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 Despite the largest infusion of cash since the Sept. 11 attacks, markets around the world renewed their sell-off with vigor yesterday.
In the U.S., the Dow tumbled over 200 points, for a 1.5% loss. Not to be outdone, the S&P 500 lost over 1.8%. Australia, Singapore and Hong Kong markets dropped over 2%. Benchmark indexes in the U.K., France, Japan, and Taiwan fell 1.5%, while Germany’s DAX shed nearly 1%.
Even the Shanghai Composite fell… albeit 0.1%.
 “Over the past month, almost every sector across the board has been crushed. But if you bother to dig through the rubble, you will still find some winners,” reports our mircocap guru Greg Guenthner.
“The Dow Jones U.S. consumer electronics index is up more than 10% in the past month, led by big gains from Garmin and Syntax-Brillian Corp. The U.S. Water Index followed with a gain of 4.51%,” Gunner wrote to Bulletin Board Elite readers yesterday.
“But the third best performing index may surprise you. It is a sector we are very familiar with here at BBE: soft drinks. The Dow Jones U.S. Soft Drinks Index was up 2.12% over the past month. And Big Soda is not leading the way. Smaller, independent soft drink companies like Hansen Natural are propelling this industry.”
BBE readers have a play in the small soda biz… a microcap root beer producer that’s already up 20% since BBE’s inception in July. Gunner’s next pick will arrive this week. Click here to subscribe in time >>
 Gold got whacked for $6 overnight, but has since rallied back as high as $670.
 The yen pushed to four-month highs versus the euro, dollar, pound, Aussie and kiwi last night. If this trend continues, we’re going to have to get serious about making calls on the “unwinding of the carry trade.” We’ve been tempted, thus far… but it’s not time to pull the trigger yet.
 The dollar gained against the euro and the pound overnight, bringing it to a six-week high of $1.34. The greenback fought against the $2 mark again, against the pound, and this time it stuck. As we write, the pound will set you back $1.99 American.
 "Consumers are under difficult pressure financially," said Wal-Mart CEO H. Lee Scott on a conference call for investors and analysts. "Their top economic concerns are increased cost of living and gas prices, and many [of our] customers don't have much money left at the end of the month."
Aside from reporting disappointing profits for the second quarter, Wal-Mart execs say their core customers are worried about inflation. And feeling the pinch of declining house prices.
 “They cite inflation?” President Bush asked in disbelief.
A reporter recently told G.W. that polls reveal Americans are “down on the economy.” The main reason they gave: a rise in prices for things they need. Bush appeared flabbergasted. “I happen to believe the war has clouded a lot of people’s sense of optimism,” were Bush’s next words.
You think?
 “Producers from CNBC called me at 4 a.m. this morning… CNN and FOX News by 7 a.m.,” reports Kevin Kerr. “I guess storm season has arrived.”
“Tropical bulletins are popping up all over, from Hawaii to Havana,” reports Kevin. “Tropical Depresson No. 4 was upgraded to Tropical Storm Dean and officially fills the fourth slot for 2007 as it charges across the Atlantic.”
Dean is currently about halfway between Africa and the Caribbean, and could be upgraded to a hurricane tomorrow. Another, much smaller tropical storm -- which will be named Erin, provided its winds reach 40 mph -- is expected to touch down in Texas by Wednesday.
“As the storms start rolling in, keep an eye on the orange juice and natural gas markets, because they are likely to be very active,” advises Kevin. “The natural gas market is prone to shutdowns and possible rig or equipment damage during this time of year, and thus requires more risk management than most.
“If you’re playing natural gas, it's usually a good idea to lock in profits as they come and only keep part of your position open for big gains.” See: The Trader’s Code >>
India is experiencing its own “unprecedented” bad weather. According to the India disaster agency, this is one of the worst monsoon seasons in the past 100 years.
“So far, it’s been a deluge,” explains Chris Mayer, who has been preparing for our trip to India in October. “The rains expose India’s weak infrastructure -- rivers not properly dredged, cracked embankments gone without repair and roads with inadequate drainage. Of course, such burdens fall most severely on the poorest people of India. But the weak infrastructure also affects businesses there.”
 Oh, how times change… nuclear power is “going green”.
