MARKET INSANITY by Mike Lathigee
May 27, 2020

MARKET INSANITY MAY 26, 2020 by Mike Lathigee:

In the last 24 hours American biotech firm Novavax said it had started the first human study of its experimental coronavirus vaccine, with initial results on safety and immune responses expected in July. Vaccine development is a long, complex process, often lasting 10 to 15 years.  The market continues to behave as though a vaccine is a foregone conclusion and that good news is imminent – as today the DOW (as I write this @ 10:22AM) is up over 600 points. Year over year Novavax is now up over 700%.   
Last week Moderna announced all 45 patients in its vaccine trial had developed antibodies against the coronavirus and the DOW surged 900 plus points.   The next day insiders sold over $30 million dollars of their shares (with observers skeptical of the Moderna results) and there is currently a surge in lawsuits against the company.  Lots of lawsuits can be paid for when the market cap of your company has increased by billions of dollars in a short period of time!!!   It is interesting to note that Moderna is now below the share price before it made its “big” announcement and almost the entire executive team is dumping stock – collecting tens of millions every day. 
Both stocks have now risen several hundred percentage points in just a few months creating billions in additional value.  I wonder if we will see continued situations of companies rushing through Phase 1 Trials to show any positive results that will see the value of their stock increase by triple digits.  Yes, there are many protocols and regulations that must be followed, but as we have seen with Moderna, it was more about getting the news out and worry about complete accuracy later. 
There are many professionals with high moral standards in biotech, but the market temptation is big – to skirt the limits, make quick announcement – and see massive gains in wealth.    I think we are going to see this situation happen again and again as so many companies are working on a vaccine. 
It seems the market feeds on any good news and ignores the trade war with China, the high unemployment rates, the surge in bankruptcies, declining consumer spending, rising foreclosures, possible food supply disruptions etc.   This morning I spoke to a landlord, with more than 200 commercial tenants, and less than 40% of them paid rent in May.  Brazil coronavirus deaths have skyrocketed and is likely to surpass the US.  It goes on and on and etc. etc. etc. The most appropriate song that I can think of right now is “We didn’t Start the Fire” by Billy Joel.  Watch the video and listen to the words!
Companies that have no customers like theme parks and hotels are still hanging onto their high valuations and airlines bleeding cash are being propped up.    I am expecting a day in the future to hear “kaboom” and the market will wake up.
A day like this makes little sense – with the Nasdaq now trading at all-time highs.   Yes, the Fed is buying everything in sight to support the market and is just one short of directly buying stocks.   Such a situation is bad for gold, but I believe with Wall Street so ‘out of whack’ – we will see a day of reckoning. 
There is not a logical astute investor I know that believes there is value in investing in 25x next year’s earnings.  Warren Buffett is totally on the sidelines since March in a much higher cash position and currently has “egg on his face” as investors start to pressure him to jump in because he is missing out.  The writing is on the wall when this happens.  If you are in the market, take your profits.    Maintain a position in gold, silver, a large position in cash and wait for the opportunities that will arise.  Believe me there will be great opportunities!!!
I believe we are going to see the market come down hard soon.   We are seeing artificial stock market valuations.  Think of the devastation when we see the likely resurgence of the virus in the late Fall and Winter.   Risk is largely being ignored and all these threats to the economy are unlikely to be overcome. We will see the market spiral down but the only (repeated) caveat is if the Fed continues to feed the market with liquidity – this would keep the party going, at least for the short term.  
It appears the old capitalistic metrics where the markets and the economy are in close correlation no longer exist.   The market is now driven by algo traders – which is 70% of all trading.  The market does not care about my opinion and with these new governing metrics my old school guidance of fundamentals may be viewed as archaic as the current market is only governed by money flows and technical analysis.   So, I believe in what I have written but the “new” traders will tell me that my analysis is outdated.  Time will tell!!!

Guidance in Turbulent Economic Times
May 26, 2020

Some people may say “Mike Lathigee, get a life!” yet – I spent a good deal of last night unable to sleep in thinking about the economy.   The disconnect between Main Street and Wall Street is particularly troublesome for me to process when I see “blood in the streets” and the Nasdaq at (almost) its all time high.   This makes no sense!
In this article (which will be a little longer than normal) I want to give members my observations of what I see happening – but first I will start with guidance – with one addition:
1.     Own Gold: Up to 10% of your portfolio.  Since I have given this guidance, gold has been the best performing asset class.   UPDATE: The club is in advanced due diligence on a gold project that makes sense for club members.   I will keep you posted.
2.     Maintain a very large position in cash.  I believe we will see the house of cards we call the economy, collapse and those with large cash positions will be able to take advantage of these, once in a lifetime, asset buying opportunities.  The only caveat is – the fact the Fed is equipped to prop up the economy through unlimited force feeding of liquidity into the economy & could succeed in keeping all assets artificially propped up which would be bad for those sitting in cash and owning gold.  Generally, when the stock market is moving up – gold falls out of favor.
3.     30 days ago, I stated weight heavily in oil – in your portfolio – because the world needs oil and most large oil companies need oil to (at minimum) trade in the range of $40 to $50 a barrel to survive.  The easiest strategy is to own oil ETFs and these ETFs are up over 50% but I believe there is still more room for them to move as oil prices will, over the next few months, likely hover above $40 a barrel.  Oil has been the best performing asset class over the last 30 days.
4.     At the club we will be looking at Real Estate Opportunities in the coming months; however, the big caveat will be-if the Fed stimulus is able to prevent deflation and an asset blow up.  If so, then the Real Estate opportunity may not be what we hope for – but current owners of properties will be happy as Real Estate could maintain its value.  I see commercial Real Estate Property values collapsing and this might be an area we look at as many commercial tenants are going out of business.
So the new guidance I would like to give you is that, in addition to gold, I want you to consider silver for your portfolio. 
I believe silver is powering into a new bull market after getting clobbered in March.   Typically, silver tends to follow upward movements in gold but several months after gold’s movement upward.    Silver is a much smaller market than gold and any attention it will get will see disproportionate moments to the upside.       There is risk but, in the risk/reward scenario now is the appropriate time to ensure you own silver.  The best way is to own actual bullion or in America pre 1965 dimes, quarter, half dollars and dollars – but currently many of these are selling at a premium.   As a pure play the ETF “SLV” is a conservative way to invest in silver and Pan American Silver is one of the largest silver producers on the planet with symbol PAAS.  
Investors only seem interested in silver when they expect gold to continue to move upward.    It is an asset that can quickly be abandoned and ‘sell offs’ can happen quickly.   The best time to buy silver is when it is inexpensive compared to gold levels.  The easiest way to calculate this is the gold/silver Ratio.  In other words, how many ounces of silver does it take to buy one ounce of gold?  Right now with silver trading at $17.24 an ounce and gold trading at $1735 an ounce that ratio is 1735/17.24 or it takes about 100 ounces of silver to buy one ounce of gold.    Since 1969 this ratio has averaged 50.9 so based on this formula silver is trading at about half of its historic value compared to gold.   
Investors will perceive getting more value from silver investing than gold investing as the concept of hedging to protect investor portfolios grows in these turbulent times. 
Now let me move onto some general observations that kept me up most of the night and why I have concerns about the outlook for the world economy:
-I think we will see a slow economic rebound in the pandemic’s immediate aftermath, but consumer consumption will drop and weaken this short-lived recovery.    Ordinary people will be forced to pare back on their consumption, and we will start to see this in July when the extra $600 per month unemployment benefits stop in July.     
-On Friday night I went to YardHouse which is a well known deep pocketed restaurant chain owned by Darden Corporation.    Darden is a large publicly traded company.  The manager at the local Yardhouse told me they are doing about 30% of normal volume due to the fact they can only fill the restaurant at half capacity.   The bar in the restaurant was closed and he said that – alcohol is were they make all their margins – and the food service is low margin.  
Then on Saturday night I drove to 2 local pubs I like to go to and have a beer. They serve food so they can be opened as part of Phase 2 openings in Vegas, and both were closed.   Then I decided to drive around further and several small restaurants that I know were still closed.  I do not know if they will ever reopen.    When the economy reopens, we are not going to see restaurants, hotels, casinos hire back at levels pre pandemic and unemployment will stay at double digit rates for many months and possibly years.   
I have read reports that it is estimated that up to half the restaurants in New York will never reopen.  How can they survive with such tiny margins and only allowed to be at 50% occupancy?
-The battle between the USA and China will continue and this will create a wave of deglobalization.   That will cause supply chains to break and prices to rise.   Currently there is a trade war and technology war.  USA has decided Huawei is not going to have access to US semiconductors and technology and USA has shut down the transfer of technology to China and China to the USA.   China has been more authoritarian, and we see that manifested now with the control it is placing on Hong Kong.  
-The only reason the markets are moving higher is because of the Fed’s massive monetary stimulus.   It is also supported by the fact that people expect the news about the pandemic to improve and a vaccine will be found.    Also, we are now seeing an interesting situation where people are getting unemployment checks and there has been a surge in day traders as many more people spend time at home.    It is interesting to note that many laid off workers are making more on unemployment than at their previous job and based on my interactions, this seems to be the norm and not the exception.   
Employers will be able, with high unemployment rates, to hire workers back at lower wages without benefits.  It is staggering that we gained 22 million jobs between 2009 and 2019 and now have lost 30 million + in just a few months. 
-I believe we do not have enough testing capability in America, and we will see a 2nd surge of Covid in the Winter of next year.   I think other people are thinking this way as well and, as a result, are saving money instead of spending it and we will see a slash in discretionary spending that will hit Las Vegas particularly hard (where I reside).   In Germany and China, where they already opened a month ago, restaurants still remain empty.   
-We are already at 28% unemployment in Las Vegas – which is the highest in the nation.
Members remember a few years ago when the club hosted Keith Smith the CEO of Boyd gaming as a speaker at a club event.  He spoke about why Nevada was much more diversified and would not suffer as badly in another Recession.  I disagreed and said we are mainly diversifying into sports which is also discretionary spending and I debated with him that, in the event of another downturn, Las Vegas would, once again, be the hardest hit.  A lot can happen in the next year but get ready for cap rates to become compelling in the Las Vegas Real Estate market again.  It will probably take about 12 to 18 months before we see price collapse.  Again, this could be offset by Fed programs – which is something I cannot predict.
-Many are arguing that the Feds ‘force feeding’ of trillions of dollars will cause inflation.  If so, then longer term interest rates will have to increase and if that happens the economy will crash.    We cannot sustain this massive debt – and taxes will have to increase. Otherwise, with higher rates, there will be massive cuts in all government health programs, military etc. 
-I do not see pandemics stopping.   The Wet markets in China are reopening.  I have been there and seen it myself and I know it is part of a long tradition, although it still sickens me.   When you put these exotic animals into cages they interact and create viruses that spread to humans.   In our lifetime we have seen HIV, SARS, MERS, the swine flu, ZIKA, EBOLA and now COVID 19.  
The bottom line is consumers are not going to spend at levels pre pandemic and the stock market is currently trading at 23.5x next year’s earnings.  That is complete insanity.     The Fed will do all it can to flood liquidity into the system; however, there is a real possibility in the next 3 years we will see a DEPRESSION – especially if the pandemic is not able to be contained. 
Remember in early January at the club meeting I spoke for 90 minutes on my outlook for the economy for 2020 and I stated that no one was discussing the possibility of a recession. I spoke, for most of my talk, that this was a possibility and gave 3 reasons why (one of them was a pandemic).    Gold and oil were the right calls for investment – when the guidance was given.  I am working on a gold project that makes sense and will be watching closely the opportunities that will arise in the coming months and again encourage members to take a much higher portfolio position in cash.  
Finally, I am very pleased to let members know that Mark Skousen, has announced FreedomFest will be held this year at Caesar’s Palace Hotel.   The dates are July 13 to 16 and I know I will see many members at the event.  Remember parking is now free (they had no choice as casinos will have to rely heavily on locals again – but I am sure that, in the case of a full recovery, in the future – when we see 40 million visits again they will forget the locals and charge for parking) 
To see a complete list of speakers, ticket info and the agenda go to  

