Understanding Option Trading, Simply

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Option trading is one method of trading that you can partake in. But, in order to take advantage of it, you need to find out just what it is and how it works. This will help you to make decisions that will affect you throughout your trading experience. Here is some basic information about option trading to help you.

Option trading

Option trading is one method of trading that you can partake in. But, in order to take advantage of it, you need to find out just what it is and how it works. This will help you to make decisions that will affect you throughout your trading experience. Here is some basic information about option trading to help you.

What Is An Option?

Your basic question of what an option is can be answered like this. It is a contract that allows two parties to come to an agreement that the buyer will have the right to buy or sell a parcel of the shares. It is set at a predetermined price and at a predetermined date. The buyer does not have to take the option though. He has the right but not the obligation to do so. To get this right, the buyer will provide a premium to the seller.

Call Options

There are two types of option trading that you need to know about. In a call option, the buyer has the right to buy underlying shares of a stock. It is set at a predetermined price and also a predetermined date. Again, the buyer has the right but not the obligation to do this.

Put Option

The second type of option is the put option in option trading. In this type of option, the taker has the same fundamentals but is selling underlying shares. He has the same set up of having the right to do so but not the obligation to do it. Also, the same standards of the predetermined price and date also apply. The buyer of a put option is required to deliver the underlying shares only if they exercise the option.

If you would like to learn more about option trading, you simply need to contact your financial advisor and find out how it can serve your needs.

5 Uses For Businesses

How Can You Enjoy Great Financial Health?

All people might know that when it comes to life, there will always be times when financial worries will rear their heads. Because you know that these worries and considerations will be part of your life no matter what, then, it is a good idea for you to know how to deal with them when they come, to control the situation instead of being controlled by it. Many times, taking control of a financial situation can be as easy as taking control of money and performing a few steps that will encourage and aid this. Here, then, are just a few things that you should do if you want to ensure that you are on top of your game, that the financial health that you enjoy is the best that you can achieve.

The first thing that people can do if they want to improve their financial health is to take time to check their credit files. People who do this will be able to study their history, to see what bad and good decisions they have made in the past, which things they should repeat and which ones they should seek to avoid in the future. One will be happy to know that through something as simple as looking over credit history, he or she will be able to become more in control of finances in the future.

Another thing that you should do if you want to improve the present state of your financial health is to track all of your debts and to take care of them as soon as it is possible for you to do. There are a lot of ways through which people can ease the burden of debts, one of which is through student loan consolidation options. The good news is that when people are faced with hardship regarding their financial situations, there are always a lot of options which are open to them.

Last but not least, people can take control of their financial health when they make sure to come up with the right kind of budget for their lives. When one is careless about his or her money, a great deal of it can be wasted, but one who is careful about following a budget can actually save a great deal.

One who takes care to follow all of these steps, then, will certainly be able to gain a lot of advantages and improve his or her financial health wonderfully.

5 Lessons Learned: Professionals

How to Invest in Real Estates

People are nowadays depending on businesses to earn a living. Business is the process of buying and selling of things to get profit. There are several categories of businesses that people do in the world. An example of a type of commonly done business is real investing. We have lands and buildings as examples of categories of real properties. Real investors earn profit through buying, selling, and renting real properties. A land can be rented for tasks such as farming and social meetings to earn a profit. You should regard some things when investing in real estates. You should value the source of finance when investing in real estates. One is required to have adequate finance when investing in real estates. Some of the sources of real investing capital are banks, friends, families, and personal accounts. One is needed to have a good credit account in order to get a mortgage. One should try to look for the right creditor of their choice. Choosing the right mortgage lender is determined by the mode of payment and amount of interest rate.

Construction is another thing to value when investing in real estates. Land is normally needed when building real homes. It can be a hectic thing to build real homes by our own. It is advisable to go for building contractors to do the project. It is good to lay the foundation of real estates putting into consideration other activities such as businesses. A rental building for an example should have rooms for businesses. One should consider the location when investing in real estates. One should buy a real property that is near public facilities such as schools and hospitals. It is also proper for one to purchase real property in a good climatic zone. Expect people to lack interest with properties situated in a remote area. It is hard to do away with renovation when investing in real estates. It is needed for an old house to be remodeled so as to captivate buyers.

