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The 1929 & 2007 Bear Market Race to The Bottom
Week 145 of 149
DJIA's Earnings and Valuation Trends 1929-2010
Update on Eskay Mining
Mark J. Lundeen
Mlundeen2@Comcast.net
23 July 2010
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Here is the BEV chart for the Bear Race.
The DJIA had a good week, but it's still Ranged Bound between the BEV -20% & -30% Lines. Since Wk 105, when the DJIA first broke above the BEV -30% line (October 2009), the only excitement this Market has seen was the Market decline starting in April. This is a tough market. Everyone, Bulls and Bears alike are waiting for something to happen. But other than our hair getting greyer, nothing ever seems to happen. The Bulls are weighed down by the Gravity of Trillions of dollars in non-performing assets, while the Bears are wondering exactly when Mr Bear is coming back from his donut break?
This Bear Market is different. We are not dealing with the Business Cycle, where the Fed finally tightens to cool developing inflationary pressures. There is no way the Fed is going to raise Interest Rates. It would mean the end of the World as Doctor Bernanke knows it. How long has the Fed Funds Rate been effectively at Zero Percent? Since December 2008! And in the past 22 Months, the "Policy Makers" have thrown Trillions of dollars at the Economy, in a failed attempt to get it going again. Since October 2008, with all Washington has done to "Fix the Markets", is this is all we get from the Dow Jones Industrials?
Maybe the DJIA is going up for awhile. So what? Most people are struggling to keep their heads above water, fearful of losing their jobs. The debt they've assumed in the past 2 decades is making life hard, and their futures uncertain. This can be said about Business & Local Government too. This foulness is how it usually feels at Market Bottoms. But this time, one thing is missing: the writing off of unserviceable debt that produced the foulness. In fact, this time Congress is working overtime producing ever more debt that everyone knows will never be paid back, so I'm predicting more foulness to come.
All of this foulness was made inevitable by Congress, and their Creatures: Fannie Mae, Freddie Mac and the Federal Reserve. These three Creatures were left unmolested in the recently passed Financial Regulation Bill. Congress must still have big plans for them, and so left them alone.
The only segment of the Economy currently thriving is the Federal Government. But that is only because they are currently being funded by the Federal Reserve, who contrary to what Doctor Bernanke told Congress, he is Monetizing Treasury Debt as we can see in the Blue Plot Below. I guess the rising Red Plot tells us he is still monetizing Fannie Mae's Mortgages. Congress knew the Doctor perjured himself when he told them that whopper on TV, about the Fed not monetizing the Treasury Debt anymore. The Doctor knew Congress wanted him to lie under oath, as he knew they expect him to continue supporting the Treasury Market with Open Market Operations. So the National Debt, and the US Money Supply continues to grow exponentially: who really cares?
"We hate you guys. Once you start issuing $1 trillion-$2 trillion [$1,000bn-$2,000bn] . . .we know the dollar is going to depreciate, so we hate you guys but there is nothing much we can do."
- Luo Ping, a director-general at the China Banking Regulatory Commission , 11 February 2009
Well maybe China, but they don't vote!
But how much longer can Washington Inflate the Money Supply and still keep the US Dollar a viable asset? We will find out, because Washington will continue to inflate the Money Supply until the dollar is worthless. It's what they do, destroy everything they touch. The destruction of the dollar can't be good for the DJIA, but does the DJIA go up or down in the process? I'm expecting the 2007-10 Bear to make a run for the old record of an 89% decline set in 1932.
Below are the DJIA Volatility's 5-Day M/A & BEV Chart
The Stock Market is running a fever, and every week we get another NYSE 70% A-D Day. This week was another Positive Breadth Day.
Seeing so many NYSE 70% A-D Days is Great Depression Stuff. And the Positive ones are not Bull Market Indicators!
So why isn't the DJIA falling down? Because the "Policy Makers" are keeping it up. The last thing they need now is a collapsing Stock Market. So they will make sure it doesn't collapse.
