keane (KEAN)
K-E- A-N on the New York Stock Exchange, that's the millennium
bug hedge.
Two, Stillwater (AMEX:SWC) S-W-C is my favorite,
Platinum/Paladiums stock, they're, both those metals are doing
very well. They have the world's largest deposit outside South
Africa and Russia. Three, silver's already in a bull market. The
best one there is Pan American (AMEX:PAA) now at $9, P-A-A.
Fourth is gold. Franko-Nevada I recommend again, also
International Pursuit. And five, on the Internet, I'd buy a
package of three stocks: America Online (NYSE:AOL), Iomega
(NYSE:IOM) and Mediconsult.com (BB:MCNS).
KANGAS: All right, so you've, there are some that you do like
after all.
DINES: Oh yeah.
KANGAS: Appreciate your being with us and we'll look forward
to your next visit, Jim.
DINES: Yeah, experience is what you think you have until you get
more.
KANGAS: Okay. Thanks very much. My guest market monitor,
Jim Dines of the Dines Letter. |