It is good to look for remodelers to do the job. One cannot do without marketing when selling and renting real properties. Marketing is the method of making real estates known by buyers and renters. One can market their real estates by use of a number of techniques. Marketing can be done by use of the website, social media sites, and free listing.
Finding Parallels Between Services and Life

The use of the website and social media sites enables marketers to use pictures, videos, and texts to market real estates. Listing fee is required through real estate agents to advertise the real property on the national website. You should put an appropriate price when selling or renting real properties.Why No One Talks About Professionals Anymore

Interesting Research on Healthcare – Things You Probably Never Knew

Things to Look for in a Home Health Care Provider

Care that is non-medical is deserved by anyone in need of home health care or in home medical care that is compassionate whether the patient is a child, adult or elder. Home health care services are supplied anywhere except for in nursing homes or a hospital. These services might be supplied at an assisted living facility, a school, apartment, or house.

As far as care plans go, there are a wide variety of personal care and nursing services that are not just available, they are tailored for the needs of each individual recipient. A registered nurse needs to provide customized care plans and follow up assessments.

Nursing Supervision and Case Management
A 10-Point Plan for Healthcare (Without Being Overwhelmed)

The care that is provided by healthcare assistants and a registered nurse usually supervises home health aides. One of those nurses should be on call at all times to be able to assist the caregivers as well as to give oversight and training and to implement the plans of care.
Finding Ways To Keep Up With Services

Elder or Adult Maintenance

Are you aware of the fact that 75% of the health care costs in the US are incurred by only 12% of Americans? These people generally have some form of chronic illness. This kind of home care’s advantages comprise a great deal more than just having the ability to keep someone at home because of their illness as opposed to being institutionalized in a long-term care facility. As far as cost goes, home care visits are approximately only 10% of what a day at the hospital will probably cost.

Home health care has a track record which has been demonstrated when it comes to things like reducing re-admissions to the hospital, expensive visits to the emergency room and in chronic illnesses. There is evidence that has shown that individuals have the ability to heal faster when they’re in their own houses. Both morbidity and mortality rates are reduced in individuals who take advantage of home health care. In reality, 90% of seniors facing long-term care in nursing homes prefer to stay home and find the assistance of a home healthcare provider.

Personal Elder Care Coordination, Management and Planning

This involves both advising and then catering to the families when it comes to determining the provisions of an aging adult. These caregivers have the ability to navigate many of the long term type of care resources that are available in your area. The purpose here will be to educate and inform the household of exactly what the choices are and then to assist them with the decision’s execution. This is accomplished by an RN who has been certified and specially trained in the area of geriatrics.

In the long term home health care is a compassionate and caring choice for anyone who needs care but further wishes to remain in their homes.

The Art of Mastering Resources

Top Benefits Provided by In-Home Health Care

As progress in modern technology increases, a lot of medical services can now be performed at home that used to be available only at the hospital. Research has repeatedly proven the effectiveness of treatment provided in the comfort of our own home, and demonstrated that it is the most satisfying of all forms of health care.

If you are considering home health care for your yourself or your loved one, here are the main benefits it offers:

The Feeling of Home

There are a lot of positive feelings that most of associate with staying home. When we are not feeling good, we usually just want to be home. As different forms of health care drastically increase levels of stress and anxiety, home health care does the exact opposite. It helps you focus on relief and getting better.

Delayed Institutionalization

There is a lot of evidence proving that people do heal much faster at home. Very few patients would rather be placed in a nursing home, although often, it’s the only place that can provide them care they need. In-home healthcare is the best alternative.

Reinforces Independence

Home care gives the elderly the chance to be independent. No one would like to be helpless or dependent on others too much. Home healthcare promotes independence while ensuring that safety is priority.

Maximum Freedom

Nursing homes and hospitals have more restrictive, controlled environments. Home care, on the other hand, offers a more individualized and comforting setting.