"From a national perspective, nuclear energy is our largest source of clean energy and a critical piece of our nation's energy strategy," said a Calvert County, Maryland., official yesterday during a licensing meeting. "It is imperative to reverse the growth of greenhouse gas emissions, and Calvert County stands ready to share in our nation's responsibility to provide resources that produce energy."
Once a lightning rod for the environmentalist movement, nuclear power has wooed support from stalwart do-gooders like Stewart Brand, founder of the Whole Earth Catalog.
The meeting in Calvert County finalized details for the nation’s first new nuke plant in 30 years… right here in The 5’s backyard. Supporters outnumbered antagonists, reports The Washington Post. When constructed, the plant will emit 1,600 megawatts, enough to power about half a million homes a year, at an initial cost of $4 billion.
Byron King, on The 5’s energy beat, predicts a permanent reversal in the public’s perception of nuclear energy… and with it a healthy investment opportunity. Click here to read Byron’s full 2007-2008 forecast >>
 “You don't really think anyone is going to listen to or hear Mr. Walker’s warning, do you?” asks a reader.
“Experts, such as yourselves, have been screaming loud and clear that we are in a mess that is only going to get worse. No one listened, except some of us faithful few, so why would any administration, especially this administration, listen to a Bill Clinton appointee? These people suck on lollipops and dance with visions of sugarplums and free money and printing presses. They are oblivious to the real world.
“Or they just don't care.”
The 5 responds: Hey, who are you calling an expert?
 “I have to believe that you are in agreement with David Walker, as am I,” writes another reader. “The problem that I see it is that David Walker is dealing with such big numbers and long-term horizons that the average American is too stupid to get it. The media realize this and choose not to cover the topic. The government officials are thereby let off the hook and the problem is passed off to the next guy. Shame on us all!”
The 5 responds: Well, since we’ve followed him to New Hampshire, Iowa and all around Washington, D.C., on the Fiscal Wake-Up Tour organized by the Concord Coalition, I would hope we agree with him.
David’s been very gracious in helping us construct the film. In fact, during his speeches on the tour, he outlines what he perceives to be the four deficits afflicting the nation: budget, trade, savings and leadership. We’ve used those four deficits as an organizing principle for the plot of the movie.
Of them all, the leadership deficit is the most critical. You’re right about the media. The prospect that the federal government can’t possibly deliver on the $50 trillion in promises it already has on the books is way beyond their editorial or marketing scope. They will, however, dedicate hours of air time to jackasses promising to spend more of your money if you just give them a seat in the Oval Office.
 “Your upcoming documentary is clearly going to be a total waste of time and money,” predicts our last reader for today. “You don’t have either Homer or Bart Simpson in it!”
The 5 responds: Doh!
We may not have Homer, but we have animated Warren Buffett’s story, Thriftville v. Squanderville. It’s not too late to give Matt Groening a call and have him sketch in a cameo for Bart.
Hasta manana,
Addison Wiggin
The 5 Min. Forecast
P.S. There are a few spots left on our trip to India in October. If you’d like to join Chris Mayer, Karim Rahemtulla and me as we traipse about the Indian countryside, time’s a-tickin’. You still need to get your visa all lined up and arrange for airfare with Agora Travel. Still, if you’re interested, you’ll find all the details here >>
P.P.S. You’re also running out of time on the low, low price of Chris Mayer’s Special Situations limited offer. In his critical investment service, Chris is up an average of 21% on open gains. Six out of seven of his 2007 picks alone are up 86%.
But that’s not all. Of the 19 recommendations he’s made since the service’s inception, 14 have posted gains… as high as 113%. In the “Blue Gold” portfolio Chris issued on water picks, his biggest gainer sold for 100% and the remaining four picks have average gains of 42% All of the picks in this special report are making money. The price for Mayer’s Special Situations goes from $495 to $995 at midnight on Sept. 4, so don’t wait.
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Thursday, August 16th: 6:20am.
Recent guerilla attacks in western Mexico have authorities on both sides of the Mexican border scrambling to protect billions worth natural gas pipelines. Companies such as Hershey’s, Honda, and Kellogg’s are losing up to $7 million a day as local rebels bomb energy sites left and right. Meanwhile, several little known organizations are well positioned to profit from a sudden energy grab... or… worse yet, a full blown U.S. / Mexico Border War. 
