2013 Profits Review John S. Wilkinson, CFP Global Currency Expo San Diego, CA

1. 2013 Profits ReviewJohn S. Wilkinson, CFPGlobal Currency ExpoSan Diego, CA

2. Frank Trotter & Erika Nolan • America Inc. – Buy, Hold, or Sell? • Unanimous Agreement – USD will not be the world reserve currency & US fiscal house is a mess • Too much information to sift through

3. Frank Trotter • New key to happiness = reduced expectations • How much debt is sustainable? • Hyperinflation? • Future of the USD? – will decline over the long term • Jobs will come back to the US, just not the same kind (job growth stagnant in 2000’s)

4. Jeff Opdyke • USD will go down against other currencies –demonstrably weaker dollar • Likes: Currencies of Singapore and Norway • US inflation is not <2%, more like 10%, real inflation is hidden by govt. data • Other countries going away from USD in trade • Foreign stocks more likely to pay dividends & pay higher dividends

5. Jeff Opdyke – Recos: 1. North Atlantic Drilling (norway:nadl) 9.8% yield, pure Oil play, likes kroner 2. Dynam Japan Holdings (HK:6889) 6.8% yield, HKD will eventually not be pegged to USD 3. Sabana (singapore:SSREIT) 7.4% yield, sharia compliant = strong investor loyalty 4. Societe Internationale de Plantations d Heveas (france:SIPH) 12.2% yield, rubber strong correlated to Oil

6. Sean Hyman • Enemy #1 = Food Inflation (byproducts) as well as Fuel Inflation • Enemy #2 = Money printing by the Fed • Dollar Dilution and Rising Inflation (invest against the USD to retain purchasing power) • Likes: Chinese Yuan (currency of the future), SGD, AUD (highest yield in industrialized world)

7. Sean Hyman – Recos: • EverBank’s Asian Currency Portfolio – bottom base of currency investment portfolio/pyramid

8. Thomas Fischer • Invest globally and get higher returns for the same amount of risk • Start by trading the major (G10) currencies because it = 98% of volume • There is a race to the bottom for paper currencies • Massive currency reserves at the central banks • Great golfer with a .67% mortgage rate

9. Steve Sjuggarud • Greatest American bubble is to come: 1. Real Estate – housing is at 1979 levels, +$82,000 to fair value, deals of a lifetime 2. Dow 50,000 – stocks +300% to reach fair value, caution when inflation hits 5%.

10. Steve Sjuggarud • 3 things that work when trading currencies: 1. Value – Purchasing Power Parity aka Big Mac Index 2. Interest Rate Differentials – 3 month return on G10 currencies 3. Momentum – rank 12 month return on 10 currencies, buy top 3, sell bottom 3

11. Steve Sjuggarud – recos: • Investment = DB X-trackers Currency Returns ETF (XCRD.L) • Trade = Factor Shares 2X S&P 500 Bull / USD Bear ETF (FSU)

12. David Hall • Gold is a USD devaluation hedge, great asset protection, and great means of wealth transfer. $5-10K per ounce in 5-10 years. • Trading tips: 1. It’s about the USD devaluation 2. Buy & Hold 3. Determine you position & strategy 4. Take possession 5. Buy when prices are down 6. Pay attention to premiums 7. Buy numismatic coins on Fridays

13. David Hall – Recos: Bullion: 1. US Gold Eagles 2. $20 Gold Piece (Uncirculated St. Gaudens, Liberties) 3. PCGS certified $20 Liberties (MS-63, 64, 65) 4. 1878-1935 US Silver Dollars 5. 1 oz. US Silver Eagles 6. 90% Silver Bags (junk silver) 7. 1 oz. Canadian Maple Leafs

14. David Hall – Recos: Rare Coins: Buy top quality, truly rare, key, certified coins and deal with principals only 1. Silver Commemoratives 1892-1954 2. Gold Commemoratives 1903-1926 3. 19th Century Silver type Coin 1840-1915 4. Rare Date Gold 1840-1907 5. Proof Gold 1860-1915 6. Ultra Rarities (1913 “V” nickel)