Personal Involvement in Care

The patient and his family are both expected to be directly involved in their health care together with the staff from the in-home healthcare agency. The elderly are taught how to make themselves well and remain that way.

Health Care Efficiency

By getting health services at home, the patient does not have to pay costs that usually come with a traditional health care setting, such as room accommodation, food, etc.

Dedicated Providers

Home care is given by people who feel it is their mission or calling in life. At the same time, home care workers are highly trained and knowledgeable. In most cases, it is a less expensive option -a mere tenth of the cost of equivalent hospitalization and a fourth of the cost of equivalent nursing facility care.

A Longer and Better Life

S. Home care does not only add years to the patient’s life, but also life to his years. Of course, not all in-home health care providers are created equal. This means the effects of selecting in-home care against facility care will mainly depend on the provider you pick. Spend time doing your homework to find the right one.
Finding Similarities Between Wellness and Life
6 Facts About Health Everyone Thinks Are True

What No One Knows About Resources

Easy Way To Become A Teacher

When you are still at a very young age, to experience to be young, it is hard to pinpoint the exact color that you want in your life. You will often times feel like you are left behind already by many people who already have an idea or an exact decision on what to become in the future. But in this problem you’re not alone so you don’t have to worry.

Most of the people will switch their choices of career five times right before three will get into college and again after they will graduate. Therefore, you need to take your time to find the right career since this one is a smart move that you will make in your life.

of course, it is possible that you already have shown some of the perfect career that you will get in the future for you. There are many people now who would prefer to become a teacher in the future as their ultimate career.

Patience is the most important trait that you need to have because this is definitely an asset to you. You need to be sure that you wait for the people to understand what are the things that you’re teaching and what are the things that you inculcate to them.

There are students who have different learning curve compared to other students that is why you need to remember this one when you’re teaching your students. Helping those students is definitely your essential wish and desire in your heart and do you need also to be creative in teaching them the lessons.

To find the most unique strategies in order to reach those students is what separated the best from the rest of the students. So, what really does it take to become a teacher to the students and how to be effective?

You must first get a college degree before you become a teacher and just be a desirable one when you will be conducting a demonstration. There are now many ways you can get the first in any subject that you would like in order for you to express your thoughts and ideas.

Experience is also important thing that will be considered to be A successful teacher. After completing your course, you will need to do some practical experience while you are working in your school. It is now your job to work in the school on some occasions and some they will give you the full responsibility to handle the class.

It will be now your chance to be able to determine your weaknesses and your strengths in teaching the students because as a training ground you will be able to determine in this practical experience the things that you need to master and the things that you need to do to be able to reach the students and give them the necessary lesson.

The Art of Mastering Marijuana

Can Marijuana Slow down Brain Aging?

As we grow older, our memory becomes poor. Those who smoke marijuana aren’t known for great memory, but a new study suggests that drugs that have components like marijuana’s active ingredients can hold promise for reversing or slowing down brain aging or even Alzheimer’s and other diseases that degenerate the brain.

Since the start of the decade, researchers have been studying the power of substances similar to marijuana that constitute the brain’s cannabinoid system. In experiments performed on animals, synthetic elements similar to THC, the main psychoactive component in Marijuana, have shown potential in maintaining brain functions. A study conducted in 2008 showed that a substance similar to THC lowered the inflammation and enhanced the memory in rats that were older.

The latest review shows that activating the cannabinoid system in the brain may trigger a type of anti-oxidant cleanse, eliminating damaged cells and enhancing the effectiveness of the mitochondria which is the main source of energy that powers the cells resulting in a brain that functions better. Research conducted formerly has linked cannabinoids to greater quantities of the neurotrophic factor derived from the brain. This chemical is the one which protects the tissues in the brain and enhances the development of new ones. During aging, new brain cells quit growing consequently, raising the BDNF could slow the decline in cognitive purposes. Activating the cannabinoid receptors can diminish the inflammation in the mind in various ways that may subsequently inhibit a number of these disease processes that cause degenerative brain diseases, for instance, Alzheimer’s.