Let's take a long-term look at the DJIA's 200-Count, or the Number of 2% days in a 200 Day Running Sample. Keeping track of the number of days within an 8 or 200 Day Count is a good technique for identifying past Bear Markets, as well as gauging the current market's prospects for making money.
With the Exemption of the 1942 Bear Market Bottom, every rough spot in the DJIA from 1900 to 2010 can be identified in the chart above by seeing concentrations of DJIA 2% Trading Days within a Running 200 Day Sample. What is a DJIA 2% Day? Any day where the DJIA moves 2% or more from the previous day's Closing Price. In the chart below, any day not a DJIA 2% day was filtered out of the plot. 2% Days can be either positive or negative. Mr Bear loves those big +10% days, as there is no better way to kill a short seller than a big up day in a Bear Market. So you see, Mr Bear doesn't care if the 2% Days are up or down days. The largest percentage daily gains in the history of the Dow Jones Industrials occurred during the 1929-32 and the 2007-10 Bear Markets, and during the selling panic of October 1987.
Big Bull Markets tend to be quiet affairs when it comes to DJIA 2% Days. Compare the 1920s to the 1930s. From April 1942 to 1966, buying for the long term really made sense as the DJIA went from 92.92 to just below 1000. During those Bullish 24 Years, DJIA 2% Days were actually rare. We see a period of low volatility from 1993-97, and from 2003 to 2007, both were Bullish periods in the Market. The Bear Market Bottoms of 2002 & 09, had lots of trading days with 2%, or more moves in the DJIA.
Let's look at a side by side comparison of the 200-Day Count for the #1 & #2 DJIA Bear Markets (1929-32 & 2007-10 Bears).
The 1929-32 Bear Market is #1 for a reason. It was dirty with DJIA 2% Days! As bad as the 2007-09 Bear was, it hasn't come close to the Great Depression Bear in DJIA 2% Day Production, at least not yet.
We see that the March 2009 bottom occurred at Day 777 in this chart. Since that day, the DJIA has recovered as the number of DJIA 2% Days within its 200 Day Sample has decreased. But we should note that our current Bear Market's DJIA's 200-Count (Red Plot) started to increase again on day 1069 (05 May). If Mr Bear intends to take this market down, and test the lows of March 2009, we should see the Red Plot soar even higher. Is this going to happen? I believe it will.
Currently, the 200 Day Sample runs from 07 Oct 2009 to 23 July 2010. If we use the turn on 05 May 2010 (Day 1069) as the dividing line, we see 8 Stale 2% Days from when the DJIA was rising from the March 2009 lows. So most of the 19, 2% Days currently in the 200 Day Count are very fresh. That is not a positive sign of things to come.
The Lundeen Bear Box and Step Sum is below.
What's to happen with the DJIA's Step Sum? Is it going Up, Down, or is it just going to hang around? Over the next few months, anything can happen. But the "Policy Makers" have been very busy since Obama became President. Speaker Pelosi pushed through a 2000 page Healthcare Bill to the President that no one, including President Obama read. She admitted she wouldn't know anything about the Healthcare Bill until it became law. Rep Barney Frank Pushed through a 2000 page Bill to the President on "Finance Reform." No one read that Bill either. Well this is the new America, anyone can pass the Bar Exam and get elected to Congress without knowing how to read. It explains a lot!
When the Economic Impact of all these unread pages of new Federal Statutes become fully apparent, we'll see the US Dollar, the Bond Market, and DJIA and its Step Sum fall like a rock. Americans voted these fools into power, and now they will reap a bitter harvest.
The Step Sum is an indicator of market sentiment. When the underlying sentiment is bullish, the Step Sum rises. When bearish, it falls.
Think of the "Step Sum" as the sum total of all the up and down price "steps" in a data series over time; an Advance - Decline Line for a data series derived from the data series itself. Logically, bull markets will have more net up days, while bear markets will have more net down days. Understanding the Step Sum is no harder than that.