In Mark’s words, 
Be safe members!
Michael Lathigee 
Investment Club of America President

Disclosure:  I am not a licensed financial advisor.   Any action step you take as a result of my writings is at your own risk.  I have no person benefit from any of the guidance I provide above including if you buy tickets to Freedomfest. 

May 22 update: Mayor Carolyn Goodman
May 24, 2020

May 22 update: Mayor Carolyn Goodman’s comments to CNN’s Anderson Cooper last month reportedly damaged Las Vegas’ chances of hosting the NBA upon resumption of its season.  The league was clearly concerned about her comments according to a report from The Athletic.   This video was not about the argument “for” or “against” the reopening of Las Vegas, but rather Mayor Carolyn Goodman is an embarrassment to our city when she speaks and should refrain from comments that have no factual basis.  Since this video has been made there is now a campaign to Recall Mayor Carolyn Goodman and unfortunately to save her political career she is trying to make it seem that it is a ‘fight for those who wish to open the city versus those who want the City to remain closed”.  That is not the issue at all as many people who wish the city to open asap simply do not wish her to be a spokesperson for the cause and in fact would appreciate it she made no further comments.  The situation with the NBA is just one example of the damage she has done that will cost the city many millions of dollars.

To those watching this video. 
Our Mayor has caused profound embarrassment to our city – on a National and International Level.   She has shown her complete disregard for the citizens of the very City she is supposed to lead – and we call for her resignation. 
Even if you don’t live in Las Vegas – please consider supporting a “wake up call” to, not only Mayor Goodman, but to all politicians – that they will be held accountable for their words and actions.
What politicians say (particularly in today’s tech age, where Citizens are able to communicate, organize and mobilize) can and will come back on them.
It may even effect undesirable (for them!) change.
I hope this note finds you.
May 20, 2020

It’s been a long time since I’ve seen you.  I hope this note finds you well.  I have not been able to attend your meetings of late.  However, I have enjoyed them in the past and always learned something very cool!

I received your email this past Wednesday & I viewed your video from sometime in the fall.  I cannot even begin to tell you how heart-wrenching it was for me to hear you explain what has happened throughout your ordeal with the BCSC.  It is so sad for me to hear and when you spoke of your son and your mom I just lost it.  My heart just went out to you.  I really am so proud of you in standing up and being so willing to give full disclosure about it all – including the personal things.  I know the members who have stuck by you all this time really must have appreciated and further admired you for it.  I was there with you in spirit, as I had seen or heard things along the way, but knew from my past interaction with you that there was more to the story than we knew 

I know how hard you have strived to make this club the greatest thing ever and I’m honoured to know you even within the context of such a miserable situation.  I DO know that you are tough and I do agree with your belief in NEVER NEVER NEVER Give Up so I know that one day you will recover in all ways.  No matter what the judge says, regarding these financial ‘affairs’, you have many friends and family who will always stand by you and in the end – that is what is most important.

God will bring you through this and the members will hold your post for you while you have to take a step back.  I’m sure Steve Hawks will help you in all ways, as well.  Just take deep breaths and know – this is all for some purpose.  You show people what honour and integrity look like – no matter what.  

I do hope I will see you again one day and that I will have the ability to participate in one of your great investments.  I’ve always been a good judge of character and I absolutely would trust you with my money.  Now I just need enough to let you try!   I’m actually getting pretty close.  Things are definitely improving.

Until then my thoughts are with you, Celeste and the family.

I wish you the best Mike ……

Karen Mahoney

The Stock Market collapsed today – Here is what I should do next.
May 13, 2020

Over the last several weeks we have seen a total disconnect between “Main Street” and “Wall Street”.   With the huge surge of bankruptcies, we will see in the coming months a massive GDP nosedive and it made no sense why stocks continued to move up with some “bonehead” analysts even calling for the stock market to hit new highs.
The last few days we are starting to see a sell off and other than specific stocks that would prosper during the covid crisis it remains most prudent to retain a huge position in cash and 5% to 10% of your portfolio in gold.
As members are very aware, I have advocated increasing your position in gold especially since this crisis has begun.   In fact, gold has been the best performing asset class and even on a day like today where the Dow is down over 500 points, gold is up.   In fact, all sectors are down and the only “green” on the screen is gold and some gold stocks.   For those of you who increased your position in gold, congratulations – you have done well and for those members who have not, it is still a prudent investment as a hedge to protect your portfolio.
I remain more convinced than ever in gold as an investment due to the fact the government and Fed will provide more stimulus to support an economy battered by the virus.    The Fed, in fact, announced it is buying bond exchange traded funds for the first time ever and so – with more stimulus members should own more gold. Today the US central bank started purchasing shares of ETFs that invest in bonds. The Fed is doing this to improve market functioning due to the pandemic.
Again, as a reminder – gold benefits from all these stimuli because it is considered a hedge against inflation and currency debasement.  As we talk more about a 2ndwave of global infections this will show strong support for gold.  Gold is up from approx. $1500 an ounce to over  $1700 an ounce since the beginning of the year.   If we see a market catastrophe, I see the price moving much higher which is exactly why all members must own it.
There is a large selection of ETFs with a focus on gold and large gold companies to select from.  Stay away from exploration companies as there are many gold producing companies that, in my opinion, are undervalued and exploration companies are not a risk you have to take.

Here are the key indicators that I am watching closely to see what happens in the coming months:

  1. A vaccine for Covid 19:  Lots of players are spending billions chasing the cure.   Likely not to see success until late 2021. Even when a vaccine is found it will take a few years to vaccinate a global community.
  2. Fed stimulus:  This is always the most difficult market condition as it is artificially created and prevents me from knowing what will happen.  If the Fed throws unlimited stimulus at the stock market and the economy then “yes’ we will likely see stocks continue to sustain value but please realize this is artificial demand and why, again, I believe gold is the safe haven.  However, when stocks move up investors tend to show less interest in gold, and this is always a major problem that gold has – with skyrocketing upwards.   I believe the Central Bankers hate to see gold prices rise quickly as it means less confidence in the overall economy.
  3. Oil Prices: I believe oil remains a good bet because the major companies cannot make money at these prices – even after the large percentage move up in oil prices over the last few weeks.   If we see success in reopening the economy then oil prices will move much higher; however, you know my new favorite word is “boneheads” and I hear these idiots saying, with confidence, that in the next year oil to be back above $100 a barrel.  The odds of this happening are remote, and the possibility of a 2ndresurgence of the virus will continue to keep downward pressure on oil.    (Billionaire Naguib Sawiris from Egypt, is calling for oil to hit $100 in 18 months or less)
  4. US China Tensions:  Phase 1 trade negotiations between China and America have had to adjust due to the virus.  This has caused concern that US-China bilateral relations would deteriorate. Another trade war will see huge downward pressure on stock prices.   Trump in his typically unpredictable manner (and possibly after a bad night of sleep) could decide to wage trade war with more tariffs on China – which would see stock markets fall quickly.
  5. Many retailers will go bankrupt.   A further wave of bankruptcies in airlines, oil, hotels, travel and tourism will result in significant job losses and debt defaults.  This will impact consumer spending – which is the largest part of the US economy.
  6. A (likely) 2ndWave of Covid: As we listen to Covid experts every day almost all are saying there is a (almost) certainty – of a 2ndwave in the Fall after the hot summer months.   I believe if this occurs that, this time, we will have to keep the economy open – but people will continue to change their personal behavior and buying habits which will gravely impact the economy with the major impact being on lower income people in retail, hospitality etc.

Given all these “headwind” forces at play, I stick by my guidance over the last few months:

  1. Own Gold.  Up to 10% of your total portfolio.
  2. Maintain a very large position in cash.  Over 50% of your portfolio and consider higher.
  3. A small position in oil that will likely continue to rise to higher levels.  This is a trading position in which to take profits on gains.
  4. At the club we will be looking at Real Estate opportunities in the coming months; however, the big caveat will be – if the Fed stimulus is able to prevent deflation and an asset blow up.  If so then the Real Estate opportunity may not be what we hope for – but current owners of properties will be happy.    I see commercial real estate property values collapsing and this might be an area we look at.

Finally, I just don’t understand where some so-called experts get their information from.   I have never been a fan of Goldman Sachs for many reasons, but they are expecting US gross domestic product growth of 4% in 2021 – and are very bullish on a market recovery.  Whenever, Goldman says this to the masses I am suspect behind the scenes they doing the opposite.  Remember – they were telling people, in the last financial crisis, to buy subprime debt while they were selling it out the back door.    Goldman Sachs is probably the best politically connected company in the United States with countless Washington insiders.  I would love to be a fly on the wall during some of their high level executive meetings.
P.S. There is one good thing about COVID-19 and that is the fact that “ambulance chasers’ (personal injury lawyers) have cut down on their advertising due to the fact the majority of Americans are driving much less.   However, I don’t see Ed Burnstein, Adam Kutner or Glenn Lerner in a food bank lineup…….yet.

Please forward this message on through your social media channels.