Other studies have shown that mice that were not exposed to the cannabinoid receptors have good memory early in life but it declined rapidly as they aged. This finding reveals that at some point during the aging process, the cannabinoid process assisted the mice to maintain ordinary cognitive functions. The review though makes a disclaimer that there are no conclusive studies to support the idea that marijuana can improve brain functions among the elderly but it is a critical area of investigation.

Moreover, the research included in the review gave conflicting results. While some trials were carried out on cannabinoids for the treatment of Parkinson’s disease, the studies did not give a conclusive solution on whether cannabinoids give rise to the growth or progression of this disease.

There have been both political and societal challenges in carrying out the studies to ascertain the ability of marijuana in slowing down aging. This implies it might take some time to fill the gaps left by past research studies. Researchers are yet to conduct a concrete study to see if those that smoke marijuana will less likely develop Alzheimer’s. They’re also yet to compare the decrease in the cognitive ability of marijuana smokers to people who do not.

The Best Advice on Sales I’ve found

Factors To Consider When Selling A House When selling a home, you will find that it is never a simple process, however, you can get to ascertain that you will know of all that you have to do, which will mean that, you will have a better means of ascertaining that you will know of all that would work best or even that you will know of all that would get to work in your favour. Through getting to look for some means in which you can sell your house in no time, you will find that you need to make certain that it can be in the best condition if you will be counting on a buyer that would like to live I it, getting to ascertain that everything will be fixed will get to cost more, but it will get to be worth it. Likewise, you will find that if you will be counting on buyers, it would also get to work better when you have been able to know of a realtor who would ascertain that it can sell fast, meaning that, you would need to look for a realtor from the area, which will ascertain that the clients will get to consider looking at the house and also that they will get to make their decisions which will ascertain that after a while, it can get to be sold.
The Art of Mastering Options
However, if you do not want this, you can get to dive directly into an investor, you will find that their main goal will be attaining the property, which will mean that, they will not get to live in it, they will therefore never mind the conditions of your home as long as you will all be able to agree on a price.
Why People Think Sales Are A Good Idea
This will be the main consideration which you will have to make, thus being able to ascertain that you will know of all that you would need and also that you will have a better means in which you will be assuaged, when you have been able to reach an agreement when it comes to the price, you will find that you will get to attain the cash in no time and also that you will have sold your home much faster. Therefore, you will find that it will get to be better when you take some time to consider all that you would need to do, meaning that, getting to look for a few investors and getting to know of the one who would offer the best deal, this will, therefore, necessitate for you to know how it is that you can use the internet.

Questions About Funds You Must Know the Answers To

Things that You Should Know Regarding Personal Loans

Are you thinking about getting your house renovated but you don’t have enough money to do this? Through the idea of personal loans, then you don’t need to be anxious about this anymore. Personal loans are offered by the banks which allow you to make use of the amount of money that you need for personal use like when you have to spend for immediate debt or in order to clear the unforeseen expenses.

The concept can seem to be quite lucrative, getting approved is not really easy. In order to be qualified for this loan, there are some things that one must follow. Thus, when you would plan to submit that application for the loan, there are particular things that you have to remember.

The loans aren’t secured. Such loan won’t require an asset to be kept as collateral for the amount of money lent. However, when one is not able to repay the loan, the bank will get the asset such as the house, car or property. In several cases though, if the defaulter doesn’t have any asset to give in exchange for such loan, it will be difficult for the bank to obtain the money bank. In this kind of situation, the bank may file for a legal suit against you to have the legal proceedings.

Be aware that the personal loans also have a fixed amount. The amount will have to depend on the borrower’s income as well as the discretion of the lender. This will actually be based on the borrower’s credit score. Know that the credit score is actually the measure to get an idea about one’s income that allows the lender to decide on the amount to be provided as a loan. Some banks would limit the amount that the provide.

You should also understand that the rate is actually fixed. The interest is decided on the borrower’s credit score. In the best situation, the interest rate must be less which would let you repay the loan for a lower cost. A very important fact when it comes to such personal loan is the rate of the internet that would be fixed on the duration of the loan. However, some of the banks are offering loans at variable interest and such would make it difficult for the borrower to repay the amount.