DJIA's Earnings and Valuation Trends 1929-2010
As advertised every quarter on CNBC, this is "Earnings Season" starring CNBC as "Earnings Central." What does that mean? That every quarter, the companies trading on the NYSE and NASDAQ Exchanges report their past quarter's earnings. On-Air "Experts" then analyze the reported Earnings, which we are told, are important indicators of future price trends.
But are they? You wouldn't know from watching CNBC. After "Earning Season" is over, "Earnings Central" shuts down for another 90 days. Little attempt is made during these extended periods between "Earnings Season" to provide CNBC's Financial-News Consumers with empirical evidence of the success or failure of the just completed "Earnings Season." And CNBC is very selective of what earnings they report. There are thousands of companies reporting earnings, but CNBC promotes only a few large companies.
In fairness to CNBC, Television is a poor format for comprehensive coverage of thousands of companies' earning reports. Maybe their Website does a better job of covering individual company earnings. I admit I don't know as I seldom visit their Webpage. But if Earnings are an important metric for predicting future Stock Price Trends, as CNBC claims them to be, I can fairly criticize them for not providing extensive coverage of the earning trends for the major market Indexes such as the DJIA and the S&P 500. Logically, if rising Earnings are key to individual share prices, then Earning Trends for Market Indexes should be important information on the future Valuation Trends in the Stock Market.
Well, it just so happens that I've personally compiled data on the DJIA's Earnings from 1929 to the present, and in Wk 145, I thought I'd share with my readers what I found. Earnings and Valuation Trends of the Dow Jones Industrials, frequently * have little * to do with each other. Or I should say that they didn't until the late 1990s, when Alan Greenspan ignited a speculative bubble in the Stock Market.
First things first; here's my chart displaying 81 years of the Dow Jones Industrials with its Earnings.
It only takes a moment to see the difficulty of wrestling with this historical data: Monetary Inflation has distorted the DJIA's Valuation and Earnings to the point, where from 1929 to 1981, the Dow Jones' Plots provide no useful information. But as you might guess, analyzing this Data with a Bear's Eye View Plot will bring out the small details, allowing us to do a proper job of examining the relationships between the Dow Jones and its Earnings.
But, to create clear charts in this analysis, I could not plot the DJIA's Earnings atop the DJIA itself. It made a mess of the chart. So I had to manipulate the data a bit to create a split screen effect that would display the Earnings above the Dow's Valuation BEV Plot.
Below, I used Excel's Sine Function to create two Sine Waves, to provide an example of what I've done with the DJIA's data seen later in the report.
All my past BEV Plots were bound by a range of values between Zero for a New All-Time High, and -100% for a total wipeout in Valuation. However, to keep the DJIA's Earnings BEV Plot free from interfering with the DJIA's Valuation BEV Plot, I converted the Earnings BEV Values into Positive Values. This means that for the Red Earnings Plot, +50% is actually -50%. As always, when the Red Earnings Plot reaches a Zero Value in its BEV Plot, a New All-Time High was reached. But for the sake of clarity, I converted the DJIA's Red Earnings' Negative values into Positive Values, to lift them above the DJIA's Blue Valuation Plot.
What "Earnings Central" at CNBC would have us believe, is that the relationship between Share Prices, to their Earnings, are as shown in the Chart above. As Earnings rise or fall, so goes Share Prices is the theory. What that would mean in these charts is that Earnings and Valuations in the DJIA would approach the Green BEV Zero Line together, and withdraw from it at the same time, again and again over time. Just as the Sine Waves displayed in the chart above do.
This belief is very logical, and may have once been true for a company like Intel, who from the 1970s to 2000, experienced exceptional Earnings Growth, as its shares surged upwards. But for mature industries, which are the bulk of the companies trading in the Stock Exchanges, this relationship of Share Prices tracking Earnings growth is historically inaccurate. Using the 30 Blue-Chip Stocks comprising the Dow Jones Industrials Average as an example, frequently Earnings and Valuations Trends had nothing to do with each other, until the Greenspan's Fed.
