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John Browne Was Right

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Friday, 17 Aug 2007 03:02 PM Current | Bio | Archive

This Tuesday night I received a call from a former New York Stock Exchange company chairman.

"Your guy John Browne has been right all along," he snapped.

My friend was referring to NewsMax's MoneyNews.com columnist and Financial Intelligence Report editor John Browne.

Browne, through his columns, FIR, and appearances on media like CNBC's Kudlow & Company, has repeatedly warned that the U.S. was facing a major liquidity crisis. Back in March the title for that month's FIR was "The Liquidity Crunch." (Go here to read this article.)

And two months later, in "The Great Housing Crash of 2008," (Go here for this article, too)we told readers about the brewing subprime crisis and how the use of derivatives by hedge funds would very likely cause the housing bust to spread throughout the economy, as is happening now.

In our June edition, we again warned that a "Rate Shock" was at hand and investors needed to pare down U.S. equities quickly. (Go here for this article as well.)

The major media pundits dismissed John's warning out of hand.

But the track record of John Browne and Financial Intelligence Report, which we at NewsMax and MoneyNews have been publishing since 2003, has been uncanny in its assessment of the U.S. economic scene.

One reason is that true to the mission of NewsMax, we report the facts without regard to whom we may upset: advertisers, politicians, media figures. We are not looking for an endorsement from the New York Times, Dow Jones, CNBC, et al.

Investors across the country need sites like NewsMax.com and Moneynews.com because we are willing to give the "other side of the story." The major financial media have incredible resources and access to the same facts as we do. Often they will ignore the truth.

Why?

One explanation is that as a result of mergers and acquisitions almost the entire major media outlets in the U.S. are now owned by behemoth public companies. They benefit by a "goldilocks" view of the U.S. economy and are reluctant to print the bad news until it smacks them in the face.

Witness the current situation. Two months ago CNBC's Cramer wasn't having meltdown moments about the pending crisis. Instead, we were hearing talk of a never ending bull market.

But our readers on MoneyNews and Financial Intelligence Report were hearing of the pending crisis.

Back in later 2004, I was invited to see Sir John Templeton in the Bahamas. It was my second visit with the legendary investor.

Templeton saw it all coming. A massive liquidity boom had been fueled by artificially low interest rates. The Fed under Greenspan had created the largest bubble in history. As night turns to day, it would inevitably pop. Go here now to read our exclusive interview with Templeton.

Templeton didn't know the "when" moment. But it would arrive.

FIR readers were warned in February 2005 of my meeting with Templeton about the impending residential home decline and were advised to take defensive actions: avoid housing stocks, sell residential REITs, mortgage, finance and banks linked to the residential boom.

For doing so, we were branded "bears" and "doom and gloomers."

Despite such labels, our portfolio in FIR has consistently outpaced the S&P and we have been extremely bullish on oil (when it was $29 a barrel, we told readers to sell energy stocks when oil hit $70 a barrel); commodities before they came into vogue; emerging markets like India and Brazil.

We have consistently warned of a depreciating dollar and for investors to protect their portfolio by investing globally and in currencies such as the euro, Swiss franc, and Australian dollar.

Time and again we have been right!

Again, I review our incredible track record not to gloat, but to prove that a fair and balanced assessment of the current economic situation can lead even average investors to make wise investment decisions.

© 2017 Newsmax Finance. All rights reserved.

 
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RuddyMN
This Tuesday night I received a call from a former New York Stock Exchange company chairman. Your guy John Browne has been right all along, he snapped.My friend was referring to NewsMax's MoneyNews.com columnist and Financial Intelligence Report editor John Browne.Browne,...
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Friday, 17 Aug 2007 03:02 PM
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