Dear CIGAs,

I just watched Martin Feldstein on TV. He is head of the National Bureau of Economic Research and a highly respected economist. He is worried about the politicians ignoring inflation.

He says the US economy will bottom at best in early 2010. Like many rational non political economists, he is concerned about inflation as a result of a change in the makeup of the US political structure. I concur with him completely. We will be lucky to have an economy bottoming at the end of 2009. It may not bottom until mid 2010 or later. Much depends upon when and how much liquidity returns to the banking system.

In my opinion, the only highly visible market for appreciation at this time is foreign currencies and gold. World stock markets are getting a rally which we have expected and which may continue for a time, but the only visible long term bull market is in gold and foreign currencies.

Respectfully yours,

Monty Guild
www.GuildInvestment.com