From 1929 to the late 1990s, it was not unusual having the Dow Jones Industrials hitting New All-Time Highs, as its Earnings collapsed, or seeing the DJIA's Earnings reaching New All-Time Highs as the Stock Market itself was losing value. To see what this would look like for the DJIA and its Earnings, I've created a second Sine Wave Example below. In it, we see the Red Earnings and Blue Valuations Plots hitting the Green BEV Zero Line (New All-Time High) as the other plot is far from a New All-Time High. These Sine Waves depict a more historically accurate description of the typical relationship between the DJIA's Valuation to its Earnings.
I studied this data years ago; the results were repelling to me! It's downright counter-intuitive seeing the DJIA Crash on Rising Earnings! But since 1929, this pattern has happened more times than the "Experts" seem to be aware of. But to be fair, financial letter writers I've subscribed to in the past, particularly Richard Russell and James Dines, made the point of dismissing earnings, and focused on price trends in their work. Mr Russell is on record saying he wasn't interested investing in companies with rising earnings, but in companies with rising share prices. So I'm not the first to recognize the pointlessness of dwelling on Stock Earnings to predict Valuation Trends in the Stock Market.
Facts are facts, and the published historical data is very clear: for most of the history of the Dow Jones Industrials, Earnings of the DJIA Companies (a realistic proxy for mature companies), were either a misleading indicator for future Valuation Trends, or a total non-factor in predicting profitable trends in the Stock Market. As this is the case, what value do Retail Investors gain from studying Earnings Reports from Wall Street's Fundamental Research? On the whole, it's a complete waste of time. Oh, you disagree? Well read on!
I suspect that the Staff of CNBC, and its "Experts" don't know this either. That says something about the Staff of CNBC and their "Experts." BUT, unsurprisingly, around 1997, when Alan Greenspan became Wall Street's Bubble Master, the Earnings for the DJIA, and its Valuation have fallen into line with each other. Since 1929, never have these two plots agreed with each other for such a prolonged period of time. This is very suspicious.
So much for Sine Wave Examples of Values and Earnings; let's take a look at the Dow Jones Industrials, and its Earnings, as published in the pages of Barron's since 1929. The occurrences of the DJIA and its Earnings going their separate ways for the past 81 years are numerous, if unnoted in 2010. Later, I'll break this chart down into two smaller charts, but what happened during the 1982-2000 DJIA Bull Market just jumps out at us. Remember, whenever the Red or Blue Plots strikes the Green BEV Zero Line (0%) a New All-Time High in the DJIA's Earnings, or Valuation had been reached.
Here is a chronology of the DJIA and its Earnings from 1980 to 2000.
The DJIA's Earnings in the late 70s and early 80s, gave no indication of the major Bull Market in Stocks just around the corner. In fact, it was quite the opposite.
From 1980-83, as the DJIA's Earnings collapsed by over 90%, the DJIA itself went from one New All-Time High (BEV Zero) to another at the start of a Historic Bull Market.
When the DJIA's Earnings finally approached a new All-Time High in 1987, the Dow Jones Industrials Crashed.
When in 1989, as the Dow Jones Industrials approached a New All-Time High, its Earnings * AGAIN * crashed by 80%.
But then in 1997, something unprecedented occurred in the history of the Stock Market; the DJIA and its Earnings synchronized for the next 13 years. Look closely at the chart above, during no other time in the 81 years of history of the DJIA, do we find the Valuation and Earnings of the Dow Jones Industrials in agreement for such a prolong period of time. Hey, something changed!