May 12, 2020

In these troubled times it is good to get some great news.
The oil project is very well positioned going forward and the TransAtlantic team stated several times that a best case scenario – is an oil recession – which is exactly what is occurring at this time.
Like all of you, I am keen to watch the management team perform and, unlike so many other investments, we are confident all club projects “will see their way to the other side” of this economic hardship.

Trans Atlantic Investors,

I hope this finds you well – considering all that is going on in our country. Since we last sent an update many parts of American have been shut down due to COVID-19, unemployment is at 14.7% as of this writing, and oil futures went to -$37.63 at their lowest point. These are unprecedented times for the entire world.
We are consistently monitoring the global landscape to assure that TransAtlantic is strategically positioned to capitalize on these events.

Below is an update on TransAtlantic, its current holdings and how Management has positioned the company.

  1. TransAtlantic is over 99% in cash. The significance of this cannot be overstated! Our cash buying power is considerably compounded due to depressed energy prices. It would be nearly impossible for TransAtlantic be in a better position than it is in right now. We are at the beginning of an energy recession with a pile of cash ready to take advantage of the right opportunities.
  2. The Fund holds positions in the Keetch, Barton and York (10 wells) fields. Last month the Texas refiners (buyers of all product) cancelled purchase contracts with nearly all operators because of the lack of demand for gasoline due to the COVID shutdown.
    Ground based storage facilities are full with an over supply of product, wells are being shut-in throughout Texas and rig count is consistently dropping. This affects the wells we own positions in. The operators have chosen not to shut-in these wells as it not economically feasible for the long-term. Additional storage tanks have been moved onsite and a new buyer for the product has been secured.
  3. As stated in the previous update, Management is focused on acquisitions of producing fields and has set aside drilling prospects for the time being. We expect opportunities to start presenting themselves this month and next – and for that to last for the next 6 months, possibly longer if the turmoil in the energy market remains or increases.
    Thus far, operator bankruptcies have been minimal, but as bankruptcy filings hit their stride, opportunities should be plentiful. We have already had conversations and/or evaluated numerous acquisition prospects so we are in the position to respond quickly when the right opportunities present themselves.

As TransAtlantic shareholders, you have every reason to be optimistic about your investment. It is a rare occasion to be flush with cash at the beginning of a recession. Management is making every effort to wisely deploy cash in assets that are lucrative for many years to come. Should you have questions you may reply to this email and we can set up a time for a call. Thanks for your time.


Mark Hostetler


TransAtlantic Energy Holdings LLC

D: 702-860-1441


Something that is working well for our club president & he wants you to try it!
May 5, 2020

Like everyone, I was suffering with the “stay at home” orders & with all gyms closed – I was unable to get my usual exercise. This coupled with a continuing heavy workload had definitely increased my stress level. Feeling stressed and out of shape I ran an ad on craigslist to hire a trainer and had many responses.    The best candidate was Forest McDermott.  He has now been with me for 12 sessions and he trains me 3x a week for 90 minutes each. 
This guy is really good at what he does ….!

As I always disclose I have no vested interest in this referral other than “you are part of my tribe” and if something works for me I share it.  
Forest charges $75 for 90 minutes and COMES TO YOUR HOUSE.    
He is professional and knowledgeable.  Frankly. I am so confident in Forest that I will go so far as to say – if you are not happy, after a few sessions with him, I will cut you a refund check personally. 

I often times will push members out of their comfort zone by saying “start now”. In this case, whether it is 1x a week or several times a week – start now!   Health is one of the 4 pillars of the club and I want all members to live healthfully for as long as is possible.    I know many members don’t live in Las Vegas but I still encourage you to look at taking such an action step as hiring someone as your personal trainer.   You are all part of my tribe and I want you all to “live healthy”.  

Don’t be shy if you have not worked out in years because Forest is trained to help all members. He is aware many members are over 60 years of age and this is an area in which he specializes.
Below is some info about  Forest and a picture of both of us after my work out with him last night at my house.

As an ACE certified personal trainer Forest focus was mainly on athletes and bodybuilding competitors. 
As a body builder he competed in a number of shows while living in Hawaii. 
We all know that as we get older our bodies change and with that so do the things that matter to us and our personal goals. 

Becoming a firefighter and natural aging were the two main reasons he quit bodybuilding and went to functional training.
It was with the realization that, in order to live a better life and reach his goals, his training would have to change. 
So he switched to functional training; however, his main focus for clients is the same. That is that we should make the one body we’ve been given the best it can be.
Forest admits that he was extremely fortunate to be the son of a chiropractor/acupuncturist/masseuse and been exposed to a health directed philosophy at a very young age. 
Paired with a vast knowledge in nutrition and dietary needs he brings a comprehensive plan for clients.
Having lived an extremely athletic lifestyle, he’s also had many injuries and knows how to work with them, around them and in many cases heal them. 
He is also a certified EMT and has his BLS (aed/cpr) card, so his knowledge isn’t solely based on sports training, but also on training from the medical vantage point.
Currently in the hiring process with Las Vegas Fire & Rescue his long term goal is to work with Las Vegas Fire & Rescue, serve the community, and continue his training for clients. 
His primary training clientele are individuals like himself who are 40 and over, actively involved in creating a healthy lifestyle and maintaining a fitness and nutritional program that will allow for a healthy body and mind which in turn will provide an overall better life filled with longevity and much more active, and meaningful, years!!

April 19, 2020

From the desk of Mike Lathigee
Sunday, April 19, 2020

We are seeing economic devastation not witnessed, to this degree, in our lifetime.  GDP has fallen off the cliff.  Although the Fed has flooded the market with liquidity to avoid deflation, I am very concerned that we will not see a vaccine any time soon.    The American stock market keeps moving up and is behaving like it is in a bubble separated from reality and not part of a global economic system (of economic pain).   Idiots on CNBC continue to say, “buy on dips” and “great buying opportunities”.   How can these money managers make so much money and be so completely clueless?

It is insane that the S&P 500 is now trading at 18.5x next year’s earnings.  That’s right – the market is not even considering 2020 earnings but trading on expectations of 2021.    SORRY I HAVE TO WRITE THESE WORDS, “I CANNOT BELIEVE THIS IS HAPPENING”.   Even if we were to recover, and that is a big “if”, there will still be massive bankruptcies and unemployment will not likely return to low levels for at least a few years.   The stock market is fully priced in a ‘recovery’ and there is no upside at all to invest at these levels unless you are a great stock picker – which few are (most investors cannot even read the complicated financial statements). RUN FOR THE HILLS AND TAKE ALL YOUR MONEY OUT OF THE STOCK MARKET!!!  THE RISK/REWARD IS TOO HEAVY ON THE SIDE OF RISK!!!

The only consideration for staying in the stock market is that the Fed keeps printing money and they may soon start to buy stock.  If this is the case then we could see higher stock prices but I would not want to take that gamble and I think Small Business America stimulus should take priority over the “Wall Street Crowd”.

The Fed might be successful due to the fact it has an unlimited budget to print money. Last week it was buying ETF’S with exposure to the Junk Bond Market.  That is right, the Fed was buying JUNK BONDS and once again bailing out the superrich while Small Business America (SBA) loans run out of money with only a fraction of the businesses getting funding.

Remember members I have been SCREAMING FOR 5 YEARS ABOUT THE SHARE BUY BACK SCAM!   I now only hear commentary, on a regular basis, about this self-dealing form of racketeering.   Very few people were talking about this situation for the last several years – but this was a common theme of the Investment Club of America.

Then in January I did the Annual Outlook Presentation at our monthly club meeting and I said GET OUT OF THE STOCK MARKET COMPLETELY.  It was a 90-minute presentation and I talked about 3 reasons why we could see a Recession. I said a Recession was unlikely – but more likely than anyone else around the world is talking about.  Further, I have been also SHOUTING BUY GOLD, BUY GOLD, BUY GOLD, and that has been the number one performing asset class over the same time frame since the club meeting in January.

Money managers are still making tens of millions, or more, even with poor results!   Bloody ridiculous system!  At the same time these bastards enriched themselves with share buybacks and used all the free cashflow of the companies they were running. Now they have their hands out for government bailouts.   Just look at the top 6 airlines using more than 98% of their free cash flow on share buybacks and then, when the pandemic hit, they have no money in their coffers and ask the American Tax Payer for $60 billion (to start and more later).  I say “let them fail” and the American Tax Payer should receive equity at today’s valuation for any money given to these companies.   You will be sickened if you look at the massive bonuses (in the hundreds of millions) these executives, at the major airlines, took over the last 10 years and of course none of that will be liquidated for their irresponsible management decisions.

The probability of a stock market collapse is higher than it has ever been.   As I said in a blog sent last week – you can “trade” this market but being “long” you will have a high probability of being wiped out – with the exception of gold.

If the virus is not contained and the economy is reopened – only to be shut down again – the Fed will have no tools left in its arsenal AND WE WILL SEE A DEPRESSION that will be the GREATEST DEPRESSION EVER!    Again, own 10% precious metals in your portfolio and hope that it does not move up too quickly as that will likely mean a collapse of almost every other asset class.

Yes, let me write it again, I am saying – buy gold – but hope it does not go up too quickly as that means all other assets have collapsed.  Remember it is an insurance hedge for your portfolio and now you need that more than ever!!

A few weeks ago, I suggested an oil trade that did very well and then in a subsequent blog I guided members to take profits and move on.  I am watching oil closely as no energy companies can exist with oil prices this low. There will be many bankruptcies and in 2 or 3 years I believe those who invested in the best oil stocks will see triple digit gains.

Investments in oil at these prices are attractive – but individual stocks are still too risky.  Eventually oil prices will rise, and the best capitalized, best run companies will reward investors.

My most important guidance however, besides OWNING GOLD is to “hoard cash”.   There is going to be tremendous opportunities in many asset classes especially Real Estate as the Asset Bubble has blown up.   So, Hoard Cash!!!

I am also closely watching Insider Buying and Insider Selling Reports.   This is not the only tool that should be used when trading, but it is very important. When I see a CEO “buy” or “sell” a massive stock position it gets my attention to do some research.
I am writing more than ever in the history of the club because we cannot have club meetings.  This is the way I am staying connected to “MY TRIBE”.   I care about the membership and know I am doing all I can with all we are involved in to ensure we get through this.  I believe we are much better positioned than the vast majority of small businesses.

P.S. Members if you find this info useful please post it to all your social media platforms.  We think our message is important and the proper guidance that investors need.

Please see link below for easy posting?

Finally, I just do not see how we are able to completely get out of this catastrophic situation – with so many other countries around the world unable to control the virus.  Brazil, Indonesia, Thailand, Nicaragua, and many countries in Africa to name just a few.  Will the United States have to close its borders until there is a vaccine because visitors from these countries will not have proper safeguards in place?  We shall see – but in our hometown of Vegas we are unlikely to see many international visitors for at least a year and I believe Nevada may see a set back that hits us harder than the ‘Great Recession’ of 10 years ago.