One must try to get the loan for the bank where one has a savings account with. This is because of the reason that it would be a lot easier to have the loan approved. One should be careful when applying for one as there are several scams which would happen.

Why Is Eric Sprott A Uranium Bull?

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Eric Sprott may be Canada’s answer to Warren Buffet. He’s got the Midas Touch and currently manages more than $3 billion. We talked to Eric Sprott about uranium and why he is bullish on nuclear energy. His funds have been one of the leading investors in uranium stocks, riding the crest of a rocket ride upwards in the spot price of uranium.

investing, stocks, uranium, mining, oil, gold, utilities, nuclear energy, commodities, bull market, labor shortage, drill rigs, exploration, geologist

Eric Sprott may be Canada’s answer to Warren Buffet. He’s got the Midas Touch and currently manages more than $3 billion. We talked to Eric Sprott about uranium and why he is bullish on nuclear energy.

Interviewer:
Uranium had been inching higher from 2001 until a year ago. Since then, it has soared up the price chart. What is a realistic price for uranium and how high can you envision it reaching?

Eric Sprott:
There is obviously a shortage between current mine production and current uranium consumption. In order to correct that imbalance, it would have to be economic to open up new deposits. I’m not suggesting that it (uranium) has to go to $100 to become economic. I don’t think that’s true. Probably at $50, it becomes very economic. The reality is that we’ve been so slow in getting started that I think the whole nuclear industry will ultimately prove to be the key energy source of the future. With demand today at 170 million (pounds), who knows? It might be 300 million pounds in twenty years. The argument in the article we wrote is that based on the previous peaks, prices if you put a normal inflation rate on it, it would equate to something like $100. So, it’s not that far fetched that we might get there.

Interviewer:
If it takes four or five years, or up to a decade, to get a nuclear reactor going, why are the Chinese building so many so quickly?

Eric Sprott:
Because they’ve been doing it right. One of the nice things about a centrally organized government is they deal with big issues. Obviously, China has a big issue in energy. If you were sitting over there, you would realize, ‘My god, we’re starting to import two million barrels of oil. We used to export coal and now we don’t export coal. What are we going to do if our growth rate continues to grow at eight or nine percent per year? How much power are we going to need? And where is it all going to come from when there are already shortages of the two most commonly used energy sources in the country?” The option you fall back on is, ‘Well, let’s go nuclear. We have to go into all of them.?And of course, now they’re predicting two nuclear reactors every year for the next ten years. Who knows? Maybe five years from now, that will be four reactors every year. Perhaps when we all realize the extent of the energy shortage.

Interviewer:
How is this going to be sold to North America and Europe in the wake of Three Mile Island and Chernobyl?

Eric Sprott:
The way things might change is now that we have $50 oil, and the price is almost going up in an unlimited fashion. Now that we’ve got coal at double and uranium that’s gone up, people might finally realize there is not an infinite supply of certain things that we rely on. And that we might have to take a more pragmatic view of the nuclear option. I’m sure that is exactly what certain countries, including Japan, China and France, have done. The other thing is that there is a new reactor where you can’t have a meltdown. I’m not technically strong enough to explain it. The uranium is in graphite spheres, and they won’t melt down unless temperatures reach 2000 degrees. The highest it ever goes to is 1600 degrees so it’s just not going to melt down. It doesn’t matter if things are out of control. They won’t break down. If that kind of assurance were accepted by the public ?if someone could prove that that was the case ?I think the nuclear option would be an incredibly viable option. Another thing that would make people think differently would be having brownouts for a while, or hyperinflation because of the shortage of coal, natural gas, and diesel fuel. If we had brownouts for a while, and of course they have brownouts in China, which is probably why they are proactive in moving nuclear along.

Interviewer:
How realistic is the global energy crisis moving toward a Hubbert’s Peak, an energy scenario from the year 1970?