Let's break the data up into more manageable pieces, one chart for 1933 to 1965, and another for 1965 to present. But because of the extremes in both Valuation and Earnings experienced during the Great Depression's Bear Market, it was best to exclude these years in the BEV Plots. So I made a separate chart for the Great Depression years. It makes the point that using Earnings Trends for Entry and Exit points in the Market, are a terrible investment technique. Remember, you are looking at the actual data, as published by Barron's, investors of the 1930s saw during the Great Depression. The Data is Weekly.
Earnings increased 8.3% in July of 1929, as the DJIA continued to rise, until it peaked 8 weeks later in September. This High in the DJIA would not be exceeded until November 1954.
With no change in Earnings, the DJIA crashed 40% in October.
Earnings surged 40% in January of 1930, and continued to rise until July 1930. For a few months, the DJIA did fall in line with its Earnings, but improved Earnings failed to prevent the DJIA from tumbling into the Abyss, starting in April 1930.
In July 1932, after the DJIA had fallen 89% from its highs of 1929, it then began its BEST YEAR IN HISTORY, as the DJIA's Earning continued to crash and actually went negative.
In July 1933, the DJIA's Earnings were again Positive, just as the DJIA completed its BEST YEAR EVER.
From 1933-34, the DJIA declined slightly as its Earnings Rose Strongly.
From 1934-37, for the first time in my data series, the DJIA and its Earnings rose together over an extended period of time. But this was for only 3 years, not 13.
The DJIA topped out in March 1937, and began a 5 Year, BEV -50% Bear Market * ON RISING EARNINGS *.
So we see how following Earnings during the 1930s, placed Investors on the road to ruin. And this is not just true for the Terrible Thirties, as we see in my first BEV Chart.
Let's take a look at the DJIA from 1933 to 1965.
Remember, when the Red Earnings Plot rises up, the DJIA's Earnings are actually decreasing. I included 4 colored Boxes in the Chart of periods where Increasing Earnings resulted in a Declining DJIA, and where Decreasing Earnings resulted in a Rising DJIA. Note how the April 1942 BEV -52.20% Bear Market (our #3 Bear since 1885) occurred as the DJIA's Earnings increased by 100% during the previous 2 years. Then the DJIA bounced off its April 1942 bottom, as its Earnings declined 30%.
Let's look at my last Chart. I included a Dashed Green Box for the * Most Bizarre * period of history for the DJIA and its Earnings; Bizarre because the DJIA and its Earnings began rising and falling with each other for over 13 continuous Years. Look at 2001-05. Can you find another example in the DJIA's history where a -30% decline in Earnings didn't ignite a Bull Market? And then for the first time since 1932, the Dow Jones Industrials Earnings went negative. So how come the DJIA Crashed?
Well okay, you got me as something similar happened from 1937-39. But I think I made my point, that for most of the DJIA's History, the DJIA and its Earnings have marched to the beat of different drummers; until 1997.
So what gives? Market Manipulation at the highest Levels of Government and Finance! If you look at the situation the US Government currently finds itself in, there is ample reason to suspect that they would refuse to allow the markets find their own prices. The motive is to preserve the "Social Programs" of the Federal Government. The Means are the Federal Regulatory Agencies, created to protect the Public against For-Profit Predators. But agencies such as the FDIC, SEC and CFTC have completely failed the Public against the Political Predators, who rule over us from Washington.
Social Security is People's Exhibit A. There is no money in it. There never has been from day one. This has been known since 1936. Here are a few, of the many articles published in Barron's over the past decades concerning Social Security. The Dates give the Barron's issue date where the Article can be found.