ICOA – Sad news: Investment Club loses one of its own. GUIDANCE ON WHAT TO DO NOW!
April 15, 2020

I start this update with sad news.  Freedom fighter, Marcus Mumford, who spoke at a club meeting, a little more than a year ago, has died suddenly (yesterday) at the age of 48.    Marcus fought successfully against the unlimited resources of the Federal Government.  He defended clients in three cases in a row against the Federal Government – and won.   The Federal Government wins 98.6% of all its cases and it was statistically less than 1 in one million that Marcus could accomplish such a feat.    Marcus had an uncontrollable stutter which made such an accomplishment even more impressive.
After Marcus’s success, the Federal Government worked hard to have Marcus disbarred from practicing law, on unfounded accusations, and were successful against him in a few States.  He died an American hero standing up to the tyranny of the injustice that exists in our judicial system.

Today, I spoke to a club member who, like many of you, is also a friend.   He said, “During this pandemic, in the real world – people are dying, in the real world – there are unprecedented bankruptcies. It makes no sense that the stock market continues to move up – disconnected from reality”

He is right!   The stock market continues its almost daily rally as if the coronavirus will quickly pass and the economy will recover in short order.

There are too many unknowns that investors are not factoring into stock investing at this time.    The market has retraced approximately 50% from its lows.    Earnings season is fast approaching and the results will be catastrophic.    Today Apple led the stock rally – yet there seems to be no consideration for a consumer that has been gravely hurt or is unlikely to pull out his wallet to buy the latest version iphone.  Do you think Apple will sell many iphones to India – which has been completely on lockdown for a few weeks?   Yet I hear “money managers” say that now is a good time to buy Apple.  Complete Idiots!!

Day trading and swing trading make sense to me and I believe there is a lot of money to be made.  Most people are not trained in these skill sets so this is not a strategy I recommend to members unless you have experience.   Investing for the long term at this point could work but only because the Fed has moved its 2009 philosophy from “Too Big to Fail” to its 2020 philosophy of “Nothing will Fail”.  In other words, the Fed has decided to flood the economy and force feed as many dollars into the market as is necessary.

Today I watched on CNBC (sorry to admit that sometimes I watch this station …. long explanation and members have often heard me voice concerns). The CEO of Cheesecake Junior Restaurant in NYC received $5.5m in PPP Government Loans.   The CEO was asked if he was going to pay his staff as per guidelines of the loan and he said “no”.   He said he would use the money for necessary steps to reopen the restaurants and would only start using it for payroll purposes once the restaurant was not only opened, but guests were returning at previous levels.     In other words, “ I will do what I want with the money and not what the government tells me to do” This was a tell tale sign that the government is handing out money with guidelines that a large number of businesses will ignore and I am sure the comments of this CEO unintentionally convened fraud.

At this time anyone buying a “long position” in the stock market is gambling.   There is a good chance, due to the Feds nonstop running of the printing press, that it will “fool” investors into thinking that we are returning to the glory days of another secular bull market with low interest rates and companies using most of their free cash flow for share buybacks – but there is one consideration every investor must heed and that is – if we “reopen the economy” and the pandemic reoccurs with another shut down – the Fed will no longer have any tools left and all asset classes except gold will collapse.

For the last few years, I have been urging members to hold a position in gold.   The last few weeks I have been “pleading” with members to take a position in gold. Those who listened have now invested in the top performing asset class during this same time period.    I recommended members buy physical gold and silver in the past – unfortunately that is no longer possible as any dealer I have contacted is “sold out”.   So that means the best way to own gold now is through an ETF – as most investors are not equipped with the skill sets to analyze individual companies.   GDX and GLD are two options for ETFs.     For Canadian members the best option is CEF where you can actually take your position in physical gold and Sprott Assets Management is a company I respect in this industry.    I know I just said for members not to buy individual companies but Barrick (symbol GOLD) is the world’s largest gold producer and PanAmerican Silver (symbol PAAS) is one of the largest silver companies and I have confidence in both these companies.    I mentioned these companies only because I know members will ask me.
So members the guidance I have given to guide you through the last several weeks has been accurate.  I know that all that matters is results and my guidance has shown to provide the best results.
At the January meeting when no economist, financial analyst, media etc was discussing a possible Recession, I discussed for 90 minutes on stage at that meeting three ways a Recession could happen in 2020.   I told members to take gains and lessen stock market positions to a small position or completely liquidate.   Those who followed reached out and have said “thank you”.   Some did not and all I can do is deliver the message.  AGAIN, THERE WAS NOT A SINGLE ECONOMIST TALKING ABOUT THE PROBABILTY OF A RECESSION IN 2020 BUT AT THE INVESTMENT CLUB WE DISCUSSED THIS IN DETAIL AND TOLD MEMBERS TO PREPARE.
A few weeks ago I wrote in several articles to OWN GOLD, OWN GOLD, OWN GOLD.   Some listened and some did not.  Gold has been the top performing asset class and again I am saying OWN GOLD as insurance for your portfolio and bring the position to 10% of your net worth – up from my previous guidance of 5%.

Here is the outcome I see in the economy:

The Fed will take all steps to ensure we don’t see deflation.   The Fed has bought tens of billions in Municipal Bonds, Assets Backed Securities Etc.  If the Fed is successful, which has a high probability, then we will see a recovery in the stock and bond market but not based on true fundaments but rather massive liquidity injection.   God help every owner of assets if the economy reopens and then the coronavirus reoccurs without proper testing in place.  We will see a DEPRESSION and the Fed will have no tools left.
So it is likely the Fed will be successful and all assets classes will rise but if the Fed is not successful then all asset classes will fall and the lone survivors will be those who held gold.  As I have told members many times – if gold were to increase to $5000 plus per ounce that only means all your other assets have collapsed.  Real Estate, stocks, bonds etc.  Do you now understand why you must own Gold and to a lesser degree silver?
Members – What strategy am I am looking at for the club members to prosper in this environment?   For those who recall 3 years ago I debated with the CEO of Boyd Gaming, Keith Smith (who spoke at our club meeting) – stating that the economy in Las Vegas was not diversified enough and would again lead the collapse of all States as the economy in Nevada  is based on consumer discretionary spending.  He went on and on about how the economy was diversified and Nevada was now in a strong position and I held steady and respectfully said he was wrong.    Now all reports coming out are saying Las Vegas will be the hardest hit city in America with the highest percentage of unemployment claims etc.

So here is the opportunity as long as the economy does not shut down again.  EVERYONE HOARD YOUR CASH!  CASH IS KING!   Unless commercial and residential landlords are bailed out – by the Federal Government we are going to see very attractive cap rates again – similar to 2010.   There will be a glut of properties hitting the market.   We will consider a Real Estate Fund when the timing makes sense and see how things unfold but for right now HOARD CASH, HOARD CASH, HOARD CASH and get ready to mobilize funds for the coming opportunity.
Yes you can “trade” in the stock market but don’t take any “long positions” Don’t listen to money managers as they are always motivated by “money under management” and 99% of them have caused you massive damage by their “buy and hold strategy” in the last several weeks.   I have said too many times, “these people are the most overpaid, undertalented so called professionals in the World.”    I don’t know who I despise more – money managers who can make tens of millions while you lose money or lobbyists on Capitol Hill who act like sociopaths – with no consideration for the American people!
Members – there is no “sugar coating” I call it the way I see it!!

Caveat: Members, The current economic retraction will be the worst since the 1930s but the Fed is fighting hard.   Even with the force feeding of money by the Fed it is likely inflation will remain close to zero.  This is a fact that works against gold, but I remain bullish.   The main catalyst that will propel gold to much higher levels will be a much lower US dollar and again, because the majority of members hold all their assets in US dollars, gold has to be used as an insurance hedge for your portfolio.

Conclusion: Members, if you buy gold and it declines that is fine because it likely means the rest of your assets have maintained their value.  However, if gold increases by several hundred percentage points then it is likely all your assets have collapsed in value and this is exactly why you need to own it as insurance for your portfolio.  

ICOA Message from the desk of Mike Lathigee / Inflation is the likely occurrence & what members should do to protect themselves
April 10, 2020


I have come back from a long day of meetings having been updated on what is happening in the economy. I want to encourage members to increase their position in gold and silver to 10% from my previous guidance of 5%.
For those who followed this guidance – gold futures are at a multiyear high today and I am glad you followed this guidance.  For those who followed my guidance (from my writing of 2 weeks ago) by buying an oil ETF – you have outperformed the markets by a wide margin. At this stage it would be good to take the profits on this trade, which are significant, and move on – as the risk/reward is no longer worth holding the position.
Given the fact that it is hard to purchase physical gold and silver at this time, as all the mints are closed around the world and dealers have little physical coinage on hand, investors are left to buy “paper” in the markets.
As members are aware, I have always advocated possession of physical gold and silver but that is not possible at this time. Physical gold and silver are now trading at a large premium to the actual spot price – which is very bullish for gold and silver.  For example, an American 50 cent piece spot price is approximately $5.5; however, right now – dealers are selling it for $7 plus.

I believe the Fed, with its mammoth stimulus package, will “print all the dollars necessary” to save the stock market.
(I am sure Trump and Powell are best buddies now!)
The Fed Head, Powell, actually said in an interview today that “inflation is not a concern” and the Fed will buy all assets backed securities that require support.    As a result, the Fed has indirectly opened the flood gates to much higher gold and silver prices.

I believe with the unlimited printing of paper money that the stock market will now be “saved” but it will come at a price of less confidence in “fiat” currencies.
Every Federal Reserve Bank is following a similar path and it is inevitable that gold and silver move up.    Those who were buying prior to the Fed Head interview today and ‘gambling’ – frankly you gambled right – but you were speculating and it was not based on any economic data and it was at best a 50/50 crap shoot.
All I can say is if you were buying (the last 3 days) you were lucky that Fed Head “saved your ass” because there was no economic data to support going into the market, and taking a ‘long’ position, until FED HEAD, Powell’s update.

Today the Fed announced another 2.3 trillion dollars stimulus/lending program to support US states and cities ravaged by the coronavirus.   I just cannot see how this gargantuan force feeding of money into the market cannot cause inflation and in turn – higher precious metal prices.

