Foster Elliot Ltd. helps both individuals and institutions in the upper level of the financial strata with private banking services as well as personalized plans to manage their wealth. We can guide clients through every phase of managing their money, from philanthropy to inheritance to succession planning.

1. In this issue:
US: Coming Elections
US: Politicians
World: Geopolitical Conditions
NO BIG SURPRISE
We expected it and the announcement almost
seemed anticlimactic. To what do we refer? The
long awaited announcement that Hillary would
run in next year’s presidential election. After
all, this is her lifelong ambition and this will be
her icing on the cake if she is as successful as
she expects to be. And believe us when we say
that we don’t anticipate it to be a slam-dunk.
Do you remember the campaign of 2008? She
thought she would coast to victory but then
Obama showed up and the rest is history. And
their hotly contested campaign was
acrimonious and petty and did no one proud.
Perhaps she will choose a different strategy
this time around. She certainly couldn’t do
worst.
The truth of the matter is that she is now a
senior stateswoman and, as such, has some
credibility and respect. She is very intelligent
and obviously has the experience and
connections. However, in spite of this, there is
what we would call the likability and trust
factor. She comes across as cold, ruthless and
basically capable of doing anything to reach
her goals. To some, this may seem like good
qualities but, for some reason, she does not
quite pull it together. This will be, we feel, her
ultimate downfall.
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WEEKLY REPORT
April 13 - April 20 ⌘! Issue 15 / Volume 15
The fact that she is a woman is not a negative
and we sincerely feel that America is ready to
elect its first female president. We really believe
this and would potentially welcome such a
change. However, we don’t trust her and our
feelings go back decades. Her closet is full of
skeletons and we believe there are many more
where that came from. Perhaps, in a sense,
there is almost too much history.
Of course, it is also impossible to ignore the Bill
factor. Even though they have what many
would call a sham marriage, they are still
married. How will this effect everything? Will it
work in her favor or against her? Will she use
him in her campaign or freeze him out much as
Al Gore did? These are very difficult questions
to answer and they will have to be carefully
addressed.
One thing for sure is that Bill’s charisma dwarfs
Hillary’s. There is absolutely no comparison
and, when seen together, it becomes painfully
obvious. Bill is extremely likable and people
flock to him. If it weren’t for his sexual
peccadillos, his presidency would have been
much more respected and he would have been
loved. We hate to be morally puritanical and we
do believe that one’s sexual life is one’s own
business, but, at least to us, Bill Clinton
represents an extreme that we are not quite
comfortable with. And we assume that our level
of discomfort is surpassed by Hillary. He is,
after all, an embarrassment on this level and,
from all that we have heard and read, his
tendencies have not changed.

2. FOSTER ELLIOT WEEKLY
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It is still very early and much can happen during
the course of the next few months. One thing
that we can guarantee is that it will be highly
entertaining and we will be avidly watching.
There are and will continue to be many
questions surrounding Hillary’s campaign and
we plan to address them all as we see fit. Stay
tuned because we promise that it will be worth
watching.
better. For those of you who have had such
success, we can well imagine that you
understand what we mean.
In any case, as we mentioned last week, the
Dow has risen by more than 170% over the
last five years. In other words, if you were
dumb, deaf and blind, it would have been
almost impossible not to make money
given the current market conditions. Of
course, those who have been successful
feel like geniuses and we can well sense the
swagger in your step. Doesn’t it feel great?
However, let us keep in perspective that
this feeling of euphoria can change and
that when it does, the effect can be
devastating. Do you remember the crash of
2000? Do your memories stretch that far
back and remember the carnage that was
rendered unto the markets? We do and we
take it personally because one of the
members of our team was a victim of the
demise.
He was an amateur investor who got
extremely lucky. He took 150,000 USD and
in a span of less than two years was able to
parlay it into a small fortune totaling
slightly more than a million dollars. He felt,
from what he has told us, basically
invincible. He never expected to make so
much so quickly especially because he
really did not know what he was doing. He
had a system but it certainly had no rhyme
or reason. As his fortune increased, he
figured he could do no wrong and began to
take more and more chances. He began
speculating heavily on options and he
loved it. After all, it was found money and it
BACK TO MONEY
Did any of you ever see the film ‘The Color of
Money’ starring Paul Newman and Tom Cruise?
Perhaps it wasn’t the greatest film in the world
but there was one line that we well remember. It
was Paul Newman when he said, ’Money won is
twice as sweet as money earned.’ Never were
spoken words so true. Earning a salary and
having a job is great but making money
gambling or on the stock market is so much

3. FOSTER ELLIOT WEEKLY
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it appeared to have no limits.
Needless to say, this went on for some time.
However, as with all good things, it does have a
way of reversing itself. And reverse itself it did
in a really big way. And he was caught naked
and exposed. As fast as the market went up, it
went down much more quickly. Let us give you
an example of one of his purchases. He bought
a 1000 shares of RFMD at fifty dollars a share.
In a matter of months, it had risen to 175USD a
share. He was, obviously, ecstatic and thought
that the price would continue upwards and
expected it to go as high as around three
hundred dollars a share. At this point he then
sold 150 USD a share options and because of
the volatility of the stock, he received a
substantial premium. And then the market
reversed. It went down fifty dollars in one day
and he was in shock. His reasoning was that it
couldn’t continue and that it would
immediately reverse itself. It didn’t. The next
day it went down another forty dollars! This
meant, in actual dollars, that he was now down
around forty dollars on his option price. Given
the premium price to buy it back, it would have
cost a lot more than that. He didn’t know what
to do and decided to hold. Needless to say, the
stock continued to plunge and in a matter of a
couple of months the share price had plunged
to around six dollars a share and he was
devastated.
We realize that this is an extreme example of
what can go wrong but it did happen and our
investor felt the pain. He learned from this
lesson and never adapted such an aggressive
stance in his future trading.
This was understandable but it already was too
late. We do not mean to be the bearer of bad news
or tidings but we want to be realistic and let our
readers know that caution is advisable. Be
realistic in your expectations and never risk more
than you can afford. If you have a 100,000USD to
play with, put at least 70 to 80% in something
conservative and be more aggressive with what
you have left over. You will still have fun and be
able to sleep at night. We are still cautiously
bullish and we feel the markets still have a way to
go. There are many positive signs and we feel
that there is money to be made. However, our
final word is to have fun but be careful. Nothing
more or nothing less.
CONCLUSIONS FOR THE WEEK
We hope that you enjoyed our little story. We can
assure you that it was painful to write and we still
wince at the details. In the future, we will provide
you with other stories that we hope you will find
interesting. In terms of the upcoming elections,
we plan to keep up with this as well. We realize
that it is a bit in the future, but it will be drama
and will make for interesting reading as details
evolve.
In terms of next week, we plan to keep an open
mind and we have no idea what we will be writing
about. There are always so many choices that we
are constantly on our toes. That being said, we
now want to take the time to wish you all a great
week. And even more importantly, we hope that
you make lots and lots of money! Good luck!