21-Sep-36: Social Security spends money as fast as it comes in, there are no reserves, accounting is a fraud (from day #1)
14-Sep-64: MEDICARE PROBLEMS TO COME
05-Jul-71: Social Security too expensive
02-Jan-77: Social Security = Ponzi
15-Sep-80: End Social Security
12-Jun-01 Social Security "Not so secure"
The Fact that Congress passed legislation for Tax Deferred Retirement accounts in the 1970s is an admission that Washington knew that Social Security was not going to survive the Baby Boomer Generation. Everyone knew that; it was on Wall Street's Marketing Brochures for their IRAs during the Carter Administration! But that didn't mean that Washington wasn't going to Tax the Baby Boomers for the purpose of Social Security anyways. They just wanted to transform Americas Capital Markets into a giant Social Program via IRA and 401K accounts. And our Politicians were successful in doing so. Our current Economic Problems are not the failure of Capitalism, but of Socialism.
You must understand how Politically Important the Stock Market is to Washington to fully understand why Congress is now involving themselves so intimately in the Capital Markets, to an extent they have never been involved before. And now our Politicians feel that Wall Street didn't tell them the truth.
Since FDR, Washington's Ruling Class has promised everything to anyone willing to vote for them. To pay for their largess, politicians, particularly the Democrats, have used the Social-Security System's revenues as a political slush fund since 1936. They only allowed tax-deferred IRAs and 401K to be created in the 1970s because these accounts, invested in the Stock Market, were supposed to provide Congress cover when the time came for them to stiff the Baby Boomers of their Social Security Benefits. Can you imagine how upsetting it was for the Ruling Class, to be told by Wall Street hacks like Hank Paulson and Doctor Bernanke in October 2008, that the only way Congress could expect Wall Street to Bail Congress out of their Social Security Embezzlement, was that Congress had to first Bail Out Wall Street! You're damn right Congress is pissed off!
So with political influence from Washington's Corrupt Ruling Elite, managing Asset Valuations via Bailouts, "Liquidity Injections," "Stimulus Legislation" and instituting shady accounting standards, we should expect to see the effects of this corruption show up somewhere. And I believe that is exactly why since 1997, the DJIA and its Earnings are so out of whack with historical trends. The Valuations and Earnings of American Corporations that trade in the Stock Market are being managed by People who are unaware of the History I've shown in this Report. They don't know that the DJIA is supposed to Decline on Rising Earnings! This makes their Stock Market Manipulations obvious.
Since the early 1990s, the Federal Reserve has inflated one Bubble after another. One of the many effects of this Inflation is that the DJIA and its Earnings are now rising and falling in lockstep. I expect that in time, we will all see that the Earnings for the Dow Jones Industrials were no more real than its Valuation. We are also constantly told that Companies now have well over 1 Trillion dollars in cash. But the Fed reported this week that CinC is only 942 Billion dollars. So this "Cash" is not in cash, but in debt instruments. I have to wonder just how liquid this money really is, and how vulnerable to rises in Interest Rates.
What a mess Washington has made everything. Let's take a look at the DJIA Earnings, in light of the Bubbles blown into the Markets by Doctors Greenspan and Bernanke.
Take a moment and consider how the DJIA's Earnings have performed during the numerous Bubble Markets of the past 2 decades.
From 1992 to 2000: Stock Market Bubble
From 2000 to 2003: Stock Market Bubble Deflates
From 2003 to 2007: Real Estate Market Bubble
From 2007 to 2008: Real Estate Market Bubble Deflates
From 2008 to Present: US Bond Market Bubble
Wall Street may desire Credit Bubbles, but other "Policy Makers" say members of Congress, do not. But if Doctor Bernanke's "Liquidity Injections" are to flow into the General Economy, he must first find a significant market to his Stick his Syringe into.
Capital Gains in High Tech Stocks may have been Inflationary. But they provided the profits for investors to live large and buy high-end consumer goods, until the High Tech Bubble popped in 2000. Rising home values created a situation where the Financial Media called the Second Mortgage Market, "the Home Owners' Personal ATM Machines." Washington deliberately created a Credit System that encouraged "Consumers" to use their homes as collateral in a rising Real Estate Market for the purposes of consuming. They could borrow money based upon Inflationary Housing Prices, until 2008, when that bubble popped too. This Bubble was truly devastating to "Consumers," Local & State Governments who all borrowed, and spent money based upon the false belief that Real Estate Prices would never decline. The chart of the DJIA's Earnings show that this Bubble had impact on the Stock Market too.