Disclosure: I have no personal benefit by giving guidance to members.  I could be wrong!    I am writing this because I know to date a minority of members do not even have any position in gold and silver and I am following up to encourage members to use the catalyst of today’s FED announcement to take at least a position in gold and silver.   Talk to your financial advisor or you can buy an Exchange Traded Fund like SLV or GDX.    Individual stocks have more inherit risk but Barrick is the worlds largest gold producer and trades at only 8x earnings.     For silver stocks, Pan American Silver, is one of the largest silver producers in the world and has lots of cash in the bank, proven reserves and a world class management team.
Again, I have no personal benefit for any guidance given other than – this is the way I see it ….

In the past I have always told members that precious metals are simply a hedge in your portfolio in the event every other class falls due to a catastrophe – such as a collapse in the derivatives market.

However, it is very possible, with the Fed prepared to buy almost every type of security, and there is even talk of the Fed buying stocks, we could be in a very rare situation that all assets classes move up.  But gold and silver will out perform because gold and silver are priced in US dollars.

Don’t overdo it with silver and gold and again 10% is certainly overweighting which makes sense, at this time for your portfolio.  I know the vast majority of members, over the last 2 years, have bought gold and silver (through the many interactions I have had with them) but if you don’t have any gold and silver – this is definitely time to take a position to protect your portfolio.

Finally, members, the information I am sharing – is about trying to help “my tribe”.
I ask that you share this narrative on your social media in hopes of helping others.
Below is the link.

The club guidance has proven to be accurate.
April 2, 2020

The club guidance has proven to be accurate.

For example, the oil guidance has already proven to be a strong “win” for those who executed the trade.
But remember – this is a trading market and taking quick profits and getting back into cash is a prudent strategy.

For the most part it does not yet make sense to sit “long term” in any position until we have more economic indicators.
Beyond comprehension is listening to money managers (the last few weeks) as they discuss buying stock positions on dips like Apple – when a huge part of the world economy is shut down!

As I have said many times before “Money Managers are the most overpaid, undertalented, “professionals” in the workforce and the vast majority of their guidance over the last several months would have left you reeling with heavy losses.

Remember at the club meeting in January the discussion was:
The market is overvalued.
No one was talking about a Recession then – but we discussed 3 ways a Recession could occur and the guidance that night (and the last 18 months) has been to have little (to no) exposure in the stock market.
We are not trying to “toot” our own horn but we are saying that the club presents guidance that, more often than not, is not available in the popular media .

One of our objectives is to grow the club and we ask that members consider forwarding a few posts (below)
– on social media & help the club get more exposure.

April 2, 2020

March 31, 2020.
I received more feedback after yesterday’s narrative than any other one I have written.  There were many comments and the number one question was – Is there anything that can be done, in the market, to make money? – or another way of putting it – Does any trade make sense right now?

I am not a licensed advisor and I have no benefit personally from what I am writing – you could make or lose money
but here are my thoughts….
The Fed is flooding money into the market to save the economy.   There is no limit to the amount of money that will be printed to create liquidity and prevent deflation.  If they are successful the market will fully recover and the bull market run will continue.

The stock market is a future prediction of where the economy is heading (generally) in 6 months.  The market seems to be betting on recovery and I just don’t know.   If an investor bought a Dow or Nasdaq index fund it has already moved up considerably since its lows so the opportunity is missed.  However, if you want to “play” the market more conservatively then a good strategy is to buy an oil index fund that moves up as the price of oil moves up.   Oil is close to an 18 year low and it could certainly move lower but I believe the risk/reward scenario makes sense at this price.  Therefore, if you believe we will recover and wish to make a more conservative bet – then a bet on oil, I believe, has limited downside and if the economy improves in the coming months it is highly likely to see much higher oil prices – and your investment has done extremely well
(with, likely, large double digit gains).

Again the risk/reward scenario with oil makes sense to me because “the bad news is priced in” and it has not yet moved upward like the general stock market from its lows.


For full disclosure, for reasons members are well aware of – I don’t have a brokerage account and, although this certainly is a trade I would do, my personal situation does not allow me.

March 31, 2020

March 30, 2020.
“Confusion” that is the word that I am using to describe the stock market today.  Things are making no sense to me with the way people are investing right now.  It is apparent that the Coronavirus impact on the economy will be much more dire than anyone originally thought.  I am now hearing the impact could be 25% plus downward pressure on GDP.  Despite this the DOW soared 700 points today which is normally a forecast prediction of what is happening in the economy 6 months from now.  Obviously, there are large institutional players who believe we will see market recovery.   Or maybe the Fed is involved, behind the scenes, taking all the action it can to ensure stock buying happens?  I think we could start seeing, in short order, the Fed Reserve passing new regulations that allow it to buy ETFs – thereby supporting the stock market.  It is already buying asset back securities, at book value, where the asset is not worth nearly the amount the Fed is paying for it.    Who else would buy Municipal Bonds now except the Fed – at full paper value?  Of course, we as tax payers (as always) are on the hook.

I think this is possible … that the Fed could print money continuously at levels no one ever would have imagined in the coming weeks and months.   I think we could see $10 trillion or more in stimulus – and much of this is due to the Fed’s fear of deflation.  No politician will ever step in the way of government spending as they don’t get reelected and – like the Share Buy Back Program – everyone loves it until the unintended consequences happen.   The American day of reckoning will occur when interest rates rise and one day they will and almost all tax dollars are used to pay for the debt and there will be no money for healthcare, infrastructure, defense etc etc etc.

I am starting to think that a good strategy is to devalue the dollar by printing endlessly and therefore 30 trillion in debt is worth much less because the dollar is worth only a fraction of its previous value.   The US dollar is the Reserve Currency and the economic system would collapse if the US dollar collapsed; however, the Fed is fighting against Deflation at all costs and will print money in an unprecedented way to ensure the battle is won.   Also, there are too many stakeholders, around the world, that will ensure the US dollar does not collapse.

As Americans I am sure we should not hold all our money in US dollars – but, other than Gold and Silver, I am not sure where else to diversify at this point – but will keep you posted.  Other Fed Reserve Banks are always printing non stop to prevent a deflationary cycle but, all combined, not even close to the US Federal Reserve.

Although the Saudi Arabia/Russia oil negotiation breakdown had an effect on oil, it is not the sole cause for oil to be at under $20 a barrel today.  This is an 18-year low and the oil market is behaving more like what we would expect and that is the fact that – there will be a massive decline in oil demand due to a predicted Deep Recession by the oil market.     The oil market is behaving like we are going into a very deep Recession and the stock market is behaving like “this is a bad snow storm” – that will pass quickly.

Shockingly, despite all the bad news about the Corona Virus that includes nations around the world (that will not be able to mobilize to fight against it – because they have no budget to do so) or countries like Brazil where the President said, “People will die but we are not shutting down the economy”. We saw gold and silver show weakness today.  Again, this makes no sense – but I can tell you that the last thing the Federal Reserve Bankers around the world want to see is the price of gold skyrocketing as that would mean a total lack of confidence in Fiat Currencies and a possible total breakdown of the economic system.

So, what to do.  I stick by what I have been saying:

  1. Hold at least 25% in cash.  CASH IS KING RIGHT NOW!  The asset bubble is likely to blow up unless the fund keeps flooding unlimited dollars – which it intends to do.   Not sure what will happen but those buying Real Estate, stocks or any other asset right now are playing a high risk/reward game.
  2. Make sure gold and silver constitute 5% plus of your total portfolio – as an insurance hedge.
  3. Don’t jump into the stock market because there are few economic indicators available (and investors are buying blindly with no updated economic information) It is possible the stock market could continue to make gains as the Fed runs the printing press nonstop – but we could also see a massive sell off on the DOW again – of a few thousand plus points or more.   No one is saying it, but if the Fed does not win against Deflation, we could see a DOW under 15000.   I don’t like these odds of investing in the stock market right now – as there are not economic indicators. This is the reason investors should sit on the sidelines, in cash, until we have more information.

One other important point is the volatility index is over 30.  That is sky high and buying stocks today is a “crap shoot”.   At the very least if you are buying stock ensure you have stop losses in effect as things can turn very quickly.

So, waking up tomorrow we could just as easily see the DOW up 1000 points as down 1000 points.  I live in Vegas and even I don’t like those odds.   Govern yourself carefully!

The Economic and Social Impact of the Corona Virus and Special Action Steps to Take:
March 27, 2020

While events continue to evolve – at an alarming rate –
Mike conveys his uniquely candid perspective
& elaborates on the state of affairs
as of March 24th.
Based on his undertanding – at the time – he looks into the near
and mid term and provides possible
(& in some cases probable) eventualities.

March 26, 2020

I believe the (most) material update over the last few days is the fact that the coronavirus is showing no signs of being able to mutate quickly.  My greatest fear was that – over the next year to 18 months a vaccine is created but the virus mutated to a point where that the vaccine does not assist us and we are back to step one again with a new pandemic and a much deadlier mutation.
All viruses evolve over time, mutating as they replicate (imperfectly) inside a host’s cell in tremendous numbers and then they spread through a population, with some of these mutations persisting through natural selection.  More good news is that the virus appears to be the same as when it started in China.     Therefore, it appears a developed vaccine would be a single vaccine, rather than a new vaccine every year like the flu vaccine.   However, we are (according to all scientists) at least a year – before a vaccine is developed.
It is likely the high number of deaths in Italy is because of situational factors, such as an older population, hospitals being overwhelmed, shortages of ventilators etc. rather than a mutation.   This is heartening news, especially given that other viruses can be quick to mutate – such as the common flu – which is why a new vaccine is required every year.

This information was not available during the last economic guidance I released and therefore I would like to update:
– due to the fact that the virus will not mutate I am confident we will not enter into a Depression.  If the virus could mutate, I believe the economic system would shut down again and all the economic stimulus (by the Feds) would have been to no effect and we would have an economic collapse without the Feds in a position to assist. With no liquidity we would see a Depression that no one alive has experienced unless you are approximately 95 years old / plus. 
– I did say hold 50% in cash a few days ago and that is still a conservative approach but now with the confirmation that the virus is not mutating it is ok to lower the cash holding but at the very least I would hold 25% in cash and remember “US DOLLARS” are a prudent holding at this time.   I believe we are definitely going to see a Recession and the big question is how long will it last?
– I still believe members should hold 5% in gold and silver.   Physical gold and silver are very difficult to buy and I have now verified this with a few people in the industry – so you are stuck with buying stock. To keep it simple – buy sliver and gold ETFs.   Again, if the economy rebounds and we don’t see another business lockdown in the coming months it is likely gold and silver will “go nowhere” but at this point you are only buying it as an insurance hedge for your entire portfolio. 