Eric Sprott:
My view is that it seems very realistic. I think it is very important that we do go back to 1970. Look at the fact that Hubbert said in 1956 that 1970 will forever peak out (in terms of energy production). Lo and behold, it peaked out! It almost goes down every week in the United States. Almost every week, there is a little less production. This is now with very high oil prices. It looks like his theory, for the geographical area called the United States, worked. Do we think it is going to work in the world? I tend to believe it is. I believe there are projections for Great Britain, which I think are at about 4.2 million barrels/day right now, that in ten years from now, will be down to 700,000. That’s what happens when fields go into decline. They go down, and you can not resuscitate them. Everyone who studies the topic knows that no significant discoveries have been made since the 1960s. What I mean by significant are giant oil fields ?like Ghawar. For example, people now consider a 100-million barrel field a big deal, and 500 million is great. Well, one hundred million is like 1.2 days of world’s supply, and 500 million is eight days supply. You have got to find a lot of those every year. We don’t find them. We have hardly found anything. The Caspian Sea? I am guessing it is 500 to 700 million. It’s the one thing we point to, the thing in the Caspian Sea, which we have been pointing to for the last three years. Let’s say it is 800 million barrels, it is ten days?supply. It’s nothing.

Interviewer:
There have been some pretty incredible estimates as to how high oil can go. The highest we’re read of stands at $182 for a barrel of oil and $15 per gallon of gasoline. Your comments?

Eric Sprott:
When you get into any commodity, where there is a bonafide shortage, there is no limit on the price. There is hardly any limit on the price. Because that last guy still wants that last barrel of oil. I always say, when a commodity is starting to break loose, ‘Never put a ceiling on it because you never know where it is going to go.?You look at what is going on in the world oil situation. If I was (in charge of ) certain countries, I would probably be changing what I’m doing. You can see China going throughout the world signing agreements with countries to assure oil supplies. It’s a government mandate to go out and secure their supplies. I think people at the government level realize, ‘We have issues here that we have to solve. If we don’t have assurance of supply, what happens??One thing about Hubbert’s Peak that most people don’t go to is the economic impact. Forget the price of oil. What if we produce 83 million barrels today, and in 25 years we have 55 million barrels? What is the world going to do? Do we just have to shut down economies because we don’t have a replacement for hydrocarbons?

Interviewer:
Do you think the world governments are prepared for this?

Eric Sprott:
Not at all. They show no interest. In fact, I would say one of the real problems with the democratic process is, unfortunately, too much time is spent thinking about politics. Hardly any time is spent planning for the future.

Interviewer:

On uranium, you recommended a number of uranium companies in your special report. Cameco (NYSE: CCJ) seems to be the one many recommend. Other uranium companies seem to be in the exploration or the more speculative category, and now have some momentum because of the bull market in uranium. How strong are the fundamentals in those companies?

Eric Sprott:
I think the fundamentals for some of the companies are spectacular, quite frankly. It’s interesting for us because we had the same thing happen in gold, when the price of gold was $250. We tried to imagine what we should buy if, and when, gold went to $400, which we thought it would, or $500 or higher. The real opportunity always lay in, ‘We’ll find someone who has a large resource that is uneconomic today, but if you move the price up, it becomes quite economic.?I would say Strathmore (TSX-V: STM). They have a large resource already identified. In fact, they are acquiring properties all the time that were identified years and years ago. Yet, at $20/pound uranium, they probably don’t make any sense. But, at $40/pound uranium, they are likely to make tremendous economic sense. Of course, the value of the shares can almost ?not go up exponentially ?but they can go up a lot. You finally tip over that breakeven level, and everything after that is profit. We had an analogy like that in gold area, where one guy went out and bought all these deposits that would make sense at $400 gold. The stock has been a tremendous winner. I think it is up 500 percent. I think the same can happen in uranium. That’s why we go to Strathmore and UEX (TSX: UEX). There are a couple drilling in Saskatchewan: JNR Resources (TSX-V: JNN) and International Uranium Corporation (TSX: IUC).

Interviewer:
How do you feel about precious metals?