Currently, Doctor Bernanke can be seen sticking his Monetary Syringe into the Bond Market. This time, the money is not flowing to Investors, but to the US Government itself. Washington is using this Inflationary Funding to bail out the Unemployed and Local and State Governments who were devastated by the High Tech and Real Estate Bubbles. As always, this Monetary Madness is overseen by Keynesian Economists, whose careers have been devoted to an Economic Theory, who like its proponents, are totally ignorant of the real world. Thanks to Doctors Greenspan and Bernanke, the only people who are hopeful of America's future are Bankruptcy Lawyers.
As far as watching CNBC for its "Earnings Central" reporting "Breaking News" for this, that or some other company releasing their 2010 Second Quarter's Earnings, Earnings that somehow usually seems to beat "Wall Street's Estimates", my advice is to turn down the volume of your TV. I like watching the CNBC ticker roll by. But unless Rick Santelli is talking, more times than not, nothing useful is being said.
Update on Eskay Mining
Eskay Mining (formerly Kenrich Eskay Mining). Starting on 26 July, is going forward with a 5000 meter drilling program on its optioned St. Andrews Property. The 5000 meters will be spread between 7 to 10 holes, and will earn Eskay Mining an 80% interest in the property.
Exploration Companies are high risk ventures, with no guarantee of success, but can be very profitable if they find an economic ore body. Eskay Mining is located within view of the now discontinued Eskay Creek Mine, which during its lifetime, it was the 5th largest producer of Silver in the world, and the second largest produce of Gold in Canada, as well as source Base Metals.
As the Eskay Creek Mine was a VMS Deposit, which typically forms in clusters, there are good reasons to believe that Eskay Creek was only a small portion of the original deposit. Originally, the Eskay Creek ore body was formed in the ocean. Interestingly, similar ore bodies, rich in Gold and Silver, are currently being formed on the ocean floor, just off the coasts of British Columbia, Oregon & Washington State. As British Columbia was uplifted by Geological Forces, it's suspected that the Eskay Creek Mine was separated from the main body of Gold and Silver ore, as the Rocky Mountains were lifted high and dry above the Pacific Ocean.
Eskay Mining's drilling program for the summer of 2010 is searching for the remaining segments of the original deposit, geologists believe to exist. Much preliminary work consisting of drilling and lithogeochemical samplings has been performed since 2005. As a large shareholder, I'm hopeful this year will be successful. The region is mineral rich. Eskay Mining has Silver Standard Resources and Seabridge Mining for neighbors.
This is not an investment for Widows and Orphans. But then in 2010, neither are US 30 Year T-Bonds, when held to maturity. So if you have some funds for speculative purchases, after purchasing a core position in Gold and Silver Coins, you may want to take a look at Eskay Mining. Take a look at this short video. You may like what you see.
For your information, I am in contact with Eskay's Management, but I receive no compensation from Eskay Mining, or anyone associated with the company for making this recommendation. I'm just excited about the company's potential of finding another Eskay Creek-type ore body.
Mark J Lundeen
23 July 2010
mlundeen2@Comcast.net
Dow Jones -40% Declines From 1885 to 2008 is the article that inspired this race of 1929 & 2007 Bear Markets. You may want to read that article to understand my "BEV Chart."
Dow Jones Industrials Average Market Volatility is the source for my volatility studies.
The Lundeen Bear Box and Step Sum is the source for my Lundeen Bear Box and Step Sum Chart
Note For the Record: Mark Lundeen does not want a devastating bear market in the next two years. However, in full view of Congressional Market Oversight Committees and under the supervision of Government Regulatory Agencies, things were done that I believe will make a historic bear market inevitable. If you have a problem with this bear market, contact Washington, not Mark Lundeen.
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