I believe eventually we will see a positive turn around due to the fact that the Fed is throwing unlimited stimulus at the economy.   The big question will be the impact of massive unemployment and huge numbers of corporate bankruptcies.    For sure we will see a Recession even with all the Federal stimulus and if you did not capture the huge gains over the last 3 days be wary to jump in thinking we will quickly move up to the stock market highs of a month ago.    I think it was obvious that Boeing and the airlines would skyrocket with a bailout and told many people this; however, right now the risk reward scenario is too high to “jump in” without having more economic data.

Remember most of the economy is still shut down (India has 1.3 billion people under lockdown). All of this will have huge consequences on the earnings of large corporations especially those who have a large export segment to their revenue.

P.S. I am having difficulty understanding social distancing.  Today I drove to my local grocery store on Farm and Durango in Northwest Las Vegas. Along the way Loews was packed (more packed then I have ever seen it – is everyone doing home improvement projects?) and the daycare center which is exempted from lockdown had at least 30 young children playing outside with several adults watching them.   Then last night I went to the park with my son Conrad and the park was closed until further notice.   A park is an area where you CAN maintain social distancing.  Where is the logic to all of this?  You can’t go to an open air park but you can go to a packed Loews Home Improvement store?

P.P.S. As well – I am not sure how the virus will be contained in the months ahead when many poorer nations have still taken no steps to contain the virus and don’t have the financial resources to do so.   America, over the months ahead, will get control of the virus but how will they deal with international direct and indirect flights from countries where there are no safeguards in place.  Again I think it is far to early too think we are through this – but the stock market sure is behaving like the “party is back on”.

March 26, 2020

I want to guide members to be very careful in the markets.  The last few days are a result of optimism over the stimulus package that has been communicated by the White House and Fed as:
“We will throw everything at the economy to restart it” .

It is very possible we could return to another secular bull market that lasts for many more years and we could see new highs.  However, what happens if we throw all this stimulus into the market and in the Fall we have another breakout of the coronavirus and have to shut down parts of the economy again or shut down the economy entirely?  That means the stimulus was a waste of taxpayer money and the country will have a debt that we will never be able to pay our way out of. We go 100% into a Depression as the Fed has no more tools.  If they flood with more stimulus then we are starting to look like Venezuela and Zimbabwe.
This will become a whole new level of fiat currency.

My guidance to you is – it is ok to play/invest in the market but do it with a much smaller part of your portfolio.    The markets are not reacting in a manner that indicates the asset bubble has blown up; however, that may be the case.   Make sure to own, as an insurance for your portfolio, at least 5% in gold and silver and if possible own physical gold and silver. If not simply buy the ETFs of SLV and GLD.   As I said on the webinar last night I am getting reports investors are finding it very difficult to buy physical gold and silver.   If they can find physical gold and silver they are paying a premium over the spot price in the market.

If you really want to be conservative and be prepared for risk then own 50% of your portfolio in cash.    US dollars despite the nonstop printing by the Feds is still the best currency to remain invested in.

The battle in the market is the Bulls versus the Bears.  Over the last 2 days the Bulls are winning.   The Bulls believe unlimited funds flooded to buy all asset backed securities and municipal bonds, bailout out small and large businesses and throwing all levels of financial assistance to the American worker – will keep the party going.

I am siding a little bit more towards a Bearish outlook that the coronavirus is not going away any time soon and once earning reports hit, unemployment skyrockets to the millions and other countries are not buying American goods because they are in lockdown we will see another major sell off in the market.  I certainly could be wrong but don’t get too confident in the last 2 days of market euphoria.   Take some of your money off the table especially if you have made profit in the last 2 trading days.

Investment Club of America (ICOA) unanimously demands Congress to cease bailouts.
March 24, 2020

Investment Club of America (ICOA) unanimously demands Congress to cease bailouts. While the economic effects of COVID-19 are not lost on anyone, those effects are especially not lost on ICOA. To date, this group of primarily accredited investors has invested over $30M in over a dozen small businesses, all of which are currently being harmed by the virus that has decimated the global landscape. It is from the perspective of those harmed that we demand Congress to cease any discussion of a bailout to any airline that has participated in share buybacks for the past five years.

The Big Four Airlines
The main offenders to the above proposition are Delta, American, Southwest, and United Airlines, collectively spending $39 Billion on share buybacks to artificially increase their share price, triggering millions in executive compensation and bonuses. These businesses took part in informal collusion to keep their cash positions low (97% of all earnings were used for share buybacks or dividends), knowing that if the market took a drastic turn, their elastic industry would be the first to take a hit. The purposeful nature of keeping low cash positions in an elastic sector was not one of negligence. Airlines know that they will be bailed out by a government that fears their power over the consumer. ICOA urges Congress to understand what the airline industry is doing and allow the free market to replace these business practices.

The Worst Offender – Boeing
If we accept the rational position that the big four airlines cooperated in something between deliberate manipulation and negligence, there is no room for a counterargument from the worst offender Boeing. Boeing is standing on the following proposition for their request for a bailout: Do not touch our dividend or executive payment structure because we would much rather use bailout money.

Boeing is conducting an internal Ponzi scheme, and the Fed gets to fund it.
Within the lack of transparency regarding Boeing’s current request for a $60 billion bailout, Boeing has made one thing abundantly clear; they will not be cutting their dividend. Boeing is borrowing against their high credit rating to support their unsustainable dividend, which in turn supports Boeing’s unrealistic share price (multiples compared across the industry), which, finally, in turn, supports Boeing’s staggering pension fund. Operating in this fashion is akin to building a financial house of cards. Over the last six years, Boeing has returned over $60 Billion to their shareholders and executives through share buybacks and dividends but now expects the American taxpayer to pick up the tab when they have failed to create value for any party involved.

At the very Least Take an Equity Position
If Congress goes through with the various bailouts, ICOA urges the Federal Government to make the offer in the way of a position that is convertible to an equity stake. Not only would this position allow the taxpayers to profit off of the money they are bailing the airlines out with but would also enable the government to establish a precedent that there is a monetary price to pay for treating the American citizen
like a bank account.
Investment Club of America

For an response, inquiry, or rebuttal please respond to the Mike Lathigee (
or Evan Dotta (

You can bet 100% that Lobbyists on Capital Hill are working around the clock to ensure their needs are met.
March 22, 2020

You can bet 100% that Lobbyists on Capital Hill are working around the clock to ensure their needs are met.    They are putting enormous pressure on their Congressmen (Lackies) – (whom they have promised jobs when they retire)  – to do what they say.
You can imagine this institutionalized corruption will come at an enormous cost to small business in America – they getting only a fraction of what is necessary – to survive.

I am betting once again the larger focus of career politicians will be on keeping those companies happy that pay for their re-election – and all other interests are secondary.    After the bailout these executives will get to keep their private jets and beach homes with this massive injection of bailout money and continue the system they control and abuse.

I hope we have enough non corrupted politicians on Capital Hill to put Small Business first on the bailout package but unfortunately I see, in the end, an outcome that we, as taxpayers, will be again outraged by the “well connected” coming in first place.

Look – I am writing a prediction before the bailout package is released but remember I also talked for 90 minutes at the January Club Meeting about a Recession in 2020 and how it could occur.
I did not hear or read anyone else talking about that either.
I said in January — sell off your stock positions heavily as we are in an asset bubble – some listened and some did not.

Once again – I am just preparing members for what I think will happen.
If you want to “Make America Great Again” then outlaw lobbyists and
throw them all in prison.

As taxpayers we must be outraged at what is happening with the bailouts that are about to occur.  Please post this link to your social media site as it calls for specific action steps that we as taxpayers demand.–0tx_RBJXJjZz338vpsHHkllsUeijl9OnXuVB/pub

One of our club members, Brett Gordon, has written an essay about the coronavirus to share with members.
March 21, 2020

One of our club members, Brett Gordon, has written an essay about the coronavirus to share with members.  He did this on his own and he provides a unique prospective that is thoughtful and not being discussed.    We may vary in our opinion with what Brett writes however, it is important that we consider all angles as we come to grips with the changing reality of what is going on.

I want to personally thanks Brett for doing this as he did it solely to assist members during these harsh times.  The club is “my tribe” and members like Brett care about “the tribe”.

Pandemic of Virus or Pandemic of Fear

Why are we reacting like the sky is falling?  Why are governments reacting so violently to this Coronavirus?  Is this pandemic fact based or fear based?  Is it hype or reality?  It’s all a matter of perspective.

Early on in the history of this Coronavirus (COVID-19) (SARS-CoV-2) or “THE VIRUS” each mass media player presented some facts and then hyped the stories into warp speed to ensure they got to the audience before their competitors.  Then as more information and data came out, scientists began publishing experiences and reports.  Then statistics from China and Italy were tallied and compared and with death tolls rising, the “Pandemic” came to life.  March madness, without the basketball.

The entire world is now in a frenzy.  Ok, there is no doubt the virus spread fast, but not as fast as the media coverage.  Now the world is in a panic.   Whoa, lets slow down, review what we know and compare to some numbers of the influenza outbreak that we experience every year.

This paper pulls together facts from public and published sources and organized in a way to make things a bit easier to understand.

Executive Summary

The United States president and other world leaders are taking unprecedented actions and creating massive economic and societal stress based on estimated death tolls and actions outlined in Imperial College COVID-Response Team, 16 Mar 2010 report, “Impact of non-pharmaceutical interventions (NPIs) to reduce COVID-19 mortality and healthcare demand”.

Now that we are getting more real numbers, we need to re-look at death toll numbers attributed to “The Virus” and compare them to the flu.  Based on the numbers and looking at death rates by population versus death rate of only those symptomatically identified as having the virus, the projected death toll in the U.S. drops from the estimated 2.2.million indicated in the study to a more manageable 109,230.

Yes there will be higher death tolls, possibly 2-3 times higher than other flu seasons, but is the “Treatment” worse than the Disease?  Are the consequences of the current actions of isolation, social distancing and shutting down the U.S. economy worth a potential loss of some lives?

We have put the lives of our military on the line many times and lost more lives to protect our economy and freedom.  Should we not consider this a war that the world wages to protect the future of our global economy and global society?

These are the questions our President, our politicians and our country must make now before it’s too late.  “The only thing we have to Fear…Is Fear itself” – Franklin D Roosevelt

I have likened some of the current situation to the Abbott and Costello “Who’s on First” skit, not to make light of the issues, but to lighten our spirits as we contemplate our future.

Coronavirus – What is it?

Coronavirus is a general term for viruses that have a lot of points sticking out with knobs on top that resemble the top of a king’s crown.  It is not the specific virus affecting us today.  The strain of the virus is  SARS-CoV-2 “Severe Acute Respiratory Syndrome Coronavirus 2”, named by some international committee that makes up names for viruses, or COVID-19, meaning the Coronavirus Disease discovered in 2019 named by WHO, (No not the WHO from the Abbott and Costello skit “WHOs on first and WHATs on second…”), the World Health Organization.