Eric Sprott:
We feel pretty good about precious metals. We’ve been pretty bullish for quite a while now. We have liked the fundamentals for gold for a long time for any one of ten different reasons. The one reason I fall back on, that gives me tremendous comfort, is the fact the world consumes 4,000 tons of gold per year, but mine production is 2,500. Anybody who uses any bit of logic knows, in due course, the price will go up to reflect the imbalance between demand and supply. I don’t care how much gold Central Banks sell, ultimately they are going to have no gold. I think people realize that Central Banks have made a big mistake selling their gold.

Interviewer:
The China card keeps driving global commodities as they bring their country more technology. How do you feel about the base metals?

Eric Sprott:
We haven’t really gotten involved in the base metals. One of the reason we haven’t gone there is we have believed we are in a secular bear market, and there could be a financial implosion. In that kind of scenario the base metals don’t do well. But the precious metals can provide safety. That’s the distinguishing mark we make between the two. On the China thesis, the demand for all of these things would go up. Our problem is we still expect some fallout in the financial arena, which ultimately would even affect China. We feel more comfortable with the precious metals, and we feel more comfortable with energy. Simply, energy demand in an economic implosion is pretty inelastic. It doesn’t fall off the table. Demand for zinc, lead, copper, and aluminum can fall quite precipitously if there was an economic slowdown.

Interviewer:
Are you expecting an economic slowdown?

Eric Sprott:
Absolutely, yes. We might be in it now. There are certainly lots of signs that there is not much robustness in the U.S. economy. I have some very strong views as to what should ultimately happen in the U.S. My views are predicated on the fact that the government reports a deficit of $400 billion, but there are also government reports that suggest, on a GAAP accounting basis, that the true deficit in 2003 was $3.4 trillion. We can all ignore it, and everyone has ignored it. But, the reality is that the liabilities are accruing for Social Security and Medicare in the U.S. at a tremendous rate. There has been no provision for it. There was a paper released by the U.S. Treasury Department about a year ago that said the present value of their obligations, that are not funded, is $44 trillion. Again, we can choose to believe it or not believe it. I happen to believe it. I made the point that politicians are in it to be re-elected, and they are not dealing with the real issue. The real issue is they are making promises to their citizens that they can’t keep. And they’re not going to keep them. I would hate to be a retired person or a young person in the U.S. Somebody is going to have to bear the brunt of all these funding issues that haven’t been taken care of. Beginning in 2008, the baby boomers start collecting these things. That’s a real cash problem. Before, it was just a bookkeeping problem. You’ll have a huge influx of people collecting their Social Security and getting free Medicare. It’s got to be funded. Anyone who’s looked at the problem has agreed that no one has done anything about funding it. You have to cut what your promises were, which is what all the European governments are now trying to do. They’re all cutting back on the pension. Most companies are cutting back on them because they can’t fund them. The trend is in place here: What we thought we were going to get, we’re not going to get it. Am I bearish? Gosh, we’ve had forty years of living off of savings that were supposed to be saved to provide this future. It was all spent. Everyone just chooses to ignore it.

Eric Sprott

Founder and Chairman of Sprott Securities Inc., Toronto, one of Canada’s consistently top-ranked investment firms. After earning his designation as a Chartered Accountant, Eric entered the investment industry working in research as well as institutional sales. In 1981, Eric founded Sprott Securities Limited (now Sprott Securities Inc.) which, under Eric’s leadership, has become one of the most successful investment firms in Canada.

Eric Sprott has established himself as a clear leader in Canada’s investment community. With over 30 years of industry experience, his expertise at making predictions on the market and recognizing investment opportunities with superior growth potential have been proven many times over. His investment abilities are clearly demonstrated by the excellent performance track record of Sprott Managed Accounts, Sprott Canadian Equity Fund and the Sprott Hedge Fund L.P.

At the 2003 graduation, Eric Sprott, President, Sprott Securities Ltd. and Carleton alumnus for whom the Sprott School of Business was named after, was awarded a Doctor of Laws, honoris causa by Carleton University in recognition of an outstanding career as an entrepreneur, investor and philanthropist.