15. Chuck Butler • 3-5 years from now, Eurozone will be much better off • Debt Ceiling will rise over and over again • To service debt the US Government will raise taxes and reduce the value of the USD • Asset stays in a trend as long as the fundamental reason for the trend does not change

16. Chuck Butler – Recos: 1. Currencies of Norway, Australia, Canada, Singapore, and China (reserve world currency by end of the decade) – Currency Money Market or CD’s 2. Gold & Silver – Metal Select Acct (pooled, allocated, delivered) 3. International Stocks & Bonds

17. Harry Dent • Great Debt Bubble • Smaller Generation following a larger one • All bubbles burst • 40 year cycles • 4 season economic cycles every 80 years • Debt bubbles are always followed by deflation • Fed stimulus is fighting deflation

18. James Dale Davidson • “the fox knows many things, the hedgehog knows one big thing” • All fiat currencies go to zero • If money is created out of thin air, it can disappear into thin air • Currencies are in a race to the bottom – ugly baby • Euro is doomed • Inflation rate is not 2%, more likely 9.6%

19. James Dale Davidson • Govt. statistics are lies • 90% of Americans are not participating in the economic recovery • There is a good argument for deflation • Governments are desperate for cash & liquidity • Hyperinflation is the amount of printed money in circulation as well as the discredit of the currency • US Government is the most historically bankrupt county

20. Bud Conrad • Currency Wars – “Race to Debase” • Bernanke thinks the Fed not printing $ caused the Great Depression • Paulson, Krugman, Bush, Biden agree • Other central bankers agree as well • Real Yields (purchasing power) are negative • International Debt comes from Trade • Euro crisis is unemployment

21. Bud Conrad • PIIGS will break away because of even higher unemployment and unserviceable debt • 3 Bubbles: Stocks, Housing, Bonds • Budget cannot be fixed, employment hasn’t improved, US debt service is too high, the Fed is acting like a hedge fund • “USD will inflate out of existence in my lifetime” • Stocks may stay high especially Tech, Bullish Energy, Natural Gas will be a good investment, Agriculture, Real Estate

22. Keith Fitz-Gerald • You have to look at the bigger picture – the global economy will continue • Half of world’s population live in 6 countries • Change vs. Resources = Resources Allocation Gap • BRIC’s – tomorrow’s overtakers • Half the world is catching up • Emerging Mkts are no longer dependent on Western Mkts – purchasing power moving from West to East (world’s center of economic activity)

23. Keith Fitz-Gerald • USD possibly fails within 10 years • Center of activity is China and India • China’s biggest export is investment capital • People are moving with their money • Fed (money printing) is out of control • Closer to the end of the crisis – beginning of growth (emerging markets)

24. Keith Fitz-Gerald – Recos: • Glocals – NEARX • Euro (will not survive) – EUO, EU • Yen (short) – YCS • Yuan (long) – CYB, CNB, FXCH, Bank of China, EverBank • Gold – GLD, EverBank

25. Rodney Johnson • USD is the best of the worst • US is safe and strong (biggest kid on the block) • Strong USD - Strength inside the US, Use as reserve currency, Strength compared to other currencies • Fed won’t kill the USD at home • Spending by Age – peak at 46-50 • 15% Americans on food stamps, income down 9%

26. Rodney Johnson • Housing rebound is not really that dramatic • Fed has $3Trn on their balance sheet and has created inflation • Inflation hurts young and old more than middle age • Consumer Credit is shrinking except for student loans • $2Trn gap between deposits and loans

27. Rodney Johnson • Forces are driving us lower not higher – our credit destruction is greater than the Fed efforts • USD still 80% of all currency transactions (China is at 1%) • Every hard asset backed currency has failed • Fed is not creating as much $ as many other central banks • Euro is a failed experiment from the start • BoJ will fight deflation – Yen headed lower