Not only is this a Coronavirus, but it is a novel Coronavirus (No not because they’ll be writing books on this forever), but because it a new type of coronavirus that humans have never encountered in the past.  Why is this important?  Because scientists say the human being has no specific antibodies from past exposures to fight off this virus.  Therefore, this virus can spread faster than Usain Bolt can run the 100m dash.  All the body has to combat this virus is its normal, powerful immune system which defeats most illnesses AND cancers throughout a person’s life.

How fast and strong is the Coronavirus?

OK, we know it moves fast, it got around the world in about 80 days (hey I think Phileas Fogg and Passepartou did that in a hot air balloon) and is continuing to infect more and more people every day.  Well how did it travel so far and infect so many so fast?  Well, most people that have “The Virus” don’t even know they have it.  Why?

“The explosion of COVID-19 cases in China was largely driven by individuals with mild, limited, or no symptoms who went undetected,” says co-author Jeffrey Shaman, Ph.D., professor of environmental health sciences at Columbia University Mailman School.

In fact, in most people (80% or so) it will be defeated by their natural immune system and if they get physically ill it appears a lot like a cold or the “normal” flu, so they treat it like the flu and move on with their lives and pass it on to other people.  Also, people may have “The Virus” from 1-14 days before showing any symptoms, if they show any signs at all.

There is, however, a difference in who is more likely to get seriously ill or have a greater risk of dying from Covid-19. While 80% of people will have mild (or even no) symptoms, it’s thought that about 20% will get seriously or even critically ill. According to the Centers for Disease Control and Prevention, high-risk groups include older adults along with people who have serious chronic medical conditions.

Now some people’s (20% or so) immune system is not too strong and they will get further complications like pneumonia and possibly more severe respiratory problems that put them in the hospital.  Even so, most of these will recover, but some will die (maybe as low as around 1% – more than 3%, the jury is still out as to the real mortality rate).  So now we know why it’s fast and can be strong.

What are the numbers?

Well even though scientists and statisticians use numbers to support their positions, sometimes the numbers are fuzzy, SWAGS (Scientific Wild Ass Guesses), or just not really known.  There can be wide ranges of estimates of the numbers of people that get the flu or might get “The Virus”, but here are some those numbers.

The CDC estimates 3%-20% of the United States population gets the flu every year.

The commonly cited 5% to 20% estimate was based on a study that examined both symptomatic and asymptomatic influenza illness, which means it also looked at people who may have had the flu but never knew it because they didn’t have any symptoms. The 3% to 11% range is an estimate of the proportion of people who have symptomatic flu illness. (Source: CDC Website)

The numbers for “The Virus” are more like WAGS (Wild Ass Guesses) since there is not enough solid data to even scientifically guess how many people have or will have “The Virus”.  (These numbers are like Abbott and Costello’s “I Don’t Know” is on third base)

Why? (“WHY” is the player in left field and some of the numbers you see in the media and reports are also from left field)  Remember many if not most of the people with “The Virus” won’t show any signs or will think they have a cold or the normal flu and never go to a doctor.  That stated you might hear that anywhere from 20%-80% of the population will get “The Virus”.

Now let’s talk about mortality rate.  So, the CDC has lots of numbers and data for the mortality rate for the flu.  Each year from 2010 – 2019 the number of deaths in the U.S. range from around 12,000 to over 60,000 with illness numbers ranging from 9.3 million to 45 million.  See diagram below from the CDC’s website.

The higher numbers come from the H1N1 pandemic in 2009 where the CDC estimated 60.8 million symptomatic cases (range: 43.3-89.3 million), with around 12,469 deaths in the U.S. (range: 8868-18,306) and between 151,700 – 575,400 deaths from flu/pneumonia worldwide.  The greatest number of deaths between 2010 and 2019 was in the flu season of 2017-2018 where the CDC estimated about 45 million symptomatic illnesses and around 61,000 deaths due to flu/pneumonia.  The overall U.S. population in 2010 was approx. 306 million and in 2020 approx. 330 million.

The approximate death rate due to flu/pneumonia ranges from  0.0038% to 0.019% when compared to the total U.S. population.

Now let’s look at the numbers for “The Virus”.   In the Imperial College COVID-Response Team, 16 Mar 2010 report, “Impact of non-pharmaceutical interventions (NPIs) to reduce COVID-19 mortality and healthcare demand” the study predicts 81% of the U.S. (and Great Britain(GB)) population will be infected during this pandemic.  They also predict the death rate in the U.S. to be 2.2 million (510,000 in GB) if nothing is done to slow the rate of infection across the populations.

Unmitigated epidemic scenarios for GB and the US.  Projected deaths per day per 100,000 population in GB and US.

Why are the U.S. and State Governments shutting down schools and businesses? 

The death rate in the report is predicted to be extremely high and will be compounded by the hospitalization numbers being 30 times higher than the critical care bed capacity in the nations.  To reduce the number of deaths, the study recommends several courses of action to reduce the spike in hospitalizations the demand for critical care beds.

The U.S. and State governments are implementing the actions recommended in the report to include: Closure of schools and universities, Isolating anyone that shows signs of “The Virus”, Household Quarantine and Social Distancing, as well as combinations of those actions.  The results of the different actions are predicted to flatten the curves as indicated in the diagram below.

As indicated in the Figure 2 above, the more severe the restrictive actions, the flatter the curve.  That stated, the red line at the bottom of the figure shows the surge critical care bed capacity.  Every scenario indicates demand far exceeds the capacity and that by implementing the most restrictive recommended actions, the impact of “The Virus” on society and the economy extends until February 2021.  As indicated in the report, “Since the aim of mitigation is to minimise mortality, the interventions need to remain in place for as much of the epidemic period as possible.”    The report does state, keeping the most restrictive actions in place for the extended timeframe is unlikely since it means locking down businesses, schools and the population for over 11 months.

The Study estimates versus reality?

  1. Let’s look as a few more numbers before we make decisions.

Based on the actual numbers being reported, the death toll in Wuhan, the initial epicenter of “The Virus”, per NBC News reporter Elizabeth Chuck in the article “Wuhan study offers new insight into fatality rate of Coronovirus” published 19 March 2020, the total rate of the people symptomatically identified as infected is 1.4%.  That stated, the death rate compared to the population of Wuhan is currently is only around 0.0099% (2169 deaths/22 million population).

Now let’s look at Italy.  As of 19 March 2020, there are 3405 death attributed to “The Virus” which when compared to the population of Italy, the death rate is 0.0056% (3405 deaths/60.55 million population).  Yes, there will be more deaths, so let’s bump the number of deaths to 20,000.  At 20,000 deaths the death rate compared to Italy’s population would be 0.033% (20,000 deaths/60.55 million population).

Now let’s compare that to the death rate from the Imperial College COVID-Response Team, 16 Mar 2010 report.  The study estimated 2.2 million deaths in the U.S.  That would mean the death rate is 0.66% (2.2 million deaths/331 million population), which is 20 times greater than the exaggerated death toll of 20,000 deaths in Italy.  If we apply the .033% to estimate to the U.S., the fatality toll will be 109,230 deaths which is magnitudes less than the study’s estimate of 2.2 million.

Is the “Treatment” worse than the disease?

If the death toll rate of deaths compared to the population of Wuhan and Italy are correct, the impact on the U.S. will be orders of magnitude less than the death toll projected in the “Impact of non-pharmaceutical interventions (NPIs) to reduce COVID-19 mortality and healthcare demand” report,  109,203 deaths compared to 2.2 million.  This is a huge difference on society and would make the years 2020 a terrible year for flu and virus related deaths, but it is nowhere near the loss of over 2 million people in the United States.

Now I ask, are the governments of the United States and the world, overreacting to the perceived threat of “The Virus”?  Is it worth putting the entire world’s economies into the worst global recession or depress in the history of mankind?  Do we risk potential violence, turmoil and rioting that could erupt as the dis-ease of modern society grows to a boiling point.

Maybe we should reconsider the current direction now and re-examine the foundation of the decisions being made namely, the death toll projected in the Imperial College COVID-Response Team, 16 Mar 2010 report.  We have already rocked the core of our economic system, but we can reverse course before it’s too late.

“The only thing we have to Fear…Is Fear itself” – Franklin D Roosevelt

Let’s put GIVE A DAMN at short stop, and ask our left fielder WHY and not just accept the answer from our Center fielder BECAUSE, in order to enable our catcher TODAY to throw the ball back to our pitcher TOMORROW so he can throw the curve ball to win the World Series. 

March 20, 2020

Members, I said at many club meetings over the last 3 years that the party in the stock market would continue until the share buy back programs had more scrutiny.  That is now occurring and companies will be much more reluctant to buy back shares with the sole purpose of enriching stakeholders but providing no economic value. 

I am closely following a new story that US Members of Congress were given advanced notice of the economic impact of the coronavirus and dumped their stock holding before American Citizens were notified on equal grounds.   So you are aware “insider buying” is not illegal with Members of Congress.  I will keep you updated as I find out more – as this story just came out minutes ago.

In follow up to my last opinion letter – I must update members regarding another bailout request from Boeing.   Again, all taxpayers should be outraged as the executives of Boeing did massive share buy backs and the compensation packages for Board members and high level executives was in the tens of millions.
After this poor use of money (on share buy backs) – where money was diverted away from expansion, equipment replacement, new products, service development and cash reserves (in the event of something like what is occurring currently) – the executive team is now requesting at least a $60 billion in bailout.
Why should these executives keep large homes, fancy cars, and in some cases private jets and then ask the taxpayer to bail them out? Is it so they can continue to run the company – despite their poor decisions?
Small business owners pour all their personal capital into their companies and if the company is successful they become wealthy and if it is not they become poor.  With the current system these executives can poorly manage a company and grow enormously wealthy even if the company they manage does not perform well.

Please send a comment to our State Senators and tell them – ‘No bailout for Boeing’ unless the management team is fired, the management team returns all personal gains from their share buybacks and the tax payer takes ownership of Boeing. 


Boeing’s spent $43.44 billion over 10 years on share buy backs. It has  received government assistance in the past during tough times so these billions should have been placed as reserve funds.
Boeing is well aware that it needed to keep cash on hand. Last week it called  in all its credit lines from banks but most Americans are not aware that the day after Boeing did this – many banks cancelled credit lines or denied access of everyday American businesses to their credit lines.  The reason is banks did not want the exposure of more companies doing what Boeing had just done.  So this was another situation where Boeing created damage, albeit unintentionally in this case – but profound nonetheless.
Bailout money must go to small businesses where the entrepreneurs bet everything on the company’s success.

Here is the update on airlines share buy backs after my last opinion letter.  
Southwest, Alaska, Delta, United, American, JetBlue have bought back 49.175 billion in stock.  
They are asking the tax payer to bail them out now for
$50 billion.    
The airline industry is well aware of the fact that – in Recessions the airline industry must have a “reserve fund”; however, any such reserve fund was blown on share buy backs with the primary goal of compensating executives.    If you look up the executive’s names and cross-reference their compensation packages some of them are paid thousands of dollars an hour
every day of the week.    
How can it be right that the executives of these large companies hold massive mansions with private jets, summer vacation homes and then receive bailouts with the likeliness that they will do the same thing all over again if given the opportunity.   
“Yes”, to small business bailouts but  “No” to uncontrollable destructive greed that we as taxpayers must pay for.

Finally on a local level Jim Murren is the CEO of MGM Resorts in Vegas.
He joined the company as its CEO in 2015 and has decided to step down as its CEO during the coronavirus crisis and is receiving a compensation exit package of $32 million.
This is while MGM employees are being laid off in large numbers. Is it just me or is there something wrong with what is happening?
I understand what capitalism is but – what is this?


March 19, 2020

The 4 biggest airlines, Delta, American, Southwest and United collectively spent $39 billion on share buybacks
to enrich their executive team – to date. These executives took massive bonuses even if their particular stock was underperforming in the industry.

Now these executives have squandered over 97% of all the monies they had on share buybacks and they want the taxpayer to bail them out. 
This is exactly why I am against share buybacks.

I have expounded at length on why we had to do away with share buy backs at countless meetings – this shows exactly why.
This is $39 billion that could have been used to save these companies from another bailout. Instead it was used for no reasonable economic purpose. The chief motivation was to ensure executive bonuses and keep shareholders happy.
In my opinion, the executives of these companies should sell the assets they now personally hold – as a result of the options they cashed in on – from share buybacks & then (and only then) should the American taxpayer consider a bailout. 

These companies had a chance to build up cash reserves on behalf of the companies they are supposed to be responsible for  – instead they blew it on share buybacks.  Airline executives are well aware that airlines are one of the hardest hit industries in a Recession but executives were overcome by greed instead of business prudence. 
(This is why share buy backs are much more restricted in other countries).

Perhaps we taxpayers, now on the hook for this bailout, should take over the 4 airlines and fire the management teams
of these companies.  

I wrote an opinion letter to our State Senators today and encourage you to do the same. Nationally, we now have $23 trillion in debt and after this crisis I am sure we will get to $26 trillion.   If we see high interest rates – there will be no money to pay for any government services except the debt.  
Tell the airline executives they must set personal examples before we as taxpayers bail them out. Please forward this email to as many outraged taxpayers are possible.

My biggest worry right now is that the corona virus is possibly mutating into a stronger virus that can also have dire consequence for younger healthier people and not simply the older people with pre-existing conditions. 
We are seeing reports coming out of France and Italy reflecting that some younger people are getting seriously ill and that was rarely the case in China where the virus originated
a few months ago.   

In no way am I stating that the disease is mutating but for now – it has to be the highest concern.     Please forward this email to others
– as we must all work together. 

Finally, since Friday I have heard money manager after money manager stating the reasons they are buying heavily in the stock market. 
If you followed their advice you would be getting killed and your wealth eroding away. 
There is a reason why 96.7% of money managers underperform the market index
I remain convinced of what I have said many times publicly,
“Money managers are the most overpaid, undertalented, class of workers in the marketplace”.  

Be careful!

US Government is out of control! In many ways America has become a POLICE STATE!
March 11, 2020

At the Econosummit prior to introducing a speaker, Mike did a passionate presentation of what it will take to “Make America Great Again” but not in the Trump Context.   This is a “must watch” for all club members who have concerns about many aspects of our Federal Government.   These are subjects that Mike has been talking about for years and it is not a message the Government likes being conveyed. The Framers and ForeFathers of America put safeguards in place that were not adhered too and unfortunately we have a Federal Government that is completely out of control.    With surveillance laws now in place from 911 that were only supposed to be temporary America’s are now part of a State where our Privacy and Personal Liberty are compromised as America continues down the path of further control over all aspects of America’s lives. 

In the course of the last 45 days there has been a storm of legal documentation generated related to the British Columbia Securities Commission recent advance of its 5 year (to use the word of legal counsel) ‘vandetta’ against Mike Lathigee – which has been recently placed before the court in Nevada.
October 15, 2019

In his commitment to ‘transparency’ Mike has stated his case ad nauseam before ICOA members both in person (at meetings) and through the dissemination of video (of those meetings) to our out of town members.

He has taken the same position since the very start of the BCSC actions.

(Video(s) are and continues to be easily accessible through the ICOA website archives).

That said, significant are a few lines drawn from all that recent documentation – as submitted to the court – by Mike’s legal counsel.

 Unsolicited and presented exactly as transcribed these excerpts reflect Mike’s position all the more obviously:

                “The BCSC has been essentially persuing a vendetta for years, regarding the collapse of the real estate investment company of which defendant Michael Patrick Lathigee was principal in and around 2007-2008.”

                “As is noted in the Declaration of Mr Lathigee, even the BCSC’s expert witness acknowledged that the monetary judgement being imposed in 2014 was a sanction and fine and was not based on any evidence or proof that Mr Lathigee personally benefited from the monies invested in the subject business.

The exact words of the BCSC’ expert witness are – ‘Certainly I agree the impact of the remedy is significant in that the order in question requires Mr. Lathigee to pay $21,700,000 without proof that Mr. Lathigee personally received that amount’ 

                Indeed, as noted in Exhibit “A”, not only does Mr Lathigee disavow receiving such personal aggrandisement and enrichment, but he in fact was the biggest loser in the collapse.

Never the less, multiple years later we find ourselves at present litigating about ordinary routine household goods which BCSC wants to liquidate, at pennies on the dollar, as what would appear to be a totally non-economic attempt to drive Mr Lathigee into the ground.”

                “Unfortunately, in the process of same, BCSC and its counsel have apparently taken quantum leaps and from limited circumstantial evidence to reach highly speculative and erroneous conclusions as to alleged ongoing misconduct and nefarious activity on the part of Michael Lathigee. It should be noted that most of the suggestions and innuendoes totally lack foundation, are not corroborated by appropriate documents or facts, and candidly are not very germaine or relevant….”

British Columbia Securities Commission domiciles $16 million judgment against Mike Lathigee in Nevada.
September 18, 2019

Mike Lathigee has a strong following of club members across America.    Recently the British Columbia Securities Commission domiciled a judgment against Mr Lathigee for $16 million.    In this video Mr Lathigee fully discloses what happened in Canada and updates members  on what is happening in the case.  In addition, you will learn all the details of Mr Lathigee projects in Nevada and the track record to date.

About Mike Lathigee
May 8, 2019

Mike Lathigee

Mike Lathigee, has spent the last ten years rebuilding his reputation after the collapse of his last company. Here are some words from several of the club members who have interacted with Mike:

Mike Lathigee has gone to extraordinary lengths in conveying his experiences from the past.

Including the good & the bad.

We all stumble and fall.

It is those who continue, prevail and then succeed that seem to draw the ire of those who are unwilling or unable to do the same.

There is a saying
Those who can – do
Those who cannot – teach
But it also seems that those who cannot – do or teach – persecute!

Mike has focused his fierce criticism on the ‘traditional’ investment models – & included the regulatory bodies, and their lawyers, within this focus.

10 years ago, after the meltdown of ’08/’09 these lawyers found a weakness & they pounced. 

They have been relentless in their scrutiny in the years since, in the attempt to add fodder to their agenda – but to no avail.

Mike will not back down and neither will they desist in perusing an agenda the source of which he has discussed ad nauseam – and really is quite dated.

The whole issue is covered in the document ‘My name is Mike Lathigee’ for those who care to read it.

He has relationships with a group of accredited / sophisticated investors which (in most cases) spanning many, many years.

Highly educated with various skill sets they interact closely with Mike on current deals and deals they have cashed out on.

There can be fewer relationships as volatile – as they kind they have with Mike – and yet they will enthusiastically endorse this man.

We leave it to the reader to decide their own mind, however; state for the record that Mike has always worked to the best results for his investors and will continue to do so regardless of the consequences.

My name is Mike Lathigee

I am the Founder of the Investment Club of America (formerly the Las Vegas Investment Club).

For well over a decade I have been an outspoken advocate for investors in the face of ‘traditional’ investment practices.

Investment advisors, banks and regulatory lawyers have suffered intense critical scrutiny under my focus (conveyed to tens of thousands of people – over the years).

As a result – I have had an impact on the ways in which those people (who have heard my messages) view the ‘system’ and as a result – invest !

I have made enemies – especially among the powerful entities and people who have grown wealthy and continue to prosper in the ‘traditional’ models.

After the meltdown of ’08 – the TD Bank in British Columbia, Canada (where my business was located at the time) utilized mercenary tactics and forced me into insolvency – even though my loans were completely up to date. This is well documented in my fight on behalf of investors; however, the effects were devastating.

For an idea of what this fight entailed – Please click on the link below to see my letter to the President and CEO of TD Bank. Feb 17, 2011

I also came within reach of the British Columbia Securities Commission’s lawyers.

Utilizing ‘non disclosure’ (ubiquitous in securities language and almost impossible to defend against) as the basis of a case against me – these regulatory lawyers made a decision to assess me a

$21.7 m fine.

Even though the fines they have assessed in (what could be considered) similar circumstances – range significantly lower.

I submit that the ‘back story’ related to my criticism of this group underscores why a case was made in the first place, why the case was advanced – as well as the fine and its excessive nature.

Without it – this case being brought against me would have been truly bewildering.

This is underscored by the fact that even the BCSC regulatory lawyers admited that there was no evidence (beyond a modest salary) that I received any gain personally.

I will not linger on this any further here – Other than to say that ‘vindictive’ seems an apt adjective to apply to this ludicrous and clearly excessive fine – and that I will continue to fight against it and the judgment that produced it.

(An appeal is currently underway on the BCSC judgement – with the Supreme Court in Nevada).

I make no secret of this Civil Fraud case, its outcome and ongoing appeal. That said, I will continue & remain committed to speak out wherever and whenever – I see fault within the system.

(My 352 page book called The Investment Revolution is a scathing overview of the financial system and financial brokers and service agents).

Please go to and and see there are 2 sides to everything.